Suzanne West Lockheed Martin Jim Hoshstrasser Northrop Grumman Mike Brooks BAE SYSTEMS 18 November 2002 Tysons Co - PowerPoint PPT Presentation

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Suzanne West Lockheed Martin Jim Hoshstrasser Northrop Grumman Mike Brooks BAE SYSTEMS 18 November 2002 Tysons Co PowerPoint Presentation
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Suzanne West Lockheed Martin Jim Hoshstrasser Northrop Grumman Mike Brooks BAE SYSTEMS 18 November 2002 Tysons Co

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  1. 14th Annual IPM Conference Weekly Earned ValueF-35 Approach Suzanne West – Lockheed Martin Jim Hoshstrasser – Northrop Grumman Mike Brooks – BAE SYSTEMS 18 November 2002 Tysons Corner, Virginia

  2. Introduction • Weekly EV Has Provided Value Through the Early Mitigation of Cost, Schedule, and Technical Risk Result Higher Probability of Achieving Program Plans

  3. Weekly Earned Value Agenda • Weekly EVM as a Value Added Mgmt. Tool • F-35 Team – Weekly EV Approach • Lessons Learned

  4. Weekly EVMS as aValue Added Management Tool

  5. Proactive Measurement of Achievement of Detailed Plans 1 Sustained Focus on Key Program Events (IMP/IMS) and Risks 2 Weekly Management Review Ensures Corrective Action at the Earliest Possible Time 3 WEV – Value Added Management Tool

  6. Is Not Is • A Financial Report • A weekly CPR • Closing the Books on a Weekly Basis • A Weekly Status of Total Contract $ Cost • A Requirement for More Detailed Schedules (e.g., Weekly Milestones) • A Program Management Tool • Weekly Measurement of Direct Labor EVM in Hours – No Surprises • A “Quick Look” at Labor Variances, Indices and Trends • Integrated With the Overall EVMS Processes and Data • A Continuous Engagement of Program and IPT Leaders in EVMS What is Weekly Earned Value? Coordination Among Teammates & Suppliers Essential

  7. Weekly Performance Assessment Improves Program Management Insight Month 1 Month 2 Month 3 Problem Point Data Reflects Problem Problem Researched Cause Identified Corrective Action Implemented Data Validates Problem Corrected Monthly 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Monthly Performance Assessment Cycles Earliest Visibility Weekly Data Reflects Problem Issue Researched Cause Identified Corrective Action Implemented Data Validates Problem Corrected Value Added Weekly Performance Assessment Cycles Weekly Assessment Shortens the Cycle for Problem Identification, Corrective Action, Problem Resolution, and Validation

  8. Do You Already Have the ToolsAvailable to Implement Weekly EV? • Do You Do Job Order Costing? • Do You Have Manufacturing Standards? • Do You Have Systems Which Provide Hourly, Daily, Weekly Information – Including Labor? • Do You Status BTPs Daily, Weekly Already? • If you Already Have these Tools / Processes, the Only Changes to Existing Processes for Weekly EV are: – IPTs/CSIs Assess Progress Against Milestones, CPI/SPI Variances that have Penetrated Thresholds, and Required Corrective Action/Explanations Weekly -- Develop Interfaces for Cost/Schedule Systems

  9. Weekly EVMS Implementation Cost • Non-Recurring Cost: • Development of Interface(s) to Weekly Database • Initial EVMS/Weekly Hands-on Training • Recurring Cost: • Periodic Training • CSI Resource(s)? • Time Spent on Weekly Performance Assessment • Up-Front Planning Requires Minimal Additional Costs • Floor Systems and Accounting Systems Already Provide Most of the Required Information • IPTs / Business Management Personnel Already Having Weekly Reviews of Data

  10. Weekly EVMS Requirements/Constraints • Requires Upper Management Commitment & Leadership • Training for IPTs and CSIs (Cost/Schedule Integrators) • Appropriate Up Front Planning and Occasional Re-planning • Disciplines Team Leaders to Make Weekly Assessment of Earned Value • Requires Strong Business Management Support to Integrate Data Our WEV Approach Adopted Best Practices

  11. F-35 JSFWeekly EV Approach

  12. F-35 EVMS Approach • True “Partnering” Relationship with Teammates • Enable Real Time Cost/Schedule Data to the Entire Teams and Customer • Include Major Critical Suppliers • Manage as True IPTs – Irrespective of Company’s • “JSF First” • “Best Athlete” Manages Team • “Disney Friendly, FEDEX Fast” • Risk Reduction Approach We Are Committed to Managing the JSF SDD Contract Using Weekly Earned Value Including Major Critical Suppliers

  13. Global Communication • Use Time Zones as an Advantage • Establish Process That Utilizes Extended Working Day • Manage Meeting Times / Appropriate Involvement • Utilize e-mail / Net Meetings / Telecons / File Transfer Wherever Possible 06:00 12:00 18:00 00:00 CST BAE SYSTEMS LM Aero (Ft Worth) NGC Data Review Data Exchange Meetings

  14. AS Integration Matt Maxwell Program Controls Georgia Hughey SE Operations Gary Garza Requirements Mgmt Tom Partridge AS Analysis Dean Hayes SEManagement Phil Kruger AV Integration Paul Park AS Management John Paquet SysSuppt Analysis Scott Cobert AV Verification Mark Lambeth AS Specialty Eng Greg Brown Subcontract Mgmt Loyd Gray Specialty Eng Guy Gordon AS Life-Cycle Plan Eric Redding AV Sys Mgmt Tom Partridge AV SCM Guy Grosgebauer System Development and Demonstration (SDD) Organization LM F-35 Executive Leadership Team Partner Leadership Key Program Interface LM F-35 Program Manager Tom Burbage • Northrop GrummanPeter Shaw • BAE SYSTEMSMartin Taylor • Government/LMPropulsion IPTFran Ketter • Government/LM International IPT Mike Cosentino • New Initiatives Paul Leamer Deputy F-35 Program Manager Henry Levine Tier 1 Program Integration Clay Porterfield Tier 2 Business Management Craig Happel Air Vehicle John Fuller AutonomicLogistics Luke Gill Systems Engineering Jim Engelland Integrated Test Force Paul Metz Resource Management Stan Phillips Integrators Deputy and SEIT Dave Butcher DeputyMark Connelly SEIT Terry Harrell PC Phil Riney SEIT Don Searles PC Anne Bradley PC Donnie Ward Deputy /SEIT Tom Phillips PC TBD Engineering Jim Engelland Security Jana Moody Business Dev Jim Schaefer ITF– Fort Worth John Korstian Infrastructure Integration andF-35 Onboarding David Bittenbinder Contracts Gary Lowe Strategy Integration Rowena Eberhardt Customer Support Don Searles ITF – Pax River Tom Phillips (A) Program Support Gary Howard Trade Studies/Estimates Phil Stumph Aerostructures Mfg G. B. Bailey Material Mgmt Art Price Business Approach Working Group Peter Walker (LMIS)(A) Engineering Integration John Browning ITF – EAFB Tom Phillips (A) Program Self Assessment Tim Halterman EVMS/Finance Suzanne West Business Mgmt Craig Happel Special Projects Floyd Whitehouse Support System Lee Johnson SEIT Gary Kolling P&OS David Kohler SEIT Sara Gutierrez Airframe IPT Martin McLaughlin (NG) SEIT Larry Mestad Afford and Cont Impr Mike Fortson Organizational Effectiveness TBD Communications John Smith PC Catherine Griffin Data Management Graham Rutherford SW Mgmt and Collab Envr Lloyd Huff Training System JoAnne Puglisi (LMIS) IS&T Lory Arghavan SEIT Stan Urbanek Air System Verification Perry Whitten Vehicle Systems IPT Frank Kirkland SEIT Jerry Laster Bus. Ventures Larry McQuien Subcontract Management Art Price PC Peter Bernstein Tier 3 International Projects Steve Fouga Legal Steve Jeroslow AL InformationSystems Kevin LeBeau Mission System IPT Dave Larsen (A) Acting (PC) Program Controls SEIT Wally Lafferty SEIT Karen Carrington Pilot Integ Flight Ops TBD PC Elizabeth Link Manufacturing G.B. Bailey Key Emphasis Specialists Wizards • Special Projects • Floyd Whitehouse • ManufacturingGB Bailey • IFPC Fran Ketter • Reliability, Maintainability, Safety and Supportability Greg Brown • Affordability and Continuous ImprovementMike Fortson • Program Security • Jana Moody • Ship SuitabilityMike Yokell • Interoperability • John Gruetzmacher • Mission PlanningJeff Brandon • Lethality and Survivability Dean Hayes • Subcontract Management Art Price • International Projects • Steve Fouga • Software Management • Lloyd Huff • Improvements and Derivatives Dave Jeffreys • Programmatic PlanningPaul Leamer • Air Vehicle IntegrationKent Clark

  15. F-35 Cost & Schedule Summary • Approx. $17B PMB • Period of Performance: FY01 – FY12 • 214 Level 5 WBS Legs • 10,000 Control Accounts • 25 IMP Events/ 1,500 IMS, • 30,000 Activities (Detailed Planning thru 3/03) • Critical Item Network (2,500 Activities) • CSIs – 185 for All Teammates • 1 CSI per 30 Tech. Staff

  16. SDD Earned Value ManagementTool Architecture Excel Cost Template Integrated Management Framework (IMF) Variety Variety Suppliers Suppliers Cobra MSP LMIS LMIS winsight SAP MSP P&W P&W MS Project COST SCHEDULE Total program PCMS MSP GE GE Cost Schedule Database (CSDB) MPM MSP NGC NGC BAE BAE CV PV Gateway PV / MSP CV LM Aero LM Aero EL-28

  17. Monday Tuesday Thursday thru Thurs week Weekly EVMS Cycle Flow • Status Schedule • IPTs Analyze Performance & Address Conflicts • Enter Earned Value into Cost/Schedule System • Complete EV Load, Verify BCWP • Budget/EAC/Revisions as Required • Input Weekly Labor into Cost System • Finalize Cost/Schedule for Weekly Review • Load Data into Cost/Schedule Tool (wInsight) • IPT Reviews & Analyzes Performance • Develops Variance Explanations as Required Wednesday • Management Review

  18. Integrated Management Framework (IMF) The Integrated Management Framework will provide Program Management with A Single Web-Based Portal for Program Data, Status, and Metrics , • Linkages Between • Related Data • Workflow • Configuration • Management • Traceability • Access • Controls • Customers • Suppliers • Partners • Program Managers • IPT Leaders Risk Mgmt. TPM EVMS IMP/IMS SOW Product Data WBS Requirements

  19. IMP/IMS Integration With Detail Schedules Our Weekly Status Flowed From the IPT Detail Schedules to The IMS Creates Our Program Critical Path Network and Provides Management the Visibility to Resolve Potential Impacts CS-13

  20. Management Visibility Critical Path Status Analysis Total Number Of Act. Critical Path Activities IMP Event Status Critical Item Network Exists • CI Network • Provides Linkages Between Selected Set of Detail Activities Across IPTs • Resides in CSDB in Project View ~2500 Activities Critical Items Detail Schedule for WBS 1122 • Detail Schedules • Resources Identified • EVMS Basis (PMB) • Maintained by IPT under Config Mgmt Process • Detail Parts/ Components Statused in MRP • Statused From Detail Schedules Weekly • Analysis Performed Weekly • Extracted Periodically for “What If” Scenarios Detail Schedule for WBS 2230 Detail Schedule for WBS 5510 • Currently 25,600 Activities (Over 150,000 at End of SDD) Weekly Status Flows From IPT Detail Schedules to Critical Item Network Providing Management Visibility To Resolve Potential Impacts

  21. Full Responsibility, Authority, & Accountability (RAA) Coordination of Detailed Schedules & Budget Use Weekly EVMS as a Mgmt. Tool vs. a Reporting Tool Lead Weekly EVMS Project Review Present Consolidated Weekly Data to Program Management Business Management Personnel Assigned to Assist in Support of Weekly EVMS Fully Understand Performance Indices Status Project Schedules Assist in EAC Assessment Consolidate Site Inputs for Project Manager Facilitate Weekly Project Manager Reviews Roles & Responsibilities IPT Lead Cost/Sched. Integrator (CSI)

  22. Program Manager’s Role • Understands Program Scope/Content • Ensures Clear RAA Exists for All Tasks – IPT Structure • Ensures Program Plans are Executable and Satisfy Requirements • Implements EVM At All Levels of the Team Structure • Provides a Structured Framework for Performance Status (Weekly Deck Reviews) • Analyzes EV Data Every Week, Corrective Action Plans • Checks for Poor Performance & Degrading Trends • Owns Total Program Cost, Schedule & Technical Achievement • Controls Management Reserve (MR) • Manages Baseline Change Control

  23. Lessons Learned

  24. Lessons Learned • Take Time to Plan - Involve ALL Stakeholders • Customers / DCMA / Companies / Suppliers • Team Leaders Have Responsibility, Accountability, and Authority (RAA) for Cost, Schedule,Technical, and Quality • Requires Continuous Management Reinforcement • Requires Shared Single Source Database • Trained IPT/ Business Management to Support Program Wide Management Tool vs. Reporting Tool

  25. Lessons Learned • Classroom Training Works - Coaching Delivers • Start EV Tools at Estimating Phase - Develop into Baseline • Continual Reinforcement / Discipline • Assumptions can Cause Confusion • Weekly Communication Build Trust - Intangible Benefits • Don’t Underestimate Non-Verbal Communication • IPTs Require Different Approaches to Planning • Recruit Professionals - Migrate Knowledge • Manage Data Volume - Key Reports (Manage what Matters)

  26. Lessons Learned • Assist Customer Understanding (Help Educate the Customer) • Sharing Relationship / Develop Partnership with Tool Set Providers • Don’t Re-Invent The Wheel - Adapt Best Practices, Existing Skills, Process, Tools • Consolidate / Share Training Costs - Look at Skills Across All Teammate • Harmonize Training with Tasks • Consider Long Term Company Strategies • IT Infrastructure / Tool Set Deployment CPR

  27. Weekly Deck ChartsExamples

  28. Weekly Deck Format Systems Engineering Weekly Earned Value as of 01 Sep 2002

  29. ‘Filters’ Control Rows, ‘Views’ Control Columns Quick view of summary performance.

  30. View Charts and Reports in Dollars, Hours, Eq.

  31. “Indicates that theeffort is on schedule.” “Means that effort iscosting less that expected.”

  32. Concluding Remarks • Weekly EV will Increase the Probability of Meeting Your Customer, Program, and Financial Objectives • The Biggest Challenge is Changing the Management Culture from Monthly REPORTING to Weekly MANAGEMENT • Weekly EV Does Not Cost – It Pays! Adm. Steven L. Enewold: After only 10 months into the program… “we shortstopped two big execution issues with Weekly EVM…” 9/13/02

  33. Conclusion • Weekly EV Has Provided Value Through the Early Mitigation of Cost, Schedule, and Technical Risk Result Higher Probability of Achieving Program Plans

  34. Questions?

  35. Good Earned Value for Your Pound! • 1998 Toyota MR2 GT-TBar (Right Hand Drive) • 38K Miles…22K Kilometers • Leather, CD, FSH, TAX • Immaculate Inside and Out • £9,000