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Road and Track Vehicle - Project Document

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A project plan for the development of a road and track vehicle.

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Road and Track Vehicle - Project Document

  1. 1. Project DP Zero 1 FIRST PRINCIPLES TECHNOLOGIES 12 BAY DRIVE CHARLESTON, SOUTH CAROLINA DATE 8 January 2015 Note: Many of the details and technical details in this version of the document have been removed or amended
  2. 2. 1 TABLE OF CONTENTS EXECUTIVE SUMMARY........................................................................................................................... 2 INTEGRATION MANAGEMENT.................................................................................................................. 3 PROJECT CHARTER ................................................................................................................................ 5 STAKEHOLDER REGISTER....................................................................................................................... 10 STAKEHOLDER MANAGEMENT PLAN........................................................................................................ 11 COMMUNICATION MANAGEMENT PLAN.................................................................................................. 14 STATEMENT OF WORK......................................................................................................................... 21 SCOPE MANAGEMENT PLAN.................................................................................................................. 24 COST MANAGEMENT PLAN ................................................................................................................... 31 SCHEDULE MANAGEMENT PLAN............................................................................................................. 36 RISK MANAGEMENT PLAN .................................................................................................................... 42 CHANGE MANAGEMENT PLAN ............................................................................................................... 51 HUMAN RESOURCE MANAGEMENT PLAN................................................................................................. 56 LESSONS LEARNED APPROACH............................................................................................................... 59 PROCUREMENT MANAGEMENT PLAN...................................................................................................... 61 EXAMPLE STATUS REPORT .................................................................................................................... 66 PROJECT CLOSE.................................................................................................................................. 69 APPENDIX......................................................................................................................................... 70 PROJECT TEAM DIRECTORY................................................................................................................... 70 EARNED VALUE DETAILS....................................................................................................................... 72 GUIDANCE ON CREATINGHIGHPERFORMANCE TEAMS ............................................................................... 73 PERFORMANCE IMPROVEMENT............................................................................................................. 75 REFERENCE ....................................................................................................................................... 78
  3. 3. 2 EXECUTIVE SUMMARY Utilisationof trackcars is limitedtorace circuitsas theyare notroad legal.Thiscreatessome annoyance as it limitstheiruse andrequiresthe use of transporters.Roadcarson the otherhandare not developed for track use.Gone are the daysof drive yourcar to the track, race itand drive itback home. Giventhese constraintsthe objective istoproduce acar that can be drivenfromhome to the track, pushedtothe limitonthe race circuit,and thereafterdrivenbackhome.The carmust be reliable, beautiful andathome onthe road andthe track, withoutcompromisingperformance. Thisdocumentpresentsthe planfortransformingaDaytonaPrototype foruse on the road andthe track. The vehicle will serve asaprototype fordevelopmentandsalespurposes. The Daytona Prototype platformhasbeenselecteddue to itsmix of performance,reliability,costand design. The purpose of thisdocumentisto provide everyparticipantinthe project,asingle pointof reference that identifiesthe overall frameworkforthe executionof the project.
  4. 4. 3 INTEGRATION MANAGEMENT The FPT Program Manager will have primary responsibilityforensuringthe projectteam’sadherence to the expectationssetforthinthisplanandisresponsibleforcoordinatingthe project management activitiesreferencedinthisplan IntegrationManagementisadisciplinethatfocuses onensuringthatall project componentsare coordinated effectively inordertoachieve the project ’sgoalsandobjectives. ProjectIntegrationManagement consistsof six processes: Process KeyDeliverable DevelopProjectCharter ProjectCharter DevelopProjectManagementPlan ProjectManagementPlan Directand Manage ProjectWork Deliverables Monitorand Control ProjectWork Change Requests PerformIntegratedChange Control Change Requestsstatusupdates Close ProjectorPhase Final product DevelopProjectCharter The projectcharter includesinformationonthe projectbackground, businesscase, goals,authorityof the program manager,budget,risk,stakeholders,deliverablesandapproval criteria.The documentis genericenough thatitdoesnot change frequentlyduringthe course of the project. The projectcharter will formallyauthorise the projectandallow the ProgramManagerto apply organizational resources. DevelopProjectManagementPlan The projectcharter servesasinputto the projectmanagementplan.The projectmanagementplan will provide informationonhowthe projectwill be executed,monitoredandclosed. Includedinthe projectmanagementplanare all the subplansincludingscope, change,schedule,cost, processimprovement,humanresource,communication,riskandprocurementsubplans. These subplans will provide the necessarydetail includingthe WBS(workbreakdownschedule),cost baseline,scope baseline, performance measurement baselineandresponsibilityforeachdeliverable. Once the projectmanagementplanis baselined,itwillbe subjecttoformal change control andusedas a basisfor comparisontothe actual plan.
  5. 5. 4 Direct and Manage Project Work Directand manage projectworkprocessincludesperformingthe workdefinedinthe project managementplan toachieve projectgoals.The outputsof thisprocessinclude projectdeliverables, workperformance information,change requestsandupdatestothe projectmanagementplan. Monitor and Control ProjectWork Monitorand Control projectworkprocessincludestrackingandreviewingthe progressof the project. The change requestsonthe projectdeliverablesandprojectartefactswill be managedinthisprocess. PerformIntegrated Change Control The Change Control Board (CCB) will be formedtoreview change requests. Afterthe projectscope has beenbaselined,eachrequestedchange mustgothroughthe formal change control review process. Close Projector Phase The Projectshutdownprocedure includesprocessesforaccomplishingclosure,ensuringthe fulfilment of commitments,obtaininglessonslearned,formalsignoff bydesignatedstakeholdersandthe completionandarchivingof projectdocumentation.
  6. 6. 5 PROJECT CHARTER The Problem The inabilitytoopenthe home garage climbintoyourcar drive itto the nearbyrace circuit,pushitto the limitandthendrive home,isa source of frustrationforthose whoenjoywhatthe combinationof a track car and race circuitcan bring.Current“supercars”whichhave seeminglymorphedinto “hypercars”like the MclarenP1 and LaFerrari,are road legal monsters.Whiletheseengineeringmarvels are capable ona race circuittheyare not designedforfrequenttrackuse.Thiscan be seenwithtrack onlyversionsof the aforementionedbeingmade availabletoa luckyfew bytheirrespective manufacturers. Pictured: The road car: Ferrari P4/5 by Pininfarina The track version: Scuderia Cameron Glickenhaus P4/5 Competizione ScuderiaCameronGlickenhaus iscurrentlybuildinganew road and track car, SCG 003, which can be convertedfromroadcar to race car andback again.The SCG 003 will be builttocustomer orderat a price of approximately 2500 000 Euros. The Objective The objective of the DPZero 1 projectis toproduce a prototype vehicle thatwill leadtoa limited productionversionthatwill provide ownerswithahighperformance trackcar whichisaesthetically pleasing,reliable andcosteffective torunon the race circuit,while beingfullycapable of comfortable and frequentroaduse. The intentof the prototype thatwill emerge fromthe DPZero1 projectistwofold: 1) Serve asa developmenttestbed 2) Serve asa salesplatform Shouldthe prototype be successfulthe intentionisto: - produce 6 vehiclesayear - buildcostapprox. 800 000 USD - salesprice approx.1 500 000 USD
  7. 7. 6 Project Description FirstPrinciplesTechnologiestogetherwithRileyTechnologiesand Fioravanti will inthe DPZero1 project produce a vehicle thatwill be the harmonizationof atrack car and roadcar. The projectwill utilizethe currentDaytona Prototype vehicle specificationasthe vehicle platform.The platformhasproven performance,costandreliabilitymeasures. To make the vehicle fitforroaduse and to meetthe objectivesof thisproject, modificationstothe followingareaswill be made: - Suspensionpackage - Chassispackage - Powertrainpackage: o Engine Management o Gearbox o Exhaustsystem - Air-conditioningsystempackage - Interiorpackage - Bodyand lightclusterpackage Project Timeframe Stage 1: Within30 daysof projectcommencement: o Complete designmodifications Within60 daysof projectcommencement: o Selectbrake andsuspensionsuppliers o Complete chassisproduction Within90 daysof projectcommencement: o Complete powertraininstallation o Complete exhaustsysteminstallation o Complete suspensioninstallation o Complete brake installation Within110 days of projectcommencement o Complete air-conditioninginstallation o Complete vehiclesystemintegration o Complete body fitment o Complete vehicleshakedown o Vehicle readyforshipmenttoFioravanti
  8. 8. 7 Stage 2: Within130 days of projectcommencement: o Complete interiordesign o Complete lightclusterdesign o Complete interiorinstallation o Complete lightclusterinstallation Within150 days of projectcommencement: o Complete interiortestingandrefinement o Complete lightclustertesting o Complete vehiclepainting o Complete secondvehicle test o Vehicle readyforshipmenttoFirstPrinciplesTechnologies Project Budget The budgetfor the projectis800 000 USD and isfundedbyFirstPrinciplesTechnologies. Stage 1: completedwithinabudget of 700 000 USD - Chassis:355 000 USD - Powertrain:145 000 USD - Brakes:70 000 USD - Suspension:60 000 USD - Body:70 000 USD Stage 2: completedwithinabudgetof 100 000 USD - Interior,bodyandlightcluster:100 000 USD Critical Quantitative Success Factors Stage 1: vehicle massnottoexceed825 kilograms(excludingdriverandfuel) Stage 2: vehicle massnottoexceed1 075 kilograms(excludingdriverandfuel) Powerunitoutputintrack mode 700 metrichorsepower Powerunitoutputinroad mode 350 – 400 metrichorsepower Powerto massratio intrack mode (excludingdriverandfuel): ≥ 0.65 metrichorsepowerperkilogram
  9. 9. 8 Project Stakeholders FirstPrinciple Technologies 12 Bay Drive Charleston,SouthCarolina Riley Technologies 170 Overhill Road Mooresville,NorthCarolina,28117 Fioravanti USA Office 2810 Jamboree Road NewportBeach,California Project Authorization Mr. KevinJonesfromFirstPrinciplesTechnologiesisnamedas ProgramManager forthe durationof the DP Zero1 project. Mr. Jones’sresponsibilityistomanage all projecttasks,scheduling,and communicationregardingthe project. Mr. Jonesisauthorizedtoapprove all budgetexpendituresupto, and including,the allocatedbudgetamounts. Anyadditional fundingmustbe requestedthrough Mr. JimBergmann,headof Contract and Commercial ManagementatFirstPrinciplesTechnologies. Further Mr. Jonesisauthorizedtointerface withmanagementasrequired,requestresources,delegate responsibilitieswithinthe frameworkof the project,andtocommunicate withall contractors,as required,toensure successful andtimelycompletionof the project. Project Charter Acceptance __________________________________________ Date: ___________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  10. 10. 9
  11. 11. 10 STAKEHOLDER REGISTER Project Name: DP Zero 1 STAKEHOLDER REGISTER Date Name Designation/Title Department Role Contact Internal/External Influence Power Gregg Barrett CEO Management Project Owner 7 195 559 899 Internal Weekly High High Kevin Jones Program Manager Management Program Manager 7 195 559 890 Internal Daily High Medium Jim Bergmann Head: Contract and Commercial Management Management Contract and Commercial Management 7 195 559 895 Internal Weekly High Medium Gordon Murray Technical Head Technical Technical Head 7 195 559 885 Internal Daily High Medium Bill Riley CEO Management Responsible for Riley Project 704 663 6325 External Weekly High High Bill Fingerlow General Manager Management/Engineering Oversees Riley Project infrastructure and resources 704 663 6323 External Weekly Medium Medium Kenneth Swan Project Manager Management Project Manager 704 663 6320 External Daily Medium Medium Jim Kasprzak Head: Engineering Engineering chief vehicle engineer 704 663 6315 External Daily Medium Medium Jon Miles Senior Engineer Engineering electrical 704 663 6314 External Daily Low Low Tyler Hook Senior Engineer Engineering chassis 704 663 6312 External Daily Low Low Ray Banda Senior Engineer Engineering suspension 704 663 6311 External Daily Low Low Charles Long Senior Engineer Engineering powertrain 704 663 6310 External Daily Low Low Leonardo Fioravanti CEO Management Responsible for Fioravanti Project 949 780 3298 External Weekly High High Marco Fernelli Chief Designer Design Project Chief Designer 949 780 3284 External Daily Medium High Louis Augeri Interior Chief Designer Design Interior Chief Designer 949 780 3280 External Daily Medium Medium Francine Facchini Project Manager Design Project Manager 949 780 3276 External Daily Medium Medium Jamie Allison Ford Racing Director Management Responsible for Power unit 313 845 8648 External Weekly High High Paul Barton Commercial & Engineering Manager Management Responsible for Gearbox 7 047 994 489 External Weekly Medium Medium Tom Franks Head of NVH Management Responsible for Exhaust 4 084 965 344 External Weekly Medium Medium Type/Frequency of Communication
  12. 12. 11 STAKEHOLDER MANAGEMENTPLAN The StakeholderManagement Planforthe DPZero1 projectwill be usedtoidentifyandclassifyproject stakeholders;determinestakeholderpower,interest,andinfluence;andanalyze the management approach andcommunicationmethodologyforprojectstakeholders. Thiswill allow the identificationof keyinfluential stakeholderstosolicitinputforprojectplanningandgainsupportasthe project progresses. Thiswill benefitthe projectbyminimizingthe likelihoodof encounteringcompeting objectivesandmaximizingthe resources requiredtocomplete the project. Early identificationandcommunicationwithstakeholdersisimperative toensure the successof the project,as some stakeholdersmayhave interestswhichmaybe positivelyornegativelyaffected.More effectivemanagementandbalance these interestscanbe attainedbyinitiatingearlyandfrequent communicationandstakeholdermanagement. Identify Stakeholders The followingcriteriawill be usedtodetermineif anindividual will be includedasastakeholder: - Will the personor theirorganizationbe directlyaffectedbythisproject? - Doesthe personor theirorganizationholdapositionfromwhichtheycaninfluence the project? - Doesthe personhave an impacton the project’sresources(material,personnel,funding)? - Doesthe personor theirorganizationhave anyspecial skillsorcapabilitiesthe projectwill require? - Doesthe personpotentiallybenefitfromthe projectorare theyina positiontoresistthis change? Anyindividualwhomeetsthe firstandthereafterone ormore of the above criteriawill be identifiedas a stakeholder. Stakeholdersfromthe same organizationwillbe groupedinordertosimplify communicationandstakeholdermanagement. Key Stakeholders The projectteam will identifykeystakeholders whohave the mostinfluence onthe projectorwho may be impactedthe mostby it. These keystakeholdersare those whoalsorequire the most communicationandmanagementwhichwill be determinedasstakeholdersare analyzed. Once identified,the Program Managerwill developaplantoobtaintheirfeedbackonthe level of participationtheydesire,frequencyandtype of communication,andanyconcernsorconflicting intereststheyhave. Basedon the feedbackgatheredbythe programmanager,the determinationmaybe made toinvolve keystakeholdersonsteeringcommittees,focusgroups,gate reviews,orotherprojectmeetingsor milestones. Thoroughcommunicationwithkeystakeholdersisnecessarytoensure all concernsare identifiedandaddressedandthat resourcesforthe projectremainavailable.
  13. 13. 12 Stakeholder Analysis Once all the projectstakeholdershave beenidentified,the projectteamwill categorize andanalyze each stakeholder. The purpose of thisanalysisistodeterminethe stakeholders’levelof powerand influence, planthe managementapproachforeach stakeholder,andtodetermine the appropriatelevelsof communicationandparticipationeachstakeholderwill have onthe project. The projectteam will categorizestakeholdersbasedontheirorganizationordepartment. Once all stakeholdershave beencategorized,the projectteamwill utilize apower/interestmatrix toillustrate the potential impacteachstakeholdermayhave onthe project. Basedon thisanalysisthe projectteam will alsocomplete astakeholderanalysismatrix whichillustratesthe concerns,level of involvement,and managementstrategyforeachstakeholder. The chart belowwill be usedtoestablishstakeholdersandtheirlevelsof powerandinterest foruse on the power/interestchartaspart of the stakeholderanalysis. Project Name: DP Zero 1 Name Designation/Title Department Interest (1 - 5) Power (1 - 5) a Gregg Barrett CEO Management 5 5 b Kevin Jones Program Manager Management 3 3 c Jim Bergmann Head: Contract and Commercial Management Management 4 4 d Gordon Murray Technical Head Technical 4 4 e Bill Riley CEO Management 4 5 f Bill Fingerlow General Manager Management/Engineering 4 4 g Kenneth Swan Project Manager Management 3 3 h Jim Kasprzak Head: Engineering Engineering 4 4 i Jon Miles Senior Engineer Engineering 2 2 j Tyler Hook Senior Engineer Engineering 3 2 k Ray Banda Senior Engineer Engineering 4 2 l Charles Long Senior Engineer Engineering 2 2 m Leonardo Fioravanti CEO Management 4 5 n Marco Fernelli Chief Designer Design 4 4 o Louis Augeri Interior Chief Designer Design 3 3 p Francine Facchini Project Manager Design 3 3 q Jamie Allison Ford Racing Director Management 4 5 r Paul Barton Commercial & Engineering Manager Management 4 3 s Tom Franks Head of NVH Management 3 3
  14. 14. 13 Belowisthe power/interestchartfor the DP Zero1 projectstakeholders. Eachletterrepresentsa stakeholderinaccordance withthe keyinthe chart above. Basedon the powerand interestanalysisandchartabove,stakeholderslowerleftquadrantwill require minimal managementeffort. Stakeholderinthe upperleftquadrant,mustbe keptsatisfiedbyensuringconcernsandquestionsare addressedadequately. Stakeholders,inthe lowerrightquadrant,mustbe keptinformedthroughfrequentcommunicationon projectstatusand progress. Stakeholders,inthe upperrightquadrant,are keyplayersandmustbe involvedinall levelsof project planningandchange management.Additionally,these stakeholdersshouldbe participatorymembersin all projectstatusmeetings,gate reviews,andadhocmeetingsasrequired. The stakeholderanalysismatrix will be usedtocapture stakeholderconcerns,levelof involvement,and managementstrategybasedonthe stakeholderanalysisandpower/interestmatrix above. The stakeholderanalysismatrix will be reviewedandupdatedthroughoutthe project’sdurationinorderto capture any newconcernsor stakeholdermanagementstrategyefforts.
  15. 15. 14 Project Name: DP Zero 1 Name Designation/Title Concerns Quadrant Strategy a Gregg Barrett CEO Cost and reliability Key player Communicate frequent updates b Kevin Jones Program Manager Resource and scheduling Keep informed/keep satisfied Communicate resource requirements early c Jim Bergmann Head: Contract and Commercial Management Intellectual property and management of contractors Key player Communicate frequent updates d Gordon Murray Technical Head Reliability and performance Key player Communicate project specifications as required e Bill Riley CEO Scheduling and cost Key player Communicate project specifications as required f Bill Fingerlow General Manager Resource scheduling and cost Key player Communicate resource requirements early g Kenneth Swan Project Manager Resource and scheduling Keep informed/keep satisfied Communicate resource requirements early h Jim Kasprzak Head: Engineering Integration of new components systems Key player Solicit frequent updates i Jon Miles Senior Engineer Integration of systems Keep informed Solicit frequent updates j Tyler Hook Senior Engineer Scheduling of chassis redesign Keep informed Solicit frequent updates k Ray Banda Senior Engineer Performance and reliability: suspension mass and adjustable ride height Keep informed Communicate project specifications as required l Charles Long Senior Engineer Performance: engine cooling and mass Keep informed Solicit frequent updates m Leonardo Fioravanti CEO Quality Key player Communicate frequent updates n Marco Fernelli Chief Designer Scheduling Key player Communicate resource requirements early o Louis Augeri Interior Chief Designer Quality and mass Keep informed/keep satisfied Solicit frequent updates p Francine Facchini Project Manager Resource and scheduling Keep informed/keep satisfied Communicate resource requirements early q Jamie Allison Ford Racing Director Reliability Key player Communicate project schedule and material requirements ahead of time to ensure delivery r Paul Barton Commercial & Engineering Manager Cost of mass and reliability requirements Keep informed Communicate project schedule and material requirements ahead of time to ensure delivery s Tom Franks Head of NVH Cost and development time frame Keep informed/keep satisfied Communicate project specifications as required and solicit frequent updates
  16. 16. 15 COMMUNICATIONMANAGEMENTPLAN ThisCommunicationsManagementPlansetsthe communicationsframeworkforthisproject. Itwill serve asa guide forcommunicationsthroughoutthe life of the projectandwill be updatedas communicationneedschange. Thisplanidentifiesanddefinesthe rolesof personsinvolvedinthis project. It alsoincludesacommunicationsmatrix whichmapsthe communicationrequirementsof this project. A projectteamdirectoryisincluded inthe appendix toprovide contactinformationforall stakeholdersdirectlyinvolvedinthe project. Communications Management Approach The Program Manager will take aproactive role inensuringeffectivecommunicationsonthisproject. The communicationsrequirementsare documentedinthe CommunicationsMatrix presentedin this document. The CommunicationsMatrix willbe usedasthe guide forwhatinformationtocommunicate, whois to dothe communicating,whentocommunicate itandto whomto communicate. As withmostprojectplans,updatesorchangesmaybe requiredas the projectprogressesorchanges are approved. Changesorupdatesmaybe requireddue tochangesinpersonnel,scope,budget,or otherreasons. Additionally,updatesmaybe requiredasthe projectmaturesandadditional requirementsare needed. The ProgramManageris responsible formanagingall proposedand approvedchangestothe communicationsmanagementplan. Once the change isapproved,the Program Managerwill update the planandsupportingdocumentationandwill distribute the updatesto the projectteamand all stakeholders. Thismethodologyisconsistentwiththe project’sChange ManagementPlanandensuresthatall projectstakeholdersremainaware andinformedof anychanges to communicationsmanagement. Project Documentation All projectstakeholderswill be providedwithsecureaccesstoFirstPrinciplesTechnologiesSharePoint Serverandwill be issuedaunique username andpasswordfollowingthe projectkick-off meeting. The Program Manageris responsible forensuringall projectdocumentationislistedonSharePoint. Stakeholder Overview Please see the ProjectTeamDirectory inthe Appendixforcontactdetails. First Principle Technologies 12 Bay Drive Charleston,SouthCarolina Projectteam: - ProjectOwner:GreggBarrett,CEO - Program Manager:KevinJones - Contract and Commercial Management: JimBergmann - Technical Head:GordonMurray
  17. 17. 16 RileyTechnologies 170 Overhill Road Mooresville,NorthCarolina,28117 ProjectTeam: - CEO: Bill Riley - General Manager:Bill Fingerlow - ProjectManager: KennethSwan - Engineering,chief vehicle engineer:Jim Kasprzak - Engineering,electrical:JonMiles - Engineering,chassis:TylerHook - Engineering,suspension:RayBanda - Engineering,powertrain:CharlesLong Fioravanti USA Office 2810 Jamboree Road NewportBeach,California ProjectTeam: - CEO: LeonardoFioravanti - ProjectChief Designer: MarcoFernelli - InteriorChief Designer: LouisAugeri - ProjectManager: Francine Facchini StrategicSupply Partners: Ford Motor Company 1 AmericanRoad Dearborn,MI 48126 Person: Ford RacingDirector:Jamie Allison Xtrac Mooresville 301 CayugaDrive,Suite A Mooresville NC 28117 Person: Commercial &EngineeringManager:Paul Barton Ricardo Inc. Santa ClaraTechnical Campus 3540 BassettStreet Santa Clara,CA 95054 Person: Headof NVH:Tom Franks Brake Supplier:To be determined Person: To be determined SuspensionSupplier:Tobe determined Person: To be determined
  18. 18. 17 Communication Flowchart
  19. 19. 18 Communications Matrix Communication Type Objective of Communication Medium Frequency Audience Responsible Output Format Kickoff Meeting Introduce the project team and the project. Review project objectives and management approach.  Face to Face  Conference Call Once  All stakeholders FPT: Program Manager  Agenda  Meeting Minutes  Email and soft copy archived on project SharePointsite Project Team Meetings Review status of the project with the project stakeholders.  Face to Face  Conference Call Weekly  FPT ProjectTeam  Riley Project Team  Fioravanti Project Team FPT: Program Manager  Agenda  Meeting Minutes  Project schedule  Email and soft copy archived on project SharePointsite Technical Design Meetings Discuss and develop technical design solutions for the project.  Face to Face  Conference Call As needed  FPT ProjectTeam  Riley Project Team  Fioravanti Project Team FPT: Program Manager  Agenda  Meeting Minutes  Email and soft copy archived on project SharePointsite Escalation Reports (send to FPT Program Manager) Bring critical information impactingthe projectto the attention of the projectteam  Send to FPT Program Manager via email As needed  FPT Program Manager  FPT ProjectTeam  FPT Program Manager to call meeting or conference call  Project plan  Email and soft copy archived on project SharePointsite Accepted change requests Provideinformation on approved change requests  Email As needed  FPT ProjectTeam  Riley Project Team  Fioravanti Project Team FPT: Program Manager  Project schedule  Email and soft copy archived on project SharePointsite
  20. 20. 19 Communication Escalation Process Email to be sentto the FPT Program Manager withthe prioritycode (Priority1,Priority2etc.) in the email subjectline. The FPTProgram Manager will thennotify the relevantdecisionmakers foraction. Priority Definition Decision Authority Timeframe for Resolution Priority 1 Major impact toprojector business operations. If not resolved quickly there will be a significant adverse impact to cost, schedule, scope, quality Gregg Barrett Within 5 hours Priority 2 Medium impact to project or business operations which may result in some adverse impact to cost, schedule, scope, quality Jim Bergmann Gordon Murray Within one business day Priority 3 Slight impact which may cause some minor scheduling difficulties with the project but no impact to cost, scope, quality FPT Program Manager Within two business days Meeting Locations The kickoffmeeting:will be heldatthe Rileyoffice. The Rileyoffice addressis:170 Overhill Road,Mooresville,NorthCarolina Meetings instage 1: will be heldatthe Rileyoffice withotherparticipantsjoiningviaconference call. The conference call numberis:704 663 6323 Meetings instage 2: will be heldatthe Fioravanti office withotherparticipantsjoiningviaconference call. The Fioravanti office addressis:2810 Jamboree Road,NewportBeach,California The conference call numberis: 949 780 3284
  21. 21. 20 Communication Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  22. 22. 21 STATEMENT OF WORK Specificdeliverables are listedunderthe “WorkRequirements”and“Schedule” sectionsof thisSOW. The scope of workfor the DP Zero 1 projectincludesall planning,design,manufacturing,installationand testingof stage 1 andstage 2. Where stage 1 consistsof: - Suspensionpackage - Brake package - Chassispackage - Powertrainpackage: o PowerUnit o Engine Management o Gearbox o Exhaustsystem - Air-conditioningsystempackage - Primarybodypackage Where stage 2 consistsof: - Interiorpackage - Final Bodyand lightclusterpackage Notincludedinthe scope of workfor thisprojectare: - marketingactivities - salesactivities - ongoingresearch anddevelopment Period of Performance The periodof performance forthe DP Zero1 projectis210 days beginningon May 4th , 2015. Any modificationsorextensionswill be requestedthroughthe change requestprocess. Place of Performance Stage 1 of the vehicle buildwill take place atRileyTechnologieslocatedat170 Overhill Road, Mooresville,NorthCarolina. Ford Motor Companywill deliverthe powerunittoRileyTechnologiesandwill provide atechnicianto oversee the powerunitinstallationatRileyTechnologies. Xtrac will deliverthe gearbox toRileyTechnologiesandwill provide atechniciantooversee the gearbox installationatRileyTechnologies. Ricardowill deliverthe exhaustsystemtoRileyTechnologiesandwillprovideatechnicianto oversee the exhaustsysteminstallationatRileyTechnologies.
  23. 23. 22 The selectedsuspensionsupplierwill deliverthe suspensionpackage toRileyTechnologiesandwill provide atechniciantooversee the suspensioninstallationatRileyTechnologies. The selectedbrake supplierwill deliverthe brake package toRileyTechnologiesandwill provide a techniciantooversee the brake installationatRileyTechnologies. Stage 2 of the vehicle buildwill take place atFioravanti,locatedat2810 Jamboree Road,Newport Beach,California Work Requirements Stage 1: - DesignmodificationstocurrentDaytonaPrototype chassis - Designmodificationstovehicle nose,side skirtsandreardiffuser - Designof vehicle rims - Designof vehicle exhaustsystem - Virtual vehicle(CAD) componentandsystemintegration(excludingdamperandspring componentsandbrake package) - Technical submissionforsuspensionpackage andbrake package - Selectionof suspensionpackage andbrake package - Constructionof vehicle chassis - Constructionof vehicle body - Installationof powerunit - Installationof gearbox - Installationof exhaustsystem - Installationof suspensionpackage - Installationof brake package - Installationof air-conditioningsystempackage - Installationandintegrationof vehicle systems - Fitmentof primaryvehicle body - Firstvehicle test Stage 2: - Interiordesignfinalization - Lightclusterdesignfinalization - Interiorinstallation - Lightinstallation - Interiortesting - Lightclustertesting - Secondvehicle test
  24. 24. 23 Schedule/Milestones Summary Schedule Project Milestone Target Date (dd/mm/yyyy) ProjectStart 04/05/2015 Stage 1:  Virtual vehicle(CAD) componentandsystemintegration (excludingdamperandspringcomponentsandbrake package) 08/06/2015  Selectionof suspension package andbrake package 17/07/2015  Completionof vehiclechassis 27/07/2015  Installationandintegrationof vehicle systems 14/09/2015  Firstvehicle test 17/09/2015 Stage 2  Interiortesting andlightclustertesting 06/11/2015  Secondvehicle test 13/11/2015 ProjectComplete Acceptance Criteria The acceptance of all deliverableswill reside withGordonMurray,FPTTechnical Headand Jim Bergmann,FPTHead of Contract and Commercial Management.Mr.Murray and Mr. Bergmannare both required tosign-off onadeliverable.Deliverableswill be assessedinaccordance withthe agreed contract specification. Statement of Work Acceptance _______________________________________________ Date: ______________________ JimBergmann
  25. 25. 24 Head:Contract and Commercial Management, FirstPrinciplesTechnologies SCOPE MANAGEMENTPLAN For thisproject,scope managementwill be the sole responsibilityof the FPTProgramManager, Kevin Jones. The scope for thisprojectisdefinedbythe Scope StatementandWorkBreakdownStructure (WBS). Gordon Murray, FPT Technical HeadandJimBergmann,FPTHead of Contractand Commercial Managementtogetherwiththe projectstakeholderswill establishandapprove documentationfor measuringprojectscope whichincludesdeliverablequalitychecklistsandworkperformance measurements. Proposedscope changesmaybe initiatedbyanyprojectstakeholders. Change requests will be submittedtothe FPTProgram Manager whowill thensubmitthe scope change requestto the Change Control Board forreview. Uponapproval of scope changesbythe Change Control Boardthe FPT Program Managerwill update all projectdocumentsandcommunicate the scope change toall stakeholdersviaemail withthe updateddocumentationplacedonthe SharePointsite. Membersof the Change Control Board: - Gregg Barrett - JimBergmann - Gordon Murray Priority Matrix Time Performance Cost Constrain Enhance ■ Accept ■ ■
  26. 26. 25 Roles and Responsibilities The table belowdefinesthe rolesandresponsibilitiesforthe scope managementof thisproject. Name Role Responsibilities FirstPrinciplesTechnologies Gregg Barrett FPT ProjectTeam: ProjectOwner - Change Control Board - CommunicationEscalation Process:Decision makeron Priority1 matters - Supplierselection KevinJones FPT ProjectTeam: Program Manager - manage all projecttasks,scheduling,and communicationregardingthe project - Facilitate scope change requests - Organize andfacilitate scheduled change control board meetings - Communicate outcomesof scope change requests - Update projectdocumentsuponapproval of all scope changes - CommunicationEscalationProcess:Decision makeron Priority3 matters JimBergmann FPT ProjectTeam: Contract and Commercial Management - Deliverable acceptance - Change Control Board - CommunicationEscalationProcess:Decision makeron Priority2 matters - Supplierselection Gordon Murray FPT ProjectTeam: Technical Head - Deliverable acceptance - Change Control Board - CommunicationEscalationProcess:Decision makeron Priority2 matters - Supplierselection
  27. 27. 26 RileyTechnologies Bill Riley RileyProjectTeam: CEO - RileyManagement,responsibleforRileyProject deliverables Bill Fingerlow RileyProjectTeam: General Manager - RileyManagement,overseesRileyProject deliverables KennethSwan RileyProjectTeam: ProjectManager - manage all Rileyprojecttasks,scheduling,and communicationregardingthe project JimKasprzak RileyProjectTeam: chief vehicle engineer - Integrationof all stage 1 vehicle components and systems JonMiles RileyProjectTeam: Engineering, electrical - Areaof responsibility:Allstage 1vehicle electrical componentsandsystems TylerHook RileyProjectTeam: Engineering,chassis - Areaof responsibility:Vehicle chassis Ray Banda RileyProjectTeam: Engineering, suspension - Areaof responsibility:Vehicle suspension CharlesLong RileyProjectTeam: Engineering, powertrain - Areaof responsibility:Powertrain
  28. 28. 27 Fioravanti Leonardo Fioravanti Fioravanti Project Team:CEO Fioravanti Project Team: - Fioravanti Management,responsiblefor Fioravanti Projectdeliverables Francine Facchini Fioravanti Project Team:Project Manager - manage all Fioravanti projecttasks,scheduling, and communicationregardingthe project Marco Fernelli Fioravanti Project Team:ProjectChief Designer - Integrationof all stage 2 designcomponents LouisAugeri Fioravanti Project Team:InteriorChief Designer - Areaof responsibility:Interior Daniel Guigiaro Fioravanti Project Team:ExteriorChief Designer - Areaof responsibility:Exterior Ford Motor Company Jamie Allison Ford Racing: Director - Areaof responsibility:Powerunit Xtrac Paul Barton Xtrac: Commercial and Engineering Manager - Areaof responsibility:Gearbox
  29. 29. 28 Ricardo Tom Franks Ricardo:Head of NVH - manage all Ricardo projecttasks,scheduling, and communicationregardingthe project Brake Supplier TBD SupplierBrake Package:TBD - Areaof responsibility: Brake package SuspensionSupplier TBD SupplierSuspension Package:TBD - Areaof responsibility:Suspensionpackage
  30. 30. 29 Work Breakdown Structure
  31. 31. 30 Scope Management Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  32. 32. 31 COST MANAGEMENTPLAN The Program Manager, KevinJones,will be responsible formanagingandreportingonthe project’scost throughoutthe durationof the project. Priorto the weeklyprojectteammeeting,the Program Manager will meetwithFPTmanagementtopresentandreview the project’scostperformance forthe precedingweek. Performancewillbe measuredusingearnedvalue. The ProgramManageris responsible foraccountingforcostdeviationsandpresentingthe ProjectOwnerwithoptionsforgetting the projectback on budget. The ProjectOwnerhasthe authorityto make changesto the project to bringit back withinbudget. Cost Management Approach Costsfor thisprojectwill be managedatthe thirdlevel of the WorkBreakdownStructure (WBS). Control Accounts(CA) will be createdatthislevel totrackcosts. EarnedValue calculationsforthe CA’s will measure andmanage the financial performanceof the project. Creditforworkwill be assignedat the work package level. Workstartedon workpackageswill grantthat workpackage with50% credit; whereas,the remaining50%is crediteduponcompletionof all workdefinedinthatworkpackage. Costsmay be roundedto the nearestdollar. Cost variancesof ≥10% in the cost and schedule performance will change the status of the costto cautionary;as such,those valueswill be changedtoamberinthe projectstatusreports. Cost variances of ≥20% inthe cost and schedule performance will change the statusof the costto an alertstage; as such,those valueswill be changedtoredinthe projectstatus reports. Costvariancesof >20% inthe cost and schedule performance will require corrective action.Corrective actionswill require aproject change requestandbe must approvedbythe ProjectOwnerbefore itcanbecome withinthe scope of the project. Measuring Project Costs Projectperformance willbe measuredusingEarnedValue Management. The followingtwoEarned Value metricswill be usedtomeasure the project’scostperformance: - Schedule Variance (SV) o ≥0.10 Amber o ≥0.20 Red - Cost Variance (CV) o ≥0.10 Amber o ≥0.20 Red Schedule Variance (SV) isameasurementof the schedule performance foraproject. It’scalculatedby takingthe Earned Value (EV) andsubtractingthe PlannedValue (PV).
  33. 33. 32 Calculationforthe alertlevel: 1 – (EV/PV) If ≤ 0 no action If ≥ 0.10 amber If ≥ 0.20 red Cost Variance (CV) isameasurementof the budgetperformance foraproject. CV is calculatedby subtractingActual Costs(AC) fromEarnedValue (EV). Calculationforalertlevel: 1 - (EV/AC) If ≤ 0 no action If ≥ 0.10 amber If ≥ 0.20 red Reporting Format Reportingforcost managementwill be includedinthe weeklyprojectstatusreport. The weekly project statusreport will includeasection labelled,“CostManagement”. This sectionwill containthe Earned Value Metricsidentifiedinthe previoussection. All costvariancesoutsideof the thresholdsidentifiedin thisCost ManagementPlanwill be reportedonincludinganycorrective actionswhichare planned. Change Requests whichare triggeredbaseduponprojectcostoverrunswill be identifiedandtrackedin thisreport. Cost Variance Response Process The Control Thresholdsforthisprojectare the alertlevelsdescribedinthe section“Measuringproject costs”. If the projectreachesone of these Control ThresholdsaCostVariance Corrective ActionPlanis required. The Program Manager will presentthe ProjectOwnerwithoptionsforcorrectiveactionswithinfive businessdaysfromwhenthe costvariance isfirstreported. Withintwobusinessdaysfromwhenthe ProjectOwnerselectsacorrective actionoption,the Program Manager will presentthe ProjectOwnerwithaformal CostVariance Corrective ActionPlan.
  34. 34. 33 The Cost Variance Corrective ActionPlanwill detail the actionsnecessarytobringthe projectback withinbudgetandthe meansbywhichthe effectivenessof the actionsinthe planwill be measured. Upon acceptance of the CostVariance Corrective ActionPlanitwill become apartof the projectplan and the projectwill be updatedto reflectthe corrective actions. Cost Change Control Process The cost change control processwill follow the establishedprojectchange requestprocess. Approvals for projectbudget/costchangesmustbe approvedbythe Project Owner. Project Budget The budgetfor thisprojectisdetailedbelow. Costsforthisprojectare presentedinvariouscategories: Labour Costs $225 300 Material Costs $570 750 Total ProjectCost $796 050 ManagementReserve $50 000
  35. 35. 34 WBS ID Task Description Estimating Approach Number of resources Estimated Duration (hrs) Estimated Interruptions (hrs) Labor Rate $/hr Labor Cost Material Costs Total Cost 1.0 Chassis $ 280 600 $ 334 000 1.1 Design Modification Historical 2 54 $150 16 200$ 1,2 CAD Integration Historical 3 3.0 $100 900$ 1.3 Construction Historical 4 180.0 $50 36 000$ 1.4 Test Historical 4 1.5 $50 300$ 2.0 Brakes 52 150$ 70 000$ 2.1 Technical Submission Historical 3 9.0 $150 4 050$ 2.2 Supplier Selection Historical 3 15.0 $150 6 750$ 2.3 Installation Historical 2 18.0 $100 3 600$ 2.4 Integration Historical 3 7.0 $150 3 150$ 2.5 Test Historical 4 1.5 $50 300$ 3.0 Suspension 52 150$ 70 000$ 3.1 Technical Submission Historical 3 9.0 $150 4 050$ 3.2 Supplier Selection Historical 3 15.0 $150 6 750$ 3.3 Installation Historical 2 18.0 $100 3 600$ 3.4 Integration Historical 3 7.0 $150 3 150$ 3.5 Test Historical 4 1.5 $50 300$ 4.0 Gearbox 33 850$ 40 000$ 4.1 CAD Integration Historical 3 3.0 $100 900$ 4.2 Installation Historical 2 18.0 $50 1 800$ 4.3 Integration Historical 3 7.0 $150 3 150$ 4.4 Test Historical 4 1.5 $50 300$ 5.0 Power Unit 63 250$ 70 000$ 5.1 CAD Integration Historical 3 3.0 $100 900$ 5.2 Installation Historical 2 24.0 $50 2 400$ 5.3 Integration Historical 3 7.0 $150 3 150$ 5.4 Test Historical 4 1.5 $50 300$ 6.0 Body 30 700$ 73 000$ 6.1 Design Modification Historical 2 70.0 $150 21 000$ 6.2 CAD Integration Historical 3 3.0 $100 900$ 6.3 Construction Historical 3 90.0 $50 13 500$ 6.4 Fitment Historical 2 12.0 $50 1 200$ 6.5 Paint Historical 3 18.0 $100 5 400$ 6.6 Test Historical 4 1.5 $50 300$ 7.0 Interior 40 000$ 92 500$ 7.1 Design Historical 2 108.0 $150 32 400$ 7.2 Installation Historical 3 42.0 $150 18 900$ 7.3 Test Historical 2 12.0 $50 1 200$ 8.0 Air-conditioning 6 000$ 11 550$ 8.1 CAD Integration Historical 3 3.0 $100 900$ 8.2 Installation Historical 2 12.0 $50 1 200$ 8.3 Integration Historical 3 7.0 $150 3 150$ 8.4 Test Historical 4 1.5 $50 300$ 9.0 Exhaust 12 050$ 35 000$ 9.1 Design Historical 2 60.0 $150 18 000$ 9.2 CAD Integration Historical 3 3.0 $100 900$ 9.3 Installation Historical 2 6.0 $50 600$ 9.4 Integration Historical 3 7.0 $150 3 150$ 9.5 Test Historical 4 1.5 $50 300$ Project Total 796 050$ Cost Estimates
  36. 36. 35 Cost Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  37. 37. 36 SCHEDULE MANAGEMENTPLAN The projectschedule isthe roadmapforhow the projectwill be executed. The purpose of the schedule managementplanistodefine the approachthe projectteamwill use increatingthe projectschedule. Thisplanalso includeshowthe teamwill monitor the projectschedule andmanage changesafterthe baseline schedulehasbeenapproved.Thisincludesidentifying,analyzing,documenting,prioritizing, approvingorrejecting,andpublishing all schedule-relatedchanges. Schedule Management Approach Projectscheduleswill be createdusingthe deliverablesidentifiedinthe project’sWorkBreakdown Structure (WBS). Activitydefinitionwill identifythe specificworkpackageswhichmustbe performedto complete eachdeliverable. Activitysequencingwill be usedtodeterminethe orderof workpackages and assignrelationshipsbetweenprojectactivities. Activitydurationestimatingwillbe usedtocalculate the numberof work periodsrequiredtocomplete workpackages. Resource estimatingwill be usedto assignresourcestoworkpackagesin orderto complete schedule development. Once a preliminaryschedule hasbeendeveloped,itwill be reviewedbythe projectteamandany resourcestentativelyassignedtoprojecttasks. The projectteamand resourcesmustagree to the proposedworkpackage assignments,durations,andschedule. Once thisisachievedthe ProjectOwner will reviewandapprove the scheduleand itwill thenbe baselined. The followingwill be designatesasmilestonesforthe projectschedule: - Completionof (CAD) componentandsystemintegration(excludingdamperandspring componentsandbrake package) - Selectionof suspensionpackage andbrake package - Completionof vehiclechassis - Installationandintegrationof vehicle systems - Firstvehicle test - Interiortestingandlightclustertesting - Secondvehicle test Roles and responsibilitiesfor scheduledevelopmentareasfollows: The Program Manager will be responsibleforfacilitatingworkpackage definition,sequencing,and estimatingdurationandresourceswiththe projectteam.The ProgramManager will validatethe schedule withthe projectteam,stakeholders,andthe ProjectOwner. The ProgramManager will obtain schedule approval fromthe ProjectOwner andbaseline the schedule. The projectteam isresponsible forparticipatinginworkpackage definition,sequencing,andduration and resource estimating. The projectteamwill alsoreview andvalidatethe proposedschedule and performassignedactivities once the scheduleisapproved.
  38. 38. 37 The ProjectOwnerwill participate inreviewsof the proposedschedule andapprove the finalschedule before itisbaselined. The projectstakeholderswill participate inreviewsof the proposedschedule andassistinitsvalidation. Schedule Control The projectschedule will be reviewedandupdatedasnecessaryona weeklybasiswithactual start, actual finish,andcompletionpercentageswhichwill be providedbytaskowners. The Program Manager isresponsibleforholdingweeklyscheduleupdates/reviews;determiningimpacts of schedule variances;submittingschedule change requests;andreportingschedulestatusin accordance withthe project’scommunicationsplan. The projectteam isresponsible forparticipatinginweeklyscheduleupdates/reviews; communicating any changesto actual start/finishdatestothe ProgramManager; and participatinginschedule variance resolutionactivitiesasneeded. The ProjectOwnerwill maintainawarenessof the projectschedule statusandreview/approveany schedule change requestssubmittedbythe ProgramManager. Schedule Changes and Thresholds If any memberof the projectteamdeterminesthatachange to the schedule isnecessary,the Program Manager and teamwill meettoreviewandevaluatethe change. The ProgramManager andproject teammust determinewhichtaskswill be impacted,variance asaresultof the potential change,andany alternativesorvariance resolutionactivitiestheymayemploytosee how theywouldaffectthe scope, schedule,andresources. If,afterthisevaluationiscomplete,the ProgramManagerdeterminesthatany change will exceedthe establishedboundaryconditions,thenaschedule change requestmustbe submitted. Submittal of a schedule change requesttothe ProjectOwnerfor approval isrequiredif eitherof the two followingconditionsistrue: - The proposedchange isestimatedtoincrease the durationof anindividualworkpackage by 10% or more. - The change isestimatedtoincrease the durationof the overall baseline scheduleby10% or more. Anychange requeststhatdo not meetthese thresholdsmaybe submittedtothe ProgramManager for approval. Once the change requesthasbeenreviewedandapprovedthe ProgramManageris responsible for adjustingthe schedule andcommunicatingall changesandimpactstothe projectteam, ProjectOwner,
  39. 39. 38 and stakeholders. The ProgramManagermust alsoensure that all change requestsare archivedinthe projectrecordsrepository. Scope Change Anychangesinthe projectscope,whichhave beenapprovedbythe ProjectOwner,willrequirethe projectteamto evaluate the effectof the scope change on the currentschedule. If the Program Manager determinesthatthe scope change will significantlyaffectthe currentprojectschedule,he may requestthatthe schedule be re-baselinedinconsiderationof anychangeswhichneedtobe made as part of the newprojectscope. The ProjectOwnermustreview andapprove thisrequestbefore the schedule canbe re-baselined.
  40. 40. 39 Network Information Network Information Activity Description Preceding Activity Activity Duration A 6.1 Body - Design Modification - 12 B 1.1 Chassis - Design Modification - 9 C 1.2 Chassis - CAD Integration 4.1 Gearbox - CAD Integration 5.1 Power unit - CAD Integration 6.2 Body - CAD Integration 8.1 Air-conditioning - CAD Integration 9.2 Exhaust - CAD Integration A B 5 D 2.1 Brakes - Technical Submission C 2 E 9.1 Exhaust - Design C 10 F 1.3 Chassis - Construction C 30 G 3.1 Suspension - Technical Submission C 2 H 6.3 Body - Construction C 15 I 7.1 Interior - Design C 18 J 2.2 Brakes - Supplier Selection D 3 K 3.2 Suspension - Supplier Selection G 3 L 5.2 Power unit - Installation F 4 M 4.2 Gearbox - Installation L 3 N 9.3 Exhaust - Installation E M 1 O 3.3 Suspension - Installation K N 3 P 2.3 Brakes - Installation J O 3 Q 8.2 Air-conditioning - Installation P 2 R 6.4 Body - Fitment H Q 2 S 2.4 Brakes - Integration 3.4 Suspension - Integration 4.3 Gearbox - Integration 5.3 Power unit - Integration 8.3 Air-conditioning - Integration 9.4 Exhaust - Integration R 2
  41. 41. 40 T 1.4 Chassis - Test 2.5 Brakes - Test 3.5 Suspension - Test 4.4 Gearbox - Test 5.4 Power unit - Test 6.6 Body - Test 8.4 Air-conditioning - Test 9.5 Exhaust - Test S 1 U 7.2 Interior - Installation I T 7 V 7.3 Interior - Test U 2 W 6.5 Body - Paint V 3 X 1.4.2 Chassis - Test 2.5.2 Brakes - Test 3.5.2 Suspension - Test 4.4.2 Gearbox - Test 5.4.2 Power unit - Test 6.6.2 Body - Test 8.4.2 Air-conditioning - Test 9.5.2 Exhaust - Test 7.3.2 Interior - Test W 1
  42. 42. 41 Activity-on-Node Network Diagram AON.xlsx Schedule Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  43. 43. 42 RISK MANAGEMENTPLAN The purpose of the riskmanagementplanistoestablishthe frameworkinwhichthe projectteamwill identifyrisksanddevelop strategiestomitigate oravoidthose risks. However,beforeriskscanbe identifiedandmanaged,thereare preliminaryprojectelementswhichmustbe completed. These elementsare outlinedinthe riskmanagementapproach. Before riskmanagementbeginsitisimperative thatafoundationisestablishedforprovidingstructured projectinformation,thus,the followingprojectelementswerecompletedanddefinedpriorto developingthisRiskManagementPlan: - Define workscope,schedule,resources,andcostelements o DevelopprojectWBS o Developproject schedule o Estimate projectcost o Identifyrequiredresources o Establishperformance measurementmetrics - Define minimumandmaximumbaseline thresholds o Schedule o Cost - Define RiskManagementRolesandResponsibilities o Program Managerchairs the riskassessmentmeetings o Projectteamparticipatesinriskassessmentmeetingsandmembersserve asmeeting recorderand timekeeper o Keystakeholdersparticipate inriskassessmentmeetings Risk Management Approach The approach takento manage risk for thisprojectincludesamethodical processbywhichthe project teamidentifies,scores,andranksthe variousrisks. The mostlikely andthe highestimpactrisksare addedto the projectschedule toensure thatthe assignedstakeholderstake the necessarystepsto implementthe mitigationresponse atthe appropriate time duringthe schedule. The assignedstakeholderswill provide statusupdatesontheirassignedrisksinthe weeklyprojectteam meetings,butonlywhenthe meetingsinclude theirrisk’splannedtimeframe. Uponthe completionof the project,duringthe closingprocess,the ProgramManagerwill analyse eachriskaswell asthe risk managementprocess. Basedonthisanalysis,the ProgramManagerwill identify anyimprovementsthat can be made to the riskmanagementprocessforfuture projects. These improvementswill be captured as part of the lessonslearnedknowledge base.
  44. 44. 43 Risk Identification Risk AssessmentMeeting A riskassessmentmeetingwasheldwithkeyteammembersandstakeholders. The risksidentified duringthismeetingwere addedtothe projectplanandRisk AssessmentMatrix. Historical Review of Similar Projects The projectteam reviewedthe historyof similarprojectsinordertodetermine the mostcommonrisks and the strategiesusedtomitigate those risks. Risk Qualification and Prioritization In orderto determine the severityof the risksidentifiedbythe team, aprobabilityandimpactfactor was assignedtoeachrisk. Thisprocessallowedthe ProgramManagerto prioritize risksbaseduponthe effecttheymayhave onthe project. Risk Monitoring The most likelyandgreatestimpactriskshave beenaddedtothe projectplantoensure thattheyare monitoredduringthe time the projectisexposedtoeachrisk. Atthe appropriate time inthe project schedule aprojectstakeholderisassignedtoeachrisk. Duringthe weeklyprojectteammeetingthe assignedstakeholderforeachriskwill discussthe statusof that risk;however,onlyriskswhichfall inthe currenttime periodwill be discussed. Riskmonitoringwill be acontinuousprocessthroughoutthe life of thisproject. Asrisksapproachon the projectschedule the ProgramManagerwill ensure thatthe appropriate stakeholderprovidesthe necessarystatusupdateswhichincludethe riskstatus, identificationof triggerconditions,andthe documentationof the resultsof the riskresponse. Risk Mitigation and Avoidance The Program Manager has ledthe projectteamindevelopingresponsestoeachidentifiedrisk. Asmore risksare identified,theywill be qualifiedandthe teamwill developavoidance andmitigationstrategies. These riskswill alsobe addedtothe Risk AssessmentMatrix andthe projectplanto ensure theyare monitoredatthe appropriate timesandare respondedtoaccordingly. The risksfor thisprojectwill be managedandcontrolledwithinthe constraintsof time,scope,andcost. All identifiedriskswill be evaluatedinordertodetermine how theyaffectthistriple constraint. The Program Manager,withthe assistance of the projectteam, will determinethe bestwaytorespondto each riskto ensure compliance withthese constraints.
  45. 45. 44 In extreme casesitmaybe necessarytoallow flexibilitytoone of the project’sconstraints. Schedule and cost forthisprojectallowsforflexibilityasa lastresort. If necessary,fundingmaybe addedtothe projectinorder tomeetthe scope constraint. Scope is a firmconstraintthatallowsforno flexibility. The schedule andcost constraintsare flexibleonlyinextreme caseswherenootherriskavoidance or mitigationstrategywill work. Risk Assessment Matrix The Risk AssessmentMatrix forthisprojectisa log of all identifiedrisks,theirprobabilityandimpactto the project.The RiskAssessmentMatrix wascreatedthroughthe initial projectriskmanagement meetingledbythe ProgramManager. Duringthismeeting,the projectteamidentifiedandcategorized each risk. Additionally,the teamassignedeachriskascore basedon the probabilityof itoccurringand the impact itcouldpotentiallyhave. Risk Event Event Code Likelihood Impact (1 – low, 5 – high) Detection Difficulty (1 – low, 5 – high) When Technical Error in Requirements Specification T-A .05 3 4 Integration Failure to meet Quantitative Performance Requirements T-B .05 4 2 Integration and Testing Failure to meet Reliability Requirements T-C .15 4 4 Testing Failure inComponent Integration T-D .10 3 3 Integration and Testing External Contractual E-E .05 4 4 Throughout Supply E-F .10 3 3 Installation Weather E-G .05 3 3 Throughout Organizational Projectdependencies O-H .05 1 1 Throughout Resources O-I .05 3 3 Throughout Funding O-J .05 4 2 Throughout Project Management Error in Estimation PM-K .15 3 3 Throughout Communication Failure PM-L .05 3 2 Throughout
  46. 46. 45 Risk Identification Table for Impact Scales Relative Scale Project Objective 1 Very low 2 Low 3 Moderate 4 High 5 Very high Cost < 5% ≥ 5% ≥ 10% ≥ 20% ≥ 30% Time < 10% ≥ 10% ≥ 20% ≥ 30% ≥ 40% Scope Scope decrease barely noticeable Minor areas of scope affected Major areas of scope affected Scope reduction unacceptable to sponsor Project end item significantly compromised Quality Quality degradation barely noticeable Only very demanding applications are affected Quality reduction requires sponsor approval Quality reduction unacceptable to sponsor Project end item significantly compromised
  47. 47. 46 Risk Breakdown Structure Project Technical External Organisational Project Management Communication Performance Reliability Integration Contractual Supply Weather Requirements Project depedencies Resources Funding Estimation Planning Controlling
  48. 48. 47 Risk Severity Matrix 0.25 0.2 0.15 PM-K T-C 0.1 T-D, E-F 0.05 O-H T-A, E-G, O-I, PM-L T-B, E-E, O-J 1 2 3 4 5 Impact Likelihood Major Risk Moderate Risk Low Risk Risk Event Technical Error in Requirements Specification T-A Failure to meet Quantitative Performance Requirements T-B Failure to meet Reliability Requirements T-C Failure in Component Integration T-D External Contractual E-E Supply E-F Weather E-G Organizational Project dependencies O-H Resources O-I Funding O-J Project Management Error in Estimation PM-K Communication Failure PM-L
  49. 49. 48 Risk Response Matrix Risk Event Response Contingency Plan Trigger Responsible Party Technical Error in Requirements Specification Technical Review Dependent on outcome of technical review Integration FPT Head of Technical Failure to meet Quantitative Performance Requirements Technical Review Contractual Review Dependent on outcome of review Integration FPT Head of Technical and FPT Headof Contract and Commercial Management Failure to meet Reliability Requirements Technical Review Contractual Review Dependent on outcome of review Testing FPT Head of Technical and FPT Headof Contract and Commercial Management Failure inComponentIntegration Technical Review Dependent on outcome of technical review Integration and Testing FPT Head of Technical External Contractual Meeting with counterparty Dependent on outcome of meeting Non-compliance with contract FPT Head of Contract and Commercial Management Supply Meeting with supplier Dependent on outcome of meeting. Initiate alternate supply sources. Supply disruption FPT Head of Contract and Commercial Management Weather Project Stakeholder meeting Dependent on outcome of meeting Assessment of project stakeholders FPT Program Manager Organizational Project Dependencies Project Stakeholder meeting Dependent on outcome of meeting Project Schedule (Schedule variance threshold) FPT Program Manager Resources Project Stakeholder meeting Dependent on outcome of meeting Project Schedule (Schedule variance threshold) Technical and Quality concerns FPT Program Manager and FPT Head of Technical Funding FPT Project Team Meeting Initiate Financing Treasury report FPT Project Owner
  50. 50. 49 Project Management Error in Estimation Project Stakeholder meeting Dependent on outcome of meeting Schedule variance, Cost variance FPT Program Manager Communication Failure Project Stakeholder meeting Dependent on outcome of meeting Issue raised by project stakeholders FPT Program Manager
  51. 51. 50 Risk Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  52. 52. 51 CHANGE MANAGEMENTPLAN The Change ManagementPlanwascreatedin orderto setexpectationsonhow the approachto changeswill be managed,whatdefinesachange,the purpose androle of the change control board, and the overall change managementprocess. All stakeholderswill be expectedtosubmitorrequest changesinaccordance withthisChange ManagementPlanandall requestsandsubmissionswill followthe processdetailedherein. Change Management Approach The Change Managementapproachwill ensure thatall proposedchangesare defined,reviewed,and agreeduponso theycan be properlyimplementedandcommunicatedtoall stakeholders. This approach will alsoensure thatonlychangeswithinthe scope of this projectare approvedand implemented. The Change Managementapproachis notto be confusedwiththe Change ManagementProcess whichwill be detailedlaterinthisplan. The Change Managementapproachconsistsof three areas: - Ensure changesare withinscope andbeneficial tothe project - Determine howthe change will be implemented - Manage the change as it isimplemented The Change Managementprocesshasbeendesignedtomake sure thisapproachisfollowedforall changes. Usingthisapproach methodology will preventunnecessarychange fromoccurringand focusresourcesonlyonbeneficial changeswithinthe projectscope. Definitions of Change There are several typesof changeswhichmaybe requestedandconsideredforthe project. Dependingonthe extentandtype of proposedchanges,changesprojectdocumentationandthe communicationof these changeswill be requiredtoinclude anyapprovedchangesintothe project planand ensure all stakeholdersare notified. Typesof changesinclude: - Scheduling Changes:changeswhichwill impactthe approvedprojectschedule. These changesmay require fasttracking,crashing,orre-baseliningthe schedule dependingonthe significance of the impact. - BudgetChanges:changeswhichwillimpactthe approvedprojectbudget. These changes may require requestingadditional funding,releasingfundingwhichwouldnolongerbe required,oraddingto managementreserves. Mayrequire changestothe cost baseline. - ScopeChanges:changeswhichare necessaryandimpactthe project’sscope whichmaybe the resultof unforeseenrequirementswhichwerenotinitiallyplannedfor. These changes may alsoimpactbudgetand schedule. These changesmayrequire revisiontoWBS,project scope statement,andotherprojectdocumentationasnecessary. The Program Manager mustensure thatany approvedchangesare communicatedtothe project stakeholders. Additionally,aschangesare approved,the ProgramManagermust ensure thatthe changesare capturedinthe projectdocumentationwherenecessary. These documentupdates mustthenbe communicatedtothe projectteamandstakeholders.
  53. 53. 52 Change Control Board The Change Control Board (CCB) isthe approval authorityforall proposedchange requests pertainingtothe project. The purpose of the CCB isto review all change requests,determinetheir impactson the projectrisk,scope,cost,and schedule,andtoapprove ordenyeachchange request. The followingtable providesalistof the CCB membersforthe project: Name Position CCB Role Gregg Barrett ProjectOwner Chair JimBergmann Contract and Commercial Management Member Gordon Murray Technical Head Member KevinJones Program Manager Member As change requestsare submittedtothe ProgramManagerby the project team/stakeholders,the Program Managerwill logthe requestsinthe change logand the CCB will convene asnecessaryto reviewall change requests. Inthe eventmore informationisneededforaparticularchange request, the requestwill be deferredandsentbackto the requestorformore informationorclarification. Roles and Responsibilities The followingare the rolesandresponsibilitiesforall change managementefforts: ProjectOwner: - Approve all changestobudget/fundingallocations - Approve all changestoschedule baseline - Approve anychangesinprojectscope - Chairthe CCB Program Manager: - Receive andlogall change requestsfromprojectstakeholders - Conductpreliminaryrisk,cost,schedule,scope analysisof change priortoCCB - Seekclarificationfromchange requestorsonanyopenissuesorconcerns - Make documentationrevisions/editsasnecessaryforall approvedchanges - Participate onCCB ProjectTeam/Stakeholders: - Submitall change requestsonstandardorganizational change requestforms - Provide all applicable informationanddetail onchange requestforms - Be preparedtoaddressquestionsregardinganysubmittedchange requests - Provide feedbackasnecessaryonimpactof proposedchanges
  54. 54. 53 Change Control Process The Program Manager has overall responsibilityforexecutingthe change managementprocessfor each change request. 1) Identifythe needforachange (Stakeholders) –Change requestorwill submitacompleted change requestformto the ProgramManager. 2) Log change in the change requestregister(ProgramManager) –The ProgramManager will keep a log of all submittedchange requeststhroughoutthe project’slifecycle. 3) Submitchange requesttoCCB (ProgramManager) – The Program Manager will submitthe change request,tothe CCB for review. 4) Obtaina decisiononthe change request(CCB) –The CCB will discussthe proposedchange and decide whetherornot itwill be approvedbasedonall submittedinformation. 5) Implementchange (ProgramManager) –If a change isapprovedbythe CCB,the Program Manager will update andre-baseline projectdocumentationasnecessary.
  55. 55. 54 Change Request Form ProjectName:DPZero 1 ProjectOwner:GreggBarrett RequestNumber: Change RequestDate: Originator: Review Requestby: Descriptionof requestedchange: Reasonforchange: Areas of impact of proposed change: Scope: Schedule: Cost: Risk: Disposition Priority FundingSource Approve Emergency ManagementReserve Approve asamended Urgent BudgetReserve Disapprove Low Customer Deferred Other Sign-off Approvals Program Manager Date ProjectOwner Date HeadTechnical Date HeadContract and Commercial Management Date
  56. 56. 55 Change Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  57. 57. 56 HUMANRESOURCE MANAGEMENTPLAN The human resourcesmanagementplanisa tool whichwill aidinthe managementof thisproject’s humanresource activitiesthroughout the projectuntil closure. The humanresourcesmanagement planincludes: - Rolesandresponsibilitiesof teammembersthroughoutthe project - Projectorganizationchart - Staffingmanagementplan The purpose of the humanresourcesmanagementplanistoachieve projectsuccessbyensuringthe appropriate humanresourcesare acquiredwiththe necessaryskills,teambuildingstrategiesare clearlydefined,andteamactivitiesare effectivelymanaged. Roles and Responsibilities The rolesand responsibilities forthe projectare essential to success. All teammembersmustclearly understandtheirrolesandresponsibilitiesinordertosuccessfullyperformtheirportionof the project. For the projectthe followingprojectteamrolesandresponsibilitieshave beenestablished: Program Manager (1 position): Responsibility: - to manage all projecttasks,scheduling,andcommunicationregardingthe project. - to approve all budgetexpendituresupto,andincluding, the allocatedbudgetamounts.(Any additional fundingmustbe requestedthroughMr.JimBergmann,headof Contract and Commercial ManagementatFirstPrinciplesTechnologies.) - to interface withmanagementasrequired,requestresources,delegate responsibilities withinthe frameworkof the project,andtocommunicate withall contractors,asrequired, to ensure successful andtimelycompletionof the project. - reportprojectstatusin accordance withthe communicationsmanagementplan. - facilitate scope change requests. - organize andfacilitate scheduledchange control board(CCB) meetings. - conduct preliminaryrisk,cost,schedule,scope analysisof change priortoCCB. - participate onCCB - communicate outcomesof scope change requests. - update projectdocumentsuponapproval of all scope changes. - communicationEscalationProcess:DecisionmakeronPriority3matters Project Owner(1 position): Responsibility: - chair the CCB. - reviewof proposedscheduleandapprove the final schedule before itisbaselined. - approve all changesto budget/fundingallocations - approve all changesto schedule baseline - approve anychangesin projectscope - communicationEscalationProcess:DecisionmakeronPriority1matters
  58. 58. 57 Contract and Commercial Management (1 position) Responsibility: - reviewrequestsforadditionalfunding. - establishandapprove documentationformeasuringprojectscope whichincludes deliverable qualitychecklistsandworkperformance measurements. - reviewandapprove all deliverables. - reviewandapprove all componentsof the projectplan. - memberof the CCB. - conduct contractual reviewinthe eventof failuretomeetreliabilityrequirements,aspartof the riskresponse. - meetwithcounterpartyinthe eventof non-compliancewithcontract,aspart of the risk response. - meetwithsupplierinthe eventof asupplydisruption,aspartof the riskresponse - communicationEscalationProcess:DecisionmakeronPriority2matters Technical Head (1 position): Responsibility: - developtechnical designsolutionsforthe project. - oversee developmentof the technical submissionforthe suspensionpackage andbrake package. - oversee technical evaluationof the suspensionandbrake package suppliers. - establishandapprove documentationformeasuringprojectscope whichincludes deliverable qualitychecklistsandworkperformance measurements. - reviewandapprove all deliverables - memberof the CCB - conduct technical reviewinthe eventof errorfoundrequirementsspecification,aspartof riskresponse - conduct technical reviewinthe eventof FailuretomeetQuantitative Performance Requirements,aspartof the riskresponse - conduct technical reviewinthe eventof failure tomeetReliabilityRequirements,aspartof the riskresponse. - conduct technical reviewinthe eventof FailureinComponentIntegration,aspartof the risk response. - communicationEscalationProcess:DecisionmakeronPriority2matters Project Organizational Charts The followingRASCIchartshowsthe relationshipbetweenprojecttasksandteammembers. Changeswill be proposedinaccordance withthe project’schange control process. Aschangesare made all projectdocumentswill be updated andredistributedaccordingly. RACI.xlsx
  59. 59. 58 Staff Acquisition There iscurrently nostaff acquisitionschedule since the organizationhasthe requiredstaff with requiredskillsets. Training There iscurrentlynotraining schedule since the organizationhasadequate staff withrequiredskill sets. Recognition and Rewards Followingthe projectkick-off meetingthe ProgramManagerwill schedule ameetingwithFPT,Riley and Fioravanti Managementtoexplorepossiblerecognitionandrewardoptionsforthe project. Resource loaded/leveled baseline Resource load.xlsx Human Resource Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  60. 60. 59 LESSONS LEARNED APPROACH The purpose of the lessonslearneddocumentistocapture the project’slessonslearnedinaformal documentforuse infuture projects. Thisdocumentmaybe usedas part of new projectplanningfor similarprojectsinordertodetermine whatproblemsoccurredandhow those problemswere handledandmaybe avoidedinthe future. Additionally,thisdocumentdetailswhatwentwellwith the projectand why,sothat future initiativesmaycapitalize onthese actions. Thisdocumentwill be formallycommunicatedwiththe organizationandwill becomeapart of the organizational assets and archives. The lessonslearnedfromthe projectwillbe compiledfromprojectjournal entriesthroughoutthe projectlifecycle. Lessonslearnedare alsoto be gatheredfrombothrealizedandunrealizedrisksin the projectriskregisteraswell asthroughinterviewswithprojectteammembersandother stakeholderasnecessary. The lessonslearnedfromthisprojectwillbe usedasreferencesforfuture projectsandcontainan adequate level of detailsothatotherprojectmanagersmayhave enough informationonwhichtohelpbase theirprojectplans. The lessonslearnedinthisdocumentare categorizedbyprojectknowledge area. These knowledge areasconsistof - Stakeholdermanagement - Communicationsmanagement - Scope management - Cost management - Schedule management - Riskmanagement - Change management - Human resource management Lessons learned from this Project The followingtable will be usedtolistthe lessonslearnedforthe project. These lessonsare categorizedbyknowledge area.Itisimportanttonote that not onlyfailuresorshortcomingsare includedbutsuccessesaswell. Category Description Problem/Success Impact Recommendation Stakeholder Management Communication Management Scope Management Cost Management Schedule Management Risk Management
  61. 61. 60 Change Management Human Resource Management Lessons learned knowledge base The lessonslearnedfromthe projecttogetherwithall projectdocumentationwillbe archivedonthe FirstPrinciplesTechnologiesSharePointServer.Thisinformationwill be catalogued underthe project’syear(2015) andthe projectname (DPZero1) for future reference. Lessons Learned Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  62. 62. 61 PROCUREMENT MANAGEMENTPLAN The ProcurementManagementPlansetsthe procurementframeworkforthisproject. Itwill serve as a guide formanagingprocurementthroughoutthe life of the projectandwill be updatedas acquisitionneedschange. Thisplanidentifiesanddefinesthe items tobe procured,the typesof contracts to be usedinsupportof thisproject,the contract approval process,anddecisioncriteria. The importance of coordinatingprocurementactivities,establishingfirmcontractdeliverables,and metricsinmeasuringprocurementactivitiesisincluded. Otheritemsincludedinthe procurement managementplaninclude:procurementrisksandprocurementriskmanagementconsiderations; howcosts will be determined;how procurementdocumentationwill be used;andprocurement constraints. Procurement management approach The Head of Contactand Commercial Management will provide oversightandmanagementforall procurementactivitiesunderthisproject. The ProgramManager will workwiththe projectteamto identifyall itemstobe procuredforthe successful completionof the project. The Contractand Commercial Managementoffice togetherwiththe Technical Head will thenreview the procurement listandbeginthe supplierselectionandcontractingprocess.. Procurement definition The followingprocurementitemsand serviceshave beendeterminedtobe essential for project completionandsuccess. Item/Service Justification Date Brake package Critical component Selectionmade by 17/07/2015 Suspensionpackage Critical component Selectionmade by 17/07/2015 In additiontothe above listof procurementitems,the followingindividualsare authorizedto approve purchasesforthe projectteam: Name Role Gordon Murray Technical Head JimBergmann Contract and Commercial Management Type of contracts All items andservicestobe procuredforthisprojectwill be solicitedunderfirm-fixedprice contracts. The contracts and commercial managementofficewillsolicitbidsfrom suppliers. Supplier
  63. 63. 62 bidswill thenbe reviewedbythe Technical Head,the Headof Contractand Commercial Managementandthe ProjectOwner. Procurement risk management All procurementactivitiescarrysome potential forriskwhichmustbe managedtoensure project success.While all riskswill be managedinaccordance withthe project’s riskmanagementplan, there are specificriskswhichpertainspecificallytoprocurementwhichmustbe considered: - Unrealisticscheduleandcostexpectationsforsuppliers - Manufacturingcapacitycapabilitiesof suppliers - Conflictswithcurrentcontractsand supplierrelationships - Potential delaysin delivery andimpactsoncost and schedule - Potential thatfinal product/service doesnotmeetrequiredspecifications These risksare not all-inclusive andthe standardriskmanagementprocessof identifying, documenting, analysing,mitigating,and managingriskswill be used. As previouslystated,projectriskswillbe managedinaccordance withthe project’sriskmanagement plan. However,forrisksrelatedspecificallytoprocurement,there mustbe additional consideration and involvement. Projectprocurementeffortsinvolveexternal organizationsandpotentiallyaffect currentand future businessrelationshipsaswell as internal supplychainandsupplier management operations. Because of the sensitivityof these relationshipsthe projectteamwillinclude the Technical Headand the Headof Contract andCommercial Managementinall projectmeetingsand statusreviews. Additionally,anyissuesconcerningprocurementactionsoranynewlyidentifiedriskswill immediatelybe communicatedtothe Headof Contract and Commercial Management. Cost determination For thisprojecta RequestforProposal (RFP) willbe issuedtosolicitproposalsfromvarioussuppliers coveringhowtheywill meetthe technical requirementsandthe costof doingso.The technical requirementsof the RFPwill be compiledbythe Technical Headwhile all non-technical sectionswill be compiledbythe Headof Contractand Commercial Management. Procurement documentation The procurementmanagementprocessconsistsof manystepsaswell asongoingmanagementof all procurementactivitiesandcontracts. The goal mustbe to simplifyprocurementmanagementbyall necessarymeansinorderto facilitate successfulcompletionof the project. Toaid insimplifying these tasks,the knowledge base of the Contractand Commercial ManagementOffice willbe used. The Contract and Commercial ManagementOffice maintains aclause andtemplate libraryonFPT’s Contract Managementsystemthatwill be usedforthisproject. The followingdocumentswill be used(ata minimum) forprojectprocurementactivities:
  64. 64. 63 - RFP o Background o Proposal processandtimelines o Proposal guidelines o Technical specification o Proposal formatsandmedia o Selectioncriteria o Pricingforms o Statementof work o Termsand Conditions - Mutual non-disclosure agreement - Letterof intent - Firmfixedprice contract - Procurementauditform - Procurementperformanceevaluationform - Lessonslearnedform Procurement constraints There are several constraintsthatmustbe consideredaspartof the project’sprocurement managementplan. These constraintswill be includedinthe RFPandcommunicatedtoall suppliers. Schedule: - Projectschedule isnotflexible andthe procurementactivitiesandcontractfulfilmentmustbe completedwithinthe establishedprojectschedule. Technology: - Specificationswill be includedinthe statementof workaspart of the RFP. While proposalsmay include suggestedalternativesand/orenhancements,parts specificationsmustmatchthose providedinthe statementof workexactly. Contract approvalprocess The Program Manager will workwiththe projectteam, the Technical Headandthe Head of Contract and Commercial Managementtodefine the itemtypes,quantities,servicesandrequireddelivery dates. The contractsand commercial managementoffice will thensolicitbidsfromsuppliers. Supplierbidswill thenbe reviewedbythe Technical Head,the Headof Contractand Commercial Managementandthe ProjectOwner,togetherconstitutingthe ContractReview Board. Once a contract has beenapprovedbythe ContractReview Boardthe ProgramManager is authorizedtoapprove all expendituresupto,andincluding,the allocatedamountsinaccordance withthe contract. Decision criteria The criteriafor the selectionandawardof procurementcontractsunderthisprojectwill be basedon the followingdecisioncriteria: - Abilityof the suppliertoprovide all itemsbythe requireddeliverydate
  65. 65. 64 - QualityandReliability - Cost includingongoingmaintenance andreplacement - Past performance - Technical expertise Supplier management The Head of Contactand Commercial Managementisultimatelyresponsibleformanaging suppliers. In orderto ensure the timelydeliveryandhighqualityof productsfrom suppliers the Headof Contract and Commercial Managementtogetherwiththe Headof Technical,will meetweeklywith each suppliertodiscussthe progressforeach procureditem. The meetingscanbe inpersonor by teleconference. Thisforumwill provideanopportunitytoreview eachitem’sdevelopmentorthe service providedinordertoensure itcomplieswiththe requirementsestablishedinthe project specifications. Italsoservesasan opportunitytoaskquestionsormodifycontractsorrequirements aheadof time inorderto preventdelaysindeliveryandschedule. The ProgramManagerwill be responsible forschedulingthismeetingona weeklybasisuntil all itemsare deliveredandare determinedtobe acceptable. Performance metrics for procurement activities The followingmetricsare establishedfor supplierperformanceforthisproject’sprocurement activities. Eachmetricisratedon a 1-3 scale as indicatedbelow: Supplier Product Quality On Time Delivery Documentation Quality Technical Expertise Transactional Efficiency Service Quality Brake Package Supplier Suspension Package Supplier 1 – Unsatisfactory 2 – Acceptable 3 - Exceptional
  66. 66. 65 Procurement Management Plan Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  67. 67. 66 EXAMPLE STATUS REPORT Please see the Appendixfordetailsconcerningthe calculationsandinterpretationof EarnedValue. Week 1: The work on task6.1 was onschedule.The Actual Cost(AC) was 9000 USD and PlannedValue (PV) was 9000 USD. Task 6.1 is42% complete. The work of task 1.1 was on schedule.The ACis9000 USD and PV is 9000 USD. Task 1.1 is56% complete. Week 2: Work on Task 6.1 fell slightlybehindschedule,due tosome aerodynamicchallengesencounteredin the redesignof the frontsplitter,engine intake andcoolingandaccommodatingthe reardiffuser. EarnedValue (EV) was8550 USD while PV was9000 USD. AC came inat 10595 USD, higherthan the PV of 9000 USD due to the additional simulationworkbeingrequired.Task6.1 is81% complete. Work on Task 1.1 fell slightlybehindschedule,due tosome challengesinincorporatingthe body redesignchanges.EV was 6840 USD while PV was7200 USD. ACwas 7063 USD, higherthanthe PV of 7200 USD, due to the additionof a resource.Task1.1 is 97% complete. Week 3: The work outstandingfromweek2on Task6.1 was completed.The remainingworkonTask6.1 scheduled forthisweekwasalsocompletedwithanEV of 1800 USD, PV of 1800 USD andAC of 1800 USD. Task 6.1 Body:DesignModification,isnow complete. The work outstandingfromweek2on Task1.1 was completed.The ACof 7416 USD exceededthe PV of 7200 USD due to the additionof a resource.Task1.1: Chassis:DesignModificationisnow complete. The CAD Integrationactivitystarted twodays late due tothe work still beingdone onTask6.1 and 1.1. The EV for the weekonthe CAD Integrationwas1782 USD comparedto a PV of 5400 USD. Only 33% of the CAD Integrationactivityscheduledforweek3wascompleted,howeverthisisnota seriousissue. Status Report: Week 2 % of week schedule EV AC PV CV SV SPI CPI % of task complete Task 6.1 0.95 8550 10594.8 9000 -2044.8 -450 0.95 0.807 0.8125 1.1 0.95 6840 7063.2 7200 -223.2 -360 0.95 0.9684 0.977777778 Status Report: Week 1 % of week schedule EV AC PV CV SV SPI CPI % of task complete Task 6.1 1 9000 9000 9000 0 0 1 1 0.416666667 1.1 1 9000 9000 9000 0 0 1 1 0.555555556
  68. 68. 67 Week 4: All the workoutstandingonthe CAD Integrationwascompletedthisweek.Anadditional resource was addedtoassistin the work.Thisresultedinthe ACexceedingthe PV.The CADIntegrationtaskis nowcomplete. Task 2.1 Brakes:Technical, wasstartedandcompletedaccordingtoschedule.PV andACwas5400 USD. Task 3.1 Suspension:Technical,wasstartedandcompletedaccordingtoschedule.PV andACwas 5400 USD. Task 9.1, 1.3, 6.3 and 7.1 are runningbehindschedule withonly33% of the workthat was scheduled thisweekhavingbeencompleted.Thiswasdue tothe work onthe CADIntegrationrunningtwo daysbehindschedule. Week 5: The work outstandingonTask9.1, 1.3, 6.3 and 7.1 fromweek4 was completedthisweek. Task 9.1 was on schedule andthe ACequalledthe PV of 9000 USD. Task 9.1 is80% complete. Task 1.3 was on schedule andthe ACequalledthe PV of 6000 USD. Task 1.3 isnow 26% complete. Task 6.3 was of schedule andthe ACequalledthe PV of 4500 USD. Task 6.3 is now 53% complete. Task 7.1 was on schedule andthe ACequalledthe PV of 9000 USD. Task 7.1 isnow 44% complete. Status Report: Week 3 % of week schedule EV AC PV CV SV SPI CPI % of task complete Task 6.1 5% from week 2 9000 11124.54 9000 -2124.54 0 1 0.809022 0.833333333 100% of week 3 1800 1800 1800 0 0 1 1 1 1.1 5% from week 2 7200 7416.36 7200 -216.36 0 1 0.970827 1 1.2, 4.1, 5.1, 6.2, 8.1, 9.2 0.33 1782 1962 5400 -180 -3618 0.33 0.908257 0.2 Status Report: Week 4 % of week schedule EV AC PV CV SV SPI CPI % of task complete Task 1.2, 4.1, 5.1, 6.2, 8.1, 9.2 67% from week 3 5400 5886 5400 -486 0 1 0.917431 0.6 100% of week 4 3600 3924 3600 -324 0 1 0.917431 1 2.1 1 5400 5400 5400 0 0 1 1 1 9.1 0.33 1800 1800 5400 0 -3600 0.333333 1 0.1 1.3 0.33 1200 1200 3600 0 -2400 0.333333 1 0.033333333 3.1 1 5400 5400 5400 0 0 1 1 1 6.3 0.33 900 900 2700 0 -1800 0.333333 1 0.066666667 7.1 0.33 1800 1800 5400 0 -3600 0.333333 1 0.055555556
  69. 69. 68 Summary: At the endof Week5 the EV is101 400 USD and a PV of 101 400 USD. The Schedule Variance (SV) is therefore 0and the projectison schedule –thiscan also be seenwiththe Schedule Performance Index (SPI) of 1. The Cost Performance Index (CPI) isalittle below 1at 0.97 due to the AC beingslightlyhigherat 104 551 than the EV at 101 400. The higherACisprimarilydue tothe highercostsassociatedwith Task 6.1 and Task1.1 in Week2, where additionalresourceswere addedtothe project. Summary EV AC PV CV SV SPI CPI Total 101400 104550.9 101400 -3150.9 0 1 0.969862526 The expectedstatusof the projectat completion isgivenbythe EAC(f) calculatedbelow: EAC(f) Forecastedestimate costatcompletion EAC(f)=AC+[(BAC-EV)/CPI] Total ACat week5 104550.9 Total BAC 226800 Total EV at week5 101400 BAC-EV at week5 125400 CPIat week5 0.969863 EAC(f) atweek5 233847.6 Based on the EAC(f) calculated at Week 5, the project will exceed the total planned value (BAC) by 7048 USD. This of course assumes that the CPI remains constant over the remainder of the project. Status Report: Week 5 % of week schedule EV AC PV CV SV SPI CPI % of task complete Task 9.1 67% from week 4 5400 5400 5400 0 0 1 1 0.3 100% of week 5 9000 9000 9000 0 0 1 1 0.8 1.3 67% from week 4 3600 3600 3600 0 0 1 1 0.1 100% of week 5 6000 6000 6000 0 0 1 1 0.266666667 6.3 67% from week 4 2700 2700 2700 0 0 1 1 0.2 100% of week 5 4500 4500 4500 0 0 1 1 0.533333333 7.1 67% from week 4 5400 5400 5400 0 0 1 1 0.166666667 100% of week 5 9000 9000 9000 0 0 1 1 0.444444444
  70. 70. 69 PROJECT CLOSE Thisdocumentestablishesformal acceptance of all the deliverablesforthe DPZero1 project. The projecthas metall the acceptance criteriaas definedinthe requirementsdocumentandproject scope statement. A projectreviewhasbeenperformedtoverifythatall deliverablesmeet performance andspecificationrequirements. Additionallyaproductevaluationhasbeenperformed throughtwo testsessionsandithasbeendeterminedthatthe vehiclemeetsthe qualityand functional requirementsdefinedwithinthisproject. The Program Manager isauthorizedtocontinue withthe formal close outof thisproject. The closeoutprocesswill includethe schedulingof apost-projectreview meeting,documentationof lessonslearned, release of the Projectteams,andthe archive all relevantprojectdocuments. Once the closingprocessiscompletedthe ProjectOwnerwill be notifiedandthe ProgramManager will thenbe releasedfromthe project. Project Close Acceptance _______________________________________________ Date: ______________________ JimBergmann Head:Contract and Commercial Management, FirstPrinciplesTechnologies
  71. 71. 70 APPENDIX PROJECT TEAM DIRECTORY The followingtable presentscontactinformationforall personsidentifiedinthe communications managementplan. The email addressesandphone numbersinthistable will be usedto communicate withthese persons. First Principle Technologies (FPT) ProjectRole Name PositionatFPT Email Phone ProjectOwner Gregg Barrett CEO 719 555 9899 Program Manager KevinJones Program Manager 719 555 9890 Contract and Commercial Management JimBergmann Head:Contract and Commercial Management 719 555 9895 Technical Head Gordon Murray Technical Head 719 555 9885 RileyTechnologies ProjectRole Name PositionatRiley Email Phone RileyManagement Bill Riley CEO 704 663 6325 RileyManagement Bill Fingerlow General Manager bill.fingerlow@rileytech .com 704 663 6323 ProjectManager KennethSwan ProjectManager kenneth.swan@rileytec 704 663 6320 Engineering,chief vehicle engineer JimKasprzak Head: Engineering jim.kasprzak@rileytech. com 704 663 6315 Engineering, electrical JonMiles SeniorEngineer m 704 663 6314 Engineering, chassis TylerHook SeniorEngineer m 704 663 6312 Engineering, suspension Ray Banda SeniorEngineer m 704 663 6311 Engineering, powertrain CharlesLong SeniorEngineer charles.long@rileytech. com 704 663 6310 Fioravanti ProjectRole Name Positionat Fioravanti Email Phone Fioravanti Management Leonardo Fioravanti CEO leonardo.fioravanti 949 780 3298 ProjectChief Designer Marco Fernelli Chief Designer marco.fernelli@fior 949 780 3284 InteriorChief Designer LouisAugeri InteriorChief Designer louis.augeri@fiorav 949 780 3280
  72. 72. 71 ProjectManager Francine Facchini ProjectManager francine.facchini@f 949 780 3276 Ford Motor Company ProjectRole Name PositionatFord Email Phone Powerunitsupply Jamie Allison Ford Racing Director jamie.allison@ford. com 313 845 8648 Xtrac ProjectRole Name PositionatXtrac Email Phone Gearbox supply Paul Barton Commercial & Engineering Manager paul.barton@xtrac. com 704 799 4489 Ricardo ProjectRole Name Positionat Ricardo Email Phone Exhaustsupply Tom Franks Headof NVH tom.franks@ricard 408 496 5344 Brake Supplier ProjectRole Name Positionat Email Phone Brake supply SuspensionSupplier ProjectRole Name Positionat Email Phone Suspension supply
  73. 73. 72 EARNED VALUE DETAILS PV The plannedtime-phasedvalue of the work that isscheduled EV Earnedvalue issimplypercentcomplete times itsbudgetedcostof the work EV = % Complete *PV AC Actual cost of the workcompleted CV Cost variance adjustedbudgetcoststothe actual spentcosts CV = EV-AC CPI Cost performance index isameasure of cost efficiencyonaproject CPI= EV/AC SV Schedule variance:Howmuchworkthat has beendone comparedwithhow much should have done at thispointintime SV = EV-PV SPI Schedule performance index isameasure of schedule efficiencyonaproject SPI= EV/PV BAC The total plannedvalue of the project Earned Value calculations usedin the Example Status Report EV calculations.xlsx
  74. 74. 73 GUIDANCEON CREATING HIGH PERFORMANCE TEAMS In termsof layingthe groundworkforhighperformance teams,the presentationbelow titled “Netflix Culture: Freedom& Responsibility”wasdevelopedatNeflixbyPattyMcCord and postedby CEO ReedHastingsonSlideShare.Buildingonthe presentation IkhlaqSidhu atUC Berkeleyproduced a useful summary whichhasbeenincludedbelow. Culture - High Performance - Netflix.pdf How to buildhighperformance teams by Ikhlaq Sidhu Chief scientist, facultydirector and founding director,CenterforEntrepreneurship &Technology, IEOR department,Collegeof Engineering,UCBerkeley [The} keyideaisthat thistype of organizational culture isnotlike afamily. Instead, itsmuchmore like aprofessional sportsteam. Professionalsare paidattop rates. The goal is to hire starsfor every position. The rationale isthateachhighperformercandeliver10x inperformance. Andunlike a family,theydon’tmindwhenitstime foraplayertoleave. The culture alsodoesnotprovide career planning. The bestlong-termsecurityistohave a have a great reputationof havingaccomplished great thingsandthe skillstomatch. Of course highperformance teamsare flat(non-hierarchical) andtheytypicallyvalueinnovators, conflict(requiredtoseekoutthe bestof ideas),andclear,direct communication. Otherconceptsfor highperformance teamsare:  Results-oriented. Hard work isactuallyirrelevant,onlytheresults matter. The firmwon’tmeasure anyone’s time inthe office orevenvacationdays. In fact,there isnot evenanexpense policy. The guidance isto simplyuse commonsense todowhatisright forthe organization.  Low Process/High Flexibility. Highperformersthrive onfreedom. However,asfirmsgrow,theyuse processestocombat the complexityfromscaling. Thishasa tendencytocripple innovationanddrive outhigh performers. The proposal made inthisslide setistogrow by hiringonlytrulyhigh performingpeople andtoavoidaddingprocessandnew rules. Thisleavesthe organization flexible sothatitcan adapt to the inevitable changesyettocome.  Context-focusednotdelegation-focused. There issome highlyrelevantadviceformanagersaswell.Aswe know,highperformers thrive onfreedom,soconsiderthisconceptfromAntoine De Saint-Exupery,“If youwantto builda ship,don’tdrumupthe people togatherwood,dividethe work,andgive orders. Insteadteachthemto yearnfor the vast andendlesssea.” AccordingtoMcCord, “The bestmanagersfigure outgreatoutcomesbysettingthe appropriate context,rather
  75. 75. 74 than tryingto control people.” Don’tsettop-downdecisions,don’tuse management approvals,anddon’tdefertocommittees. Andplanningandprocessshouldneverbe valued overresult.“Whenone of your people doessomethingdumb,don’tblame them. Instead: Askyourself whatcontextyoufailedtoset.” And,“whenyouare temptedtocontrol,ask yourself whatcontextyoucouldsetinstead.” The documentexplainsthe behaviorsthata highperformance culture expects. Accordingtoits author,highperformance culture isnotforeveryone. Andforthatmatter,it’snot forevery organization. Questionstoconsider: 1. How wouldyouknowwhethera“highperformance culture”isrightforyourorganization’s mission? 2. Couldthisbe establishedinpocketsof the organizationordoesitneedtobe driventop- downand implementedeverywhere? 3. What are the drawbacksor downsidestohighperformance teamculture? (Sidhu,2011)
  76. 76. 75 PERFORMANCE IMPROVEMENT Settingthe stage for projectmanagement – a primeron the basics: The followingthree pointshave beenproposedaskeyareasof focusfor attainingsuccessinproject managementwithinthe organisation: - The appointmentof a projectmanagerwithauthorityandresponsibilityoverthe project lifecycle - Establishmentof anorganisational culture conducive tothe creationof highperformance teams.Please refertothe section“Guidanceon creating high performanceteams”. - Implementationof the projectlifecycle withinthe organisation Thisintroduction onperformance improvementinprojectmanagement will focusonthe project lifecycle,providingahighleveloverviewof the fourstages. ProjectLifecycle (Larson and Gray,2010) Four stagesof the projectlifecycle: - Definition - Planning - Execution - Closing
  77. 77. 76 The DefiningStage In the definingstage we askourselvesthe fundamental question;whatisthatwe wishto accomplish and howwill we goaboutattainingour objective(s)? The outputof thisprocesswill be ourprojectobjective.The projectobjective shouldbe clearly defined,understandable andcommunicatedtoall projectparticipants.Additional outputsatthis stage at a highlevel will include the definitionof goalsalongthe waythatwill helpusinachieving our objective,the skillsandcompetenciesof requiredteam members,highlevel specifications,tasks and responsibilitiesof teamparticipants. The projectobjective setsthe course forthe projectandshouldbe instilledinthe heartsandminds of all participants. The PlanningStage At thisstage we get stuck intothe details,leavingnostone unturnedinanefforttoestablish schedules,budgets,resourcesrequirementsandidentifyprojectrisks.Withplanningwe gothrough that toughmental effortof understandingall thatwe can abouthow we are goingto lay the ground workand musterthe troopsto achieve projectsuccess.Inthisstage we builduponthe workdone in the definingstage aswe aligngoalswithbudgets,responsibilitieswithresources,taskswith schedulesandconcernourselveswithriskmanagement–alwayshopingforthe bestbutbeing preparedforthe worst. The planningstage isfertile groundforthe seeds of projectfailure–so don’tletthemgerminate by beingnegligible withthe planning.Researchby Daniel KahnemanandAmosTverskyhasshownthat people tendtobe overlyoptimisticandunderestimate taskcompletiontimes.BentFlyvbjerghas proposedanapproach calledreference classforecastingtomitigate the planningfallacy. At a highlevel reference classforecastingentails: - Identifyinganappropriate reference class - Obtainthe statisticsof the reference classanduse togenerate abaseline prediction - Use specificinformationaboutthe case to adjustthe baseline prediction The ExecutingStage The third stage of the project lifecycle isthe executionstage.The executionstage istypicallythe longeststage inthe projectlifecycleandincludesthe formulationof statusreports,change management,qualitymanagementandforecasting. The executionstage iswhere the rubbermeets the road, our objective startstotake ona more tangible formasour plansare translatedintoaction. Good planninginthe priorstage shouldresultinsmoothsailinginthe executionstage ,however stormscan format any time andit isthenthat the value of a riskmanagementplanwill be putto the test. Managementandcontrol are critical inthe executionstage,withthe pointof reference beingthe schedule,costandscope producedduringthe planningstage.
  78. 78. 77 The ClosingStage The closingstage typicallycoversthe deliveryof the final product/service(the objective definedat the verystart),a postprojectreviewshouldnow be conductedandthe closingstage mayalso involve the redeployingof projectresources.Postprojectreviewisanimportantcomponentof the projectlifecycleandone thatis oftenoverlooked.Postprojectreview servesasthe inputfor improvementsinfuture projectplanning,asall the learningthatoccurredthroughoutthe project lifecycle isformalisedaslessonslearned.
  79. 79. 78 REFERENCE Sidhu, I. (2011). Howto build high performanceteams. [blog]. Retrieved from Larson,E. W.,& Gray, C. F.(2010). Projectmanagement:Themanagerialprocesswith MSProject (5th ed.).McGraw-Hill HigherEducation.[ISBN-13:978-1259186400]