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DEFM 311
Program Management
Professor
Ryan Funkhouser
Objectives
• Distinguish among program, project and
product management terms.
• Describe the major tasks performed by a
program manager.
• Discuss the variables a PM must influence.
• Compare the strengths and limitations of
matrix and traditional organizations.
• Describe 3 reports a PM must submit.
• Differentiate between WIPT and OIPT.
What is an Acquisition
Program?
A directed, funded effort that is designed to
provide a new, improved, or continuing
weapons system or automated information
system (AIS) capability in response to a
validated operational need.
DoD 5000.2-R
What Is Program Management?
The process of planning,
organizing, staffing, controlling,
and leading a defense acquisition
effort through development,
production, deployment/fielding,
and disposal.
Note: these are the managerial functions!
Criteria for Program Management
• High dollar value.
• Defense urgency - high priority effort.
• Service [e.g., Army] or OSD
recommendation based on:
– Technical involvement.
– Organizational complexity.
– High level interest.
3 Levels of Project
Management
TITLE
RANK /
GRADE
ACQUISITION
CATEGORY
PROGRAM
COSTS
PMs
TENURE
Program
Manager
MDR
GEN OFF /
SES
Project
4 or
Manager
MDR
COL / GS 15
Project
or
Manager
COL / GS 15
Product
Manager
LTC / GS 14
GS 15
ACAT 1 D
(DEFENSE)
1C
(SERVICE)
1 AM or
(MAIS) 1AC
II
$365 M RD&TE
$2.19 B PROC
4 or
$365 M RDT&E
$2.19 B PROC
$126 M Program Costs
$378 M LIFE CYCLE
$32M Single Year
$140M RDT&E
$660M PROC
4
MDR
4 or
Program Executive Officer
Ground Combat Systems
Role of the Program Manager
1. Serves as a materiel developer.
2. Plans and manages acquisition programs IAW
policies and procedures.
3. Provides guidance, oversight and control to
ensure project is developed IAW charter.
4. Develops and submits resource requirements.
5. Develops and gains support for the APB.
Role of the Program Manager
6. Ensures the APB and RFP are complete
and implements the ORD.
7. Prepares and submits timely reports.
8. Implements the IPT concept.
9. Coordinate HTI considerations, if
applicable.
10. Serves as configuration manager.
11. Reduce program risks whenever
possible.
Program Manager’s Charter
•
•
•
•
•
•
•
•
Name of the program manager
Supporting activities
Detail of support being provided
Authority of the program manager
Reporting channels
Program element(s)
Special instructions
Termination of the PMO
SPECTRE
PM
DoD PM Policies
•
•
•
Acquire quality products that satisfy user
needs.
Implement a robust science and
technology program that will ensure a
technologically superior force.
Ensure operational support for systems –
use a total systems approach.
DoD PM Policies
• Create a long range investment strategy to
support military into the future.
• Use commercial products when feasible.
• Foster competition when feasible.
DoD PM Policies
• Rely on Best Practices and reduce
Government-unique specifications.
• Use advance procurement when it makes
good business sense.
• Develop an acquisition strategy that
includes open systems, risk management,
M&S, warranties, and environmental
considerations.
DoD PM Policies
• Continuous Acquisition and Life-Cycle
Support (CALS) – on-line access to
contractor-prepared technical data.
• Streamline acquisition programs.
• Consider potential for international
participation in program.
• Encourage joint programs.
DoD PM Policies
• PEO given program responsibility unless
an exception is made.
• Maximize use of DCMC personnel at
contractor facilities.
• Environmental, safety and health
considerations included in the acquisition
strategy.
DoD PM Policies
• Modeling and Simulation will be applied
throughout the program when appropriate.
• Ensure Best Value when planning depotlevel support for the system.
• Use warranties when cost-effective.
• Maintain control over government property
issued to contractors.
DoD PM Policies
• Integrate DT, OT, LFT&E, and M&S into
an efficient continuum. Avoid duplicating
tests.
Organizing the PMO
USD (AT&L)
or
ASD(C3I)
AAE
PEO
PM
FY02 PEO Structure
Previous PEO/DSA Structure
New PEO Structure
PEO, AVIATION
PEO, AVIATION
PEO, TACTICAL MISSILE
PEO, SMART MUNITIONS
PEO, AIR AND MISSILE DEFENSE
PEO, AIR AND MISSILE DEFENSE
PEO, INTELLIGENCE, ELECTRONIC WARFARE AND
SENSORS
PEO, INTELLIGENCE, ELECTRONIC WARFARE AND
SENSORS
PEO, GROUND COMBAT & SUPPORT SYSTEMS
PEO, GROUND COMBAT SYSTEMS
DCG, ACQ, SMDC
ALIGN PROGRAMS UNDER BMDO & PEO, AMD
PEO, STANDARD ARMY MANAGEMENT INFORMATION
SYSTEMS
PEO INFO SYS
ALIGN ORGANIZATION UNDER PEO, C3P
DSA, AVIATION & MISSILE COMMAND
ABOLISH
DSA, COMMUNICATIONS-ELECTRONICS COMMAND
ABOLISH
DSA, TANK-AUTOMOTIVE & ARMAMENTS CMD
ABOLISH
ABOLISH, REMAINS CIO, NGB; PMs TO PEO, C3P
JOINT PM, BIOLOGICAL DEFENSE
PEO, CHEMICAL/BIOLOGICAL DEFENSE
PEO, COMMAND, CONTROL AND COMMUNICATIONS
SYSTEMS
PEO, COMMAND, CONTROL AND COMMUNICATIONS,
TACTICAL
PEO, INFORMATION STRUCTURE
PEO, COMBAT SERVICE/ COMBAT SUPPORT SYSTEMS
PEO, AMMUNITION
PEO, SOLDIER
Traditional PM Organization
Program Manager
Logistics
Research and
Development
Training
Production
Business
Management
Technical
Management
PM with Multiple Products
Program Manager
Product
Manager
A
Product
Manager
B
Product
Manager
C
Matrix Support
• PM/PEO responsible for program success.
• PM/PEO (as materiel developer) decides
on source of program support – either
materiel command or contractor.
• Use OMB Cir A-76 (cost comparison) for
determining best value.
PM w/Matrix Support
Commodity (Materiel)
Command
Program
Manager
Maintenance
Materiel
Management
Functional
support to
the PM
Procurement
Production
Advantages of Traditional PMO
• PM has full line
authority.
• All members directly
responsible to the
PM.
• Shortened lines of
communication.
• Maintains a
permanent cadre of
experts.
• Strong and separate
identity.
• Quick decisionmaking.
• Unity of command.
• Structurally simple
and flexible.
• Supports a holistic
approach.
Advantages of Matrix PMO
• The project is the
• Better usage of
point of emphasis.
corporate resources.
• Reasonable access to • Maintains consistency
a large reservoir of
with corporate
experts.
policies.
• Rapid and flexible
response to clients.
• Less anxiety when
the project is
completed.
Working With Others
• Program managers must work with others
in order to accomplish the mission.
• The most successful program managers
have the ability to get others to work with
them.
Integrated Product and Process
Development (IPPD)
A management technique that
1. Integrates all acquisition activities through
multidisciplinary teams.
2. Optimizes the design, manufacturing and
supportability processes.
3. Facilitates meeting cost and performance
objectives from concept through production,
including field support.
4. Key tenet is multidisciplinary teamwork
through Integrated Product Teams (IPTs).
Integrated Product Teams
• IPT - Integral part of the oversight and
review process.
- Overarching IPT (OIPT) - top level OSD
review.
- Working level IPT (WIPT) - focuses on
one topic.
- Program Office IPT - assists the PM
manage day-to-day activities.
IPT Authority
• The team should be given
– Authority
– Responsibility
– Resources
to manage its product and its risk
commensurate with the team’s
capabilities.
Overarching IPT
Focus
•
•
•
•
Strategic guidance
Tailoring
Program assessment
Resolve issues
elevated by Working
Integrated Product
Teams
Responsibilities
• Program success
• Functional area
leadership
• Independent
assessment
• Issue resolution
Working level IPT
Focus
Responsibilities
• Planning for program
success
• Opportunities for
acquisition reform
• Identify & resolve
program issues
• Present program
status
• Functional expertise
• Empowered
contribution
• Recommendations for
program success
• Communicate status
and unresolved
issues
Program IPT
Focus
• Program execution
• Identify and
implement acquisition
reform
Responsibilities
• Manages complete
scope of program,
resources and risk
• Integrates
Government and
contractor efforts
• Reports program
status and issues
Milestone Decision Authority
DAB or MAISRC
Overarching
IPT
Oversight
& Review
Contracting
IPT
Execution
Test IPT
Other IPT
(As needed)
Program
IPT
WIPT
Cost/Performance
IPT
PM / TSM Relationship
• PM with AAE/PEO Charter authority and
monetary resources. Has overall responsibility
for systems development, acquisition, and
fielding.
• TSM with TRADOC Charter authority, interfaces
with PM throughout development and acquisition
processes to ensure user requirements are a
major factor in all program decisions. Defends
the program against challenges of system need.
PM/TSM Interface
• Technical feasibility
• Acquisition Plan and
Strategy
• Technical
demonstration
• Developmental
testing
• System fielding
• Concept definition
(MNS)
• Operational
Requirements
Document (ORD)
• MANPRINT
• User’s operational
testing
• Force integration
Systems Integrator (DCSOPS)
• Assigned to ODCSOPS.
• Validates QQPRI.
• Develops the Army position on proposed
MNS.
• Identifies and coordinates the system and
organization.
• Resolves fielding issues.
And…..
Systems Integrator (DCSOPS)
• Coordinates doctrine and organization
development.
• Monitors development, testing,
procurement and fielding activities.
• Establishes distribution and redistribution
priorities.
Acquisition Categories (ACAT)
ACAT 1D:
Major Defense
Acq Pgms
ACAT IC:
ACAT IAM:
Major AIS
Acq Pgms
ACAT IAC:
Major
Systems
all other systems
(except for Army
ACAT II:*
ACAT III:
Navy, USMC)
Army
Navy
USMC
ACAT IV:
• DAB review
• Designated by DAE
• Decision by DAE
• Component review
• Designated by DAE
• Decision by Svc Sec/CAE
$365M RDT&E or
$2.19B Procurement
(FY2000 Constant $)
• ITOIPT review
• Designated by ASD(C3I)
• Decision by ASD(C3I)
• Component review
• Designated by ASD(C3I)
• Decision made by Component
Chief Information Officer
$378M Life Cycle Cost or
$126M Total Prog. Cost or
$32M Prog. Cost
in any single year
(FY2000 Constant $)
• Does not meet ACAT I Criteria
• Designated by Svc Sec/CAE
• Decision by Svc Sec/CAE
$140M RDT&E or
$660M Procurement
(FY2000 Constant $)
• Does not meet ACAT I, IA or II Criteria
• Designated IAW Component policy
• Decision at lowest appropriate Level
• Not otherwise designated ACAT I, IA, II or III
• Designated IAW Component policy
• Navy/USMC ACAT IVT/IVM
• Decision at lowest appropriate level
*Army has an ACAT IIA category for AIS reviewed at Army CIO level
No Fiscal
Criteria
See AR 70-1 (Army)
& SECNAVINST 5000.2B
(Navy and Marine Corps)
Milestone Review Process
(Illustrative)
• Make ACAT IAM
ASD
Decisions
(C3I)
• Signs ADM
• Reviews CAE/OIPT MAISRC
Recommendations
• Finalizes ADM
ACAT IAM
ACA
ID & IAM
• Validates Requirement
• Assesses Joint Potential
ACAT
IC/IAC/II
CAE
Component HQ Review
ACAT
III
PEO
PM
OIPT
• Makes ACAT ID USD
Decisions
(A&T)
• Signs ADM
DAB
DRB
ACAT ID
• Issue
Resolutio
n
• Makes ACAT IC, IAC
& II Decisions
• Signs ADM
JROC
• Issue Resolution
• Makes ACAT III
Decisions
• Signs ADM
Overarching
IPT’s
(OIPT’s)
Working-Level
IPT’s
(WIPT’s)
Program Level
IPT’s
IPT’s assist in
oversite &
review
Criteria to be a PM
• Experience required:
– Four years of acquisition experience; of which
at least 2 years must have been in a program
office or similar organization (defined as
dedicated matrix support to a PM or PEO;
DCMC Program Integrator.
• Experience desired:
– Two additional years of acquisition experience
Criteria to be a PM (Cont.)
• Education desired:
– At least 24 semester credit hours from among
the following disciplines: accounting,
business finance, law, contracts, purchasing,
economics, industrial management,
marketing, quantitative methods, organization
and management.
– Master's degree in engineering, systems
acquisition management, business
administration, or a related field.
Criteria to be a PM (Cont.)
• Training required:
– One Advanced (Level III) DAU Course in
program management.
Critical acquisition positions may only be
filled by members of an Acquisition Corps.
PM Selection Criteria
Common Criteria
• Outstanding performance
• 2 years experience in a
procurement command
• Advanced PMC graduate
• 8 years acquisition
experience
• MS or business degree
• Experience in materiel
management at DA or
higher staff level
• Senior service college grad
• GO/COL/LTC(P) or civilian
equivalent
Special Criteria
• PM Selection Board List
• Branch qualified (military)
• Special technical training
Tenure of a PM
• Four years or until completing a major
program milestone. E.g., MDR B and C.
• Three years for programs outside the
purview of the AAE.
• Failure to achieve program objectives.
PM Reports
• Program managers must submit a number
of reports.
• Some reports are prepared upon
achieving a milestone event while others
are calendar-based.
Acquisition Strategy
•
•
•
•
Top level master plan
Guides entire program
Unique for every program
Tailored to meet specific program risks
–
–
–
–
Performance
Cost
Schedule
Expedites fielding and deployment
• Updated at each milestone decision review.
Acquisition Program Baseline
• Sets goals for a program
– Cost
– Schedule
– Performance (including supportability)
• Goals expressed in terms of:
– Thresholds – minimum acceptable level
– Objectives – best capability
• Submitted at each milestone review.
Selected Acquisition Report
• SAR is prepared and submitted to
Congress for all ACAT I programs.
• Software called, Consolidated Acquisition
Reporting System (CARS) is used.
• Provides status of total program (cost,
schedule and performance) as well as unit
and life cycle cost information.
DAES
• Defense Acquisition Executive Summary.
• Highlights potential and actual project
problems to the USD (ATL) before they
become significant.
• Deviations in APB, vulnerability
assessments, etc.
Objectives
• Distinguish among program, project and
product management terms.
• Describe the major tasks performed by a
program manager.
• Discuss the variables a PM must influence.
• Compare the strengths and limitations of
matrix and traditional organizations.
• Describe 3 reports a PM must submit.
• Differentiate between WIPT and OIPT.
Boston – The new chief of the financially troubled
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The firings came under a sweeping employee
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His predecessor, James Kerasiotes, was fired after a
federal audit charged him with concealing a
$2 billion cost overrun.
The Central Artery/Third Harbor Tunnel Project
will bury three miles of Interstate 93 beneath Boston.
Original cost estimated at $2.6 billion, but current
estimate is $13.6 billion.
Source: Associated Press, 5/7/2000
Navy Anti-Missile Program's Cost Balloons By
Almost $2 Billion
(Defense Week, August 13, 2001)
The Navy's short-range missile-defense program will
cost $1.8 billion more than the service said a year ago,
an increase of just over 25 percent, according to Defense
Department and congressional documents. The Pentagon
would not confirm or explain the cost increase, but
observers said it probably was related to the fact that the
program is two years behind schedule.