ARA Small vs. Large ARA Small vs. Large ProjectsProjects

Felix Sanchezand Don Cole

Project Management for ARA Engineers and Scientists

2

ARA Revenue by ContractARA Revenue by Contract

(FY06 Data – same ratios today)

3

Only $19 million comes from 920+ contracts About 70 percent of our revenue comes from 10 percent

of our large contracts Over 40 percent of revenue from contracts over $2 million Must know how to win larger size contracts Must win longer-term contracts with new clients Need to “expand the pie”

• Need new customers!

ARA Growth from 1,400-2,800+ in ARA Growth from 1,400-2,800+ in Less than 5 Years?Less than 5 Years?

new

Must Establish Good ReputationMust Establish Good Reputationon on ManagingManaging Large Contracts Large Contracts

4

What has to be done? When does it have to be done? How do you manage it? Who leads various tasks? Who will do the work? How much will it cost? How much have you accomplished to date? How much have you spent to date? How much will it cost to finish?

Project Management Project Management Questions You Need to AnswerQuestions You Need to Answer

5

Are same principles applicable? Are the same management Best Practices applicable? Are the tools scaleable from small to large projects? What is required for small vs. large projects?

ARA Small Projects vs. Large ProjectsARA Small Projects vs. Large Projects

6

PM Question Small Project

Medium Project

Large Project

What has to be done?When does it have to be done?

How do you do manage it?

Who leads various tasks? Who tracks the cost?Who will do the work?

How much will it cost?

How much accomplished to date?How much spent to date vs. what is expected?How much will it cost to finish?

7

PM Question Small Project Medium Project Large Project

What has to be done? CDRLs Project Plan, CDRLs Integrated Master Plan, CDRLs

When does it have to be done?

Due date(s) Program Schedule Integrated Master Schedule

How do you do manage it? PM leads Team Organization Program Organization, WBS

Who leads various tasks? Who tracks the cost?

PM PM or Task Leaders PM, Task Leaders or Control Account Leads

Who will do the work? PM and 1 or 2 others PM and 2 or 3 others Program Organization, Resource Loaded Network

How much will it cost? FFP or T&M with budget ceiling, Allocate hours (Excel spreadsheet)

Detail Budget by Tasks (Excel)

Detailed Program Budget by WBS, Resource Loaded Network

How much accomplished to date?

Status Checks Compare with milestones, actual $ vs. budget

Tailored EVMS, or EVMS

How much spent to date vs. what is expected?

No formal reporting Monthly Status Reports

Variance Analysis

How much will it cost to finish?

No formal rpt, estimate hours to complete

Monthly Status or CDRL Reports

Estimate At Completion (EAC)

8

Common TermsCommon TermsARA Nomenclature Industry Nomenclature

Program Plan Integrated Master Plan (IMP), Project Master Plan, Program Management Plan

Project Program

Task Leader Control Account Manager

Project, Phase, Tasks Work Breakdown Structure (WBS) Level 1, 2, 3

PI (Principal Investigator) PM (Program Manager)Project Schedule Master Schedule, Integrated Master

Schedule, Program Master ScheduleBudget Resource Loaded Network

Program Control Performance Measurement and Reporting, Earned Value

Revenue Variance Variance Reporting

9

Five Elements for Program ManagementFive Elements for Program Management1. Organization: Define contractual effort and assign responsibility for work.

2. Planning and Budgeting: Plan, schedule, budget and authorize work.

3. Cost Reporting: Accumulate cost of work and material.

4. Analysis: Compare planned and actual costs to performance and analyze variances. Develop estimates of final cost.

5. Close Out: Ensure within cost and schedule and market follow-on efforts.

Work Breakdown Structure (WBS)

Program Organization

Task Definition Schedules

Budget (Resource Loaded Network)

Cost Reporting

Performance Measurement

Variance Analysis Reports (VAR)

Estimate at Completion (EAC)

Close Out

Performance Measurement

Close Out