Breakout Session # 605

2. Pushing the Performance Envelope: “An Expanding Role for Contracting Professionals in Program Execution” Breakout Session # 605 Frank H. Malsbury and Richard S. Brownell, Performance Excellence Program Management, Raytheon Company 26 April 2005 1:30 – 2:30 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. Opportunities for Contracts Involvement • Programmatics • Closure Planning • Planning the Work - IMP, PIN, IMS • Integrated Subcontract Management Plan • Metrics • Earned Value Management • Risk & Opportunity Management NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. Proposal – Negotiations - Contract - Deliverables Closure Planning – “grave to cradle” Integrated Master Plan (IMP) – what? What do our leading metrics tell us needs to be changed? The right metrics tell us to do the right work. Program Integrated Network (PIN) – what order? Integrated Master Schedule (IMS) – when? Integrated Subcontract Management Plan Metrics to Validate Performance - what to count? Input to IMS, adjust EV EVMS - performance Assessment of Risks & Opportunities What are“Programmatics?” Know your Program Manager Know What Program Manager is Worried About NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Proposal – Negotiations - Contract - Deliverables Closure Planning – “grave to cradle” Integrated Master Plan (IMP) – what? What do our leading metrics tell us needs to be changed? The right metrics tell us to do the right work. Program Integrated Network (PIN) – what order? Integrated Master Schedule (IMS) – when? Integrated Subcontract Management Plan Metrics to Validate Performance - what to count? Input to IMS, adjust EV EVMS - performance Assessment of Risks & Opportunities Insight Through Writing the Contract • SUPPLIES OR SERVICES AND PRICES/COSTS • DESCRIPTION/SPECS./WORK STATEMENT • PACKAGING AND MARKING • INSPECTION AND ACCEPTANCE • DELIVERIES OR PERFORMANCE • CONTRACT ADMINISTRATION DATA • SPECIAL CONTRACT REQUIREMENTS What Does the Contract Say? Mean? NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Closure Planning “Grave to Cradle” – need a checklist • Delivery of Services and Products • Inspection & Acceptance • Packaging & Shipping • Tests • Manufacture • Tests • Design Reviews • Baseline Review • Contract Award Reverse Planning NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. Closure Planning • Startup / Process Team: Kickoff the program by addressing details in closure criteria and considerations; focus on the right work at the right time • Engineering and Integration: Teams form, are they integrated? Do they account for needed resources including customer / user involvement to achieve agreement and buy-in for sell-off criteria? Write it down, use sign off to capture stakeholders commitment, etc. • Contracts: at a minimum prior to contract award, establish the process to be used to achieve a timely agreement with the Customer on the formal acceptance criteria for contract closure • Program Management: If the contract does not have clearly defined, formal acceptance criteria, there is a likelihood of scope creep; support your Contracts Team to achieve an agreed closure plan at the early date possible Get Agreement Early NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. Planning Performance- IMP, PIN, IMS • Integrated Program Planning • Ensuring All the Details • Up-front, Top-Down, Total Program Plan • Developed and Used for Bidding and Program Execution • Single Plan for the Entire Program, not Collection of Multiple Uncorrelated Plans by Each Team member • Creates a Program Architecture Necessary to Measure Successful Performance • Know All Your Constraints and Dependencies • Network-driven Schedules, What-if Exercises • Closed Loop Metrics (Earned Value, CPI, SPI, ETC) Integration is Key NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Distinctive Features of the IMP/IMS Set I M P I M S Relationship Event Event One to One Accomplishment Accomplishment Criteria Criteria Tasks • IMP Features/Characteristics: • Events - [Project-unique “value added” maturity measurement points] • One or more each year (should be less than three) • Accomplishments - [Significant, natural, time-phased product-oriented activity groupings that support an Event] • Roughly equivalent in importance and/or scope across the project (not too large, not too small) • Span a practical increment of project time (not too short [>> 1 Mo.]; not too long [< 6 - 9 Mos.]). • Criteria - [Standards to judge what must be done to complete an Accomplishment] • Product-oriented completion indicators • Normally at least two Criteria per Accomplishment (not too many) Sub-Tasks NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. PQT MS 3 PQT MS 3 PQT MS 2 PQT MS 1 Data Recording , Power , PQT MS 4 and Safety Procs Data Recording , Sensor and PQT MS 2 Sensor and Power , and Power TCs . PQT MS 4 Power Test Safety VIs Sensor , Power , Procedures Data Recording Data Recording , Operator Control and Data Recording , Power , Final Operator Operator Control Power , and Display Procs and Safety Final Control and and Display VIs Safety TCs Operator Control Operator Data Fusion and Display Test and Display Final Control and Operator Operator Control EA Procs Procedures PQT DTP PQT DTP Final controls and Display TCs . and Display TCs Data Fusion and Final Due 6 / 12 / 04 to RDM Data Fusion and Due 11 / 12 / 04 to RDM Display Final EA Final Senor and Acoustic EA VIs Data Data Fusion and Processing Procs Recording and Senor and Acoustic Data EA TCs Playback Test Processing Final LS PQT Rev Draft , MS 4 Recording and Senor and Acoustic Senor and Acoustic Procedures ( Ready for debug ) 9 / 6 / 04 Playback TCs . Processing TCs Processing VIs MS 1 MS 3 MS 2 WS PQT Rev Draft FS PQT Rev Draft Outlook : 6 / 25 / 04 8 / 27 / 04 7 / 23 / 04 ( Ready for debug ) ( Ready for debug ) 10 / 9 Actual : 7 / 8 / 04 Planned : 9 / 24 Actual : 8 / 11 / 04 MS 4 MS 1 MS 5 MS 5 MS 2 MS 3 MS 4 MS 5 MS 2 MS 3 7 / 15 / 04 10 / 7 / 04 11 / 1 / 04 11 / 8 / 04 4 / 9 / 04 4 / 20 / 04 4 / 30 / 04 5 / 03 / 04 8 / 30 / 04 10 / 11 / 04 Outlook : 9 / 7 Outlook : 10 / 9 Actual : 4 / 13 / 04 Outlook : 5 / 31 / 04 Outlook : 6 / 10 / 04 Outlook : 6 / 11 / 04 Planned : 10 / 6 Outlook : 10 / 20 Data Recording , Data Recording , Data Recording , PQT DTP Final Power , and Power , and Power , and Procedure Due 10 / 11 / 04 to Data Recording , Safety VIs Safety Procs Safety Final Power , and RDM Safety TCs Operator Control Operator Control and Display VIs Operator Control and Display Procs Operator Control and Display Final and Display TCs Data Fusion and Data Fusion and EA VIs Data Fusion and Event PQT MS # EA Final EA Procs Data Fusion and Review Status Legend Activity Status Senor and Acoustic EA TCs Senor and Acoustic Processing VIs Senor and Acoustic Activity Name Processing Final Processing Procs Behind ( Impact ) Senor and Acoustic Development Processing TCs PQT MS 1 PQT MS 4 Activities Behind ( No Impact ) Ready for Review Milestone Review PQT MS 2 PQT MS 3 Status Review Completed SDRL Submitted on 8 / 12 DTP Rev 1 ( Draft ) MS # dd / mm / yy Program Integrated Network (PIN) Know Work Flow, Delays, Where to Focus NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. Distinctive Features of the IMP/IMS Set I M P I M S Relationship Event Event One to One Accomplishment Accomplishment Criteria Criteria Tasks Sub-Tasks • IMS Features/Characteristics : • IMP Events, Accomplishments and Criteria provide the structure • Tasks define the work elements: • Value-added product-oriented activities (at least two per Criterion, not too many) • Assigned to one IPT • Aligned with one WBS element • Provide activity linkage (inter/intra IPT) • Sub-Tasks: • Used to describe the tasks in more detail for the implementing team, e.g., execution earned value level NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. Integrated Subcontract Management • Increased collaboration between Contracts organizations – Prime Contracts, Subcontracts, Supply Chain Management / Procurement for flow-down • Program Office and Quality onsite reps • Manage Intra-company Organizational Transfer like a subcontract, i.e., flow down all contractual substance – SOW requirements, EVMS, acceptance criteria, delivery and milestones and data requirements • Plan for a Working Group consisting of the Material Program Manager, Quality Manager, Configuration Manager, Data Manager, Safety Manager, and other key functional managers that must oversee subcontractor effort, led by the Subcontracts Partnering Manager and Subcontracts Manager (technical expertise) Comprehensive Management NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Summary Score M E Excellent: Surpassing budget & schedule requirements M Marginal: Over budget/Behind schedule; recoverable S Satisfactory: Meeting budget & schedule requirements U Unsatisfactory: Cannot meet budget or schedule E Productivity over time • Planned • Actual • Outlook M • Size of Task over time • (SLOC, #STRs, # Shalls etc.) • Planned • Actual • Outlook U Staffing over time • Planned • Actual • Outlook • Cumulative planned/actual Milestones or other supporting data • Tests planned/executed/passed • STR aging • CDRLs planned/delivered S Baseline Date: As of Date: Metrics / Productivity / Producibility Focus on the Right Things NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. EAC TAB Management Reserve BAC PMB Schedule Variance Cost Variance $ ACWP BCWS BCWP Time Time Now Completion Date Earned Value Management System Avoid Surprises NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. Latest Revised Estimate (LRE) Estimate At At Completion (EAC) 2,750 - 2,500 - 2,250 - 2,000 - 1,175 - 1,150 - 1,250 - 1,000 - 750 - 500 - 250 - 0 - [Projected Overrun] Program Budget Estimate To Complete [Cost of Go] Report Cut-Off Date Budgeted At Completion (BAC) Actual Cost of Work Performed (ACWP) [Cost of Accomplishment] Implied futurePerformance Cost Variance BCWP-ACWP Schedule Variance BCWP-BCWS Budgeted Cost of Work Scheduled (BCWS) [Planned Accomplishment] Budgeted Cost of Work Performed (BCWP) [Actual Accomplishment] Behind Schedule Projected Slip J | F | M | A | M | J | J | A | S | O | N | D | J | F | M | A | M | J | J | A | S | O | N | D | J | F | Earned Value Management System NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. Risk and Opportunity Tracking & Management Mitigating Risk and Taking Opportunities NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. Today’s Environment • Programmatics • Closure Planning • Planning the Work - IMP, PIN, IMS • Integrated Subcontract Management Plan • Metrics • Earned Value Management • Risk & Opportunity Management Challenge: Expanded Role NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. Expanding Role • Know Your Program Manager • Must Develop Requisite Skill Set • Compliance • Contract • Business • Opportunity – You Decide More Effective Contributor to Program Success NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”