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The Performance Measurement Baseline is the "anchor" of any successful project. It tells the story of what is being developed, how much it will cost, when the work will be performances, and when the deliverables - that produce the value of the project - will be available for use
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Copyright 2011©, Niwot Ridge, L.L.C. All Rights Reserved
ESTABLISHING THE PERFORMANCE MEASUREMENT BASELINE (PMB)
AACE WORKSHOP DENVER, COLORADO APRIL 16TH, 2011
The Performance Measurement Baseline is a time–phased schedule of all the work to be performed, the budgeted cost for this work, and the organizational elements that produce the deliverables from this work.
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Credible ! Capable of being credited or believed.
Performance … Accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed.
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Measurement … Values made meaningful by quantifying into specific units.
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Clearly defined starting point (point of departure) from where implementation begins, improvements judged, or comparison is made.
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
" Construct the Performance Measurement Baseline from the Work Breakdown Structure.
" Assign performance measures to Work Packages.
" Assign probabilistic measures of performance to the network of Work Packages.
" Use this information to make decisions.
Today We Will Learn The Steps Needed To …
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
The Overall Context Of Building The Performance Measurement Baseline has 4+1Major Activities.
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Identify Needed Business
Capabilities
Establish a Performance Measurement
Baseline
Execute the Performance Measurement
Baseline
Capabilities Based Plan
Business Value Stream
Earned Value Performance
Technical Performance
Measures
Business Value Stream
Technical Requirements
Establish a Requirements
Baseline
Technical Performance
Measures
4
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
The Performance Measurement Baseline is really 3 baselines – Technical , Schedule, and Cost.
Cost Baseline
Schedule Baseline
Technical Baseline
Perform Functional
Analysis
Determine Scope and Approach
Develop Technical
Logic
Develop Technical Baseline
Develop WBS
Define Activities
Estimate Time
Durations
Sequence Activities
Finalize Schedule
Identify Apportioned Milestones
Determine Resource
Requirements
Prepare Cost
Estimate
Resource Load
Schedule
Finalize Apportioned Milestones
Determine Funding
Constraints
Approve PMB
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
The core elements of the Performance Measurement Baseline (PMB) …
… Are a collection of Work Packages, that define: ! The deliverables that fulfill the needed requirements
and project capabilities, ! The estimated duration and work effort for each Work
Package, ! The resources needed to produce these deliverables
within the needed time period, and ! Any dependencies – internal or external – needed to
start a Work Package.
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Let’s Build a BSL Level 4 Laboratory
Deliverables Based Planning Handbook for A&D, Copyright © 2008, 2009, Lewis & Fowler
Decompose the Project Scope into a product based Work Breakdown Structure (WBS), then further into Work Packages describing the production of all deliverables traceable to the requirements
Decompose Scope into Work
Packages
Assign Responsibility to Work Packages (the groupings of deliverables) for the named owner accountable for the management of resource allocation and cost baseline and technical delivery
Assign Responsibility for Deliverables
Arrange the Work Packages in a well formed network with defined deliverables, milestones, internal and external dependencies, appropriate schedule and cost margin.
Arrange Work Packages in Logical Order
Develop a Time–Phased Budgeted Cost for Work Scheduled (BCWS) from labor and material costs in each Work Package and the Project as a whole. Assure proper resource allocations can be met and budget profiles match expectations of the project sponsor
Develop BCWS for Work
Packages
Assign object Measure of Performance (MOP) and Measures of Effectiveness (MOE) for each Work Package and summarize these for the Project as a whole
Assign WP Measures of Performance
Build a time–phased network of schedule activities describing the work to be performed, the budgeted cost for this work, the organizational elements that produce the deliverables, and the performance measures showing this work is proceeding according to plan.
Establish the Performance
Measurement Baseline A Baselined Schedule that Creates the Services or Products to Meet The Requirements
3.0
3.1
3.2
3.3
3.4
3.5
Establish a Performance Measurement Baseline (PMB) used to forecast Work Package and Project ongoing and completion cost and schedule metrics
Set Performance Measurement
Baseline
3.6
The information contained in this document is proprietary to Lewis & Fowler
7
1 Decompose Scope Into
Work Packages
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Capabilities, Requirements, WBS, and Work Packages are connected to define “Done.”
Business Capability Construct BSL Lvl-4
Bio Laboratory
1st Level BSL Lvl-4 design
basis
1st Level Bio product process
design basis
2nd Level Product storage
2nd Level Product Inventory
2nd Level Materials Handing
2nd Level Isolation processes
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3.1
Dec
ompo
se S
cope
into
WPs
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Connect the WBS to Work Packages (WP), then define the Tasks for the Deliverables to produce Value.
Business Need Build and Manage the
Bio Lab
1st Level BSL Level 4 Design
Basis
1st Level Bio product process
design basis
2nd Level Product Storage
2nd Level Product Inventory
2nd Level Materials Handing
2nd Level Isolation processes
Deliverables defined in WP
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3.1
Dec
ompo
se S
cope
into
WPs
2 Assign
Responsibilities
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Assign accountability for each component of the Work Package.
# Each Work Package has a single owner who is accountable for: ! Defining the deliverables ! Assigning resources ! Balancing the resource usage ! Defining the Earned Value measurement criteria ! Identifying any apportioned milestones ! Reporting physical percent complete
# Name this person in the Work Package and the Master Schedule
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3.2
Ass
ign
Resp
onsib
ilitie
s
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Assign The Responsibilities And Make A Single Person Accountable
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3 Arrange
Work Packages
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“Arranging” the Work Packages Is An Iterative And Incremental Process
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3.3
Arr
ange
WPs
with
Wor
k St
ream
s
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Identify the Predecessors and Successors between Work Packages to sequence the work effort.
# Give some thought about the sequence of the Work Packages, ! What deliverables come first? ! What deliverables come next?
# The reason for this should be obvious. # Use a Work Authorization (WA) processes to
keep the sequence of work intact.
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3.3
Arr
ange
WPs
with
Wor
k St
ream
s
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Start with a “notional” arrangement of the “Chunks” of work within a Workstream
# WPs should have No intermediate connections or outcomes.
7w
7w
5w
5w
1w 3w 3w
3w 2w
7w
5w
# Long running WPs with negative or positive lags to maintain sequencing.
# Break the WP into separate deliverables and sequence Finish to Start.
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3.3
Arr
ange
WPs
with
Wor
k St
ream
s
4 Develop Budgets
For Work Packages
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Develop a time–phased budget from the network of Work Packages based on resource loads
Duration of the Work Package
Bud
get
Duration of the Work Package
Bud
get
Duration of the Work Package
Bud
get
Duration of the Work Package B
udge
t
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3.4
Dev
elop
Bud
get f
or th
e W
ork
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Balance All The Work Packages Across The Project Before Setting The Baseline
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Cost, Schedule, Technical Model†
WBS
Task 100
Task 101
Task 102
Task 103
Task 104
Task 105
Task 106
† This is a Key concept. This is the part of the process that integrates the cost and schedule risk impacts to provide the basis of a credible schedule.
Probability Density Function
" Research the Project " Find Analogies " Ask Endless Questions " Analyze the Results " What can go wrong? " How likely is it to go wrong? " What is the cause? " What is the consequence?
Monte Carlo Simulation Tool is Mandatory
1.0 .8 .6 .4 .2 0
Days, Facilities, Parts, People
Cumulative Distribution Function
Days, Facilities, Parts and People
3.4
Dev
elop
Bud
get f
or th
e W
ork
5 Assign
Performance Measures
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Identify objective measures of performance for each Work Package
# Define the Planned Value (BCWS) for each Work Package completion or apportioned milestone within a Work Package.
# Only Physical Percent Complete should be used to measure progress – no “opinions” of progress.
# Answer the question, ! How are we going to recognize that progress is being
made? ! The passage of time and consumption of resources is NEVER
a measure of progress.
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3.5
Ass
ign
Perf
orm
ance
Mea
sure
s
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Assign BOE data for measuring performance of the Baseline before actually building the schedule
# The contents of the Work Packages. # The person accountable for the Work Package. # The Earned Value method. # The cross plan dependencies. # Any value stream attributes.
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3.5
Ass
ign
Perf
orm
ance
Mea
sure
s
6 Set
Performance Baseline
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Copyright Lewis & Fowler 2011 ©, All Rights Reserved
Baseline the schedule to establish the planned budget spreads for each Work Package
# Baselining the Performance Measurement Baseline (PMB) is the first step in successfully of Executing the project plan.
# Without the baseline and the rigorous change control over the baseline, the needed credible performance predictions will be not possible.
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3.6
Set P
erfo
rman
ce B
asel
ine
Copyright Lewis & Fowler 2011 ©, All Rights Reserved
" Lack of predic-ve variance analysis.
" Un-mely and unrealis-c Latest Revised Es-mates (LRE).
" Progress not monitored in a regular and consistent manner.
" Lack of ver-cal and horizontal traceability cost and schedule data for correc-ve ac-on.
" Lack of internal surveillance and controls.
" Managerial ac-ons not demonstrated using Earned Value.
" InaDen-on to budgetary responsibili-es.
" Work authoriza-ons that are not always followed
" Issues with Budget and data reconcilia-on.
" Lack of an integrated management system.
" Baseline fluctua-ons and frequent replanning.
" Current period and retroac-ve changes.
" Improper use of management reserve.
" EV techniques that do not reflect actual performance.
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Mary K. Evans Picture Library
3.6
Set P
erfo
rman
ce B
asel
ine
The Train Wrecks Starts When There is… 31/34
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Glen B. Alleman Niwot Ridge Consulting
4347 Pebble Beach Drive Niwot, Colorado 80503
303.241.9633 [email protected]
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