Learning Objective: Learn strategies for successfully completing projects on time, under budget, and with employee satisfaction The workplace is a living, breathing environment that is constantly changing. Economic and global decisions can have an effect on our jobs and the people that fill them in order to meet deadlines and projects on budget. Organizations and their managers are having to do more with less in the workplace. In this changing landscape, project success will be determined by creative, fast-paced collaboration and outside-of-the-box thinking that reveals results. Join us as we discuss creative strategies for achieving project success while satisfying employee engagement. At the end of this seminar, participants will be able to: a. Identify factors that influence project over-budget costs. b. Outline and plan for a successful project. c. Identify project life cycle risks, estimates, and cost components. d. Share creative methods for achieving project success.

1. (BEYA 2120)
Leading by the
Numbers: On
Budget, On Time,
Every Time
February 9, 2018

2. (BEYA 2120) Leading by the Numbers: On
Budget, On Time, Every Time
Learning Objective: Learn strategies for successfully completing projects on time, under budget,
and with employee satisfaction
The workplace is a living, breathing environment that is constantly changing. Economic and global
decisions can have an effect on our jobs and the people that fill them in order to meet deadlines
and projects on budget. Organizations and their managers are having to do more with less in the
workplace. In this changing landscape, project success will be determined by creative, fast-paced
collaboration and outside-of-the-box thinking that reveals results. Join us as we discuss creative
strategies for achieving project success while satisfying employee engagement.
At the end of this seminar, participants will be able to:
• a. Identify factors that influence project over-budget costs.
• b. Outline and plan for a successful project.
• c. Identify project life cycle risks, estimates, and cost components.
• d. Share creative methods for achieving project success.
2

3. Agenda
• Panel Introductions
• Myths About Project/Program Management
• Factors That Cause Variances
• Outline and Plan for a Successful Project
• Project Life Cycle Risks, Estimates, and Cost
Components
• Creative Methods for Project Success
3

4. Donna Bell
• Ford Motor Company, Director – Research
Operations Palo Alto, CA
• 20+ Years at Ford Motor Company:
Product Development, Purchasing, Vehicle
Programs, Quality, Sustainability, Research
• BS– Electrical Engineering, Lawrence Tech
University
• MS– Electrical and Electronic Computer
Control Systems, and Engineering
Management, Wayne State University
• PhD – Global Executive Track, Wayne
State University, In Progress
4

5. Aknesha Miller
• Joined Arkel International August 2017
• Over 18 years at Lockheed Martin: Global
Operations/Capture/Program executive
managing business in excess of $1B in
Sales
• B.S. Industrial Engineering, Morgan State
University
• M.S. Systems Engineering, Johns Hopkins
University
• Certification Program Management,
Defense Acquisition University
• Project Management Professional (PMP)
5

6. A. D. Williams
6
• 2 CONCURRENT CAREERS
• System Eng. Manager
• 21 yrs. USAF Active/Rsv. (16
Feb)
• Avionics EE
• Air Traffic Management
• PMP, PMI
• System Eng. I&T
• International Business
• Supply Chain/Global Logistics

7. Myths About Program/Project
Management (PM)
7

8. “And so you just threw everything
together? … Matthews, a posse is
something you have to organize.”
8

9. Myths About PM
• We don’t have time to write it down.
• We don’t have time to architect the system.
• To make the end date we need to start development now.
• This change is free.
• Metrics won’t help me satisfy my customer.
• We don’t have time to define our processes.
• We don’t have time to manage risks/opportunities.
• We don’t have time or money to add more resources.
9

10. 10

11. Myths About PM, cont.
• We know better than the customer.
• Managing major subcontractors is easier than doing it
ourselves.
• Lessons Learned come at the end.
• The PM is technically and business inclined.
• You can wait to test at the end.
• Being a PM is an easy job.
• Proposal Manger is the Program Manager.
11

12. Myths About PM, cont.
• Managing across functions is easy.
• All PMs are created equal.
• PMs know everything on a program.
• PMs are involved in all negotiations.
• Programs/Projects that are similar are the same.
• Proposal is 100% relevant at contract award.
• If we build it, they will come.
• Final contract has no variances.
12

13. Factors that Influence Projects
Over Budget
13

14. 14

15. Key Influencers of Projects Over Budget
• Underfinancing
• Unfeasible Cost Estimates
• Lack of Systems Engineering
• Underestimating the Project Complexity
• Prolonged Project Schedule
• Failure to “Manage the Plan”
15

16. Key Influencers of Projects Over Budget, cont.
• Lack of Backup Plan
• Lack of Resource Planning
• Design Errors
• Scope Change
• Inappropriate and Inadequate Procurement
• Delay in Acknowledging true Costs
16

17. Key Influencers of Projects Over Budget, cont.
• Failure to Manage Customer/Expectations
• Failure to Identify Risks Early
• Failure to Leverage Lessons Learned
• Failure to Staff as Planned
• Customer and Contractor are not Speaking the Same
Language
17

18. Outline and Plan for a Successful
Project
18

19. 19

20. Project Lifecycle
20

21. Project Phases*
21
*Source PMI

22. Predictive Life Cycle* (Fully Plan Driven)
22
*Source PMI

23. PMI Project Management Processes Group*
23
*Source PMI
*Source PMI

24. Project Lifecycle Risks,
Estimates, and Cost Components
24

25. Project Lifecycle Typical Cost & Staffing*
25
*Source PMI

26. Project Risk & Uncertainty *
26
*Source PMI

27. Cost Components
• The accuracy of financial statements depends upon the accuracy
of the cost recorded at the project/department
• Cost = Cost : If you spend a dollar, bill a dollar plus adders or write
the dollar off
• Overhead - Collection of indirect cost that is allocated back to
direct effort
• G&A - General and administrative
• P&L - Profit and loss statement
• Rates - Allocation basis for indirect cost
27

28. Types of Cost
• Direct
• Cost that can be identified to a specific task: is obviously traceable to
a unit of output or to a segment of business operations
• Appears on the P&L Statement
• Indirect
• Cost that benefits multiple tasks or have broad/long term value such
that they cannot be identified to a specific task (ie cost not obviously
traceable to unit of output or to segment of business operations)
• Appears on the overhead statement and is allocated to the P&L
through the overhead rate
• Allowable vs Unallowable
28

29. Typical Cost Elements
• Overhead
• Direct Labor
• LRP
• NR
• Wrap Rate
• Taxes & Benefits
• Benefit Administration
• Product Line Management
• Internal Management
• Product Line Support
• Material Handling
• General & Administrative Expense
• Indirect Rates
• Labor Distribution
• Facility Space/Computer Support
• Budgets
• Funding
• Reports & Special Reports
• Weeklies
• EP Calculations
• My Calculations
• Average Composite Rate
• EBIT & ROS
• EAC’s
• Purpose of Completion Estimate
• Accounting Calendar
29

30. Creative Methods for Achieving
Project Success
30

31. Dashboards
31

32. One Page Summary Templates
32

33. Customer Intimacy
• Contact Plan
• Hot Buttons
• Acquisition Patterns
• Importance/Authority
• Business Rhythms
33

34. Risk & Opportunity Management
34

35. Earned Value Management
• Earned Value Management is a method for integrating scope, schedule,
and resources into a baseline plan for measuring and managing program
performance.
 How am I performing against my cost and schedule baseline plan?
• It compares the amount of work that was planned with:
 Work actually accomplished
 Costs actually incurred
• Facilitates estimates of the cost and schedule performance at completion.
EVM = Program Performance = “Mission Success”
35

36. EVM Provides Answers to
• How much work should be done?
 Budgeted Cost of work scheduled (BCWS)
• How much work was done?
 Budgeted Cost of work performed (BCWP)
• How much did that work cost?
 Actual cost (direct and indirect cost)of work performed (ACWP)
• What was the total job supposed to cost?
 Budget At Completion (BAC)
• What do we now expect the total job to cost?
 Estimated At Completion (EAC)
• Is there adequate management reserve to cover risks?
36

37. (BEYA 2120)
Leading by the
Numbers: On
Budget, On Time,
Every Time
February 9, 2018

38. References
• www.pmi.org
• https://www.dau.mil/
• https://www.incose.org/
• http://www.pmknowledgecenter.com/
• https://www.acq.osd.mil/evm/docs/DoD%20EVMSIG.p
df
38

39. Key EVM Definitions
Actual Cost of Work Performed (ACWP)
• The costs actually incurred and recorded in accomplishing work
performed. Incurred direct and indirect cost to date for accomplishing the
work performed.
Budget At Complete (BAC)
• Total authorized budgeted for accomplishing the program scope at cost.
Budgeted Cost of Work Performed (BCWP)
• Assessment of the work accomplished in relation to the total amount of
work to be performed based on your EVM Methodology.
Budgeted Cost of Work Scheduled (BCWS)
• The sum of the budget for all work scheduled to be performed.
39

40. Key EVM Definitions, cont.
Estimate At Complete (EAC)
• The current estimated total cost for program authorized work. (ITD Actual
+ ETC).
Estimate To Complete (ETC)
• Estimate of costs to complete all work from a point in time to the end of
the program.
Inception To Date Actuals (ITD)
• Actuals incurred on program/contract to date.
Variance At Complete (VAC)
• Difference between total budget and estimate at complete (BAC – EAC).
40

41. Key EVM Metrics
41