andrews

Information about andrews

Published on November 19, 2007

Author: Haylee

Source: authorstream.com

Content

EARNED VALUE MANAGEMENT IN THE UNITED KINGDOM:  EARNED VALUE MANAGEMENT IN THE UNITED KINGDOM PRESENTERS:  Introduction / Overview / The Future Roger Andrews UK MoD Perspective Martin Blackmore The Hawk LIF programme Martin Nicholson PRESENTERS Special thanks to Kevin Lonergan as chairman of the UK EV Users Group TOPICS:  TOPICS INTRODUCTION EVM IN THE UK UK Ministry of Defence EVM OVERVIEW OF EVM IN BRITISH AEROSPACE - Military Aircraft & Aerostructures THE HAWK LEAD IN FIGHTER PROGRAMME THE FUTURE INTRODUCTION:  INTRODUCTION UK Industry operates in a Global market place Exports > 75% All Customers demand deserve value for money Customers require visibility that industry is spending their money [ the taxpayers ] wisely and value is being earned according to an agreed plan Companies need to have effective Management of programs in face of Global competition and fixed price contracting UK BACKGROUND IN EVM:  UK BACKGROUND IN EVM Used in varying degrees by most large UK Defence Companies over a number of years CSCS Industry group running for since 1994 with UK MoD participation In 1998 the group was renamed the “UK EV USERS GROUP” providing the focus on EVM in the UK UK EARNED VALUE USERS GROUP:  UK EARNED VALUE USERS GROUP Participants PMIS [ Chairman ] British Aerospace AWE Aldermaston GKN Westland MoD Procurement Management Policy Rolls Royce Vosper Thornycroft Vickers GEC UK EARNED VALUE USERS GROUP OBJECTIVES:  UK EARNED VALUE USERS GROUP OBJECTIVES Forum to discuss common areas of interest between industry members and UK MoD Sharing of Best Practice across all areas Agreement to common approaches / standard guidelines Provides a single voice into other interested parties in the international arena UK EARNED VALUE USERS GROUP ACTIONS:  UK EARNED VALUE USERS GROUP ACTIONS Review ANSI Standard 748 to establish if it can be the basis for an internationally agreed EVM document owned by industry and endorsed by Government Set up working relationships with US industry to promote best practice Consider how to embrace the wider UK EVM community Link the group into UK MoD “Smart Procurement” Slide9:  EVM - The UK MOD Perspective Martin Blackmore UK MOD Procurement Executive Slide10:  MOD(PE) Organisation Technical Services & Ordnance Board Specialist Procurement Services Support Fast Jets Future Aircraft Submarines & Strategic Systems Large Aircraft Helicopters Ships Weapons Electronics Land Systems Command, Control & Information Systems Projects Exports CDP Commercial Slide12:  Stakeholders in Defence Procurement Army MOD Staffs Air Force Navy MOD (PE) PAO Tax-payers - Parliament - Ministers Suppliers Prime Contractor Sub Contractors Equipment Defence Evaluation & Research Agency Defence Procurement Characteristics:  Defence Procurement Characteristics PE currently employs ~ 5500 staff Supports ~275,000 jobs in British industry High value-low volume (25 Projects~£35Bn) Battlefield winning advantage equals risk Commercial sector has greater new technology pull Competitive National Defence Industry International Collaboration Public Accountability The Evolution of Defence Procurement:  The Evolution of Defence Procurement The “Classic” Procurement Cycle:  The “Classic” Procurement Cycle concept formulation Time Downey Principle is to reduce risk before committing to major expenditure Approval for next phase of expenditure ISD Drivers for Change:  Drivers for Change Need to eliminate cost overrun and slippage Defence resources decreased in recent years Military tasks are less predictable Technology evolving quickly Changing Industrial scene Smart Procurement: What is it?:  Smart Procurement: What is it? Best practice Flexible Approach Teamworking Faster Cheaper Better Smart Procurement Initiative & The Acquisition Organisation Review:  Smart Procurement Initiative & The Acquisition Organisation Review - SP Assumes existing organisations and reviews processes - AOR Matches organisational structures to procurement processes - SPI - IT (radical revision of pan-MOD acquisition process & culture) SDR Acquisition Organisation Review Key concepts :  Acquisition Organisation Review Key concepts 3 key concepts emerged: Segment acquisition processes into 3 tiers with processes tailored to each A single integrated project team bringing together all stakeholders and involving industry except during competition phases The need to identify more precisely the customer for the equipment within the Ministry of Defence Incremental Acquisition :  Incremental Acquisition Feasibility Project Definition Full Development Time Production Life extension Technology Insertion Incremental Capability Basic Capability In Service Smart Procurement and EVM - A Culture Change :  Smart Procurement and EVM - A Culture Change The Smart Procurement Initiative (SPI) will radically change the way the MoD does business. EVM is consistent with the thrust of the SPI and will complement it. MoD recognises that EVM provides not only an effective management discipline at the working level but also a powerful means of communication throughout the project. The Combination of planning, integrated cost, schedule and technical performance measurement will yield a greater visibility of actual performance against programme than is currently available. MOD(PE) Policy on EVM:  MOD(PE) Policy on EVM Although EVM will not be mandated, the inclusion of EVM in bids will be recognised as a step forward towards improved Risk Management. Acknowledges EVM as “Best Practice” and fully supports its adoption in Defence Procurement. MoD(PE) staff to be educated about EVM. EVM to be considered for internal MoD(PE) applications. EVM and MOD(PE):  EVM and MOD(PE) MOD(PE) associated with the IPMC since 1995. 6th May ‘98 - CDP announced ‘strong support’ for encouraging UK Industry to adopt EVM for defence procurement. 20th May ‘98 - International EVM Conference in London supported by MOD(PE). 21st May ‘98 - Briefing by IPMC to MOD(PE) Senior Staff. Earned Value User’s Group - RR, BAe, Vickers, Vospers, WHL, AWE etc developing Industry Guidelines. Sept. ‘98 - TL/SPI requested to integrate EVM into the SPI. EVM - The Way Ahead:  EVM - The Way Ahead Monitor the use of EVM on current contracts. Select Pilot Projects as for the Smart Procurement Initiative. Increase awareness of EVM within MOD and Industry. Develop Policy. Training. “BENCHMARK BAe” A DIFFERENT ROUTE TO EVM:  “BENCHMARK BAe” A DIFFERENT ROUTE TO EVM ROGER ANDREWS BRITISH AEROSPACE:  BRITISH AEROSPACE ORDER BOOK £24bn SALES £4.2bn CUSTOMERS in 70 Countries PEOPLE 43000 + 5000JVs PARTNERSHIPS 70% - 90% of core business 80% bought in from Suppliers PRODUCTS High value / Political profile Latest Technology / Risk Multi-national Long Life spans PRINCIPAL AIRCRAFT PRODUCTS:  PRINCIPAL AIRCRAFT PRODUCTS INTERNATIONAL COLLABORATION:  Republic of Korea INTERNATIONAL COLLABORATION INTERNATIONAL COLLABORATION:  INTERNATIONAL COLLABORATION BRITISH AEROSPACE --Vision:  TO BE THE BENCHMARK MILITARY AIRCRAFT & AEROSTRUCTURES COMPANY BY THE 21st CENTURY AS MEASURED BY BRITISH AEROSPACE --Vision THE ENABLERS:  THE ENABLERS Our Values --Customers,People,Partnerships, Innovation & Technology and Performance Organisational structure based on IPTs focused on delivering the business Skills development programs to prepare everyone for operating in new team cultures with real authority to deliver Continuous improvement programs built on best practice and world class processes Integrated toolsets with appropriate use of information systems RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY:  RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Project Team managing a “mini-business RISK CUSTOMER SATISFACTION CASH RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY:  RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Control Account Manager SCHEDULE PERFORMANCE COST BAe EVM DEPLOYMENT:  BAe EVM DEPLOYMENT ENTERPRISE EARNED VALUE MANAGEMENT PROCESS JSF FUTURE OFFENSIVE AIR SYSTEM HAWK EF2000 NIMROD MRA4 Slide35:  EVM LINKED TO BUSINESS PERFORMANCE “MAA SCORECARD” (PLAN / ACTUAL / FORECAST / EAC ) Slide36:  EVM LINKED TO BUSINESS PERFORMANCE “MAA SCORECARD” Slide37:  EVM LINKED TO BUSINESS PERFORMANCE “MAA SCORECARD” EVM - The Global Challenge:  EVM - The Global Challenge PARTNERSHIPS - The extended Team ALENIA Boeing CASA DASA Dassault Lockheed Suppliers LEARNING FROM OTHERS:  LEARNING FROM OTHERS Finance Report Government Ownership Government Oversight Compliance / Audit Management Tool Company Ownership Team Ownership Government Insight Team Insight Team Ethos FROM TO SUMMARY:  SUMMARY EVM is being integrated into our management process - it is not just a customer reporting mechanism EVM is a methodology to help manage our daily job - it needs to be seen to add value by enabling better decision at all levels. The challenge is to work with our Customers, Partners and Suppliers to embed it into all levels of the value chain EVM is being integrated within the Enterprise performance measures as well as at the individual project level to maintain focus and commitment, it is not just something the customer wants Hawk Lead In Fighter Program The CSCS Experience Martin Nicholson:  Hawk Lead In Fighter Program The CSCS Experience Martin Nicholson Presentation Content:  Presentation Content 1. Contract Overview 2. CSCS Challenges 3. Implementation 4. Benefits and Lessons Learnt Presentation Content:  Presentation Content 1. Contract Overview 2. CSCS Challenges 3. Implementation 4. Benefits and Lessons Learnt Contract Overview:  Contract Overview LIFT Photograph Hawk Lead In Fighter Trainer Contract Overview (cont.):  Contract Overview (cont.) Customer: Commonwealth of Australia Requirement: Air 5367 - Lead In Fighter for the Royal Australian Air Force Contractor: BAe MA&A and BAeA CSCS requirement, fixed price contract Payment by milestone AND EARNED VALUE Contract Overview (cont.):  Contract Overview (cont.) 33 Lead In Fighter Aircraft including : 5 with Operational Loads Monitoring 1 Instrumented Aircraft System 1 Fatigue Test Article Training Devices Tech Pubs, AGE, Spares In Service Support (first support period, option to renew) Option for further quantities Presentation Content:  Presentation Content 1. Contract Overview 2. CSCS Challenges 3. Implementation 4. Benefits and Lessons Learnt Timescale to Implement CSCS:  Timescale to Implement CSCS Contract Effective Date June 1997 CSCS Challenges:  CSCS Challenges Payment by Earned Value In Parallel with other new processes, new customer, new organisation, new aircraft standard Limited CSCS experience New culture New Project Control Tool Distance to customer PROJECT AND CSCS TIMESCALES CSCS Approach:  CSCS Approach Get Help ! Close relationship with Commonwealth RPT Parallel working People, people, people Project Control Tool Investment Develop process for EV claim validation and payment Timescale to Implement CSCS:  Timescale to Implement CSCS Contract Effective Date June 1997 Implementation Visit Aug 1997 Presentation Content:  Presentation Content 1. Contract Overview 2. CSCS Challenges 3. Implementation 4. Benefits and Lessons Learnt System Implementation - Set Up Phase:  System Implementation - Set Up Phase Contract SoR WBS/Dictionary OBS, CAMs RAM, Cost Accounts Schedules, Budgets EVTs CAP PMB - IBR Timescale to Implement CSCS:  Timescale to Implement CSCS Contract Effective Date June 1997 Implementation Visit Aug 1997 Integrated Baseline Review Dec 1997 System Implementation - Run Phase:  System Implementation - Run Phase Monthly update Contract Master Schedule analysis Cost Performance Reports Management Action Log Claim validation and payment process Change process Timescale to Implement CSCS:  Timescale to Implement CSCS Contract Effective Date June 1997 Implementation Visit Aug 1997 Integrated Baseline Review Dec 1997 Readiness Assessment June 1998 Demonstration Review Oct 1998 Surveillance Customer + BAe Presentation Content:  Presentation Content 1. Contract Overview 2. CSCS Challenges 3. Implementation 4. Benefits and Lessons Learnt Benefits:  Benefits Single source of project data Controlled baseline Using the data Enhanced customer confidence Project Management skill development Lessons Learnt:  Lessons Learnt Work closely with the customer People issues Level of discipline required Project Control Tool Strong Project Controls team required Significant implementation effort THE FUTURE --- INTO THE 21st CENTURY:  THE FUTURE --- INTO THE 21st CENTURY ROGER ANDREWS Project Director - Business Management THE FUTURE --- INTO THE 21st CENTURY:  THE FUTURE --- INTO THE 21st CENTURY NATIONAL TEAMS Single Culture English Language NATIONAL PROCESSES PRODUCT KNOWLEDGE PRODUCT MANAGEMENT STABLE MANAGEMENT RISK IDENTIFICATION INTERNAL FOCUS STATIC LOCATION IT CONVERSANT MULTI-NATIONAL TEAMS Multi Culturally Aware Multi Lingual MULTI NATIONAL PROCESSES BUSINESS KNOWLEDGE / SHAREHOLDER VALUE RELATIONSHIP MANAGEMENT MANAGEMENT OF CHANGE / CONTINUOUS IMPROVEMENT PRO-ACTIVE MANAGEMENT EXTERNAL FOCUS MOBILITY / VIRTUAL OFFICE IT LITERATE THE FUTURE --- INTO THE 21st CENTURY:  THE FUTURE --- INTO THE 21st CENTURY Integrated Plans -- in a fraction of the time and cost Integrated Teams -- including Customers, Partners and Suppliers in a virtual environment Integrated Management Information --used by everyone to agree the baseline and jointly manage variances Integrated Decisions - more informed and expedient -- balancing performance, schedule, cost and risk “INTEGRATED PROJECT MANAGEMENT” EVM IN THE UK:  EVM IN THE UK Thank You for Your attention Any Questions ? Roger Andrews Martin Blackmore Martin Nicholson

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