Project Management Improvements at LANL

1
Project Management Improvements at LANL

• PMI Otowi Bridge Chapter
• September 20, 2006
• Asa Kelley, Associate Director
• Project Management Services Directorate
• LA-UR-06-6610

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Electrical Safety Awareness Begins in Your Office!

• Daisy chained power strips are not allowed.
• This installation was corrected by rearranging
  the device plugs so that only one power strip was
  needed
• Note the shoes and recycle box on the power cord
  NOT GOOD! Nothing should be placed over power
  cords since this encourages overheating.

FYI The proper name for power strips is
relocatable power taps.
3
Agenda

• Organizing for Project Success
• Project Management Services Directorate
• Matrix support
• Improving PM Maturity
• Disciplined Conduct of Projects
• R2A2 Roles, Responsibilities, Accountability,
  Authority
• The Project Team Table
• Disciplined Processes
• Effective Metrics
• Conclusion / Questions

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Project Management Services Directorate
Project Management Services
Process Development
Chief of Staff
Admin. Support
Project Execution
FIRP Project
Program Projects
Construction Management
Cost, Schedule Estimating
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Make the Matrix Work - ensure functions support
projects
Dysfunctional function
PMBOK 2000
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Project Execution Matrix Support
Project Execution Manager
Procurement
Quality
Environment, Safety Health
Safety Authorization Basis
Security
Engineering
Waste Management
Construction
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Improving Project Management
Maturity Level
Maturity DOES Make a Difference!
Functional Areas

• Research has shown improvements on the order of
  20 in areas like
• Project Budget
• Schedule
• Requirements Performance
• Customer Satisfaction
• Employee Satisfaction
• Productivity

Center for Business Practices Value of Project
Management, 2001
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Functional Areas That Must Be Integrated

• Integration Management
• Scope Management
• Time Management
• Cost Management
• Quality Management
• Human Resource Management
• Communications Management
• Risk Management
• Procurement Management

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Characteristics of a PM-Mature Organization

• Projects are managed based on best-practices and
  past lessons learned.
• Management clearly understands its role in the
  project management process.
• Metrics are used efficiently to make project
  decisions.
• Project management is integrated into other areas
  of business and into organizational decision
  processes.
• Project management processes and standards are
  documented.
• Project management processes are integrated with
  other corporate processes and systems.

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Examples of Mature PM Processes

• All project management processes are mandated for
  all projects, with approved tailoring authorized.
• Project management processes are integrated with
  organization resource and budget management
  processes.
• Metrics are in place to measure efficiency and
  effectiveness within and across projects (active
  use of past actuals to influence estimates).
• EVMS is fully implemented and used on all
  projects.
• PMO is doing project variance analyses, and
  conducting project audits. As a result, few
  projects go red most projects are put into
  recovery when yellow

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Examples of Mature PM Behaviors

• Projects are viewed as part of an organizational
  portfolio, a portfolio that is supported by
  institutional project and resource management
  tools.
• Management considers project data when making
  decisions.
• There is an established quality mgmt office
  responsible for quality standards and process
  assurance on all projects.
• Project management is a valued and recognized
  role with a formalized career path supported by
  training at all levels.

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LANL Project Management Maturity Rating
Optimizing
Managed
Defined
Repeatable
Initial
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Project Management Maturity Improvement
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Requirements to Attain PM Maturity

• Executive sponsorship is crucial
• Visible and frequent directly to all levels of
  LANL
• Appoint a dedicated Program Manager reporting at
  LANL senior level to drive the improvement
• Designate dedicated project managers to address
  specific projects in support of the improvement
• Commit the required funds
• Strong organizational change management program
  is required.
• Rewards and recognition program
• Internal marketing program
• Broadest participation in all improvement
  projects
• Establish a learning environment culture
  lessons learned are good!

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Disciplined Conduct of Projects - Roles,
Responsibilities, Accountabilities, Authorities
for Construction Projects

• Important for project teams to understand a
  standard service delivery model
• A standard model reduces project costs
• Functional organizations can excel at their
  function and institution can avoid shadows
• Each project doesnt have to create its own
  supporting infrastructure

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Matrix Management Project Relationships
ProjectManager
ProjectOwnerRepresentative
ProjectEngineer
The Project Team Table
DesignAuthority
ProjectControls
Quality
LASOFederal ProjectDirector
Procurement
Startup
FacilityManager
Others(as appropriate)
Construction
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Typical Project Team
In some cases, Project Owner and Funding
Source/ Program Office roles areperformed by the
same person.
Solid Line Project Relationship Dashed Line
Line Relationship
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Architect/Engineer
ProjectManager
ProjectOwnerRepresentative
QualityAssurance
ElectricalEngineer
Design Agency Table
Project Team Table
ProjectEngineer
Procurement
Cost. Schedule Estimating
MechanicalEngineer
ProjectEngineer
StructuralEngineer
LASOFederal ProjectDirector
CivilEngineer
Design Agency Rep
TechnicalRequirements (FOR)
Others(as appropriate)
FacilityCommissioningManager
Cognizant SystemEngineers
Construction
FacilityChiefEngineer
Startup
Site Utilities
Design Authority Table Technical Agencies
PressureProtection
SafetyBasis
FireProtection
System EngineersConfiguration ManagementRMTPSei
smic
Safeguards Security
ESHHPTSafety Programs Industrial Hygiene EPD
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Construction Management Functions

• Provides functional expertise in construction
  management and construction techniques
• Construction Subcontract Management - oversight
• Construction Management execution strategy
• Field Engineering and Inspection -
  constructability codes
• Construction Safety
• Start Up and Testing - commissioning

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Estimating Functions

• Establish disciplined estimating processes for
  estimate consistency and integrity across LANL
  programs and projects
• Establish and maintain historical data for
  estimating metrics
• Benchmarking/Validation (for estimate comparison
  and accuracy)
• Trending (productivity and pricing unit rates)
• Assess cost and schedule risks associated with
  estimated scope

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• Baseline Mgmt Change Control

• Work Breakdown / Dictionaries
• Organizational Breakdown

Disciplined Conduct Of Project Processes

• Risk Assessment Management
• Estimating
• Budget Development

• Trending
• Process
• EAC

• Performance Measurement Analysis Reporting
• Funds Management

• Work Authorization
• Cost Account Planning
• Material Subcontract
• Execution Strategies
• Baseline Establishment

• Project Scheduling
• Quantity Tracking

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Trending

• Systematic (forward looking) tracking of project
  events that can affect cost and schedule
• The Project Trend program provides the project
  team with early identification and warning of
  potential changes to the current scope, schedule,
  or cost. The goal is to minimize negative
  changes and maximize positive changes
• The underlying premise is that the earlier a
  trend is identified, the better the opportunity
  to influence its impact

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Trends and Change Control
BCPs modify the baseline
Trends modify the EAC/Trend Forecast
Contingency
EAC
PMB
BASELINE
EAC
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Disciplined Conduct of Projects - Metrics

• Metrics for cost and schedule performance,
  contingency, safety, security, environment, and
  quality
• Metrics designed to function as both leading and
  lagging (historical) indicators
• Project Metrics - 37 standard milestones for
  construction
• Major DOE milestones (Critical Decisions,
  Independent Reviews)
• Packages submitted to procurement procurement
  issues RFP
• Safety and environmental
• Designs approved (conceptual, preliminary, final)
  
• Publicity (Ground Breaking, Ribbon Cutting) - to
  communicate the successes of project management
  across the lab

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Disciplined Conduct of Projects - Assessments
GOALS
Performance Improvement and Investment
Feedback
METRICS
Commitment Management
Measures
ASSESSMENTS
Risk Characterization
Lessons Learned
Assessments
IMPROVEMENTS
Process Improvement
Issues and Corrective Action Management
Governance
Oversight
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Conclusion

• Make the matrix work
• Integrate functional support to improve project
  execution
• Let project manager focus on project management
• Establish more formality in project roles
• Mature the processes and behaviors
• Establish metrics which provide both historical
  and leading visibility
• Questions??