29. The completion of the Performance Measurement is necessary but not sufficient. As participants in the
Earned Value community there is sometime the notion that having a PMB is all that is needed. The
PMB is necessary, but not sufficient. The sufficient attributes are:
PMB i b t t ffi i t Th ffi i t tt ib t
Identification of the needed system capabilities – if we don’t know what the system is supposed to
do from the technical or business mission point of view, then the PMB can not be credible. Because
not matter the accuracy of the PMB or the proper representation of the work package sequencing, or
the labor spreads, if the PMB describes the wrong work, then the result will be disappointing.
Only after there is a clear and concise description of the needed technical or mission capabilities –
usually in the form of a Concept of Operations (ConOps) and supporting systems engineering models
usually in the form of a Concept of Operations (ConOps) and supporting systems engineering models
– can the technical, operational, programmatic, and business requirements be developed.
These two sources form the raw material for the Performance Measurement Baseline (PMB). All
ConOps elements must flow down in a properly structured “tree” to requirements. The
Requirements must properly flow down to a Work Breakdown Structure (WBS) to properly describe
the deliverables. Only then can the PMB be developed. An Integrated Master Plan / Integrated
Master Schedule (IMP/IMS) paradigm should be used to structure the PMB, no matter the size of the
program.
The program then needs to be executed
All these activities must be performed inside the context of continuous risk management
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30. Translating System Capabilities into System Requirements begins with the a narrative description of the
needed Capabilities. This sounds like a tautology – a Chicken or the Egg problem. But discovering the
system requirements is difficult in the absence of some higher level description of the needed
system requirements is difficult in the absence of some higher level description of the needed
“Capabilities” of the desired system.
The concept of a “Capability” is a capacity or potential [Davis]:
Provided by a set of resources and abilities, To achieve a measureable result, In performing a
particular task, Under specific conditions, To specific performance standards
One approach to capturing the system capabilities is:
Start with the customers understanding the current and future operational needs of their system
Aligning those needs with industry standards and trends
Translating the needs into system capabilities in the form of system requirements specification or a
Concept of Operations. The Systems Requirements Specification is not the same as a Technical
Requirements Specification.
Establish a high–level system concept to identify system components and their interfaces
Guide the Integrated Product and Process Development (IPPD) Teams, mentoring, and working with
providers of system components (both custom built and COTS) to ensure they adhere to the overall
system view
t i
Work with the customer to identify and mitigate technical risks through a structured Risk
Management process at the Systems Requirements level
Verify each system capability through a System Integration and Qualification Test Plan
Work with the customer to develop a Fielding and Product Support Plan of the delivered system
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32. The Performance Measurement Baseline (PMB) is the primary assessment document for assuring the
credibility of a project plan. The PMB is the baseline of the cost, schedule and deliverables for each
Work Package (WP) in the plan.
W kP k (WP) i th l
Constructing the PMB requires knowledge of the system requirements, skill in developing the WPs that
produce the deliverables for these requirements, and discipline in assembling the cost, schedule and
relationships between the WPs. It is the discipline that requires the most focus for the planners and
project controls staff. Without this discipline, the development of a credible baseline is simply not
possible.
In the end the planners and project controls staff must “know” in intimate detail each WP, its
I th d th l d j t t l t ff t “k ” i i ti t d t il h WP it
deliverables and resource requirements, the performance measurement criteria and the dependencies
that form the critical path through the project schedule. The concept of a Deliverables Based Plan
(DBP) is at the core of the Performance Measurement Baseline (PMB).
Deliverables are the units of measure of progress to plan.
Deliverables are what the customer has paid money for.
Deliverables contain the system capabilities, the associated value that fulfill the requirements of the
li bl i h bili i h i d l h f lfill h i f h
master plan
The first critical success factor in building the Performance Measurement Baseline (PMB) is the
decomposition of the system requirements into technical capabilities, then into deliverables that
enable those technical capabilities, and finally into the WPs that produce those deliverables.
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33. The focus of the Performance Measurement Baseline execution steps is to physically assess the
progress of the program in units reflecting the progress using the three independent variables:
C t
Cost
Schedule
Technical Performance
The traditional Earned Value Management approach uses three data sources, the budget (or
planned) expenditures (BCWS), the actual expenditures (ACWP), and the Earned Value (BCWP)
captured from the Control Account or Work Package Manager’s. The comparison of budget versus
actual expenditures indicates what was planned to be spent versus what was actually spent at any
p p p y p y
given time. The use of Earned Value (BCWP) indicates what was produced for that expenditure.
With this approach the use of physical percent complete for the amount of work performed is a
starting point. It does not indicate anything about the conformance to specification of the work
produced for the amount of money spent.
By adding Technical Performance Measures (TPM) to the analysis of Earned Value Management, the
program manager can assess the actual progress of the program. Non–compliance with the planned
Technical Performance Measures dilutes the Earned Value proportionally. This dilution is in the form of:
Technical Performance Measures dilutes the Earned Value proportionally This dilution is in the form of:
Rework of non–compliant deliverables
Deferred work not completed during the planned period of performance
With the period of performance complete, the unused funds – if any – are used to adjust the Earned
Value (BCWP) to reflect the unfinished or deferred work.
If the work is deferred and there is remaining funds, a change order is issued to move the funding.
If the work is non–compliant and the funding is exhausted, a dilution of BCWP is needed to reflect
the true Earned Value
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34. Let’s review. These processes represent a sequence of activities that increase the maturity of the
programmatic aspects of a project or program.
The plans that result from these efforts describe the increasing maturity of the product or services
Th l th t lt f th ff t d ib th i i t it f th d t i
that are the deliverables from the project.
In order to develop and execute a Plan, a set of requirements is needed. Before these requirements
can be developed, an understanding of the system capabilities should be developed.
1. Identify Business Needs ‐ Define the set of capabilities needed to achieve the program objectives or
a particular end state for a specific scenario using the Concept of Operations (ConOps). CONOPs is a
verbal or graphic statement, in broad outline, of an assumption or intent in regard to an operation
g p , , p g p
or series of operations, mission, or system.
2. Establish Requirements Baseline – defines the technical , organizational, and operational
requirements that must be in place for the system capabilities to be fulfilled. Define these
requirements in terms isolated from the implementation details. Only then, bind these
requirements with the technical alternatives.
3. Establish Performance Measurement Baseline – build a time‐phased network of scheduled activities
describing the work to be performed, the budgeted cost for this work, and the organizational
describing the work to be performed the budgeted cost for this work and the organizational
elements that produce the deliverables from this work. Define the technical performance measures
showing how this work proceeds according to the technical and programmatic plan.
4. Execute the Performance Measurement Baseline – execute the Performance Measurement Baseline
Work Packages, while assuring all performance assessments represent measures of Physical Percent
Complete.
5. Continuous Risk Management – identify, plan, and budget risk mitigation or retirement activities at
assure impediments to progress are handled.
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35. Principles are the source of guidance for Practices .
A principle is a “general truth, a law on which other are founded or from which others are derived.”
[Webster]
For the principles of program and project management to be effective they must :
Express a basic concept
Be universally applicable
Be capable of straightforward expression
Be self evident
The 10 Principles of Deliverables Based Planningsm guide the application of the four process areas.
These principles encompass the entire life cycle of a project or program, from inception and the
discovery of the business or system capabilities, through requirements elicitation, to the creation of the
Performance Measurement Baseline (PMB), to the execution of this baseline.
The principles provide several feedback loops to assure that subsequent activities provide measurable
information to correct gaps that exist in the previous activities. This iterative and incremental approach
to program management assures the periods of assessment for corrective actions are appropriately
spaced to minimize risk while maximizing the delivered value to the program.
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