Operated by the University of California for DOE/NNSA

Electric Dipole Moment of the Neutron (EDM) Project

CD-1 Preparation & Project Management Discussions

Prepared By:

John Tapia Joe Onstott

March 3, 2006

EDM

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EDMOutline

1. Why Project Management?

2. What is Project Management?

3. What is Project Management in a DOE Construction Environment?

4. Applying Project Management To EDM• Best Practices• Management Principles• Integration

5. Path Forward

6. Backup

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EDMWhy Project Management?

Success is Getting Harder to Achieve:

– Resources ($) are getting scarce.

– Teams are more diverse and geographically dispersed

– Customers to expect “Real Time” information and that expectation is hard to meet

We are obligated as stewards of taxpayer ($):

– Ensure ($) are put to optimal use, but only the use for which they were intended

– Meet expectations for transparency and accountability

Competition for every research ($) is getting stiffer

– Meeting customer expectations necessary for obtaining future funding and projects

– Build institutional knowledge to tackle future endeavors

There are many analogies used to describe successful project management today – one of the best is the Olympic scoring analogy.

“The difference between bronze medals and gold medals is less than 10% of the total score, ……You’re expected to deliver the other 90% because you were good enough to be invited.”

For big science projects, 90% of the project management expectation must be met routinely, the remaining 10% is where we are judged for success. If we don’t achieve the 90% routinely, we seldom get to the level of success our customers demand.

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EDM

What is Project Management?

Defined in the PMBOK as “the application of knowledge, skills, tools and techniques to project activities to meet the project requirements”

Project management best practices help ensure success– Two roads to success: luck and good planning

Projects are divided into phases of the project life-cycle that mirror the DOE CD process– Initiation – Determination of mission need– Planning – concept exploration and definition– Implementation – concept validation and manufacturing– Closeout - Deployment

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EDM

What is Project Management in a DOE Environment?

DOE Order 413.3, “Project Management for the Acquisition of Capital Assets” governs all DOE capital construction projects

DOE Order 413.3 outlines a process for implementing projects that includes a series of critical decisions

Each critical decision determines whether or not the project may continue to the next stage

Each critical decision allows the expenditure of federal funds– CD-0 – Mission Need – Decides if a project is warranted– CD-1 – Approval of Conceptual Design – Determines if PED funds

are released to fund a preliminary design– CD-2 – Approval of Preliminary Design – Decides if funding for a

detailed design is approved– CD-3 – Begin Construction – Determines if capital funds should be

released for acquisitions– CD-4 – Construction Complete – Determines if asset is ready for

operations

Initiation

Planning

Implementation

Closeout

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EDM

What is Project Management in a DOE Environment (cont.)?

The DOE process requires that for a project the size of EDM:– Has a defined work breakdown structure– Is organized so that individuals are assigned and

accountable for all aspects of the project (OBS)– Has cost and schedule estimates that are traceable

to the scope of work associated with them (work packages)

– Has completions points (milestones) for objectively determining progress and performance

– Follows a formal change control process for modifications to the approved project work scope

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EDM

What is Project Management in a DOE Environment (cont.)?

Approval of Conceptual Design (CD-1) requires the following:– Describing the problem(s) to be solved and how they will be solved

• Includes sketches and probable solutions• Not enough detail to complete project

– Matching the mission needs statement to the project requirements– Defining how the project must perform when completed– Evaluating alternatives to the problem– Determining whether the solution is available, affordable and whether

the benefits outweigh the costs– Asking whether technology is available to implement the solution– Analyzing life-cycle costs including operations, maintenance and

disposal– Considering competing design concepts to determine the feasibility of a

particular approach

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EDM

What is Project Management in a DOE Environment (cont.)?

Completed Conceptual Design Report (CDR) Should:

– Document the physics requirements to be met (technical assessment)– Describe technical solutions that are likely to meet the physics requirements– Provide a credible estimate of the cost range and associated supporting

information to justify the cost range– Present a credible schedule duration that shows how long it will take to

complete design and construction

Project team should be solidified and be capable of carrying the design forward to a baseline

– A qualified project management team should be in place– The physicists, engineers and other personnel needed to complete the design

have been identified and made available– There is a plan to complete the R&D needed for the design and resources to

implement the plan have been identified

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EDM

What is Project Management in a DOE Environment (cont.)?

Preliminary Project Execution Plan (PPEP) addresses all required elements of the PEP at a preliminary level

– Details can be completed at CD-2 when the final PEP is approved

– If a Project Management Plan (PMP) will be used to supplement the PEP, then a draft should also exist at a similar level of detail

Preliminary Hazard Analysis Report that identifies major safety issues and conceptual solutions to mitigate these issues

Preliminary Acquisition Plan

Draft External Collaborations and Parternships Plan

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EDM

Applying Project Management to EDM – Best Practices I

Mission Need and Strong Program Support are Critical – Science community support cannot waver– Must be an Institutional priority with commensurate commitment &

accountability within lower organizations– Political support required– DOE-SC support required

Management Team Must Have Project Mentality– Appropriate experience for the job– Success in building the mission need doesn’t ensure success in execution

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EDM

Applying Project Management to EDM – Best Practices II

Managing Project Execution is not Rocket Science– Build a strong team, anticipate problems, manage changes

proactively, stay on top of the details– Keep your eye on the ball (EVMS, EAC, risk)– Plan the work then work the plan– Drive schedule, Drive schedule, Drive schedule

Multi-Organizational Partnerships Add Another Dimension – Lead Organization must have ability to distribute budget and to hold

others accountable– Management of each organization must make commitment and accept

ownership and accountability– Lead Organization must have the technical expertise to be strong

systems integrator

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EDM

Applying Project Management to EDM – Best Practices III

Tracking Project Performance– Use the tools of the trade

• Work Packages: Document scope definition, costs and assumptions

• Risk analysis: Employ an effective risk management system that documents and plans for possible risk events

• Critical Path Analysis: Monitor the critical path carefully (PEP, Integrated Project Schedule, Working Schedule)

• Earned Value Trending: Evaluate both cost and schedule performance at

appropriate WBS level – Get regular, candid advice– Details, details, details

Long-range strategy needs to be established between DOE and Lab – Enough detail to guide decisions– Facilitate future scope enhancements

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EDMApplying Project Management to EDM – Management Principles

Strong management team necessary that is:– Highly motivated as the future user/recipient of data– Strong partner with DOE

Need Trust at all levels, open communications, and constructive criticism

Active identification and resolution of issues before they become significant without waiting for reviews and written reports

Maintain a peer review process on all aspects of project (i.e. Semi-Annual reviews and Advisory Committees)– Incorporates lessons learned from other projects– “Peer pressure” will be a strong motivator– Tool for managing risks and vulnerabilities

Hold ad hoc reviews as needed (project management systems, engineering designs, safety analysis reports, etc.)

Keep constant, unrelenting control of cost & schedule using disciplined management systems

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EDMApplying Project Management to EDM – Integrate Processes

Each of the 9 processes above will need to be integrated on the EDM Project to successfully meet the objectives. We plan to describe how these processes will be managed in the PEP.

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EDM

Recommended Path Forward

Define the project – Draft CDR! Agree on a simple CD-1 project plan Confirm project next-steps after EDM Collaboration Meeting Finalize Organizational Chart Confirm Scope of Work for each partner Create a more detailed WBS Hold Project Fast Start with team members to define:

Project Requirements

Project Organization Listing

Stakeholder List

Planning Assumptions and Constraints

Project Objective And Scope of Work Statement

Constraint Matrix

Deliverables List

Risk Log

Work Breakdown Structure

Project Schedule

Key Milestones List

Project resource estimate

Operated by the University of California for DOE/NNSA

Back-Up Slides

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EDMProject Management Activities in the EDM Project

1. Organization

– Define and organize the authorized project scope in a WBS

– Identify which organizations and subcontractors are authorized and responsible for work on the project in the OBS

– Provide for the integration of processes for project planning, scheduling, budgeting, work authorization, and cost accumulation

– Provide for the integration of the WBS with the OBS to create the Responsibility assignment matrix (RAM)

– Document the process and organization responsible for the management and control of indirect costs.

2. Planning, Scheduling, and Budgeting

– Establish an integrated, time-phased schedule and corresponding budget at the control account level

– Identify, sequence, and authorize work in a transparent and interdependent manner

– Clearly define the products and deliverables

– Ensure management visibility for cost and schedule control

– Provide timely, valid, and traceable baseline performance and trend data

– Prevent duplication of budget and cost baselines

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EDMProject Management Activities in the EDM Project (cont.)

3. Accounting Considerations

– Establish a consistent cost collection system without allocation to more than one control account

– Follow CAS and make sure they are approved by DOE

– Allocate indirect costs on a fair share basis

– Collect and compare actual cost performance in the same manner as planned.

4. Analysis and Management Reports

– Provide timely visibility into technical, cost, and schedule progress

– Generate planning and performance data at the appropriate level to be used by management in the decision making process

– Develop meaningful performance indicators to provide early warning of potential problems

– Use effective communication processes to maintain project integration and baseline definition between project participants and sponsors.

5. Baseline Revisions and Maintenance– Ensure cost effective, accurate, timely and properly controlled baseline changes at appropriate

levels using risk based processes.– Reconcile budget changes traced to technical scope and control accounts– Use a project change control process to prevent unauthorized modifications to the baselines

and document approved changes

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EDM

Outline & Planning Sequence

CD-0 CD-1 CD-2 CD-3 CD-4•Identify need

•Evaluate possible solutions

•Select appropriate solution

•Present Business Case

Establish preliminary organization

Identify stakeholders

Define objectives

Risk assessment

Define scope of work

Derive WBS

Prepare initial schedule

Establish Core Team

Optimize detailed schedule

Update risk assessment

•Launch project

•Monitor, track & report progress

•Manage risks & issues

•Manage stake-holders & customers

•Verify objectives met

•Finalize handover process

•Evaluate project

•Close out project

•Propose follow-on projects

•Prepare final reports

•Approval to close

Initiation Planning/ Definition

Planning/Design

Implementation CloseoutOK OK OK

Fast Start for Projects

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EDM

Earned Value Management

Traditional Project cost and funding management looks only at costs against a pre-determined spending plan

Earned value looks at “true” cost performance by comparing schedule status and cost status together

Planned or schedule value is recognized as work is completed and equals the project’s earned value

Tracks three distinct values:– The Planned Value of the work– The Earned Value of the physical work accomplished– The Actual Costs incurred by the project

Results in several metrics, including schedule variance (SV), cost variance (CV), estimate at completion (EAC), and cost and schedule indices

Provides management with a full picture of the project’s performance (schedule & cost) and serves as an early warning sign of minor difficulties so they can be addressed before major problems arise

If employed on EDM, would require WBS managers to report monthly percent complete information on schedule activities and milestones

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EDM

Work Breakdown Structure

Project XYZ

Design Fabricate Install Inspection

AlignmentPlacementWork Package "n"Prelim. Drawings Activity "n"

Materials Tooling

Activities

The top level represents the total project

Activity "n"

Level 0

Level 1

Level 2

Level 3

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EDM

EDM Work Breakdown Structure Synopsis

The WBS for the EDM Project will be broken down to the level where a single organization or person can be named as responsible for the work

To identify costs and activities for Conceptual Design, we will need to brake the WBS down to a point at which work elements can be fit into the required “phases”

The next step in the process is to make the cost and schedule estimates traceable to the WBS by breaking each work scope into distinct activities to which we assign resources, duration and expenses

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EDMCurrent EDM Work Breakdown Structure (Draft)

EDM Management1.0

Martin CooperJohn Tapia

DOE Office of Nuclear Physics Program Manager

Jehanne Simon-Gillo

Neutron Beam Line & Shielding

1.1TBD

Magnets & Magnetic Shielding

1.3TBD

High Voltage, Measuring Cells, Light System, SQUIDs

1.4TBD

Electronics, Computers, Simulations, Data Analysis

1.5TBD

Conventional Construction1.6

TBD

Integration & Commissioning

1.7TBD

EDM Project Controls

Cryogenics, 3He Systems, Atomic Beam Source & Interface

1.2TBD

LANL Physics Division Leader

Jack Shlachter

DOE LASO Project Manager

Eugene Colton

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EDM

EDM Scheduling and Cost Estimating

In the lower levels of the WBS (where the work will be accomplished), scheduling and cost estimating is a simple process that includes the following steps:

1. Develop a list of activities2. Sequence the list of activities3. Establish a duration for each activity4. Assign resources (labor and M&S) to each activity

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EDM

Managing Risks

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EDM

Managing Risks

Risk Management is an essential feature of successful projects

Risks are managed throughout the project life-cycle by:– Identifying risks– Analyzing risks– Mitigating risks– Monitoring risks to their retirement

In preparation for CD-1, we will be requesting that you identify any risks that could affect the cost estimates that you will be providing, assess their likelihood and determine ways to mitigate them.

Examples of Cost Risks:

Possible price escalations

Overly optimistic cost estimates

No prior cost data available for cutting-edge work

Limited understanding of scope

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EDM

Managing Risks (cont.)

Methods of addressing risks include:

– Acceptance – If you understand the risk and have sufficient information to address the potential impacts, the project can choose to accept the risk by:

• Increasing the amount of contingency allocated to a budget• Increasing the amount of time allocated to complete a task

– Avoidance – Take an action that prevents the risk from being realized• Technology development plans or prototyping• Insure against the risk

– Transfer – Move the risk burden to another entity• Use a fixed-price procurement strategy• Use programmatic R&D focused on de-scoping elements of the project

to clarify the technical outcome in a timely manner and reduce the risk to accept the scope back into the project

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EDM

Project Controls Continued . . .

Scheduling

– Need to identify appropriate scheduling tool (P3, P3E, or MSP)

– Need to determine if parts of the project will be managed as subprojects to the Master EDM project within the schedule.

– Need to prepare a high level schedule at WBS level 3 Performance Measurement

– Requires CD-2 approval. Appropriate tool will then be used to measure project performance.

– Implement a Cost Performance Report (CPR) to track and report cost and schedule performance

– Variance analysis and corrective action planning performed at WBS level 3 is recommended

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EDM

EDM Project Questions to Consider

Technical• Are the final technical requirements stated? • Will these requirements be stated as technical performance requirements /

specifications?• Can the design(s) in the proposal be built? Will the proposed design(s) meet the

meet the technical specifications? Is it a reasonable design? Management

• Is there an appropriate management organizational structure in place or proposed to accomplish the design and construction?

• Have responsibilities been assigned or have they been proposed?

• Are there adequate staffing resources available or planned for this effort?

• Is there a funding plan proposed to meet the resource requirements to realize the project requirements?

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EDM

EDM Questions to Consider (cont .)

Cost

• Has a specific Work Breakdown Structure (WBS) been developed or other listing of cost elements been prepared?

• Do the cost estimates for each WBS (or cost) element have a sound basis and are they reasonable?

Schedule

• Is there a proposed schedule for the project?

• If, so are the activity durations reasonable for the assumed resources?

• Has the schedule been “resource loaded”?

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EDMManagement Controls

PEP with MOA’s

AB Plan QA Plan WBS Descriptors

ParametersList

Cost Est. Database

Project MasterSchedule

• ES&H Plan • IPS• Work packages• Detailed Schedules• Milestone Log

Project Controls Manual

Hazard & Accident Anal.

TechIntegration

Safety Eval.Report

ORR Preparations

Document Control &

Records Mgmt

Design Integration Plan

System ReqsDocuments

Design ControlDocuments

Interface Control Docs

ConfigurationMgmt Plan

Advanced Proc.Plans

• Monthly performanceReports (with earnedValue reporting)

Admin. Plans & Procedures

• Staffing Plans• Action Tracking System• Org Chart

QA Procedures

• Acceptance Criteria Listings

System Integration Procedures

• Drawings• Specifications• SOWs• Design Review Procedures

Procurement Procedures