Topic 7

1. Topic 7 Integrating Risk Management The Integrated Management Framework (IMF)Systems Engineering Applied to Program ManagementRichard Raiford, Chair AIAA Management Technical Committee

2. Integrating Risk ManagementIntegrated Management Framework (IMF)Agenda • What is IMF? • Where Is IMF Applicable? • What does IMF Look Like When Implemented? • How Do I Implement IMF on An Existing Program?

3. Integrated Management Framework (IMF) • IMF Is a • Scalable Program Infrastructure • That Uses System Engineering Principles • To Implement an Executable Program • ----------------- • Proactive Boundary Spanning • Integrated Processes • Controlled Baselines

4. The System - An Executable Program Apply SE Techniques to Everything Relevant to an Executable Program Geo-Political Customer’s Program Political Enterprise Executable Program Operational Capability Assessments Operating Environment Operational System(s) Suppliers Product Elements Project Elements

5. Some Fundamental Concepts of IMF • The System is the Executable Program • Proactive Boundary Spanning (a.k.a. Integration) • Boundaries Are a Fact of Life (Organization, Product, Program) • IPTs Don’t Eliminate Boundaries, They Just Re-Arrange Them • Top-Down: Event-Based Management • Manage Progress Toward Key Program Events • Bottom-Up: Requirements-Based Task Accountability • Know And Track Requirements • “Pull” to Continually Identify the Risks • Somewhere, Someone Knows We Are at Risk of Not Meeting A Req’t • Control Program Baselines • Everyone On the Same Page, Marching in Unison to the Same Objective

6. Responsibilities of the Program Manager** **From the AF Critical Process Assessment Tool (CPATS) for PM IMF – Defined RAARoles of the Program Mgr The 4 Roles Shown May Be In One Person, or Divided Depending on the Type, Phase, and Complexity of the Program. In any case, the PM Has Ultimate RAA for All Roles. 4 Roles of the Program Manager • IPTs Consisting of: • Business Mgmt • Planning • Contract Mgmt • Subcontract Mgmt • Materiel • Manufacturing • Engineering • Logistics • Systems Engineering • Security Keep the Program Sold • Requirements & Functional Analysis and Allocation • Synthesis • System Analysis and Control • Verification (Program Manager)* Manage the Program Integrate the Program Architect the System (Deputy PM)* (SEIT, PIT, SEMT)* (System Architect)* • Requirements Mgmt • Baseline Mgmt • Performance Mgmt • Risk Mgmt • Analysis and Integration (Boundary Spanning) • Planning • Integrate Processes and Systems *A Large Program Would Subdivide the Roles 110402

7. Hierarchy of Program Styles - From Reactive to Proactive Style Characteristics Opportunity Management • Ongoing, Integrated Assessments of Evolving Program & Environment; • Entire Organization Understands Current and Potential Customer Needs; • Integrated Strategies Take Advantage of Opportunities 5 Risk Management • Ongoing Integrated Assessments of Likelihood of Meeting Objectives in Light of Current Status and Projected Environment • Plans Updated as Required; Streamlined by “Checkbook” 4 Performance Management Performance Management • Mgmt Has Visibility of Status of Program Performance to Current Plan • Issues Related to Predicted Failure to Meet Plan Milestones • Surprises as Evolving Environment Overtakes Current Plans 3 Issue Management • Mgmt Has Inconsistent Visibility of Performance; Fluid Rating Criteria • Teams Resist Quantitative Metrics; No Controlled Perf. Baseline • Frequent Problems Due to Failure to Meet Plan Milestones 2 Crisis Management • Program AND Enterprise Mgmt Frequently Involved in Cost, Schedule, and/or Performance Problems that Threaten Viability of the Program; • Chaos, Frustration, “Finger Pointing” 1

8. Program Styles Are Based On How We Manage

9. IMF – Four Program BaselinesStructure the Program By Structuring the Information The Reason for the Program’s Existence; The Product Baseline Evolves from “Back of the Envelope” to “10,000 Parts flying at 50,000 Feet” How Performance to Plan Will Be Measured (Metrics, Thresholds, Formats, Reporting Frequency, Etc.) Project Baseline Product Baseline Performance Baseline Enterprise Baseline The Framework for the Program (Contract, SOW, Schedule, Etc.) What the Company Brings to the Effort (HR, Financial Systems, People, Skills, Processes, Systems, Etc.)

10. Program Integration with IMF • Defined RAA for Everyone • Program is a System of Systems • Proactive Boundary Spanning 1 Who • Integrated Plans & Processes • Req’ts • Baselines (CM) • Performance • Risk • Integration How What IMF 3 2 Managed Information Performance Baseline Product Baseline Project Baseline Enterprise Baseline

11. The Baselines . . . Evolve!    Requirements Requirements Contract Project Baseline Deliverables Product Baseline Test Procedures Test Procedures Specs Specs Tailored Processes & Procedures SOW Tech Orders Tech Orders Program Mgmt Plan (PMP) Tool Design Tool Design WBS Analytical Models Analytical Models Integrated Mgmt Plan & Schedule (IMP / IMS) Stakeholder Mgmt: Communication, Conflict, Etc., Plans Design Design Shop & Assy Planning Shop & Assy Planning Risk Mgmt Plan Bill of Materials Bill of Materials Earned Value Mgmt System Data Mgmt Tools & Systems IT Systems Enterprise Baseline Policies, Common Processes Human Resource Systems & Databases Financial/ Accounting Systems Materiel, Suppliers, MRP Systems Labs, M&S Analytical Tools Facilities Functions & CoEs IMF - Four Program BaselinesExample Contents Rate of Change Enterprise = 0 Project = 0/Low Product = Very High - Defined Ownership - No Data Redundancy Product Baseline Risk db Risk db

12. IMF – Five Core Processes • Manage Requirements • Project: Contract, SOW, IMP/IMS, Financials, Suppliers, etc. • Product Life Cycle: (Classical “Systems Engineering”) • Manage Baselines • Enterprise, Project, Product, and Performance Baselines • Identify, Lock Location, Control Configuration, Audit Compliance • Manage Performance to Plan • Status (Metrics), Risk, Decision Mgmt, Corrective Action • Drill-Down Integrated with Req’ts, Baseline, and Risk Mgmt Systems • Manage Risk and Opportunity • Focus on Risk to Meeting Requirements • Multi-Level From Tasks to Major Program Events • Integrate the Program • Proactive Boundary Spanning Processes, Customer Expectations, Planning, Communication, Information, Systems and Processes, Functions, Technical, Training, and Closeout

13. Integrated Management Framework (IMF) Where is IMF Applicable?

14. IMF and Program Type / PhaseIMF Is Most Powerful When Product Baseline is Evolving Concept Chart The ‘Area’ of the Program Type / Phase Implies the Degree to Which IMF Will ‘Help’ the Effort Technology Upgrade & Insertion Technology Development & Risk Reduction Operational Needs & Requirements Analysis System Concept Selection, Down Select Concept Development / Technology Demonstration System Development & Demonstration Production & Deployment Sustainment & Disposal 1 2 3 4 5 6 7

15. Questionnaires Guide Tailoring IMF to Program Type & Phase Infrastructure Maturity Complexity Technology # of People Program • Program Described (Road Map, Funding, SOW, Etc) • Key Personnel In Place / Trained • Qualified System Architect • Defined Enterprise Baseline Team Members Co-Located Identification Development # of Skill Sets Insertion Project Req’ts • Comprehensive Scope Mgmt System • WBS, IMP, IMS • Schedules Integrated Vertically & Horizontally & Config. Controlled Length of Program System Other Bus Areas / Sectors on Team Operational Needs & Req’ts Analysis Suppliers on Team Product Req’ts • Integrated, Traceable System: Req’ts Analysis, Functional Analysis /Allocation, Trades, Decisions, V&V Concept Selection, Down Select Done Similar Tasks Before Baseline Mgmt • Program & Project Info Structured, Configuration Controlled, Audited, Available When Needed Concept Development / Demonstration Worked with Same Team Before Funding Source Internal or External System Development & Demonstration Performance Mgmt • Baselines with Rating Criteria • Structured Decision Making • Corrective Action System Cost Sustainment & Disposal Risk Mgmt • Event Based, Look-Ahead System Priority Integration • Proactive, Customer Mgmt, Planning, Communication, Information, Systems & Processes Worked with Same Customer Before Production & Deployment

16. Integrated Management Framework (IMF) What does IMF Look Like When Implemented? Examples of Some Key Elements of a Program Under IMF

17. Plans, Documents, Mtgs, Boards, Tools, & Work Products (Examples IMF Implementation Matrix • Program Integration (Integrated Program Mgmt Plan) • IPT Handbook • Or Communication Plan • Schedule Tree • PIT Assessment Cycle • Program Control Board • Risk / Opportunity Board • Process / System Board • Weekly Program Reviews • System Integration (System Integration Plan) • Analysis/Model ICPs • SEIT Cycle • Config Control Boards • Eng Review Board • Design Reviews Key: Plans, Processes, Documents Meetings, Boards, (Team Interaction) Inputs, Outputs, Tools, etc. • Element Integration • Drawing Tree • Interface Control Plans • SEIT Meetings Core Process Process Steps Manage Requirements (What are We Supposed to Do?) • Identify Customer Req’ts • Develop System Req’ts • Develop Product Req’ts • Analyze & Validate Req’ts • Define (Technical) Solution • Verify and Validate Product • Req’ts Mgmt Plan/Proc • Quality & Security Plans • Decision Mgmt Process • Supplier Mgmt Plan/Proc • Program Control Board • Process Quality Audits • Contract > SOW > Sched > Resources > Budget • ORD; MND • System Specs (Tree) • Specialty Integration Plan • Req’ts Anal / Func Anal Integrated Test Plans • “VCRI” • Slate • EDRM • Element / Subsystem Specs • Standard Parts • Process Specs • Material Specs • Component Acceptance Criteria Manage Baselines (BLs) (Config. Mgmt) (Write It Down) • Plan & Identify BLs • Publish • Manage Change • Track Status • Audit Integrity • BL Mgmt Plan/Proc • Des, Build, Supt. Plans • JPCB, PCB • Process Control Board • Four Program Baselines • Config Mgmt Plan • CCB, SRB, ERB • Interface Control Working Group • Product Baselines • Designs, Anal & Test Plans & Reports • Components / Parts, Subsys, SW • Interfaces, ICDs Evaluate Performance (How are We Doing?) • Baseline • Collect Data • Integrate • Evaluate • Report • Performance Mgmt Plan • CPAR Mgmt Process • Wkly Program Review • EVMS, Sched Tracking, Issues Traffic • TPM Plan(s) & Process • Config. Change Traffic • Technical Performance Measurands • Shortages, Rejects, MRB • IPD: Sched Commitment Tracking: Part: Design, Buy, Install, etc. Manage Risk / Opportunity (Will we Do It? & Can We Do it Better?) • Identify • Analyze • Plan • Track • Control • Risk Mgmt Plan/Proc • Risk / Opp. Mgmt Board • Look-Ahead, 90 day & IMP • Risk/Opportunity DB • Issue/Action DB • Technical Risk Mitigation Plans • Risk ID Matrices • Simulations • Waterfall Charts • Make / Buy Decisions • Part Shortage Mgmt

18. Result of Sample Plan for Implementing IMFSituation at End of Month Three • IPMP and IPT Handbook Published • Availability of Key Personnel Controlled • Regular Meetings Controlled: Agendas, Attendance, Minutes • Baseline Documents Indexed and Configuration Controlled • IMP In Place • Schedule Tree In Place & Schedules Vertically Integrated • Horizontal Integration Is In Work • Integrating Charters (RAA) In Place • Req’ts Mgmt System – Front End Implemented • Contract Parsed, Specs Depend on Maturity of Original System • Event Based Performance Mgmt Implemented (Still Subjective) • Decision Mgmt System – Front End Implemented • Program Control Board In Place • Corrective Action Board Meeting Monthly • Risk Mgmt System Initiated (Depends on Maturity of Original System)

19. Portal Product Data Mgmt System Interface Configuration (& Change) Control System Links Design Data Req’ts Mgmt System C/PIOS Buy, Fab, Build Data Test Sys Sup-port Program Information Systems - Example Program Mgmt Info System Interface PMIS Index & Repository Interfaces to Other Systems Project Mgmt Info System Interface Risk Mgmt Information System Interface Project Mgmt Repository / Index EVMS Staffing Risk Tracking System (eRisk) Risk Decision System Risk Mgmt Reporting System Risk Decision Indexing System Schedules Budget Capital Etc. . . . Risk Mgmt Reports Repository Risk Analysis / Decision Data Repository Risk Database Req’ts Mgmt Info System Interface Req’ts Mgmt System (SLATE) Design Decision Index System Performance Mgmt Info System Interface Performance Mgmt System Decision Mgmt System Design Decision Data Repository (Trades, Mtgs, Decision Memos, Etc.) Req’ts Reports Repository Project Performance Baselines Tech. Performance Baselines Corrective Action System Design Support Data Repository (Specs, Analysis, Test Req’ts & Reports) Corrective Action Repository Performance Rpts Repository

20. Timeline | | | | | | Product / Event | | | | | | • Resp Org • - - - - • - - - Task & Resp person S R Program Level Event / Accom | | | | | | • Resp Sub Org • - - - - • - - - Org/Team Level Plan Task Level Metric # of Events OR Actual to Plan | | | | | | Timeline IMF - Performance Management Model, Procedures, Guides, & Checklists • Program Management and Control Plan • Performance Management Plan • Define Performance and Reporting Req’ts Procedure • Performance Management Checklist • Performance Visibility & Database Mgmt System • Flowdown of Performance Mgmt Req’ts to Suppliers • Metrics Selection • Technical Performance Measurement (TPM) Procedure • Quantitative Mgmt Measurement Work Instruction • Performance System and Metrics Audits Work Inst • Performance Analysis

21. Integrated Management Framework (IMF) How Do I Build an IMF on an Existing Program? Create the IPMP, IPT Handbook, and Supporting Docs from Templates That Include Tutorials and Example Formats

22. IMF Tailored & Implemented By Two Documents • Integrated Program Management Plan (IPMP) • Implements/Tailors IMF for the Program • Objectives, Schedules, Priorities • Mgmt Approaches for Every Area • Policy, Procedures, and Authorities • Replaces Multiple Independent Plans • IPT Handbook • Foundation for Program Integration • Tells Program Personnel • How the Program Will Operate • Charters and RAAs • Communication & Issue Resolution • Meetings – Who, What, When, Where

23. Use Templates to Generate Integrated Program Mgmt Plan and Supporting Procedures Requirements Interactive Templates Contract Plans Procedures Government Regulations Integrated Program Mgmt Plan IPT Handbook Corporate, Sector Shared Services, and Business Area / Homeroom Processes, Policies, and Guides • Introduction, Scope, Purpose • Executive Summary • Program Overview • Organization • Administration • Management Systems • Project Req’ts Mgmt • System Life Cycle Mgmt • Baseline Management • Performance Mgmt • Risk / Opportunity Mgmt • Program Integration Tailored Procedure Templates Business Mgmt • Integrates (Combines) • Program Management Plan • System Engineering Mgmt Plan • Risk Management Plan • Configuration Management Plan • Performance Management Plan Materiel HR EL&T LOQA

24. Cycle Weekly Program Reviews Strategic Rhythm / Horizontal Integration Week 1 Week 2 Week 3 Week 4 Process Product Cost & Schedule Risk / Opp. • Shortages • Staffing • Rework • Audits • Req’ts Volatility • Team Reports • Accomplishments • Customer Satisfaction • TPMs • Changes • EVMS Data & Indicators • By Program & by Team • Performance to IMP/IMS • Top Issues & Risk and Associated Closure/ Mitigation Plans • Corrective Action Special Topics / Action Items / Calendar Customer Satisfaction / Top Program Issues and Risks

25. Integrated Management Framework (IMF)Summary • IMF Is a Scalable Program Infrastructure That Uses System Engineering Principles To Implement an Executable Program • Features • Proactive Boundary Spanning • Four Baseline Categories • Five Integrated Core Processes • Implemented by Interactive Creation of • Integrated Program Management Plan • IPT Handbook Integrating Risk Management is Critical for Success