David.graham

Electronic Facilitation of
Integrated Cost
Management for Projects
by
David R. Graham
(NASA PA&E/CAD Cost Research Project)

for
PM Challenge 08
Daytona Beach, FL
Feb 26-27, 2008

1/30/2008 1

Purpose of Presentation
Explain and illustrate the use of an
Electronic Network Environment (ENE)
application for facilitating project integrated
cost management utilizing electronic
interfacing and transmission of EVM
Contract Performance Report (CPR) and
Cost Analysis Data Requirement (CADRe)
information to improve cost estimates for
enhanced project management

1/30/2008 2

Why Develop an ENE?
• Wanted to develop the implementation of a
CADRe & EVM/CPR application for projects:
– That made CPR’s more easily available to PM’s
from contractors electronically
– That minimized project office manual preparation
of CADRe information
– That facilitated electronic transmission of CPR
actual cost data into CADRe Part C (LCCE)
– That facilitated communication between
personnel involved with Integrated Cost
Management activities
1/30/2008 3

Integrated Cost Management
(Draft NPR 8000.4B)

• Focus is Category I & II space flight programs and projects
• Objective: Continuously determine the rolled-up risk impact
on the cost of the program/project by organizing, obtaining
and using cost-risk information
– Stakeholder interest in integrated cost-risk was codified in June and
July 2006
• Circular A-11, Part 7 and the Supplement to Part 7 (Capital Planning
Guide)
• Update of the FAR (FAR Case 2004-019)
– These updates require the creation and management of risk adjusted
budgets
• This supplemented GAO interest in better NASA cost-risk management
as documented in the May 2004 GAO report on NASA cost estimating

1/30/2008 4

Integrated Cost Management at
NASA
• Integrated cost management integrates
– NASA Continuous Risk Management (CRM)
– Cost estimating
– Cost-risk assessment/analysis
• Utilizing the identified risks in the project risk list and top-
down WBS-based uncertainty analysis
– EVM
– Procurement
– Cost data collection
– Cost data analysis

1/30/2008 5

Integrated Cost Management at
NASA
• Three activities make up integrated cost-risk:
– Identify and Quantify Cost-Risk
• Identify and assess risk
• Translate risk assessment into cost impact
• Perform “S”-curve and CRM scenario-based cost-risk
• Incorporate CRM scenario-based and “S”-curve cost-risk in CADRe
(Part C) Life Cycle Cost Estimate (LCCE)
– Establish Cost-Risk Reporting
• Develop RFP CADRe & EVM Data Requirements Description (DRD’s)
and equivalent project plan requirements
• Evaluate proposals/project plans addressing EVM and CADRe DRD’s
• Do Integrated Baseline Review
– Manage Cost-Risk Using Reported Data
• Do EVM performance measurement & CADRe “S”-curve analysis
• Compile end-of-contract cost-risk data for database updates, data
evaluation and analysis and cost-risk algorithm updates
1/30/2008 6

When Integrated Cost Management
is Required
Program Formulation Implementation
Phases

Flight Projects Pre-Phase A: Phase A: Phase B: Phase C: Phase D: Phase E:
Phase F:
Life Cycle Concept Concept Fab, Assy & Test Operations &
Disposal
Phases Studies Development Preliminary Design Detailed Design Sustainment
Launch
KDP A KDP B KDP C CDR KDP D KDP E KDP F
Traditional
Waterfall
Development
or Directed
Missions
Down
AO-Driven Select
Projects Step 1 Select Step 2
CR

Legend

Id & Quantify Cost-Risk CADRe’s

Establish Cost-Risk Reporting GPMC Mission Decision Review/ICR

Manage Cost-Risks Using Reported Data

1/30/2008 7

Electronic Network
Environment (ENE)
Facilitation of Integrated Cost
Management

1/30/2008 8

ENE Vision
A computing environment that enables
computer users with little or no computer
technical knowledge to do what they want
on the computer without technical support

1/30/2008 9

ENE Paradigm
User Activities
– Create Screens/Fields
Anything that can be entered on a Paper Page
Also audio and video files
– Connect Fields
– Use Fields

Results Expected
– Data Structure Created, Maintained, Optimized
Automatically (i.e., evolves naturally)
– Screens Automatically Web Compliant
– Automatic Analytical Collaboration
• Real-time, on-line updates
• Updates even if not on-line
• Proprietary data USED but NOT seen
– User Environment Totally Dynamic, Totally Integrated

1/30/2008 10

ENE Benefits
• Development by Users Who Need Not
be Technical
Who Can
• Deploy in a Fraction of Typical Time
With
• Collaboration that Meets Security,
Analytical, and Timing Demands

1/30/2008 11

Implementing Integrated Cost
Management with ENE

ENE Prototype Screenshots

1/30/2008 12

CADRe (Part A)

CADRe template available at
www.ceh.nasa.gov

1/30/2008 13

CADRe (Part A)

1/30/2008 14

CADRe (Part A)

1/30/2008 15

CADRe (Part A)

1/30/2008 16

CADRe (Part B)

1/30/2008 17

M
E
e
im
so
C
C

Cost Data Import ODBC Stream

1/30/2008 18

CADRe (Part B)

1/30/2008 19

CADRe (Part C)

1/30/2008 20

Import of S-Curves, Total Level,
from ACEIT’s Excel-based
Project Office Support Tool (POST)
at different milestones
(TY$)

1/30/2008 21

CPR Template

1/30/2008 22

Collaboration Page
Electronic Connection Via Internet from source (e.g., contractor) to Project
(Connects by specifying an internet port (#80 at NASA))

1/30/2008 24

CPR Template Format 2

1/30/2008 26


1/30/2008 28


1/30/2008 29

CADRe (Part C) with
EVM/CPR EAC’s

1/30/2008 30

Database Search

1/30/2008 31

Database Search

1/30/2008 32

SUMMARY
• ENE facilitates project cost management
– Electronic transmission of CPR’s from performing
organization to customer
– Electronic population of CADRe Parts A, B & C
information (via “docking & collaboration pages”)
– Sharing of cost information between CPR’s and
CADRe’s
– Building project CPR & CADRe historical database
(evolutionary)
– Analysis of CPR and CADRe data

1/30/2008 33

BACKUP CHARTS

1/30/2008 34

CADRe (Part A)

1/30/2008 35

CADRe (Part B)

1/30/2008 36

CADRe (Part B)

1/30/2008 37

Import of S-Curves, Bus Level,
(BY$)

1/30/2008 38

Import of S-Curves, S/C Level,
(TY$)

1/30/2008 39

Database Search

1/30/2008 43

Database Search

1/30/2008 44

Database Search

1/30/2008 45

Database Search

1/30/2008 46

Database Search

1/30/2008 47

David.graham

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David.graham