Weekly Earned Value F-35 Approach Suzanne West – Lockheed Martin Jim Hoshstrasser – Northrop Grumman Mike Brooks – BAE SYSTEMS 18 November 2002 Tysons Corner, Virginia 14 th Annual IPM Conference
Dec 21, 2015
Weekly Earned ValueF-35 Approach
Weekly Earned ValueF-35 Approach
Suzanne West – Lockheed MartinJim Hoshstrasser – Northrop Grumman
Mike Brooks – BAE SYSTEMS
18 November 2002Tysons Corner, Virginia
14th Annual IPM Conference
2
Introduction
• Weekly EV Has Provided Value Through the Early Mitigation of Cost, Schedule, and Technical Risk
Higher Probability of Achieving Program Plans
ResultResult
3
Agenda
WeeklyEarnedValue
• Weekly EVM as a Value Added Mgmt. Tool
• F-35 Team – Weekly EV Approach
• Lessons Learned
Weekly EVMS as aValue Added
Management Tool
5
WEV – Value Added Management Tool
1
Proactive Measurement of Achievement of Detailed Plans
2Sustained Focus on Key Program Events (IMP/IMS) and Risks
3Weekly Management Review Ensures Corrective Action at the Earliest Possible Time
6
Is Not•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)
Is• 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
Coordination Among Teammates & Suppliers Essential
What is Weekly Earned Value?
Weekly Performance Assessment Improves Program Management Insight
Weekly Assessment Shortens the Cycle for Problem Identification, Corrective Action, Problem Resolution, and Validation
Weekly Assessment Shortens the Cycle for Problem Identification, Corrective Action, Problem Resolution, and Validation
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Month 1 Month 2 Month 3
Data Reflects Problem
Problem Researched
Cause Identified
Corrective Action Implemented
Data Validates Problem Corrected
Monthly Performance Assessment Cycles
Problem
Point
Monthly
WeeklyData Reflects Problem
Issue Researched
Cause Identified
Corrective Action Implemented
Data Validates Problem Corrected
Weekly Performance Assessment Cycles
Earliest Visibility
Value Added
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
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 SDDContract 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
12:00 00:00CST
LM Aero (Ft Worth)
06:00 18:00
BAE SYSTEMS
NGC
Data Review
Meetings
Data Exchange
14
DeputyMark Connelly
Tier 2
SEIT Sara Gutierrez
SEIT Stan Urbanek
System Development and Demonstration (SDD) Organization
ContractsGary Lowe
EVMS/FinanceSuzanne West
Trade Studies/Estimates
Phil Stumph
Afford and Cont ImprMike Fortson
Air System VerificationPerry Whitten
SW Mgmt and Collab EnvrLloyd Huff
Engineering IntegrationJohn Browning
Pilot Integ Flight OpsTBD
Subcontract ManagementArt Price
(A) Acting(PC) Program Controls
Business ManagementCraig Happel
Resource ManagementStan Phillips
Tier 3
TrainingSystem
JoAnne Puglisi (LMIS)
SEIT Wally Lafferty
AL InformationSystems
Kevin LeBeau
EngineeringJim Engelland
Aerostructures MfgG. B. Bailey
Customer SupportDon Searles
Business DevJim Schaefer
CommunicationsJohn Smith
P&OSDavid Kohler
Material MgmtArt Price
Business MgmtCraig Happel
Strategy IntegrationRowena Eberhardt
Bus. VenturesLarry McQuien
SecurityJana Moody
IS&TLory Arghavan
Integrators
SupportSystem
Lee Johnson
SEITTerry Harrell
PCPhil Riney
AS IntegrationMatt Maxwell
AS AnalysisDean Hayes
AS ManagementJohn Paquet
AS Specialty EngGreg Brown
AS Life-Cycle Plan Eric Redding
SE ManagementPhil Kruger
Sys Suppt AnalysisScott Cobert
SE OperationsGary Garza
Subcontract MgmtLoyd Gray
SEITDon Searles
PCAnne Bradley
AutonomicLogisticsLuke Gill
Deputy and SEIT
Dave Butcher
PCDonnie Ward
Systems EngineeringJim Engelland
Air VehicleJohn Fuller
PC Catherine GriffinSEIT Larry Mestad
Airframe IPTMartin McLaughlin (NG)
PC Peter BernsteinSEIT Jerry Laster
Vehicle Systems IPTFrank Kirkland
PC Elizabeth LinkSEIT Karen Carrington
Mission System IPTDave Larsen
SEIT Gary Kolling
Special ProjectsFloyd Whitehouse
AV VerificationMark Lambeth
AV Sys MgmtTom Partridge
Specialty EngGuy Gordon
AV IntegrationPaul Park
AV SCMGuy Grosgebauer
Requirements MgmtTom Partridge
Program ControlsGeorgia Hughey
Deputy /SEIT
Tom Phillips
Program IntegrationClay Porterfield
Partner Leadership
Northrop Grumman Peter Shaw BAE SYSTEMS Martin Taylor
Tier 1
PCTBD
IntegratedTest ForcePaul Metz
ITF– Fort WorthJohn Korstian
ITF – Pax RiverTom Phillips (A)
ITF – EAFBTom Phillips (A)
LegalSteve Jeroslow
Business ApproachWorking Group
Peter Walker (LMIS)(A)
ManufacturingG.B. Bailey
International ProjectsSteve Fouga
Program Self Assessment
Tim Halterman
Data ManagementGraham Rutherford
Program SupportGary Howard
Infrastructure Integration and
F-35 OnboardingDavid Bittenbinder
Organizational Effectiveness
TBD
LM F-35 Executive Leadership Team
LM F-35 Program ManagerTom Burbage
Deputy F-35 Program ManagerHenry Levine
Key Program Interface Government/LM Propulsion IPT Fran Ketter Government/LM International IPT Mike Cosentino New Initiatives Paul Leamer
• Programmatic Planning Paul Leamer
• Air Vehicle Integration Kent Clark
• Reliability, Maintainability, Safety and Supportability Greg Brown
• Affordability and Continuous Improvement
Mike Fortson
• Special ProjectsFloyd Whitehouse
• ManufacturingGB Bailey
• IFPCFran Ketter
• Mission PlanningJeff Brandon
• Lethality and Survivability Dean Hayes
• Subcontract ManagementArt Price
• Program SecurityJana Moody
• Ship SuitabilityMike Yokell
• InteroperabilityJohn
Gruetzmacher
• International ProjectsSteve Fouga
• Software ManagementLloyd Huff
• Improvements and DerivativesDave Jeffreys
Key Emphasis Specialists Wizards
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
EL-28
MSP
Variety
MSP
BAE
LM Aero
NGC
P&W
Suppliers
LMISCobra
Variety
SAP
BAE
LM Aero
NGC
P&W
Suppliers
LMIS
Excel
Cost
Template
Total program
Cost ScheduleDatabase (CSDB)
Gateway
winsight
CO
STS
CH
ED
UL
E
Integrated ManagementFramework
(IMF)
PV / MSPCV
GE GE
MSP
PV
MPM
CV
MSPPCMS
MS
Pro
ject
17
Weekly EVMS Cycle Flow
Monday
Tuesday
Wednesday
Thursday thru Thurs week
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
Management Review
18
Requirements
Product Data
EVMS
WBS
SOW
IMP/IMS
TPMRisk Mgmt.
,
•Linkages BetweenRelated Data
•Workflow
•ConfigurationManagement
•Traceability
•AccessControls
•Customers
•Suppliers
•Partners
•Program Managers
•IPT Leaders
The Integrated Management Framework will provide Program Management
with A Single Web-Based Portal for Program Data, Status, and Metrics
Integrated Management Framework (IMF)
19
IMP/IMS Integration With Detail Schedules
CS-13
Our Weekly Status Flowed From the IPT Detail Schedules toThe IMS Creates Our Program Critical Path Network and Provides
Management the Visibility to Resolve Potential Impacts
20
Critical Item Network Exists
Management Visibility
Critical Path Status
Critical Path
Activities
Total Number Of Act.
IMP Event Status
Analysis~2500 Activities
Critical Items
CI Network•Provides
Linkages Between Selected Set of Detail Activities Across IPTs
• Resides in CSDB in Project View
•Statused From Detail Schedules Weekly
•Analysis Performed Weekly
•Extracted Periodically for “What If” Scenarios
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
•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
Detail Schedule for WBS 2230
Detail Schedule for WBS 5510
21
Roles & Responsibilities
• 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
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
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
Weekly Deck ChartsExamples
28
Systems Engineering Weekly Earned Value as of 01 Sep 2002
Weekly Deck Format
29
Quick view of summary performance.Quick view of summary performance.Quick view of summary performance.Quick view of summary performance.
‘‘Filters’ Control Rows, ‘Views’ Control ColumnsFilters’ Control Rows, ‘Views’ Control Columns‘‘Filters’ Control Rows, ‘Views’ Control ColumnsFilters’ Control Rows, ‘Views’ Control Columns
30
View Charts and Reports in Dollars, Hours, Eq.View Charts and Reports in Dollars, Hours, Eq.
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““Indicates that theIndicates that theeffort is on schedule.”effort is on schedule.”““Means that effort isMeans that effort is
costing less that expected.”costing less that expected.”
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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
Higher Probability of Achieving Program Plans
ResultResult
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