Security fundamentals Topic 2 Establishing and maintaining baseline security.
Establishing the Performance Measurement Baseline
-
Upload
glen-alleman -
Category
Technology
-
view
19.214 -
download
2
Transcript of Establishing the Performance Measurement Baseline
Establishing the Performance
Measurement Baseline (PMB)
The Performance Measurement Baseline is a The Performance Measurement Baseline is a time–phased schedule of all the work to be time–phased schedule of all the work to be performed, the budgeted cost for this work, performed, the budgeted cost for this work,
and the organizational elements that produce and the organizational elements that produce the deliverables from this work. the deliverables from this work.
Glen B. AllemanVice President, Strategy and Performance Management
Lewis & Fowler8310 South Valley Highway
Suite 300Englewood, Colorado 80112
The Processes Surrounding the Performance Measurement
Baseline
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
2
Identify Needed Business
Capabilities
Establish a Performance Measurement
Baseline
Execute the Performance Measurement
Baseline
Capabilities Based Plan
Business Value Stream
Earned Value Performance
Technical Performance
Measures
Business Value Stream
TechnicalRequirements
Establish a Requirements
Baseline
Technical Performance
Measures
PMB
There are 3 PMBs on Every Project
Technical, Schedule, and Cost Baselines are needed for success
Building these requires an integrated effort
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
3
Establish Cost Baseline
Establish Schedule Baseline
Establish Technical Baseline
Perform Functional
Analysis
Determine Scope and Approach
Develop Technical Logic
Develop Technical Baseline
Develop WBS
Define Activities
Estimate Time Durations
Sequence Activities
Finalize Schedule
Identify Apportioned Milestones
Determine Resource
Requirements
Prepare Cost Estimate
Resource Load Schedule
Finalize Apportioned Milestones
Determine Funding
Constraints
Approve PMB
The Six Steps to Build the Performance Measurement
Baseline
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
4
Decompose the Project Scope into a product based Work Breakdown Structure and then into Work Packages which describe the production of all deliverables
Decompose Scope
Assign Responsibility for Work Packages to named owners who are accountable for the management of resource allocation and cost baseline, and technical performance
Assign Responsibility
Arrange the Work Packages in a well formed network with explicitly defined deliverables, milestones and internal and external dependencies
Arrange Work Packages
Develop Time–Phased Budget (BCWS) from labor spreads in each Work Package and balance these BCWS spreads across the Project.
Develop BCWS
Assign Objective Performance Measures for each Work Package and summarize these for the Project as a whole. Use the 0%/100% measurement of complete whenever possible.
Assign Performance
Measures
Establish a Performance Measurement Baseline to be used forecasting Work Package and Project ongoing and completion metrics.
Set Performance
Baseline
These Definitions Will Help Clarify What We’re Talking
About Deliverables Based Planning – focused
on tangible outcomes Work Package – a unique collection of
deliverables with resources and deliverables
Performance Measurement Baseline – forecasts of future performance come from past performance
Performance Based Earned Value® – a means of measuring progress using cost, schedule and technical performance
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
5
Critical Success Factors For The Performance Measurement
Baseline Deliverables represent the required business
capabilities and its value as defined by the business and shared by the development team.
When all deliverables and their Work Packages are completed, they are not revisited or reopened– They are 100% done
The progression of Work Packages defines the increasing maturity of the project– The business value of the deliverables to the
customer increases as Work Packages are completed
Completion of Work Packages is represented by the Physical Percent Completion of the project– Either 0%/100% or Apportioned Milestones are used
to state the completion of each Work PackagePMI College of Scheduling
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
6
Success Of The PMB Depends On Identifying Measureable
Results
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
7
What gets measured gets done1
If you don’t measure results, you can’t tell success from failure2
If you can’t see success, you can’t reward it3
If you can’t reward success, you’re probably rewarding failure4
If you can demonstrate results, you can remain credible7
If you can’t see success, you can’t learn from it5
If you can’t see failure, you can’t correct it6
Decompose The Scope Into A Proper “Tree”
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
8
Business CapabilityProcess Invoices for Top Tier Suppliers
1st LevelElectronic Invoice
Submittal
1st LevelRouting to Payables
Department
2nd LevelPayables Account
Verification
2nd LevelPayment
Scheduling
2nd LevelMaterial receipt
verification
2nd Level “On hand” balance
Updates
Use This “Tree” To Decompose The Project Scope Into Work
Packages The lowest level of the Work Breakdown
Structure defines the Work Packages which contain named deliverables
The parents of these Work Packages collect the business capabilities described in the baseline requirements
The narrative of each Work Package is the WBS Dictionary
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
9
What Does A Good Work Package
“NOT” Look Like?
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
10
What NOT to do Instead Think About
It’s NOT a laundry list of work to be done
It’s a decomposition of the products, services, and data generated by those
It’s NOT a functional decomposition That’s the role of the Organizational Breakdown Structure (OBS)
It’s NOT a direct map of the requirements
Requirements produce products and services, but are not one for one with the WBS
It’s NOT a reflection of the underlying product or service partitioning
This is done later in the program strategy
It’s NOT the first structure you might think of…
Build the WBS several times, assess its usefulness in describing the products and services
What Is “NOT” In A Work Package?
Elements that are not products Project phases Rework, retesting, and refurbishing are
not separate elements in the WBS Non–recurring and recurring are not
classes of work Cost saving efforts like TQM and Lean are
part of the Level of Effort Workstream Cost for meetings, travel, computer
support are part of the level of effort Workstream
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
11
Some Attributes Of A Good Work Package
All terminal nodes describe some end item in the project – a product or a service
Each physical deliverable is testable in some manner to demonstrate it is working
The WBS is an increasing fidelity description of the deliverables produced by the project
The WBS articulates what the customer wants in terms of deliverables – the products or services produced by the project
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
12
A Deliverables Focused Work Breakdown Structure (WBS)
From the requirements Tree construct a list of Capabilities needed to satisfy the customer needs
From this list of Capabilities construct a list of Deliverables that will fulfill the customer needs
Arrange these deliverables into major systems
This has likely already been done…so let’s have a hands on exercise to draw this out
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
13
The Work Breakdown Structure Connections With The Work
Packages Product or services oriented Includes all work in the project Each element logically aggregates
those elements below it Reflects the manner in which the work
will be done
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
14
The WBS becomes the framework for Cost, Schedule, and Technical Performance
Measurement.The WBS is the organizational structure for the Work
Packages
Connect The WBS To Work Packages And Then Define The Tasks To
Produce The Deliverables
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
15
Deliverables
WBS
Tasks and Schedule
Business NeedProcess Invoices for Top Tier
Suppliers
1st LevelElectronic Invoice Submittal
1st LevelRouting to Payables Department
2nd LevelPayables Account Verification
2nd LevelPayment Scheduling
2nd LevelMaterial receipt verification
2nd Level “On hand” balance Updates
Work Package
1 2
3
4
6
5 A
B
Deliverables defined in WP
Terminal Node in the WBS defines the products or services of the project
Terminal node of the WBS defined by a Work
Package
Tasks within the Work Package produce the
Deliverables
100% Completion of deliverables is the measure of performance for the
Work Package
Management of the Work Package Tasks
is the responsibility of the WP Manager.
These are not held in the master plan
A decomposition of the work needed to fulfill the business
requirements
Steps In Building The Work Packages
Step 1 – define what is going to be delivered to produce business value– One or more Deliverables produced within a
Work Package
Step 2 – define the effort and duration along with the confidence levels– Only effort and total duration– Level of confidence for effort and duration
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
16
Decompose Business Capabilities Into Deliverables, Then Work Packages, Then Measurable
Outcomes
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
17
Business Capabilities
CapabilityNumber 1
CapabilityNumber 2
DeliverableNumber 1.1
DeliverableNumber 1.2
DeliverableNumber 1.3
DeliverableNumber 1.4
Work Package Number 1
Work Package Number 2
Work Package Number 3
50% Milestone
50% Milestone
100% Milestone
100% Milestone
DeliverableNumber 2.1
Work Package Number 4
100% Milestone
DeliverableNumber 2.1
DeliverableNumber 2.1
Work Package Number 5
25% Milestone
75% Milestone
Increasing Detail of the Planning Outcomes
Increasing Value to the Customer
Step 1: Define The Deliverables And Their Apportioned Value
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
18
Description Deliverable(s) Apportioned Milestones
Transaction processing integration test complete
Test plan compete and approved
Author – 50%Approval – 50%
Define integration testing environment
Integration Test Plan complete Test platform equipment
defined Test environment defined
Test Plan – 25% Equipment List – 50% Environment – 25%
Business processes defined and approved
Business process flow diagram 100%
User acceptance testing defined
User Acceptance Plan Developed
100%
User Acceptance Testing Conducted
Test environment operationalUser Acceptance Testing
performed with 90% successUAT errors documented and
allocated for repair in next release
Environment – 20%UAT Conducted – 70% Errors documented –
10%
Step 2: Define The Effort, Duration, And Confidence
Intervals
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
19
Baseline Contents of a Work Package
Description Assumptions Earned Value
Method Basis of Estimate Predecessors and
successors Strategy for
delivery Completion criteria Contents of the
deliverables
Responsibilities Estimated
duration Estimated effort Confidence
intervals Resources
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
20
In theory there is no difference between theory and practice. In practice there is.
Use Word Or Excel, It Doesn’t Matter
Just Capture The Contents In One Place
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
21
No matter what form is used, the function of the Work Package must communicate to the participants the baseline information described in the Table of Contents of the previous page.
Naming Work Packages May Seem Simple – But What’s In A
Name? The name should convey not only the work
activities but also the delivered result of these activities
The project plan and the list of Work Packages is the concise statement of the work for the project – all held in a single place – the Project Plan
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
22
Maturity Action Product Product State
Adjective Verb Noun Verb
Demonstrates Maturity
A step in the process
End Item Final Status
Preliminary Design Processes Complete
Preliminary design of transaction processes complete
Work Package Description
A clear and concise description of what the Work Package produces in terms of deliverables
This is your elevator pitch when someone asks “what does the Work Package you’re working on do when its all done?”
Deliverables are meaning to the customer – speak in deliverables terms
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
23
If you can’t tell the story between the lobby and the 9th floor, then you haven't got a clear picture of what “done” looks like.
Assumptions
Make it clear (and concise) what you expect to be in place before the Work Package starts
State these in terms of deliverables themselves– What they are– Who you’re getting them from– A little bit of why you need them
Have a mitigation plan when the assumption isn’t true
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
24
Assumptions are repulsive, especially to gravity.
Earned Value Method
Think about how you would measure 100% done.– Done, done– Not, almost done– Not, “I’ll be done soon”
If the Work Package is self contained and 100% done occurs at the end of the WP then use that
If the Work Package has more than one deliverable or the deliverable has incremental functionality then Apportioned Milestones can be used
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
25
Earned Value is how physical progress is measured in the Performance Measurement Baseline.
Only delivered value to the customer is important.
Responsibilities
Each Work Package has one and only one person Accountable for the successful delivery of the Work Package– Put that person’s name on the Work Package
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
26
WBS
OB
S
The Work Packages are where the work and the people come together
Assign The Responsibilities And Make A Single Person
Accountable
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
27
Arrange The Work Packages Into A “Well Formed” Network
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
28
2nd LevelPayables Account
Verification
2nd LevelPayment
Scheduling
2nd LevelMaterial receipt
verification
2nd Level“On hand”
balance Updates
A “Well Formed” Network Has Specific Attributes
Arrange Work Packages in a “Finish to Start” network
No Leads or Lags No Constraints – only “As Soon As
Possible” (ASAP) This network of Work Packages is the
flow on increasing maturity of the deliverables from the project
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
29
“Arranging” the Work Packages Is Iterative And Incremental
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
30
In the example above, the Work Package Managers collectively come to an agreement on how the sequence of how the work will be performed.
The result is a collective ownership of the outcome. This ownership comes from the collective development of the project plan.
This process is a Product Development Kaizen (PDK)
Develop A Time–Phased Budget
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
31
2nd Level SystemPayables Account
Verification
2nd Level SystemPayment
Scheduling
2nd Level SystemMaterial receipt
verification
2nd Level System“On hand” balance
Updates Duration of the Work Package
BC
WS
Duration of the Work Package
BC
WS
Duration of the Work Package
BC
WS
Duration of the Work Package
BC
WS
Balance All The Work Across The Project Before Setting The
Baseline
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
32
ActivityID
ActivityDescription
OrigDur
RemDur
Actual/Expected
Start
Actual/Expected
Finish
BudgetedCost
MSType
EVM%
Cmp
1.2 VACUUM SYSTEM1.2.3 Standard Drifts & TransitionsStraight Section Transitions (14) & Gap Rings1.2.3.1 ED&I
S20121 Trans., Conceptual Design 60 0 14OCT99A 18JAN00A 43,113.60
S20122 Trans., Finalize Design 80 2819JAN00A 08JUN00 40,240.00
S20123 Trans, Final Design Review 0 0 08JUN00 0.00EVM 50
S20124 Trans., Drawings 100 5802FEB00A 21JUL00 37,366.40
S20125 Trans., Drawings Complete 0 0 21JUL00 0.00EVM
S20126 Trans, Sustaining Engineering 140 14024JUL00 16FEB01 18,107.04
S20126A Trans, Sustaining Engineering Complete 0 0 16FEB01 0.00EVM
1.2.3.2 MS&L
S20128 Trans, Order Parts & Material 40 4024JUL00 18SEP00 0.00
S20129 Trans, Receive Parts & Material 0 0 18SEP00 29,000.00EVM
S20131 Trans., Machine Parts 1st Lot 100 10019SEP00 16FEB01 103,000.00
S20132 Trans, Receive Balance 0 0 18SEP00 0.00EVM
S20133 Trans, Assemble Braze 70 7019SEP00 04JAN01 65,920.00
S20134 Trans, Vacuum Process 40 4030NOV00 02FEB01 37,080.00
S20135 Trans, RFI 0 0 02FEB01 0.00EVM
1999 2000 2001
AUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCT
Resource/Cost Profile Legend
Total early cost per Month (Current Estimate)
Total of All Resources Detail scale (left): X 1000AUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEPOCT
1999 2000 2001
10
20
30
40
50
x 1000
© Primavera Systems, Inc.
Start Date 01JUN99
Finish Date 05MAR02
Data Date 01MAY00
Run Date 31MAY00 13:29
Early Bar
Progress Bar
Critical Activity
SPR3 - VACM
1.2 Vacuum System
Sheet 1 of 1
Identify Objective Measures Of Performance For Each Work
Package Define the Planned Value for each Work
Package completion or apportioned milestone within a Work Package
Only Physical Percent Complete should be used to measure progress – there can be no personal “opinions” of progress
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
33
Physical Percent Complete CummBCWP BCWS
Set The Performance Baseline
Baselining the Performance Measurement Baseline is the beginning of Executing the project plan
Without the baseline and the change control over this baseline, the performance predictions will be difficult
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
34
There are two phases of any complex project …
Too early to tell and too late to stop
Build The Apportioned Milestones And Assign Physical
Percent Complete Identify each incremental deliverable in
the Work Package Assign an apportioned value to that
deliverable Document the evidentiary materials for
the incremental deliverable and its assigned percentage value
Identify the delivery date for the apportioned milestone in the schedule
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
35
1 mile = 1,000 (mille) paces = 1,640 yards .
Introduced to Britain by the Romans
The passage of a milestone meant progress to the destination.But it is critical to pre-assign value to each milestone and record this value as the milestone is passed
Assemble The Work Packages Into A Credible Schedule
Start with Work Packages and their total BCWS spreads– Total WP duration – in the Duration field– Total WP work effort – in the Work field– Start dates aligned with the project start
date defined in the Project menu– The result is a Gantt–style picture of the flow
of WP value
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
36
Henry Laurence Gantt, A.B., M.E1861–1919
Project Maturity Flow Is The Incremental Delivery Of Business Capabilities
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
37
Pilot
Data
Enrollment
Integrators
Quality Monitor
Internal
Router
External Interfaces
Finance Loss
Data Store Lookup
Data Warehouse
Data Marts
Data Marts
Portals and others
Billing
Resale's
Emulations
Demo conversion process, member reconciliation
Shared group matrix reports and interfaces
Shared member crosswalk and members to ERP
Integrators in ERP converted to inventory
Status and trigger conversions
Data in Marts for ERP
Material Master Converted from legacy
External Vendors converted to ERP
TBD
Vendors from legacy
Material converted end–to–end
Analyzing And Assessing The Network Of Work Packages
Requires Understanding Critical path Accuracy Integration Realism Performance Variances Forecasting What–If Analysis Risk Resources
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
38
A credible schedule cannot be just a list of activities. It must be an accurate model of the project strategy and execution that can be analyzed, assessed, and used to answer risk based questions.
A “Very” Simple Risk Management Process Is Needed To Establish
Credibility
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
39
Planning Identification Analysis HandlingCommunicatio
nand
Tracking
Build the process for managing risk Allocate responsibilities at the project level Determine What is to be Risk–Managed
Do a comparative analysis of the risks Assign risk attributes Assign risk ownership
Evaluate the impact of each risk “A” Risk “All” Risks
Prepare risk decision–packages
Define the Decision–Making Process Iterate the analysis to select mitigation
Keep everyone aware of decisions made Track progress Evaluate effectiveness of the risk management processes
“Risk Analysis Techniques, Schedule, Cost and Other Aspects, INCOSE Heartland Chapter October 24, 2001, Futon Corporation
Integrating Cost, Schedule, And Technical Performance
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
40
Cost, Schedule, Technical Model†
WBS
Task 100
Task 101
Task 102
Task 103
Task 104
Task 105
Task 106† This is a Key concept. This is the part of the process that
integrates the cost and schedule risk impacts to provide the basis of a credible schedule.
Probability Density
Function
Research the Project Find Analogies Ask Endless Questions Analyze the Results
What can go wrong? How likely is it to go wrong? What is the cause? What is the consequence?
Monte Carlo Simulation Tool is Mandatory
1.0
.8
.6
.4
.2
0 Days, Facilities, Parts, People
Cumulative Distribution Function
Days, Facilities, Parts and People
There Is Technical And Programmatic Risk – Both Must
Be Addressed• There are two types of
“uncertainty” on any sufficiently complex project:
– Technical – uncertainty about the functional and performance aspects of the project's technology that impacts the produceability of the product or creates delays in the schedule
– Programmatic – uncertainty about the duration and cost of the activities that deliver the functional and performance elements of the project, independent of the technical risk
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
41
So much for our strategy of winning through technical dominance
Wrap Up
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
42
A good plan, violently executed now is better than a perfect plan executed next week– General George S. Patton
In The End Its All About The Schedule
• A slipping schedule is simply unacceptable• “Attack” the schedule as soon as possible
and never stop attacking• Update schedules monthly or more
frequently, look at it everyday• Earned Value really works if – and this is a
big if – you are ruthless about following the EV process. This can’t be said strong enough – use EV in the way it was designed to be used.
• Keep all the data “clean” and use it to make management decisions
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
43
Troubled Projects Always Have A Common Set Of Attributes
Inattention to budgetary responsibilities Work authorization not always followed Budget and data reconciliation issues Lack of an integrated management system Baseline fluctuations &frequent replanning Current period and retroactive changes Improper use of management reserve Earned Value techniques not reflecting actual accomplishments Untimely and unrealistic Latest Revised Estimates (LRE) Progress not monitored in a regular and consistent manner Lack of vertical and horizontal traceability (critical path) Not capturing and using cost and schedule data for corrective
action Lack of predictive variance analysis Lack of internal surveillance and controls Managerial actions not demonstrated using Earned Value
PMI College of Scheduling“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
44
A ship on the beach is a lighthouse to the sea – Dutch Proverb