Implementing Project Controls

Preparing for the establishment of the Integrated (Cost and

Schedule) Baseline in the Earned Value Management Process

Matthew T. Gonzales, Jet Propulsion Laboratory

Manager, Program and Project Business Leadership
818-354-3629
matthew.t.gonzales@jpl.nasa.gov

matthew.t.gonzales@jpl.nasa.gov

Failing to prepare, is preparing to fail

John
Wooden

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Introduction
The establishment of the Integrated (Cost and Schedule) Performance
Measurement Baseline is the result of a systematic approach that steps
the project through each phase of the planning process.
Each phase results in a set of tangible products
Each subsequent phase builds on the previous phase such that at the
end of the planning cycle, all required documents are completed and
integrated
The approach is documented in Project Planning Guidelines, a project
specific document that describes programmatic, cost and schedule
assumptions, constraints and planning guidelines. Guidelines are
developed as early as possible in Phase B and issued to the project
team.

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What is
Project Management: The discipline of planning, organizing, and
managing resources to bring about the successful completion of specific
project goals and objectives.
Project Controls (Cost and
Schedule): Consists of
those processes performed
to observe project execution
so that potential problems
can be identified in a timely
manner and corrective action
can be taken.

Project Controls asks: Where we are

Where we should be
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How can we get on track

Total impacts to reserves
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Cost (Budget) versus Funds

Budgeting is NOT Funding
Budgeting is the time-phased planning of the total resources
required to satisfy the projects contractual requirements

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If you can't describe what you are doing as a process,

you don't know what you're doing.
W. Edward
Deming

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The End to End Planning Process

The business lead develops the overall process and obtains concurrence
from project manager.
The documented process will be your communication vehicle to the
entire project team.
Keep it simple.
The process is the road map from Authorization to Proceed to
establishment of a performance measurement baseline.
Keep it serial.
The recipe is simple when each the phase is executed in the
correct order. Modifying the sequence will result in redos or a
non integrated baseline
Keep it real.
Although each project is unique, the process to develop a baseline is
not. Adapt the core serial process to your specific application

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The Planning Process

Major planning phase/emphasis

Product

1. Scope of the project

Statement of Work
Integrated Management Plan

2. Development Approach

Integrated Product Team (IPT)

Organization Breakdown Structure

3. Organize the work

Work Breakdown Structure (WBS)

WBS Dictionary

4. Assign the Work

Responsibility Assignment Matrix

5. Schedule the Work

Integrated Critical Path Networks

Integrated Master Schedule
Key Interfaces
(Receivables/Deliverables)

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The Planning Process

Major planning phase/emphasis

Product

6. Identify Resources

Work Packages/Planning Packages

Labor, Material, ODC, Subcontract,

7. Estimate the Cost the Work

Current forward pricing rates,

Time-phased (monthly) cost profile

8. Negotiate and approve plan

Control Account Plan concurred by

Project Control Account Manager
(PCAM), Project Manager and Line
Manager (or IPT lead)

9. Develop Earning Methodology

BCWP algorithmic earning

consistent with BCWS profile

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Sample 1 Project Planning Process

Figure 1. Project that employed Integrated Product Teams and Integration

Master Plans and Integrated Master Schedules
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Sample 2 Project Planning Process

Figure 2. Project that employed tradition matrix approach

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In preparing for battle I have always found that plans

are useless, but planning is indispensable.

Dwight D.
Eisenhower

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Schedule the Process

Develop an end-to-end schedule for the planning cycle
Schedule should show interdependencies between phases and
phase products
Determine appropriate period of performance for the phases
based on customer requirements
First submittal of performance reports
IBR date
Schedule is a communication vehicle
Ensure responsibilities are delineated
Clearly identify due dates
Include data review and approval cycle in planning process

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Waterfall Planning Schedule

Task Name
Set-up
Bus team (people, process, tools) in place
Develop Phase CD Planning Guidelines
Approval of Phase CD Planning Guideline
Issue Phase CD Planning Guidelines
Conduct Planning Kick-off Meeting

Responsible

Time Line

Bus Lead
Bus Lead
Project Mgr

Planning Infrastructure
Identify Project Team and CAMS
Project Mgr
Map team to Initial Project WBS
Bus Lead
Develop Responsibility Assignment Matrix
Bus Lead
Develop/Refine Statement of Work
Develop WBS to Control Account Level
Develop WBS Dictionary to Control Account Level

Bus Lead
Bus Lead

PCAM
PCAM
PCAM

Schedule Development
Obtain Master Schedule
Sched Analyst
Develop CA End-to-End Critical Path Network Sched Analyst/PCAM
Reconcile with Project Master Schedule
Sched Analyst
Identify External Hand-offs (REC/DEL)
Sched Analyst/PCAM
Negotiate External Hand-offs
Sched Analyst/PCAM
Integrated all Control Account Schedule
Sched Analyst
Develop and Analyze End-to-End Project Critical Path
Sched Analyst
Issue Final Project Schedules to Control Account Level
Sched Analyst

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Waterfall Planning Schedule

Task Name

Responsible

Time Line

Resource Development
Develop Work Packages
Sched Analyst/PCAM
Identify Resources required to execute Work Packages
Sched Analyst/PCAM
Develop Time-Phase Resource Plans
Sched Analyst/PCAM
Negotiate Resource Availability with Line Organizations
Sched Analyst/PCAM
Cost Development
Develop Basis of Estimates for Resources
Apply current forward pricing rates and factors
Review WP and CA time-phase cost profiles
Modulate to support project constraints

PCAM
Cost Analyst
Cost Analyst/PCAM
Cost Analyst/PCAM

Review, Negotiate, Approve Plan

Review Control Account Plans
Approve Control Account Plans
Develop final Phase CD Work Agreements

PM/PCAM/Line Mgr
PM/PCAM/Line Mgr
Cost Analyst

Finalize Plan
Develop BCWP plans
PCAM
Verify BCWP plans consistent with BCWS plans Cost Analyst/PCAM
Set Cost and Schedule Baseline
Cost Analyst
Reserves Analysis
Cost Analyst
Establish Management Reserve Log
Cost Analyst
Commence Change Control
Bus Lead

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Always start out with a larger pot than what you think
you need.

Julia Child

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The Planning Infrastructure

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 People
Process
Tools

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The People
The project team needs to be in place prior to developing the Performance
Measurement Baseline (PMB)
The Players

Roles and Responsibility

Project Manager

- Approve project plan

- Proactive leadership during planning
- Review and approve PMB

Project Business Manager

(aka Deputy PM for Resources)

- Develop planning process

- Brief and obtain PM approval
- Responsible for all planning products
for Integrated Baseline

Project Control Analyst

- Develop and maintain projects integrated

cost database
- Work with Control Account Managers in
developing integrated baseline data
- Produce integrated baseline cost reports
- Produce cost performance reports

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The People
The project team needs to be in place prior to developing the
Performance Measurement Baseline (PMB)
The Players

Roles and Responsibility

Project Schedule Analyst

- Develop and maintain the projects

integrated schedule database
- Develop and report project critical path
- Work with Project Control Account

Managers
in the development of an integrated
project schedule. Including REC/DELs
Acquisitions/Subcontracts

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- Ensures contracts contain DRDs for

submittal of integrated baseline
- Negotiate deliverables to support
project baseline requirements

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The People
The project team needs to be in place prior to developing the
Performance Measurement Baseline (PMB)
The Players

Roles and Responsibility

Project Control Account Manager

(PCAM)

- Responsible for the technical, cost and

schedule plans for control account
- Develop and submit integrated
schedule and cost plans (with project
control and project schedule analyst
support
- Ensure plan is realistic and achievable
- Identify cost and schedule risks

IPT or Line/Resource Management

- Review plan resource requirements

- Work with CAM to develop an
achievable resource plan
- Demonstrated approval of plan

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The Processes
The basic processes that are utilized during the life cycle of the project
0.0
1.0
2.0
3.0
4.0
5.0
6-1.0
6-2.0
7-1.0
7-2.0
8.0
9.0

Project Formulation
Organization
Scheduling
Work/Budget Authorization
Accounting
Indirect Management
Managerial Analysis
Comprehensive Estimate-at-Completion
Change Management (External)
Change Management (Internal)
Material Management
Contract Management

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Phase A
Phase B
Phase B
Phase B
Phase BCD
Phase BCD
Phase CD
Phase CD
Phase BCD
Phase CD
Phase BCD
Phase BCD

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The Process Timeline

KDP-B

KDP-C

Phase A

Phase B

KDP-E
Phase CD

Phase E

0.0 Project Formulation

1.0 Organization
2.0 Scheduling (develop)
3.0 Work/Budget Authorization
4.0
5.0
7-1.0
8.0
9.0

2.0 Scheduling (status)

Accounting (accounts set up Ph B, ACWP in Ph CD)

Indirect Management (planning and EACs)
Change Management (External)
Material Management
Contract Management
6-1.0 Managerial Analysis
6-2.0 Comprehensive EAC
7-2.0 Change Management
(Internal)

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The Tools
The basic planning and management tools needs to be in place prior to
developing the Performance Measurement Baseline (PMB)
The Tool

Function

Scheduling Control Module

- Repository for projects integrated schedule

- Reports project critical path
- Stores and reports REC/DELs
- Support JCL requirements

Cost Control Module

- Repository for projects integrated cost

- Baseline, ACWP, ETC, EAC
- Calculates BCWP
- Produce integrated baseline cost reports
- Produce cost performance reports

Accounting System

- Official book of accounts

- Captures all actual costs by project

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The Tools
Additional planning and management tools needed to be in place prior to
developing the Performance Measurement Baseline (PMB)
The Tool

Function

Quantifiable Back-up Data

(QBD)

- Derive EV % complete
- Used when schedule is not used to derive %
- Under baseline control

Front End Planning Aides

- Budgetary planning tools that act as a feeder

to cost control system module

Risk Management Tool

- Repository for project risks

- Used in developing Management Reserve
position for the project

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The Tools (data sets)

Standard global files should be in place prior to developing the Performance
Measurement Baseline (PMB)
The Tool

Function

Resource Breakdown Structure

(RBS)

- Resource structure from line organization or IPTs

- Standard resource classifications
- Standard direct rates

Indirect Rate Structure

- Standard/approved forward pricing rates/factors

- Appropriate burdening scenarios (overhead/g&a)

Organization Breakdown Structure

(OBS)

- Line Management Structure or IPTs

- Skill centers and service centers

Accounting Calendar

- Common monthly calendar for Account System

and Cost Control Module

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I skate to where the puck is going to be, not where it

is.

Wayne
Gretzky

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Where is the puck going?

What to expect

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NPR 7120.5d Business Requirements

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Business Products for Phase A

Phase A
Preliminary Project Plan
Cost and schedule controls
Phase A Work Agreements
Preliminary Integrated Baseline
NASA Standard WBS (to WBS Level 3)
WBS Dictionary
Integrated Master Schedule
Life cycle cost estimate
Preliminary life-cycle cost estimates includes reserves
Workforce estimate
Phase B Work Agreements

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NPR 7120.5d Business Requirements

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Business Products for Phase B

Phase B
Final and approved Project Plan
Cost and schedule controls
Integrated Baseline Reviews for all contractors with life cycle cost
greater than $20M
Includes Prime contractors second tier subcontractors
Phase C Work Agreements
Final Integrated Baseline
NASA Standard WBS to Control Account/Work Package
WBS Dictionary to Control Accounts
Integrated Master Schedule
Includes Tier 1 Master Schedule
End-to-end integrated Critical Path Network
Life cycle cost estimate
Preliminary life-cycle cost estimates includes reserves
Workforce estimate

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Implementation 15 Month Timeline

Transitioning from Phase B to Phase C
The first year of Phase C
Phase B

KDP-C

Qtr -1
Project PDR
Integrated
Baseline Reviews
of contractors
Adjustments to
final integrated
baseline
Prepare Phase
CD Work
Agreements
Establish budget
logs

Phase C
Qtr 1

Qtr 2

Qtr 3

Data and process

normalization period

Commence
customer reporting

Variance Analysis
Reporting

VAR Correction
Actions Tracking

Begin monthly
cadence
Incorporate ACWP
Incorporate BCWP

Analyze
performance trends
(CPI SPI)

Analyze
performance trends
(CPI SPI)

Analyze
performance trends
(CPI SPI)

Commence ETC
maintenance

Estimate to
Complete (ETC)
maintenance

Comprehensive
annual EAC

Process and review

for anomalies

Review variances
Generate CPR
Format 1
Run through three
monthly cycles

Exercise cost and

schedule change
control process

Budget to Complete
(BTC) Maintenance
Reserve utilization
and attrition analysis

Qtr 4

Variance at
Complete analysis
Reserve utilization
and attrition analysis

Make corrections
as required

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Total Project
Earned Value Performance Trends

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Total Project
Earned Value Performance Trends
$224M
$233M IEAC
$253M

Cost
Performance
Index (CPI)

Schedule
Performance
Index (SPI)
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Efforts and courage are not enough without purpose

and direction

John F.
Kennedy

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