Sandra smalley

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Program and Project Management

Policy Development

Overview and Rationale

Sandra Smalley

Office of the Chief Engineer

Used with permission

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Objectives of Session

Provide: • A high-level overview of recent policy

developments• An understanding of the purpose of

the selected developments• A preview of some upcoming policy

developments

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Recent Policy Developments

Overview

Pre-

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Policy Developments2007

• NPR 7120.5 D - NASA Space Flight Program and Project Management Requirements

“This revision of NPR 7120.5 is part of a realignment of governing documents within NASA designed to increase accountability and general clarity in the flow-down of management process requirements.”

• NPR 7123.1A - NASA Systems Engineering Processes and Requirements

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• NPD 1000.0A - Governance and Strategic Management

• NPR 7120.7 - NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements

• NPR 7120.8 - NASA Research and Technology Program and Project Management Requirements

• NPR 8000.4 - Agency Risk Management Procedural Requirements

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• NPD 1000.5 - Policy for NASA Acquisition

• NPR 7120.5D - NID

• NPD 7120.4 - Program/Project Management

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Policy DevelopmentOther Supporting Work

Handbook development • The SRB Handbook • The Risk Management Handbook • NPR 7120.5 Handbook • WBS Handbook • Cost Estimating Handbook • Schedule Management Handbook

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Policy Development Why all the activity?

• Improve program/project performance against external commitments (real and perceived)

• More effectively support programs and projects by improving and tailoring policy, processes, and requirements– Recognize the multi-center environment in many

programs and projects. This includes giving more attention to common principles, terminology, and practices while recognizing the differences that exist in Center processes and historic practices.

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Improving Agency PerformanceApproach

• Employ a sound approach to Acquisition – NPD 1000.5

• Ensure early and continuing alignment of program project planning and budget process– Strategic planning meetings – NPR 7120.5D NID

– PPBE process with annual portfolio review

• Establish the proper set of requirements

• Establish a life cycle process that keeps the program/project on track

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Selected Policy Developments

• Acquisition• Establishing the proper set of requirements• Space Flight and IT

Baseline PolicyJoint Confidence Level (JCL) Policy

• Preview of NPR 7120.5 Rev E

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Selected Policy DevelopmentsAcquisition – Definition (NPD 1000.5)

Acquisition is the process for obtaining the systems, service, construction, and supplies the Agency needs to fulfill its mission.

Acquisition, which may include procurement (contracting for products and services), beginswith an idea or proposal that aligns with the NASA Strategic Plan and fulfills an identified need and ends with the completion of the program or project or the final disposition of the product or service.

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Selected Acquisition Policy (NPD 1000.5)

• Meet programmatic, institutional, technical, cost, and schedule commitments

• Base acquisition on realistic cost estimates and achievable schedules

• For space flight and IT, Agency commitments are to be based on the budgeted cost and schedule associated with the confidence level approved by the decision authority.

• Programs and projects are to be annually reviewed by the responsible Mission Directorate or Mission Support Office to confirm to the decision authority that their current baseline life cycle cost estimates, funding strategy, and the annual NASA budget submissions are consistent.

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Establishing the proper set of requirements

• Good requirements that are properly managed are essential to any successful undertaking.

• 7120 Series NPRs focus programmanagement requirements on specific product lines.

• Tailoring Principles provide a means to adjust prescribed requirements to a specific task (e.g., a program/project).

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Tailoring - Definition

Tailoring - the process used to adjust or seek relief from a prescribed requirement to accommodate the needs of a specific task or activity (e.g., program/project)

The Tailoring process results in the generation of Deviations and Waivers depending on the timing of the request.

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Tailoring Principles

• The organization at the level that established the requirement approves the request for tailoring of that requirement unless this authority has been formally delegated elsewhere.

• The involved management at the next higher level is informed in a timely manner of the request for tailoring of a prescribed requirement.

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Policy Selected Developments




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Space Flight and IT – Baseline and JCL

• SMC baseline and JCL policy discussions date back several years.

• The concept and details continue to evolve.

• A number of changes and implementation details are being considered for NPR 7120.5 Rev. E.

Perspective

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Baseline PolicyGoal

Improve the cost and schedule performance of programs and projects by improved planning based on the integration of cost, schedule, and risk

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Joint Cost and Schedule Confidence LevelDefinition (Simplified)

The probability that cost will be equal to or less than the targeted cost and theschedule will be equal to or less than the targeted schedule date.

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Joint Bivariate Cumulative Probability Distribution of Cost and

Schedule

21Cost (x) ($M)

Schedule (y) (Months)

Probability

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Current Policy

• Policy applies to Space Flight and IT programs and projects in implementation.

• Programs/projects are to be baselined or rebaselined based on a joint cost and schedule probabilistic analysis.

• Programs - Baselined or rebaselined at a confidence level of 70 percent or the level approved by the decision authority

• Projects are to be baselined or rebaselined at a confidence level consistent with the program's JCL.

• Projects - As a minimum, funded at a level that is equivalent to a confidence level of 50 percent or as approved by the decision authority

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Current Policy (Cont.)

• Programs in extended operations generally are not required to develop a JCL, but new or upgraded capabilities while in ops will require a JCL.

• Program and project proposed cost and schedule baselines will be assessed by an independent review team.

• External commitments will be based on the JCL approved by the decision authority.

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Baseline Policy

• Commitment Baseline – Basis for commitments to OMB and Congress

• Management Baseline – Basis for program/project execution and strategic management process reporting

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Commitment BaselineKey Attributes

• It is an integrated set of project requirements, cost, schedule, technical content, and agreed to JCL that forms the basis for NASA’s commitment to OMB and Congress.

• It is established at the Key Decision Point (KDP) that initiates the Implementation Phase.

• The Commitment Baseline is the only officialNASA baseline for a project.

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Unallocated Future Expenses (UFEs)Needed to understand Management Baseline

Unallocated Future Expenses -The portion of estimated cost required to meet specified JCL that cannot yet be allocated to the specific project WBS sub-elements because the estimate includes probabilistic risks and specific needs that are not known until these risks are realized.

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Unallocated Future Expenses (UFEs) (Cont.)

• The term ‘UFE’ was established to make it clear that (based on experience) these funds are expected to be required to complete the projectbut cannot yet be allocated to a specific WBS activity.

(The UFE concept is consistent with the non-deterministic nature of joint cost and schedule estimates based on probabilistic analysis.)

• All UFE are included in the commitment baseline and the project’s budget.NOTE – The relationship of UFE to Commitment and Management Baselines is illustrated in an upcoming slide.

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Management Baseline - Key Attributes

• An integrated baseline (set of requirements, cost, schedule, technical content, and associated JCL) that forms the foundation for program/project execution

• The Management Baseline is established at the Key Decision Point (KDP) that initiates the Implementation Phase as approved by the decision authority.

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Management Baseline Key Attributes (cont.)

• The program Management Baseline is the aggregate of the project Commitment Baselines plus program operating expenses.

Similarly, the project Management Baselineequals the Commitment Baseline less any portion of UFE not released to the project for project execution.

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Project Management Baseline(Project Execution)

Project Commitment Baseline(External commitments)

This UFE is controlled by the Program/MD

ProjectManager Control

UFE

Not to scale.

Relationship of UFE to ProjectCommitment and Management Baselines

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Project -1 Project -2 Program

ProgramOperatingExpense

Project Management Baseline

UFE Held by Program

Program Management Baseline

Program and Project BaselinesTotal Baseline Cost

Project -2

UFE Held by Project 1




Project -1

Project Commitment Baseline

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The Rev E development is in its early stages.This preview should be viewed as both notional and pre-decisional.

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Rev. E Development Charter

• Build on the NID• Issue Rev. E before the expiration of the NID• Fully vet and resolve policy issues raised but not

resolved during the NID development• Incorporate:

– Any additional changes in NASA policy and practice,

– Findings from OCE survey process and other audits

– Lessons learned

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Rev. E Development Charter (Cont.)

• Ensure proper flow down from NPD1000.0A, and NPD 1000.5

• Address inconsistencies among fundamental OCE documents. The primary focus will be on NPR 7120.5, NPD 7120.4, NPD 1000.5, and NPR 7123.1A.

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Rev. E Development Working Groups

• Life Cycle Review• Baseline Policy• JCL Clarify • Highly Specialized IT - Cover from PM’s perspective• NPR 7123 – NPR 7120.5 – Inconsistencies and review

criteria• Requirements Relief – e.g., Batch processing• Ops and Program and Project Reviews – Streamline

reviews• OSMA Issues – Misc.

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Rev. E Development Life Cycle Review

KDP B to KDP CPhase B

(Preliminary Design and Technology Completion)

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Current Project Life CycleArea of Focus - KDP B to KDP C

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KDP B to KDP COverview

Conduct IBRsand update JCL

ILCR

KDP C

PDR Readiness Assessment

PDR

Phase A Phase B

Checkpoint to DA(If a significant

change occurs or the interval from the ILCR

exceeds 6 months )

Prerequisite for locking down the date of the PDR

and ILCR

Technical baseline with

cost, schedule, and risk

information

Integrated review of programmatic

baselines integrated with technical

baseline updates

Implementation

KDP B

Formulation

Periodic SRB Involvement as Appropriate

P/pBrief

CenterBrief

MDBrief

Not To Scale

Phase C

This preview should be viewed as both notional and pre-decisional.

Post Review Reporting to DA

PDR-Based

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Single Project and Tightly Coupled Programs

ILCR

KDP IIAssessment of

plan to take projects to KDP C

PDR

Program

Implementation

KDP 1


Not To Scale

Start of projects

Projects

PDR ILCR

ILCRPDR

ILCRPDR

Readiness assessment




Checkpoint if significant changeor 6 months

KDP C

Assessments and Checkpoints

This preview should be viewed as both notional and pre-decisional.

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Rev. E DevelopmentSchedule

First Rev E development meeting – 10/09

NID Expiration – 9/10

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Concluding Remarks

• The intent of policy developments is to improveAgency performance.

• If you view that the resulting processes do not add value … don’t just tolerate it… or worse yet ignore it…provide feedback to the office responsible. They want your feedback.

• Get involved in your office/Center’s process for providing input during the policy development process. This input is highly valued.

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Backup

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