DAU

PROGRAM

MANAGERS

TOOL KIT
DAU

PROGRAM

MANAGERS

TOOL KIT

Eleventh Edition

April 2002

DISTRIBUTION STATEMENT A

Approved for Public Release

Distribution Unlimited

For sale by the U.S. Government Printing Office

Supertendent of Documents, Mail Stop: SSOR Washington, DC 20402-9328
DAU PROGRAM MANAGERS TOOL KIT
DAU PROGRAM MANAGERS TOOL KIT

PREFACE

This 11 th Edition of the "Tool Kit" contains a graphic summary of acquisition policies and managerial skills frequently required by DoD program managers. It is a current version of a "Tool Box" that was first

developed by Mr. Charles F. Schied of PMC 92-1. For convenience, it is

sized for insertion into a 3-hole, 5-1/2" x 8-1/2" "Day Runner."The information was extracted from material presented by the Defense Acquisition University (DAU) in the Intermediate Systems Acquisition Course

(ISAC) and Advanced Program Management Course (APMC). It reflects

the January 2001 changes to DoDD 5000.1 and DoDI 5000.2, and the

June 2001 changes to DoD 5000.2-R. Material from the DAU Acker

Library & Learning Resource Center was also used.

Users of the "Tool Kit" are reminded that this summary is a guide only

and should not be used as a substitute for official policy guidance.

Periodic review of official policy guidance is recommended.
DAU PROGRAM MANAGERS TOOL KIT

ACKNOWLEDGMENTS

As Sponsor of the "Tool Kit" I wish to recognize the following members

of the Defense Acquisition University (DAU) faculty and staff for their

input to this 11th Edition: Maj Norman Patnode, USAR and Mr. Bill

Bahnmaier of the Program Management and Leadership Department

(PML) on the Capital/Northeast Regional Campus, who coordinated the

input and editing of material from various DAU departments; Mr. Eduard

Boyd of the Visual Arts Department for his support in preparing and

editing drafts for printing, and Mr. Greg Caruth and Ms. Debbie Gonzalez

of the same Department for their detailed proofing of the final drafts.

Other significant contributors were Mr. John Kelley, PML Department;

Ms. Leslie Deneault, CM Department; Ms. Miriam Cohe, BCEFM

Department; Mr. Richard Kwatnoski, Executive and International Department; and Mr. John Claxton, Dr. John Snoderly, Mr. Ed Verchot, Mr.

George Prosnik, Mr. Larry Heller, Maj Mark McNabb, USAF, and LTC

Ming Chang, USA of the Technology and Engineering Department.

I also want to thank Mr. Tim Shannon, Dean of the Capital/Northeast

Regional Campus for both his encouragement and support for this

effort.

C.B. Cochrane

Director, Center for

Program Management

IV
DAU PROGRAM MANAGERS TOOL KIT

TABLE OF CONTENTS

I. Acquisition Management 1

Program Manager's Bill of Rights 2

Acquisition Decision Reviews & Phases 3

Acquisition Categories (ACAT) 4

Acquisition Strategy Elements 5

Acquisition Excellence Initiatives 6

Planning to Support Acquisition Process 7

Defense Acquisition Deskbook 7

DAB Review Timeline 8

Information for Decision Reviews 9

C4ISR Interoperability. 10

Science & Technology Linkage 11

ACTD Initiation Process 12

Acquisition Program vs ATD & ACTD 13

Program Structure/Schedule (Example) 14

International Armaments Cooperation 15-16

Resource Allocation Process 17-20

Appropriations 21-25

Reprogramming 25

Life Cycle Cost Composition 26

Cost Estimating 27

Performance Measurement 28

Contracting 29-33

Defense Industry Business Mgmt 34-39

Acquisition Logistics 40-43

Organizational Structure 44-46

Manufacturing Management 47-50

Test & Evaluation 51

Modeling and Simulation 52-54

Planning and Control 55-61

Risk & Trade-Off Analysis 62-64

Technical Performance Measurement 64

Systems Engineering Process 65-70

Specs, Tech Reviews/Audits, 71-73

Configuration Management 74-76

Software Management 77

Working Groups 78-80
DAU PROGRAM MANAGERS TOOL KIT

II. Leadership & Managerial Skills 81

Delegation 82-83

Effective Meetings 84

Personal Communications 85-86

Time Management 86-87

Decision Briefing 88

Management Tools & Techniques 89-90

III. Problem Solving Tools 91

Brainstorming 91-92

Cause and Effect Diagram 93

Force Field Analysis 93

Histogram 94

Scatter Diagram 94

Surveys 95

Affinity Diagram 96-97

Pairwise Ranking 98-99

Pareto Chart 99

Benchmarking 100

Flowcharting 101-103

Nominal Group Technique (NGT) 104-105

Problem Solving 106-108

Gantt Charts 109

VI
DAU PROGRAM MANAGERS TOOL KIT

/

ACQUISITION MANAGEMENT

•Things that make you go "Hmmm?..."

"The only thing most auditors fix is the blame."

"Experience is something you got just after you needed it."

"People are smarter than they look; listen to them."

"The last 10 percent of the performance sought generates

one-third of the cost and two-thirds of the problems."

"Never open a can of worms unless you want to go fishing."

"Those who believe it cannot be done will you please get out

of the way of those who are busy doing it."

1 Things we should always remember.

"Be honest in everything you say, write and do."

"Be good to your people, and they will be good to you."

"Forgiveness is easier to obtain than permission."

"Keep everyone informed; when in doubt, coordinate."

"Be the first to deliver bad news."

"Bad news does not get any better with time."

"If you are sitting at your desk, you are not managing your

program."
DAU PROGRAM MANAGERS TOOL KIT

THE PROGRAM MANAGER'S BILL OF RIGHTS

AND RESPONSIBILITIES

RIGHTS:

Program Managers have the RIGHT to:

• A single, clear line of authority from the Defense Acquisition

Executive.

•Authority commensurate with their responsibilities.

• Timely decisions by senior leadership.

• Be candid and forthcoming without fear of personal

consequences.

•Speak for their program and have their judgments respected.

• The best available training and experience for the job.

• Adequate financial and personnel resources.

RESPONSIBILITIES:

Program Managers have the RESPONSIBILITY to:

• Accept program direction from acquisition executives and

implement it expeditiously and conscientiously.

• Manage their programs to the best of their abilities within

approved resources.

• Be customer-focused and provide the user with the best, most

cost-effective systems or capabilities.

• Innovate, strive for optimal solutions, seek better ways to manage,

and provide lessons-learned to those who follow.

• Be candid about program status, including risks and problems as

well as potential solutions and likely outcomes.

• Prepare thorough estimates of financial and personnel resources

that will be required to manage the program.

• Identify weaknesses in the acquisition process and propose

solutions.
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

ACQUISITION CATEGORIES (ACAT)

ACAT 1D:

Major Defense

Acq Pgms

> DAB Review

• Designated by DAE

• Decision by DAE

ACAT IC: • Component Review

• Designated by DAE

• Decision by Svc Sec/CAE

$365M RDT&E or

$2.190B Procurement

(FYOO Constant $)

ACAT IAM: • ITOIPT Review

Major AIS • Designated by ASD(C3I)

Acq Pgms • Decision by ASD(C3I)

ACAT I AC: • Component Review

•Designated byASD(C3I)

• Decision made by Comp.

Chief Information Officer

$378M Life Cycle Cost or

$126M Total Prog. Cost

or $32M Prog. Cost in

any single year

(FYOO Constant $)

ACAT II:* • Does Not Meet ACAT I Criteria

Major • Designated by Svc Sec/CAE

Systems • Decision by Svc Sec/CAE

$140M RDT&E or

$660M Procuremen

(FYOO Constant $)

All Others

(except for Army

Navy, USMC)

ACAT III: • Does Not Meet ACAT I, lAor II Criteria

• Designated IAW Component policy

• Decision at lowest appropriate Level

No Fiscal

Criteria

Army

Navy

USMC

ACAT IV: • Not otherwise designated ACAT I, IA, II or !ll

• Designated IAW Component Policy

• Navy/USMC ACAT IVT/IVM

• Decision at lowest appropriate level

See AR 70-1 (Army)

&SECNAVINST5000.2B

(Navy and Marine Corps)

'Army has an ACAT IIA for AIS reviewed at Army CIO level
DAU PROGRAM MANAGERS TOOL KIT

ACQUISITION STRATEGY ELEMENTS

DoD 5000.2-R, June 2001

Requirements

- Approved Source Docs

- Status of In-process Source Docs

Program Structure

Acquisition Approach

Risk

Program Management

- Resources

• Advance Procurement

• PMO Staffing & Support

- Info Sharing & DoD Oversight

- IDE

- Tech Reps at Contractor Facilities

- Government Property In

Possession of Contractors

- Tailoring & Streamlining

• Requests for Relief or

Exemption

• Applying Best Practices

- Planning for Modeling & Simulation

- Independent Expert Review of

Software Intensive Programs

Design Considerations

- Open Systems

- Interoperability

• Information Interoperability

• Other-than Info Interoperability

- IT Supportability

- Protection of Critical Program Info

& Anti-Tamper Provisions

Support Strategy

- Product Support

• Management Planing

• Integration

- Source of Support

• Depot Maintenance

• Supply

• Contractor Log Support

- Human Sys Integration

- Environ Safety & Occupational

Health

- Demil & Disposal

- Life Cycle Support Oversight

- Post Deployment Evaluation

Business Strategy

- Competition

• Fostering a Competitive

Environment

- Competition Advocates

- Ensuring Future Competition

• Building Competition Into

Strategies

- Acquisition Phases

- Evolutionary Acquisition

- Industry Involvement

• Potential Obstacles

- Exclusive Teaming

- Sub-Tier Competition

• Potential Sources

- Market Research

- Commercial & NDI

- Dual-Use Tech & Comm

Plants

- Industrial Capability

• SBIR Technologies

- International Cooperation

• Cooperative Strategy

• Interoperability

• Compliance

• Testing Required for Foreign

Military Sales

- Contract Approach

• Major Contracts Planned

• Contract Type

• Contract Incentives

• Performance Mgmt

• Integrated Baseline Reviews

• Special Terms & Conditions

• Warranties

• Component Breakout

- Leasing

From DoDI 5000.2, End 3,Table 1

Partnering Analysis

Make or Buy Analysis

Core Logistics Analysis/Source

of Supply Analysis
DAU PROGRAM MANAGERS TOOL KIT

ACQUISITION EXCELLENCE INITIATIVES

• Integrated Product and Process Development and Integrated

Product Teams

• Movement from Detailed Design Specifications and Process

Standards to Performance and/or Commercial Specifications

• Single Process Initiative

• DoD Cost/Schedule Control System Criteria Replaced by Industry

Standard Guidelines for Earned Value Management System

(EVMS)

• Commercial and Non-Developmental Item Acquisition and

Practices

• Cost As an Independent Variable (CAIV)

• Open Systems Design and Interoperability

• Defense Acquisition Deskbook

• Defense Acquisition Pilot Programs

• Implementation of Federal Acquisition Streamlining Act (FASA),

Federal Acquisition Reform Act (FARA) and Information Technology Management Reform Act (ITMRA);

(latter two are now known as Clinger-Cohen Act)

• Electronic Commerce/Electronic Data Interchange

• Collection and Use of Past Performance Information

• Advanced Concept Technology Demonstrations (ACTD)

• Acquisition Reform Benchmarking Initiative

• Acquisition Workforce Personnel Demonstration Program

• Contract Administration Reform

• Procurement Process Reform

• Performance Based Service Contracting

• Logistics Transformation

• Alternative Disputes Resolution

• Price Based Acquisition

•Total Ownership Costs (TOC)
DAU PROGRAM MANAGERS TOOL KIT

PLANNING TO SUPPORT ACQUISITION PROCESS

• Planning to support the acquisition process is accomplished within the

Integrated Product and Process Development (IPPD) environment.

• Program plans are for use by the PM and the integrated product

teams (IPTs) that support the PM and are discretionary.

•There are four exceptions where specific plans are required:

Acquisition Plan required by the FAR/DFARS; Program Protection

Plan; Command, Control Communications, Computers and Intelligence,

(C4I) Support Plan and TEMP -- the latter three are required by DoDI

5000.2.

»Typically, the following areas will require some level of program

office planning:

- Acquisition Strategy (page 5)

- Systems Engineering

- Logistics Support/Post Prod Spt

- Program Protection

- Training Development

- Technology Assessments Control

- Risk Management

- Computer/Software Devel/PDSS

- Human Systems Integration

- Deployment/Fielding

- Manufacturing

- IntegratedTesting

THE DEFENSE ACQUISITION DESKBOOK

Mandatory

Directives

Front Line

Wisdom

Deskbook

Information |

Structure

^ Processes

1.1 Define Requirements

1.2 Plan Acquisition

1.3 Award Contract

1.4 Manage Program

Discretionary

Practices

For Latest Updates:

Visit the Defense Acquisition Deskbook Web Site.

http://www.deskbook.osd.mil

NOTE: "on-line" capability provides for updates between quarterly releases.
DAU PROGRAM MANAGERS TOOL KIT

DAB TIMELINE (MILESTONES B, C & FRP DR)

Overarching Integrated Product Team (OIPT) Meetings

Acq Strategy approval/

RFP release

JROC

Review

CARD

to

CAIG

Draft LCCE

to CAIG

JRB

Review

TEMP to

USD(AT&L)/

DOT&E

CAIG

Review

of LCCE

DAB

Final LCCE

to CAIG

DAB

Readiness

Meeting

OIPT

Review

10 DAYS

21 DAYS

30 DAYS

45 DAYS

180 DAYS

| ADM |

-AMilestone

1WEEK

4

2 WEEKS

CARD - Cost Analysts Requirements

Description

LCCE • Life Cycle Cost Estimate(s)

CAIG - Cost Analysts Improvements

Group

JRB - Joint Requirements Board

JROC - Joint Requirements Oversight

Council

DRM - DAB Readiness Meeting

DAB - Defense Acquisition Board

ADM Acquisition Decision Memoranda

MILESTONE DECISION INFORMATION

A POSSIBLE CONSTRUCT

WHY?

• Threat

• Capability

2 WHAT ?

• Requirement

Analysis of Alternatives

3 HOW?

• Acquisition Strategy

4 RISKS ?

• Risk Mgmt Plan

• T&E Plan

• T&E Results

7 AGREEMENT?

•APB

•ADM

• Exit Criteria

COST?

' CAIV Objectives

•LCCE

•ICE

6 MANAGEMENT ?\

• PMO Structure

• IPT Structure

•W1PT-OIPT Structure

• Have I Presented All Necessary Information ?

• Does the Info Flow Logically ?

• Is the Info Clear and Accurate ?

• Is it Concise, Executive-Level ?

8

^
DAU PROGRAM MANAGERS TOOL KIT

INFORMATION FOR DECISION REVIEWS

Information

(DoDI 5000.2 unless otherwise noted)

Decision/Reviews

A DR B IPR C FRP

Acquisition Decision Memorandum (ADM) X X X X X X

Acquisition Proqram Baseline (APB) Hotel X X X

Acquisition Strategy (28 major elements) (See pg 5) Notel X X X

Affordability Assessment X X

Analysis of Multiple Concepts X

Analysis of Alternatives (AOA) X Nofe3

Application for Frequency Allocation X X

Beyond LRIP Report (note 2) X

C4 Integrated Support Plan Notel X X

Clinger-Cohen Act Compliance (all IT) Notel X X X

Compliance with Strategic Plan X X

Component Cost Analysis (MAIS; optional MDAP) X X

Consideration of Technological Issues X X X

Cooperative Opportunities X X X

Cost Analysis Requirements Description (MDAPs) X X X

Analysis Economic (MAIS) X

Exit Criteria X X X X X X

Independent Cost Estimate (MDAPs; n/aAIS) X X X

Independent Technology Assessment X X

Interoperability Certification X

IT Certification (MAIS) X X X X

Live Fire T&E Waiver (covered svstems)(note 2) X

Live Fire T&E Report (covered systems)(note 2) X

LRIP Quantities X

Manpower Estimate (MDAPs) X X

Market Research X X

Mission Need Statement (MNS) X

National Environmental Policy Act Schedule Notel X X X

Operational Requirements Document (ORD) X X

Operational Test & Evaluation Results X X X

Post Deployment Performance Review X

Program Protection Plan X X

Proqrammatic Environ, Safety & Occupational Health Note 4

Reqistration of Msn Critical & Msn Essential Info Sys Notel Notel Notel

System Threat Assessment (n/aAIS) X X

Selected Acquisition Report (MDAPs) Notel X X X

Test & Evaluation Master Plan (TEMP) Note 5 X X X

Notes:

1. At entry to CAD if CAD is program initiation.

2. OSD T&E Oversight programs.

3. It no MS B, then at MS C.

4. The PESHE document is normally due at MS B (see DoD 5000.2-R, chapter 5).

5. Eval strategy for MNS capabilities due 180 days after MS A.
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DAU PROGRAM MANAGERS TOOL KIT

DoD INTERNATIONAL ARMAMENTS

COOPERATION POLICY

SECDEF Memorandum 23 March 1997

"It is DoD policy that we utilize International Armaments Cooperation to the maximum extent feasible, consistent with sound

business practice and with overall political, economic, technological, and national security goals of the United States."

THE SCOPE OF DEFENSE COOPERATION

RDT&E

Information

Exchanges

Production &

Procurement

Foreign Military Sales

Engineer & Direct Commercial Sales

Scientist Exchanges Exchanges

Cooperative R&D

Comparative or

Joint Testing

Standardization

Cooperative Production

(Joint Funds)

Coproduction/Licensing

(ForeignFunds)

Reciprocal Procurement

Follow-on Support

Cooperative Logistics

Supply Support

Mutual Support

Logistics Support

Host Nation Support

Defense Industrial

Base

The Program Manager's Focus

15
DAU PROGRAM MANAGERS TOOL KIT

DEFENSE SALES VS. COOPERATIVE ACQUISITION

They are Different

Defense Sales

• Any Nation

• U.S. Contracts (FMS)

• U.S. Manages (FMS)

• Production & Support

• DoS or DoC

+ DoD - USD (Policy)

• Foreign Initiated

• Foreign Funds (or U.S.

Credit/Grants)

Cooperative Acquisition

•Allied or Friendly

• U.S., Ally or NATO

• Jointly Managed

•All Acquisition

• DoD - USD (A&T)

+ DoS and DoC

• U.S. and/or Foreign

• Foreign + U.S. Funds

INTERNATIONAL ACTIVITIES ASSOCIATED WITH

DEFENSE ACQUISITION PHASES

E=£> Cooperative Production

E=E> Coproduction

I Licensed Production

Production Sharing

E=£> Foreign Military Sales

Cooperative

Development

Intl. Testing -

Production &

Deployment,

Sustainment

System Demonstration

of SDD Phase

NATO Forums

DEAs/IEPs —

Staff Talks —

Concept &

H— Technology Development

S&E Exchanges:

Technology Opportunities

& User Needs

Note: DEA = Date Exchange Agreement

IEP = Information Exchange Project

16
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

18
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

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20
DAU PROGRAM MANAGERS TOOL KIT

PROCUREMENT APPROPRIATIONS

(ACCOUNT NUMBERS AND BUDGET ACTIVITIES)

Appropriation Budget Activity

Army (21 -)

Aircraft

Missile

Weapons

Ammo

Other

Navy (17 -)

Aircraft

Weapons

Ammo

Shipbuilding

& Conversion

Other

-2031 1. Aircraft 2. Modification of Aircraft 3. Spares &

Repair Parts 4. Support Equipment & Facilities

-2032 1. Other Missiles 2. Modification of Missiles 3. Spares

& Repair Parts 4. Support Equipment & Facilities

- 2033 1. Track Combat Vehicle 2. Weapons & Other Combat

Vehicles 3. Spares & Repair Parts

- 2034 1. Ammo 2. Ammo Production Base Support

- 2035 1. Tactical & Support Vehicle 2. Commo & Electronics

Equipment 3. Other Support Equipment 4. Spares

& Repair Parts

-1506 1. Combat Aircraft 2. Airlift Aircraft 3. Trainer Aircraft

4. Other Aircraft 5. Modification of Aircraft 6. Aircraft

Spares & Repair Parts 7. Aircraft Support Equipment

& Facilities

-1507 1. Ballistic Missiles 2. Other Missiles 3. Torpedoes &

Related Equipment 4. Other Weapons 5. Not Used

6. Spare & Repair Parts

- 1508 1. Ammo, Navy 2. Ammo, Marine Corps

- 1611 1. Fleet Ballistic Missile Ships 2. Other Warships

3. Amphibious Ships 4. Mine Warfare & Patrol Ships

5. Auxiliary, Craft & Prior Year Costs

- 1810 1. Ship Support Equipment 2. Commo & Electronics

Equipment 3. Aviation Support Equipment

4. Ordnance Support Equipment 5. Civil Engineer

Support Equipment 6. Supply Support Equipment

7. Personal & Command Support Equipment

8. Spares & Repair Parts

Marine Corps (17 -)

Procurement -1109 1. Not Used 2. Weapons & Combat Vehicles 3. Guided

Missiles & Equipment 4. Commo & Electronics

Equipment 5. Support Vehicles 6. Engineering

& Other Equipment 7. Spares & Repair Parts

21
DAU PROGRAM MANAGERS TOOL KIT

PROCUREMENT APPROPRIATIONS

(ACCOUNT NUMBERS AND BUDGET ACTIVITIES)

(Continued)

Appropriation Budget Activity

Air Force (57-)

Aircraft

Missile

Ammo

Other

-3010 1. Combat Aircraft 2. Airlift Aircraft 3. Trainer

Aircraft 4. Other Aircraft 5. Modification of InService Aircraft 6. Aircraft Spares & Repair Parts

7. Aircraft Support Equipment & Facilities

-3020 1. Ballistic Missiles 2. Other Missiles 3. Modification

of In-Service Missile 4. Spares & Repair Parts

5. Other Support

-3011 LAmmo 2. Weapons

-3080 1. Not Used 2. Vehicular Equipment 3. Electronics &

Telecommunications Equipment 4. Other Base

Maintenance & Support Equipment 5. Spares &

Repair Parts

Defense (97 -)

Defense-Wide

National Guard

& Reserve

Equipment

Defense Production

Activity Purchase

Chemical Agents

& Munitions

Destruction

0300 1. Major Equipment 2. Special Operations Command

3. Chemical/Biological Defense

0350 1. Reserve Equipment 2. National Guard Equipment

0360 1. Defense Production Activity Purchases

- 0390 1. Chemical Agents & Munitions Destruction-RDT&E

2. Chemical Agents & Munitions DestructionProcurement 3. Chemical Agents & Munitions

Destruction-O&M

22
DAU PROGRAM MANAGERS TOOL KIT

RDT&E APPROPRIATIONS

(ACCOUNT NUMBERS)

Appropriation Account Number

RDT&E, Army 21-2040

RDT&E, Navy 17-1319

RDT&E, Air Force 57 - 3600

RDT&E, DefenseWide 97-0400

DevelopmentT&E, Defense 97 - 0450

OperationalT&E, Defense 97 - 0460

RDT&E APPROPRIATIONS

Relationship Between MFP 6 (Research and Development)

Categories and RDT&E Appropriations Budget Activities

MFP 6 RDT&E

R&D Budget RDT&E Program

Category Activity BudgetActivity Title Element #s

6.1 BA1 Basic Research 0601 xxx

6.2 BA2 Applied Research 0602xxx

6.3 BA 3 Advanced Technology Development 0603xxx

6.4 BA 4 Demonstration & Validation 0604xxx

6.5 BA 5 Engineering & Manufacturing 0605xxx

6.6 BA 6 RDT&E Management Support 0606xxx

BA7 Operational System Development 010xxxx;

020xxxx;

030xxxx; etc.

* NOTE: Although similar, titles of the Major Force Program (MFP) 6 Categories

(which are not shown above) are not exactly the same as titles of the RDT&E

Appropriation Budget Activities. In addition, as indicated by the potential PE

numbers that can be assigned to the "Operational System Development" Budget

Activity for RDT&E BA 7, those activities are not considered MFP 6 efforts. While

correctly funded with RDT&E dollars, these efforts do not fall under a MFP 6

Category; rather, for MFP purposes, the efforts are considered part of the Major

Force Program within which the fielded operational system falls.

23
DAU PROGRAM MANAGERS TOOL KIT

SAMPLE

NAVY APPROPRIATIONS AND BUDGET ACTIVITIES

MFP6 Below Threshold Years Available

R&D RDT&E Budget Activity Reprogramming Rules For Obligation Funding

Category Number and Title Max In * Max Out *

[Al Program Element Level]

Purposes Policy

6.1 BA1 Basic Research $4M Greater of 2 ncremental

6.2 BA2 Applied Research $4M or

6.3 BA3 AdvancedTech.Devel. 20% of

6.4 BA 4 Demonstration & Val amount

6.5 BA5 EMD appropriated

6.6 BA6 RDT&E MgmtSupp

(T&E Ranges)

(Civilian Salaries)

BA7 Operational Systems Devel. « . 1 1 r 1 r

(Post-Production) y y

Procurement Below Threshold YearsAvailable

Budget Buget Activity Reprogramming Rules for Obligation Funding

Activity Description Max In Max Out

[AI Line Item Level]

Purposes Policy

PROCUREMENT

SCN-1 ShipConv-FBM Ships $10M Greaterof 5 Full

SCN-2 Ship Conv - Other Warships $10M or

SCN-3 Ship Conv - Aphib Ships 20% of

SCN-4 Ship Conv - Mine & Pat Ships amount

SCN-5 Ship Conv - Aux, Craft & PY Costs appropriated T

WPN-1 Weapons Proc. - Bal. Msl 3

WPN-2 Weapons Proc. - Other Msl

WPN-3 Weapons Proc.-Torp& Eq.

WPN-4 Weapons Proc. - Other Wpn

WPN-5 Weapons Proc. - Other Ord.

WPN-6 Weapons Proc. - Spares & Repair Parts

OPN-1 Other Proc.-Ship SE

OPN-2 Other Proc. - Comm/Elec Eq

OPN-3 Other Proc. - Aviation SE

OPN-4 Other Proc. - Ordnance SE

OPN-5 Other Proc. - Civil Engr SE

OPN-6 Other Proc.-Supply SE

OPN-7 Other Proc. - Pers & Com SE

OPN-8 Other Proc. - Spares & Repair Parts

APN-1 Aircraft Proc. - Combat

APN-2 Aircraft Proc. - Airlift

APN-3 Aircraft Proc.-Trainer

APN-4 Aircraft Proc. - Other

APN-5 Aircraft Proc. - Mods

APN-6 Aircraft Proc. - Spares

APR-7 Aircraft Proc. - SE & Fac. ^ ' \ > 1 ' 1 f

Below Threshold YearsAvailable

Reprogramming Rules for Obligation Funding

Other Appropriations/Titles Max In Max Out Purposes Policy

O&M, N Operations & Maintenance $15M No Congressional 1 Annual

Restriction

MLPER, N Military Personnel $10M No Congressional 1 Annual

Restriction

MILCON, N Military Construction Lesser of No Congressional 5 Full

+$1,5M or 25% Restriction

Appropriated

« Note: Rfilnw Threshold Reprogramming (BTR) amount limits are cumulative over entire period of time

the specific fiscal year appropriation is available for obligation purposes i.e.. 1,2, 3 or 5 years).

24
DAU PROGRAM MANAGERS TOOL KIT

PRODUCT IMPROVEMENTS

Funding Decision Tree

IF.

THEN.

Does Proposed NO Is DT or IOT&E

Modification (Mod)

Increase System

Performance?

YES/

Required?

\

YES

Is System

Currently In

Production?

ment

YE

*\ 1

NO

Fund Development

and Testing with

(To Include the Mod

Kits used for Testing)

AND....

Fund Purchase of the Mod Kits

and Installation of those Mod Kits

on the Fielded System with

I

Procurement $

RDT&E $ Procurement $ 0&M$

BELOW THRESHOLD REPROGRAMMING ACTIONS

Amounts are Cumulative Over Entire Period of Obligation Availability

APPN MAX INTO MAX OUT LEVEL OF CONTROL OBL AVAIL

RDT&E + $4M

GREATER OF

-$4M

- 20 %

PROGRAM ELEMENT 2YEARS

PROC + $10M

GREATER OF

-$10M

- 20 %

LINE ITEM 3 YEARS

(SCN: 5 YEARS)

O&M + $15M

NONE, UNLESS

OTHERWISE

SPECIFIED

BUDGET ACTIVITY

SOME BA 1 SUB-ACTIVITY

LIMITATIONS ON DECREASES

(OPERATING FORCES)

1 YEAR

MILPERS + $10M NO SPECIFIC

CONGRESSIONAL

RESTRICTION

BUDGET ACTIVITY 1YEAR

MILCON LESSOR OF

+ $2M

+ 25%

NO SPECIFIC

CONGRESSIONAL

RESTRICTION

PROJECT 5 YEARS

Reference Sources: DoD Financial Management Regulation (DoD 7000.14-R); Volume 3 (Dec 96).

25
DAU PROGRAM MANAGERS TOOL KIT

Öo

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26
DAU PROGRAM MANAGERS TOOL KIT

COST ESTIMATING

Estimate Methods Comments

Analogy -

Parametric

Engineering or

"Bottoms-Up"

Extrapolation

Guidelines

Comparison to one similar existing system;

based on judgments. Little or no data available;

Relatively quick, easy, flexible. Used in early

phases (e.g., Concept & Tech Dev / CE).

Comparison to many similar existing systems;

based on statistical analysis. Determine primary

cost drivers and Establish Cost Estimating

Relationships (CERs) Used in early to mid-phases

(e.g., Concept & Tech Dev / CE and System Dev

&Dem/PDRR/EMD).

Summation of "all" individual items in the system.

Uses WBS structure for estimating purposes.

Used in mid-phases (e.g., System Dev & Dem /

EMD).

Comparison to historical cost of same system.

Based on extrapolation from actuals.

Uses Learning Curve Theory Used in late phases

(e.g., production and replenishment spares).

1. Make sure cost data is relevant and homogeneous. Caution: Watch out for

historical data in times of change. Prior actuals may include uncompensated

overtime or were priced as a "buy-in."

2. Focus on cost drivers.

3. Test sensitivities and data relationships.

Est.

Cost

+ Sigma

Most Likely

Cost

-Sigma

COSTESTIMATING RELATIONSHIPS

(CER) - (Parametric)

+Jigma MEAN

- Sigma

= Similar

Systems

New

Parameter

Parameter

(Size, Wt.)

27
DAU PROGRAM MANAGERS TOOL KIT

PERFORMANCE MEASUREMENT

COST & SCHEDULE PERFORMANCE MEASUREMENT

1. Define the work (WBS)

2. Schedule the work \ _ . . ,

„ A„ t. . , } Cost Account 3. Allocate budgets J

Defining, Planning and Budgeting

WBS n Element/Cost Account - 300

$L

$10

$4

Task A

Task B

Task C

Tasks D-X

Work Packages

(6 month coverage)

$3

$45

Planning Packages

(remainder of effort)

4. Prepare and monitor performance profiles

COST

CBB

NOW '

SCHVAR

EAC/LRE

CTC.

BAC }

MR

TIME

TERMINOLOGY

BCWS - Budgeted Cost of Work Scheduled

BCWP - Budgeted Cost of Work Performed

ACWP - Actual Cost of Work Performed

MR - Management Reserve

EAC - Estimate at Completion (Govt)

LRE - Latest Revised Estimate (Contractor)

BAC - Budget at Completion

CBB - Contract Budget Base (CTC+AUW)

CTC - Contract Target Cost

PMB - Performance Measurement Baseline

AUW - Auth Unpriced Work

PERFORMANCE INDICES

Cost Performance Index CPI = BCWP

VARIANCES

CostVariance

ScheduleVariance

CostVariance%

ScheduleVariance0/

CV = BCWP ACWP

SV = BCWP - BCWS

CV% = BCWP - ACWP

BCWP

SV%= BCWP - BCWS

BCWS

VarianceatCompletion VAC = BAC -EAC

ESTIMATE AT COMPLETION

Schedule Performance Index SPI BCWP

BCWS

EAC

(Lowest Est.)

EAC:

(Highest Est.)

BAC

CPI(cum)

ACWP(cum) BAC - BCWP(cum)

(CPI(cum) *SPI(cum)}

Percent Complete = BCW|Jcum) JO COMP PERFORMANCE INDICES

Percent Spent ACWP (cum)

BAC

TrpifFAn - BAC - BCWP(cum) TCPI(EAC) - EAC _ Acwp(cum)

28
DAU PROGRAM MANAGERS TOOL KIT

CONTRACTING

COMPONENTS OF CONTRACT PRICE

Contract Price Cost

I

Profit/Fee

Direct Cost

I

Direct Labor Direct Material

1

Indirect Cost

I 1 " Overhead G&A FCCM

r

Other

Direct Cost

(ODC)

"l r

Engrg Mfg Raw Purchased

Labor Labor Material Parts

Std Comm

Items

Subcontracts

T

Engrg

Spt

\ I

Mfg Mat'l

Spt Handling

Inter-divisional

Transfers

TYPICAL CONTRACT TYPE BY PHASE

CTP SDD/SI SDD/SD PROD

CPFRFFP CPFF, CPIF CPIF, CPAF FPI(F), FFP

TYPES OF CONTRACTS

Cost Family: Appropriate when product not well defined; high risk; contractor provides best efforts; Government pays all allowable costs. Fee varies by type.

Cost Plus Fixed Fee (CPFF) - Fee same regardless of actual cost outcome.

Cost Plus Incentive Fee (CPIF) - Actual fee earned computed by applying share

ratio to over/under run, subject to min/max fee limits.

Fixed Price Family: Product well defined, low risk; contractor must deliver product.

Firm Fixed Price (FFP) - Price fixed regardless of actual cost incurred.

Fixed Price Incentive Firm Target [FPI(F)] - Final price computed by applying

share ratio to over/under run,subject to ceiling price limitation.

Award Fee (AF) - Either stand alone Cost Plus Award Fee (CPAF) or combined

with cost or fixed price types. AF unilaterally determined by government based on

subjective evaluation of contractor's performance.

Fee Limits: CPFF - Fee limited to 15% for R&D; 10% for Production and services.

No statutory or FAR/DFARS regulatory limitation on other contract types.

29
DAU PROGRAM MANAGERS TOOL KIT

CONTRACT TYPE FEATURES

FIXED COST

PRICE REIMBURSEMENT

Promise Delivery Best Efforts

Contractor Risk High Low

Cash Flow Delivery As Incurred

Progress Payments % 75/90/95 N/A

Administration Low High

Fee Limit % None 15/10/6 on CPFF

FEE

FIXED

FEE

CPFF

(SHARE 100/0)

CO

PF

Ris

Ob

ST ESTIMATED COST

IICE = COST + FIXED FEE

k Highest to the Government

tains Fee Regardless of Cost

FEE

MAX

CPIF

>v Share

^v Ratio

TARGET

I \

I \

MIN

I

I

CC)ST TARGET COST

(Target) PRICE = (Target) COST + (Target) FEE

All Reasonable Cost Paid

Shared Risk Between Min/Max Fee

30
DAU PROGRAM MANAGERS TOOL KIT

CONTRACT TYPE FEATURES

(Continued)

FPI(F)

PROFIT

Target

Profit

Share

Ratio

PTA

CEILING

PRICE

COST TARGET COST

(Target) PRICE = (Target) COST + (Target) Profit

Point of Total

Assumption = CEILING PRICE - TARGET PRICE + T t Cost

(PTA) GOVERNMENT SHARE U

PROFIT

FFP

\ 0/100 SHARE

COST

PRICE = COST + PROFIT

31
DAU PROGRAM MANAGERS TOOL KIT

PRE-SOLICITATION PROCESS

Requirement Market

Research

Acquisition

Strategy

Acquisition

Plan

Source

Selection Plan/

Strategy

Finalize

RFP

I

Post Draft RFP

on Electronic

Bulletin Board

I

CBD Notice

Advisory Multi-Step

RFP Release CBD Notice

Briefing to RFP

SSA Release

RFP Release

to Industry

POST-SOLICITATION PROCESS

Receipt of Oral

& Written

Proposals

Initial Eval Clarifications

Limited Communications

Competitive

Range

Determination

Face-to-Face

Discussions/

Negotiations I

Request Final

Proposal

Revision

Receive & Analyze

Field Surveys

(if requested)

Receive &

Analyze

Final Revision

Debrief

Unsuccessful

Offerors

Prepare for Discussions

with

Remaining Offerors

Contract Award

(Distribution)

32
DAU PROGRAM MANAGERS TOOL KIT

OTHER WAYS TO BUY

GSA Multiple Award Schedules (MAS)

- General Services Administration contracts for both products and

services-available to all agencies.

Government-Wide Agency Contract (GWACs)

- similar to MAS but more restricted in products and services available.

Indefinite Delivery/Indefinite Quantity Contracts

- Task orders (services) & Delivery Orders (products) issued under

omnibus umbrella contract.

Other Transactions (OT)

- Defined: Vehicles usedfor basic, appliedandadvancedresearchprojects and

prototype development. OTs are noLContracts, Grants, or Cooperative

Agreements.

- Objective:Attract commercial companies andconsortia that historically have

not done business with the Department ofDefense because of statutory

and/or regulatory requirements. OTs are not subject to the Federal

Acquisition Regulation. Designedto increase DoD access to dual use

Technologies.

- Research Projects:

• Where practical, government cost share shouldnot exceedcost

share of other parties.

• Use OT when standard Contract, Grant or Cooperative

Agreementis not appropriate.

- Prototype Projects:

• Must be directly relevant to weapons or weapon systems

proposed to be acquiredor developedby DoD.

- Constraints:

• Atleast one non-traditional contractorparticipating.

• If no non-traditional contractor participates, 1/3 of cost paidby parties other

than federal government, or, seniorprocurement executivejustifies transaction

- OT Guide for Prototype Projects, January 2001.

33
DAU PROGRAM MANAGERS TOOL KIT

CONTRACTOR PROFITABILITY RATIOS

The basic concept of profitability ratios is to measure income against

revenue or against the investment required to produce it. There are

three principal profitability ratios with which you should be familiar.

They are:

1. Return on Sales which shows what percentage of dollars are left

after the company has paid for all costs, interest, and taxes. It is

expressed as:

Return on Sales =

Net lncome

Sales

2. Return on Total Assets which looks at the efficiency with which

management has used its resources, the company's assets, to generate income. It is computed as:

RQA_ Net Income

Total Assets

As noted, ROA addresses how well management utilizes the assets

of the firm in generating income. The ROA formula reflects the combined result of Return on Sales and the total asset turnover ratio (sales/

total assets), broken down as follows:

PQA Net Income Sales

Sales Total Assets

3. Return on Common Stockholder's Equity measures the rate of return on the owners' investment—their equity in the company. This is

also known as Return on Equity (ROE).

ROE- Net Income - Preferred Dividends

Common Stockholders' Equity

ROE can also be broken into two components: these being return on

assets adjusted for preferred dividends and financial leverage (a ratio

reflecting the relationship of creditor to owner financing—expressed

as total assets/ common stockholders equity). This is shown by:

Net Inc. - Pref. Div. v Total Assets ROE: Total Assets Common Stockholder's Equity

These profitability ratios give three different viewpoints concerning

the "bottom line" on the income statement—how much net profit is

being made on each sale, how much is being made for the assets that

are employed, and how much is being made for the company owners.

From an owner's perspective, another profitability ratio you may be

aware of is Earnings Per Share (EPS):

Net Income Minus Preferred Dividends Earnings Per Share:

Number of Shares of Common Stock Outstanding

34
DAU PROGRAM MANAGERS TOOL KIT

FINANCIAL ANALYSIS SHEET

(EXAMPLE)

CO

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^ ^ d 6 d d d

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8SS88ggSSS duiduioinduiöiri (OWWi-i-

\

Equity Multiplier

(Total Assets / Shareholder Equity)

hum

Y96 Y97 Y96 Y99 Y00 Q4Y0C]

6.00'5.00'4.00-3.0D2.00-

1.00-

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35
DAU PROGRAM MANAGERS TOOL KIT

CASH CYCLE

Contract

award

Cash

received

t

Accounts

receivable

\

Sale

(DD 250)

Raw material

inventory

\

Work in process

inventor iy

Finished goods

inventory

Wages

payable

Accounts

payable.

es I

/abli tble |

Cash

disbursed

Cash

disbursed

CONTRACTOR FINANCING AND PAYMENTS

FINANCING (External*)

zx

PAYMENTS

Commercial Non-Commercial

Govt specified

Offer or

proposed

Interim

Advance

Commercial Non-Commercial

Private 1- Delivery

• Trade Credit

• Bank Credit

— Revolving Credit

— Term Loan

Government

• For Non-Commercial

— Progress Payments

• Performance Based

• Cost Incurred Based

• % Complete

— Unusual Progress

Payments

— Assignment of Claims

— Guaranteed Loans

— Advance Payments

Periodic

Partial

* Internal Contractor Financing

— Retained Earnings

36
DAU PROGRAM MANAGERS TOOL KIT

DIRECT AND INDIRECT COSTS

Direct costs

• Costs that can be

traced to a single

cost object.

• Examples: material

and labor to assemble

an aircraft

Indirect costs

• Costs that can't be traced

to a single cost object

because they are

associated with

multiple cost objects.

• Example: electricity for

the company's facilities

tw

ASSIGNING INDIRECT COSTS

Traced directly

Traced directly

Indirect costs are

assigned to cost

objects using

indirect rate(s).

CALCULATION OF INDIRECT RATES

RATE =

lndirect Cost Pool

: Allocation Base

37
DAU PROGRAM MANAGERS TOOL KIT

LIFE CYCLE OF INDIRECT COST RATES

BIDDING ON

CONTRACTS

PAYING

CONTRACTS

ADJUSTING

PAYMENT &

CLOSING

CONTRACTS

CONTRACTOR'S COST PROPOSAL

EXAMPLE

Direct material $ 40,000

Material handling 10% 4,000

Direct engineering labor 6,000

Engineering overhead 100% 6,000

Direct manufacturing labor 12,000

Manufacturing overhead 150% 18,000

Other direct costs 6,000

Subtotal 92,000

General and adrninistrative 25% 23,000

Total cost 115,000

profit 15% 17,250

Cost of money for facilities capital employed 1,500

Price ^$133,750

38
DAU PROGRAM MANAGERS TOOL KIT

CONTRACTOR BUSINESS PLANNING PROCESS

OUTPUTS

TOP MANAGEMENT

GOALS, OBJECTIVES

STRATEGIES

OVERHEAD

FORCAST i—T

PRODUCTION &

ENGINEERING PLAN

~i—r~

MANPOWER PLAN

$$

ANNUAL

OPERATING PLAN

IR&D/B&P PLAN

CAPITAL

INVESTMENT PLAN

i—r

^

5

MASTER DELIVERY

SCHEDULE

BUSINESS BASE

SALES FORCAST

39
DAU PROGRAM MANAGERS TOOL KIT

PRINCIPAL ACQUISITION LOGISTICS

GOALS/OBJECTIVES

• Influence product design for supportability

• Design the support system \^|

• Concurrently deploy system (includes support infrastructure)

• Maintain readiness and Improve affordability

LOGISTICS MANAGEMENT PROCESS NOTES

Support Strategy is part of the acquisition strategy and an integral

part of the systems engineering process. The support strategy

shall address life-cycle sustainment and continuous improvement

of product affordability, reliability, and supportability, while sustain

ing readiness.

Supportability Analyses is a set of analytical tools, conducted as

an integral part of the systems engineering process, to determine

how to most cost effectively support the system throughout the

system life-cycle and form the basis for related design

requirements included in the system performance specification and

logistics support plan.

Product Support Management Plan is a life-cycle plan that

includes actions to assure sustainment, and continually improve

product affordability. This plan is used throughout initial procure

ment, reprocurement, and post-production support. The plan

documents an integrated acquisition and logistics strategy for the

life of the system.

Performance-Based Logistics is the output performance

parameters to ensure a system ready capability, the assignment of

responsibilities and implementation of incentives for the attainment

of the goals associated with these performance parameters, and

the overall life-cycle management of system reliability and

sustainment, and total ownership cost.

40
DAU PROGRAM MANAGERS TOOL KIT

BEST PRACTICE:

Support Elements

Maintenance Manpower's Supply Support III

Planning Personne, Support Equ.pment ^Tupport

ML Computer

Technical Resources

Data Support

i-^li <[|B|5I"

Facilities Packaging, Handling,

Storage and

Transportation

Design f*l

Interface

SYSTEM

SUPPORT ELEMENT DEFINITIONS

Maintenance Planning - establishes maintenance concepts and requirements.

Manpower & Personnel - identification of personnel skills, grades and

quantity required to support operation and maintenance of system.

Supply Support - determine requirements to acquire and manage spares

and repair parts.

Support Equipment - identify all equipment required to support operation

and maintenance of the system.

Technical Data - scientific and technical information used to support

systems acquisition.

Training & Training Support - determine requirements to acquire training

devices and conduct training of operators and maintenance personnel.

Computer Resources Support - identification of facilities, hardware,

software and support tools to operate and support embedded computer systems.

Facilities - identify real property required to support system.

Packaging, Handling, Storage and Transportation - identify designs and

methods to ensure the system is preserved, packed, stored, handled

and transported properly.

Design Interface - relationships of logistics related design parameters to

readiness and support resources requirements; influence design for

supportability.

41
DAU PROGRAM MANAGERS TOOL KIT

42
DAU PROGRAM MANAGERS TOOL KIT

POST-PRODUCTION SUPPORT DECISION PROCESS

Sufficient Spares

And Repair Parts for

System Life?

Yes

Monitor

Usage Data

T

No

Multiple

Sources?

No

Evaluate

Alternatives

Yes

Monitor

Vendors

Sole Source

Reprocurement

Competitive

Reprocurement

Substitute

Parts

Component

Redesign

OPERATIONAL AVAILABILITY

Standby

Time

Operating

Time

Life ofType

Buy

A0 =

Uptime

Uptime +

Logistic

Down Time

(LDT)

Parts Availability

"In the Bin"

Needed items

awaiting

transportation

Downtime

Administrative

Delay Time

(ADT)

1 Locating tools

1 Setting up test

equipment

Finding personnel

(trained)

Reviewing manuals

Complying with

supply procedures

Corrective

Maintenance Time

(CMT)

Preparation time

Fault location time

Getting parts

Correcting fault

Test and checkout

Preventive

Maintenance Time

(PMT

Servicing

Inspection

43
DAU PROGRAM MANAGERS TOOL KIT

PROGRAM OFFICE ORGANIZATION STRUCTURES

Functional Structure

z

ENGRNG

PM

I

STAFF

BUSINESS

T

PRODUCTION LOGISTICS

"Pure" Product Structure

PM

p

SYST

VI

EM A

P

SYST

VI

EMB

PM

SYSTEM C

STAFF STAFF STAFF

FUNCTIONAL

DIVISIONS

FUNCTIONAL

DIVISIONS

FUNCTIONAL

DIVISIONS

44
DAU PROGRAM MANAGERS TOOL KIT

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45
DAU PROGRAM MANAGERS TOOL KIT

PROGRAM OFFICE ORGANIZATION STRUCTURE

(Continued)

INTEGRATED PRODUCT TEAMS

r

DIR OF

LOG

SYSTEM PROGRAM DIRECTOR

DIR OF

ENG

DIR OF

TEST

PIT

DIR OF

CONTRACTS

T

DIR OF

FIN MGT

1

DIR OF

PROJECTS

IPT = Integrated Product Team

PIT = Program Integration Team

Note 1: IPTs mirror Work Breakdown Structure

46
DAU PROGRAM MANAGERS TOOL KIT

THE ROLE OF MANUFACTURING IN THE

ACQUISITION PROCESS

CURRENT DoD 5000 PROCESS

A A

CE CAD INTEGRATION

DEMONSTRATION LRIP FULL

RATE SUSTAINMENT

RDT&E

• Influence the Design Process

• Prepare for Production

PRODUCTION

Execute the Manufacturing Plan

• Reflect Design fntent

• Repeatable Processes

Continuous Process Improvement

MILESTONE C EXIT

REQUIREMENTS

• Producible Design

• Factory Floor Characterized

NET RESULT:

• Uniform, Defect-Free Product

• Consistent Performance

• Lower Cost

COMMON PRODUCTION RISKS THAT GREATLY

IMPACT COST, SCHEDULE & PERFORMANCE

• Unstable requirements/engineering changes

• Unstable production rates and quantities

• Insufficient process proofing

• Insufficient materials characterization

• Changes in proven materials, processes, subcontractors,

venders, components

• Producibility

• Configuration management

• Subcontractor management

• Special tooling

• Special test equipment

47
DAU PROGRAM MANAGERS TOOL KIT

PRODUCIBILITY

DEFINITION:

The measure of relative ease of manufacturing a product.

The product should be easily and economicaly fabricated,

assembled, inspected and tested.

* The PM is responsible for Producibility *

PRODUCIBILITY

DoD 5000.2-R, June 2001

5.2.3.5.1 Producibility, 5.2.3.5.3 Quality

Producibile system design shall be a development priority

Design/engineering shall focus on;

- Producibile design

- Capable manufacturing process

- Necessary process controls

- Minimizing manufacturing costs

Full rate production shall require;

- Stable systems design

- Proven manufacturing process

- Available production facilities and equipment

Quality management process shall;

- Establish capable process,

- Continuously improve the process

- Monitor and control critical processes and product variation

- Establish mechanisms for feedback of field product

performance;

- Implement an effective root cause analysis and corrective

action system

48
DAU PROGRAM MANAGERS TOOL KIT

QUALITY MANAGEMENT SYSTEMS

DoD 5000.2-R, June 2001, 5.2.3.5.3 Quality

"The PM shall allow contractors to define and use a preferred quality

management process that meets required program support capabilities.

The PM shall not require third party certification or registration of a

supplier's quality system."

Note: ISO 9000 Series International Quality Standard is considered a Basic Quality System

-focus is mainly on "Document what you do, and do what you document"

Advanced Quality Systems (AQS) such as Boeing's D1 -9000, Motorola's Six Sigma, and others,

focus on Customer Satisfaction, Key Processes Identification and Control, Metrics, Flow-down

to Suppliers, and many other advanced process-oriented techniques.

VARIABILITY CONTROL

• GOAL: Minimize and control manufacturing variation on

key product characteristics

• WHY: Direct correlation between deviation from nominal value

on key characteristics and product quality and functionality

•TOOLS: QFD, DOE, Process control chart

(Statistical Process Control, see below)

X (Control Chart)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

.90-

.85

.80-

.75-

.70

.65

.60

.55

R (Control Chart)*

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

I I I I I I I i I I I I I I

.40

.30

.20 ,

L -I. J. i L .I. .I. L -I. J-J-L-L.I-1-L

| J j j I I I I II I I I I

> I I I I I I I |

4—1—I—I—I—I I I I I

-! ..I UCL

i-k i vKiSL^t

10 -t-1

w=t

1—I—I—1 I I I—I—r

•Note: No lower control limit for R Chart for sample size below i

49
DAU PROGRAM MANAGERS TOOL KIT

PRODUCTION READINESS REVIEWS (PRRs)

"WHY WE DO THEM"

• Identify program risks, issues and opportunities Early

• Assess capibility of contractor (and sub-contractor) to deliver

on-time, within cost

• Assess actual contractor performance (metrics?)

• Assess effectiiveness of contractor's corrective actions

• Measure improvement of contractor's performance

"HOW TO DO THEM"

• Get a Charter that the PMO and contractor both understand

• Coordinate with DCMA/CAS - use them

• Establish areas of Assessment with Metrics

- Producibility

- ECOs/design stability

- Sub-contractor management

- Cost of scrap, rework and repair

- Manufacturing process control

- Tooling status

• Ask questions, touch things, talk to shop floor workers

- See what is actually happening on the factory floor

ADDITIONAL INFORMATION SOURCES

• DAU's Advanced & Electronic Manufacturing Resources

(A&EMR) website:

- Go to www.dsmc.dau.mil, then click on Information

Dissemination, then click on the A&EMR

- Contains references to DoD Manufacturing Requirements,

and Best Business Practices such as Lean Production,

e-Commerce, Six Sigma, Basic and Advanced Quality

Systems, and Supply Chain Management

• Best Manufacturing Practices Center of Excellence

- www.bmpcoe.org

• Lean Aerospace Initiative (LAI)

- http://web.mit.edu/lean/index.html

50
DAU PROGRAM MANAGERS TOOL KIT

TEST & EVALUATION (T&E)

Developmental T&E (DT&E)/Operational T&E (OT&E) Comparisons:

DT&E

•Tech. pert, measurment

•Dev. agency rsp. (PM)

•Technical Personnel

• Ltd. test articles/each test

•Controlled environment

• All types of Test Articles

•Contractor involved

OT&E

• Operational effective/suitable

•Operational Test Agency (OTA) resp.

•"Typical" User Personnel

•Many test articles/each test

•"Combat" environment/Threats

•"Production Rep" Test Articles

• Contractor may not be allowed

T&E Required before going Beyond Low Rate Initial Production

Production Qualification T&E - Verify Design Article meets Spec/PM responsible

Performed by Contractor &/or Government/DPRO assistance valuable. Readiness

for IOT&E.

• Live Fire T&E (LFT&E) - Vulnerability and Lethality/Dev'l Agency fund and execute.

DOTE oversight, approval and Congressional reporting for ACAT I, II and selected

programs.

• Initial Operational T&E (IOT&E)- Operational Effectiveness and Suitability/

Independent Svc OTA plan and manage. DOTE oversight, approval, and

Congressional reporting for ACAT I and selected systems.

T&E Tasks & Events

•Test Rqmts

•Test Interfaces

Eval Strategy

Models and Simulations used throughout the Acq Process

REQUIREMENTS DEVELOPMENT

lyT&E/^l—r

• Sys. Engineering *

• Design for Test

• S/W Human T&E A

•TEMP y

• Subsystem T&E ^

• Software Only

System DT&E

• CSCIT&E

• R. A. M.

• Supportability

• Interoperability sV

stem 0T&E

• Production Qua| • Effectiveness

•Live Fire T&E •Suitability

• Cert of Readiness

for IOT&E

ENGINEERING DESIGN

FABRICATION & TEST (BENCH, LAB)

INTEGRATIONS TEST

(H/W IN THE LOOP)

DEVELOPMENT T&E:

QUALIFICATION T&E,

ACCEPTENCE T&E, LFT&E

OT&E: EOA, OA, IOT&E(OPEVAL)

PRODUCTION (PAT&E, FOT&E)

DEPLOY & OPERATIONAL SUPPORT

Jo Support T&E during:

RQMTs Definition

T&E Planning

Engr Design

Fabrication

Integration

Sys DT&E

OT&E

Training

Ops

•Acceptance Test

• Manf. Test

i

' Data Collection

• Reporting

Use Combined DT/OT - single integrated Contractor/Gov't DT and OT Team;

shared test events & test data; independent data analysis & reporting.

ACAT I & II Programs - require an independent, dedicated

IOT&E to proceed Beyond Low Rate Initial Production.

AGONIZE OVER THRESHOLDS!

51
DAU PROGRAM MANAGERS TOOL KIT

M & S PLANNING

ACCESS YOUR SERVICE CENTERS OF M&S EXPERTISE

Establish a simulation coordinating group; the EARLIER the better

Design long term M&S applications and the Integrated Digital Environment

through the acquisition strategy, TEMP, STEP, SSPs

CONTINUOUS PLANNING 4*^ PROGRAM PLANNING

TEMP

4'%% ARMY

^ SMART

Planning

Guidelines

USAF

M&S

Support to

Acquisition

AF116-1002

1 June 2000

The

Effectiveness

of Modeling &

Simulation in the

Weapon System

Acquisition Process

Oct1996

HOW DO WE PLAN? - A NOTIONAL APPROACH

IDE Planning

• Establish a business process

improvement team

• Identify High Payback Process

Areas

• Identify potential legacy systems

and data repositories

• Identify user base including

remote sites

• Capacity of PC workstations

• Bandwidth of communication lines

• Where servers are/will be located

• Identify legacy system host

platforms

i Simulation Support Plan (A,MC), ,

! Single Acquisition Mgt Plan (AF), i

i Acquisition Strategy, TEMP

SBA Planning

• Establish a simulation & VV&A

planning process

• Identify High Payback Process

Areas

• Identify potential legacy systems,

Service/Joint-standard simulations,

Architectures and data repositories

• Identify where user and simulators

are / will be located

• Capabilities & Architectures of

Existing Simulations

• Network Bandwidth Requirements

• IDE utilization opportunities

• Interoperability / Interface / Immersion Requirements

• Required Capability Gap

• Design SBA Architectures

• Establish long term plan, budget,

DOCUMENT & implement

• Manage it, update, evolve, reiterate

52
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

PLANNING AND CONTROL

TYPICAL TIMES FOR PROGRAM ACTIVITIES

Event

Procurement Request Development Time

Contract Lead-time

DAB Lead-time

SI Design, Fab and Test

SD Design, Fab and Qual

Test Readiness Review Lead-time

DT&E

OT Readiness Review Lead-time

OT&E

OT Report Preparation

Production Lead-time

Time

(months)

6-9

9-12

6-8

24-30

30-36

2-3

9-12

2-3

6-12

3

18-30

TYPES OF PLANING CHARTS

MILESTONE CHART (Gantt)

Activity:

Design

Fab

Integrate

Gnd. Test

Qual

Fit. Test

Produce

Time Period

JFMAMJJASONDJFMAM

Advantages: Simple

Disadvantages: Difficult to show dependencies between

activities unless computer-constructed chart.

(ADD'LTYPES OF PLANNING CHARTS ON NEXT 5 PAGES)

55
DAU PROGRAM MANAGERS TOOL KIT

PLANNING AND CONTROL

(Continued)

NETWORK CHART

21

/

& <z>^d

\4 s

5

u

MMHi _ CRITICAL PATH

ACCELERATE

TASK TASK# TIME COST COST TIME

Brief 1-2 5 2,200 - 5

Transport 2-3 4 15,000 500 3

Ship GFE 2-6 7 2,500 600 4

Ship system 2-4 4 4,600 750 2

Inspect 4-6 5 0 - 5

Train maint. 3-6 21 28,000 800 14

Train oper. 3-5 17 23,000 800 12

Integ. sys. 6-7 6 13,500 - 6

Dry Run 7-8 7 9,000 400 5

Advantages: Shows dependencies; computes critical path

Disadvantages: Complex; computerized support required to maintain

Does not provide any chronology

SWAN CHART

1-2

2-3

3-6

3-5

2-6

2-4 4-6

• USE TASKS & TIMES FROM

CHART ABOVE

6-7 7-8

9 12 14 26 30 36 43 DAYS

> Advantages: Shows chronology and dependencies

• Disadvantages: Complex; computerized support required to maintain

56
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

ACQUISITION PROGRAM BASELINE

(Performance) - An Example

Baseline

Values

MSB IPRI

I System Development &.

Demonstration Phase

MS C FRP DR

__!___ Production & _

Deployment Phase

in this example the current estimate falls below the threshold

this represents a baseline breach of performance.

61
DAU PROGRAM MANAGERS TOOL KIT

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DAU PROGRAM MANAGERS TOOL KIT

RISK & TRADE-OFF ANALYSIS

Risk Management

RiskAssessment

Risk Planning

Risk Mgmt Plan

(The Process)

/ \

Risk ID

Technical

Cost

Schedule

Lessons learned

WBS

Risk Analysis

Networks

Simulation

Watch lists

Templates

Risk Handling

Avoidance

Control

Assumption

Transfer

Research

Contract PLAN RISK MGT

PROCESS

ASSESS RISK

HANDLE RISK

RISK MANAGEMENT

1. Develop program plans to the work package level.

2. Assess risk at the lowest work package/WBS level.

3. Manage the highest risk work packages; most others will work out.

TRADE-OFFANALYSIS*

1. Identify alternative solutions

2. Select evaluation criteria/factors & MOEs;

i.e. cost, schedule, performance criteria

3. Weight evaluation criteria

4. Develop utility functions for each factor

5. Conduct evaluation (weighted utility summary table where

weight is multiplied by utility function value)

6. Perform sensitivity check

7. Select highest scored alternative

*With Cost As an IndependentVariable (CAIV), aggressive cost objectives are

established as a result of trading performance and schedule for cost.

63
DAU PROGRAM MANAGERS TOOL KIT

PROGRAM MANAGER'S CHECKLIST FOR REVIEW OF

TRADE-OFF PLANNING AND STUDIES

1. ARE ALL VIABLE ALTERNATIVES BEING

EXPLORED?

- Is each alternative clearly defined?

- Have the alternatives been

prescreened? How?

- Are affordability limits established?

- Can all of the screened-out alternatives

be defended?

2. ARE SELECTION CRITERIA IDENTIFIED?

- Are all significant criteria identified?

- Do the criteria discriminate between

alternatives?

- Are the criteria measurable?

- Have the criteria been pre-approved?

3. ISTHE CRITERIA WEIGHTING SYSTEM

ACCEPTABLE?

- Are rationales for criteria weights

explained?

- Are criteria weights consistent with

guidance?

- Are criteria weights consistently

distributed in the tree?

4. ARE UTILITY (SCORING) CRITERIA

DETERMINED?

- Is defensible rationale established for

each criterion?

- Are criteria developed from operational

measures of effectiveness where

possible?

- Do all plans use the same numerical

scale?

- Is the location of the "zero point"

explained?

5. ARE EVALUATION METHODS DOCUMENTED?

- Are test data reliability estimates

(confidence levels) incorporated?

- Are models validated? When? Who?

6. HAS SENSITIVITY BEEN ESTIMATED?

- Are error ranges carried through with

worst-on-worst case analysis?

- Have the effects of changes in the utility

curve shapes been examined?

- Have rationales for the limits been

developed?

TECHNICAL PERFORMANCE MEASUREMENT

THE CONCEPT

Tolerance Band

TECHNICAL

PARAMETER

VALUE

e.g.,

MTBF

Weight

Fuel

Consumption

TIME

64
DAU PROGRAM MANAGERS TOOL KIT

CO

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65
DAU PROGRAM MANAGERS TOOL KIT

REQUIREMENTS ANALYSIS QUESTIONS

• What are the reasons behind the system development?

• What are the customer expectations? How will they measure

the performance of the system?

• Who are the users and how do they intend to use the product?

• What do the users expect of the product?

• What are their level of expertise?

• With what environmental characteristics does the system

have to comply?

•What are existing and planned interfaces?

• What functions will the system perform, expressed in customer language?

• What are the constraints - hardware, software, economic,

procedural - with which the system must comply?

• What will be the final form of the product - model, prototype,

mass production?

ATTRIBUTES OF A WELL - DEFINED REQUIREMENT

• Specific. Clear and Unambiguous; Contains no vague terms

• Understandable: Stated with sufficient detail in everyday

language

• Concise: Contains no unnecessary words

• Consistent: Top-to-bottom consistency with identical usage

of terms and conformance to standards

• Stable: Baselined and under configuration control

«Traceable: Derived from the mission profile or the contractor's

design policies

»Verifiable: Determine whether the product is satisfying the

requirement

• Feasible: Can achieve, produce, and maintain the requirement

66
DAU PROGRAM MANAGERS TOOL KIT

FUNCTIONAL ANALYSIS/ALLOCATION

(THE CONCEPT)

FLY

• Allocate Functions

• Decompose Higher

Functions

• Allocate Performance

• From Higher to

Lower Functions

• Functional Descriptions

• Functional Flow

Block Diagrams

•Time Line Analysis

• Functional Architecture

L

start

l_ J L_J L_J L

HLAUNCH CRUISE

(67 min)

FLY

_C

LAUNCH CRUISE

(2 min) (60 min)

end

'LAND '

LAND

(5 min)

REQUIREMENTS LOOP

p

R

O

C

E

S

S

N

P

U

T

Requirements Loop

Ensure all requirements are

covered by at least one function.

Ensure all functions are justified

by a valid requirement.

(No unnecessary duplication)

PROCESS OUTPUT

Requirements

Functions

Transport Load Start Carry Stop Unload Communicate

TransportTroops X X X X X X

Squad Level X X X X

50 KM X X

90 Minutes from

Transporter

Arrival

X X X X X

Constant

Communication

X

67
DAU PROGRAM MANAGERS TOOL KIT

DESIGN LOOP

• Ensure all functions are covered by at

least one hardware (or software) element

• Ensure all elements of physical

architecture are justified by a valid

functional requirement.

(No unnecessary duplication)

PROCESS OUTPUT

AUDIT TRAIL, DECISION DATABASE,

ITEM SPECIFICATIONS, ETC.

PHYSICAL ARCHITECTURE

Function

Performed

Aircraft

Air Frame Engine Communications Nav System Fire Control

Preflight Check X X X X X

Fly

Load

Taxi

Take-Off

Cruise

Recon

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Communicate X

Surveillance ? ? ?

68
DAU PROGRAM MANAGERS TOOL KIT

SYNTHESIS

Defines the Physical Architecture

- Each Part Must Meet At Least One Functional Requirement

- Any Part Can Meet More Than One Requirement

Justify Architecture by Trade Studies & Effectiveness

Analyses

Document All Process Information in Database

Generate Documents from Database

FLY Tech

Doc's 1 "

PROPEL DESTROY EJECT

VERIFICATION LOOP

Verification Loop

Each Requirement Must be Verifiable

Section 4 of Specification

Verification Evaluates whether Solution

Meets Requirements

4 Types of Verification

• Examination

• Demonstrations

• Simulations / Analysis

• Test

69

PROCESS OUTPUT
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70
DAU PROGRAM MANAGERS TOOL KIT

SPECIFICATIONS AND STANDARDS

A New Way ofDoing Business (Acquisition Reform)

(Sec Def Memo of29June 1994)

1. Use Performance-Based Specifications

2. Cancel/Convert Manufacturing and Management Standards to

Performance or Nongovernment Standards (NGSs)

3. Encourage Contractors to Submit Alternative Solutions to

Military Standards/Specifications

4. Prohibit Use of Military Specifications/Standards Except when

Authorized by SAE or Designee

PERFORMANCE VS. DETAIL SPECIFICATIONS

PERFORMANCE DETAIL / DESIGN

Design/Fab

Processes

Physical

Characteristics

Interface Reqmts

Materials

Test & Eval

Require desired

outcomes or functions,

Specific design to KTR

Few, if any

Give specifics only for

interfaces, environment,

or human factors

Detail interface data does

NOT solely make a perf.

spec a detail spec.

Leave specifics to KTR

State performance

need; KTR picks

test procedure

Specify exact parts and

components

Specify exact processes

Specify more physical

characteristics, than

needed for int, env,etc.

Detailed interface data

Require specific materials

Prescribed testing

process

71
DAU PROGRAM MANAGERS TOOL KIT

PROGRAM-UNIQUE SPECIFICATIONS

MIL-STD-961

Standard Performance Specification

Standard Design Specification

Program-Unique Specifications

No waiver required to use.

STD PRACTICE

Specs

Program Unique Specifications advantages:

• Help avoid duplication and inconsistencies.

• Enables good estimates of necessary work and resources.

• Provides consistent communication among players as people

rotate.

• Can be used to prepare test plans.

• Can be used a long time after the system has been put into

operation.

• Serves as an interface between customers, developers and

designers.

Can act as negotiation and reference document for engineering

changes.

Specification Content Baseline

System • Defines mission/technical performance

requirements. Allocates Requirements to

functional areas. Defines interfaces.

Functional

("System")

(HW or SW)

Item

Performance

• Defines performance characteristics of CI's

(form, fit, function). Details Design Require

ments only to meet interfaces. "DESIGN TO."

Allocated

("Design to")

(HW or SW)

Item

Detail

• Includes "how to" and specific design

requirements. Usually includes specific

processes and procedures. "BUILD TO."

Product

("Build to")

Process • Defines process performed during fabrication. Product

Material • Defines production of raw materials or

semi-fabricated material used in fabrication.

Product

72
DAU PROGRAM MANAGERS TOOL KIT

SYSTEMS ENGINEERING MANAGEMENT

in Acquisition

Sys

Tech

Rqmts

Item Detailed

Design Design

Rqmts Rqmts

System Definition

MS

Tech Reviews k

ASR

Documents Draft

Sys Pert Spec

Item Pert Specs

Item Detail/TDP

Baselines

Functional

Allocated

Product

A kk

SRR SFR SSRPDR

kk kkk k

CDR PRRs/TRRS SVR PCA

FCA

— ->

Contractor

4 »

Government

=

SYSTEM REVIEW DEFINITIONS

ASR

SRR

SFR

SSRPDR

Alternative Systems Review

Systems Requirements Review

Systems Functional Review

Software Specification Review

Preliminary Design Review

CDR - Critical Design Review

PRR - Production Readiness Review(s)

TRR - Test Readiness Reviews(s)

FCA - Functional Configuration Audits

SVR - System Verification Review

PCA - Physical Configuration Audit

- Preferred System Solution meets needs

- Preliminary Functional Requirements

- Approve functional requirements

- Review preliminary allocated requirements

- Approve S/W allocated requirements

- Approve allocated requirements

- Establish allocated baselines

- Preliminary product requirements

- Ready for fabrication

Assess producibility/manuf readiness

Assess test readiness

Approve test plans

Verify CIs perform to spec

Verify CIs perform to system spec

Verify the product baseline

73
DAU PROGRAM MANAGERS TOOL KIT

CONFIGURATION MANAGEMENT

Non-Government Std: El A Standard-649

Also see MIL HNBK 61

"A management process for establishing and maintaining consistency

of a product's performance, functional and physical attributes with its

requirements, design and operational information throughout its life."

• Identify and document the functional and physical characteristics of

configuration items.

• Control changes to configuration items and their related

documentation.

• Record (or Status Accounting in DoD terms) and report information

needed to manage configuration items effectively, including the

status of proposed changes and implementation status of approved

changes.

• Audit configuration items to verify conformance to specifications,

drawings, interface control documents, and other contract requirements.

- Adopted by DoD, 22 Nov 96

CONFIGURATION MANAGEMENTPLANNING

• The decisions on

• Which baselines the government should eventually control

• The data needed

• When that control should be established

...are strategic management decisions that involve

• Acquisition strategies - sources, competition, etc.

• Logistics support plans - repair levels, data needs, open

systems, etc.

• Technology insertion - stable vs rapidly moving technologies,

etc.

• Government should control the Functional Baseline (documents system

level requirements)

• DoD PMO's increasingly choose to leave Allocated Baselines under

contractor control until late in development. (Documents the Cl level

design requirements.)

• Promotes contractor design flexibility

• Relieves PMO from administrative burdens of managing design

ECPs

• Requires effective implementation of IPPD

• When and if to control baselines is dependent on support philosophy

and acquisition management strategy.

74
DAU PROGRAM MANAGERS TOOL KIT

INTERFACE MANAGEMENT

Will it all work together?

The Government PMO:

- Identifies External Interfaces

- Establishes interface standards

(baselines)

- Maintains interface stability

The Contractor:

- Manages Internal Interfaces

- Establishes Interface

- Requirements to Include

- Internal & External Interfaces

- Controls Interfaces to Ensure

- Accountability & Timely

- Dissemination of Changes

Thegovernmentincreasingly chooses to manage interfaces

leaving design details to contractors

INTERFACE CONTROL CONCEPT

Identifies, documents, & controls all functional and physical

characteristics.

Interfaces, what?

• Common boundary.

• Types: Mechanical, Electrical, Operational, Software.

• Functional & Physical characteristics.

Where?

• Within one contractor's design.

• Between contractor's items and GFE.

• Between multiple contractors' items.

• Between systems

Controlled by Interface Control Working Group.

Documented in Interface Control Documents.

75
DAU PROGRAM MANAGERS TOOL KIT

HOW TO CREATE A WORK BREAKDOWN STRUCTURE

CL

ÜÜÜÜÜÜ

Define

the Product

Tailor

(supporting processes)

Create and refine

as design matures

BASIC PURPOSES OF WBS

System

^_ I

CATT Sys Eng Support Training Test Mfg

System

SW

Application

SW

Crew

Simulator

HW

XXX

76
DAU PROGRAM MANAGERS TOOL KIT

SOFTWARE MANAGEMENT

• Nine Principal Best Practices to Improve Software Development,

Reduce Costs, and Increase User Satisfaction*

- Formal Risk Management

- Agreement Interfaces

- Peer Reviews/lnspections/Walk-throughs

- Metric-Based Scheduling and Management

- Binary Quality Gate, at Inch-Pebble Level

- Program-wide Visibility of Project Progress vs. Plan

- Defect Tracking Against Quality Targets

- Configuration Management

- People-Aware Management Accountability

• Nine Project "Breathalyzer" Questions to provide "Quick Look" at

Software Project Health**

- Do you have a current, credible activity network supported

by a work breakdown structure (WBS)?

- Do you have a current, credible schedule and budget?

- Do you know what software you are responsible for

delivering?

- Can you list the current top 10 project risks?

- Do you know your schedule compression percentage?

- What is the estimated size of your software deliverable?

How was it derived?

- Do you know the percentage of external interfaces that are

not under your control?

- Does your staff have sufficient expertise in the project

domains?

- Have you identified adequate staff to allocate to the

scheduled tasks at the right time?

""Little Yellow Book of Software Management Questions" (Software Program Managers Network)

""Project Breathalizer Questionnaire Software Health"; Software Program Managers Council

77
DAU PROGRAM MANAGERS TOOL KIT

WORKING GROUPS

TEAM DEVELOPMENT WHEEL

' / Performing Forming ^V^

Milling V^1/ Creative

/ Trusting Confusion \

/ Effective Polite \

/ Confident Purposeless 1

1 Norming Storming 1

\ Cohesion Conflict /

\ Purpose Frustration /

v \ Feedback

^ \^ Relevancy

Resistance /

Cliques /tV

RECOGNIZE WHICH PHASE OF

TEAM DEVELOPMENT YOU ARE

IN AND TAKE POSITIVE ACTION

TO WORK THROUGH

Note: These can be an additional phase - "Adjourning" - when the team

disbands, says good bye, and reflects on lessons learned.

This is a "celebration" phase.

TYPICAL WORKING GROUPS

Logistics Support Management Team (LSMT)

Test & Evaluation Working Group (TEWG)

Computer Resources Working Group (CRWG)

Requirement Interface Working Group

Interface Control Working Group (ICWG)

Technology Assessment Working Group

"Tiger" Team

Process Action Team

Integrated Product & Process Teams

78
DAU PROGRAM MANAGERS TOOL KIT

WORKING GROUPS

(Continued)

Group Consensus - a general agreement by aH team members that they

can live with, and be commited to a particular course of action. Until

you have this agreement, you don't have consensus. Guidelines for

achieving:

1. Avoid arguing for your own opinion.

2. Go for "win-win" solutions.

3. Do not change your mind to avoid conflict.

4. Avoid majority vote, coin-flipping, horse-trading.

5. Expect differences of opinion.

MANAGEMENT TRADE-OFFS

FOR WORKING GROUPS

Advantages

More ideas & solutions

Consensus positions

Strong commitments

Disadvantages

• Takes more time

• Hard to terminate

• Paralysis by analysis

79
DAU PROGRAM MANAGERS TOOL KIT

TEAM PERFORMANCE MODEL

Team Processes

• Decision Making

• Resolving Issues

• Communicating

• Planning

• Executing

• Controlling

Team Foundation

Customer Focus

Leadership

Values

Vision

Purpose

Goals & Objectives

Critical Success Factors

Team Dynamics

Diversity

Conflict

Comfort Zones

Communications

Focus

Organizational Climate

Trends

Thinking

Learning

Team Principles

Awareness

Roles & Responsibilities

Operating Agreements

Team Accountability

Empowerment

Trust

Five Cs E>

Team Identity

Self assessment

Communication

Commitment

Cooperation

Contribution

Caring

80
DAU PROGRAM MANAGERS TOOL KIT

//

LEADERSHIP & MANAGERIAL SKILLS

More things that make you go "Hmmm?..."

"An authority is a person who just happens to know the source."

"A conservative is a person who believes nothing should be

done the first time."

"Diplomacy is the art of hearing all parties arguing in a dispute and

nodding to all of them without ever agreeing with any of them."

"The meeting raised our confidence that the contractor can actually accomplish the task and that it will occur in our lifetime."

"This is the earliest I've been late."

"The world would be a much better place if people weren't allowed

to have children until they've proven they can successfully manage a DoD program."

"Everyone is bound to bear patiently the results of his/her own example."

"The superior person is firm in the right way, and not merely firm."

81
DAU PROGRAM MANAGERS TOOL KIT

DELEGATION

REASONS FOR DELEGATING

1. Improve manager's time management

a. Increase manager's span of control

b. Increase time allocated to long range planning

c. Increased management efficiency

2. Assure tasks performed by most qualified

3. Build organizational depth

4. Improve employee motivation

5. Increased teamwork (IPTs/TQM)

6. Maximize resources

7. Appropriate organizational responsibility

12 STEPS FOR DELEGATING

1. Set clear objectives and task statements

2. Select "Delegate"; check qualifications

3. Provide training, if necessary

4. Solicit input from Delegate

5. Assign task and deadline

6. Provide any relevant guidance

a. Critical information required to do tasks right

b. Potential approaches - only as suggestions!

c. Describe results desired

7. Makes a delegation "contract" (see next page)

8. Establish controls

9. Maintain controls

10. Provide feedback

11. Identify lessons learned

12. Evaluate performance

82
DAU PROGRAM MANAGERS TOOL KIT

DELEGATION

(Continued)

(SAMPLE) DELEGATION RECORD

Description of Action: Date:

Person Assigned:

Authority Level (specify):

1 - Take action; do not report

back

2 - Take action; report back

(see Frequency)

3 - Prepare plan; proceed

upon approval

4 - Do only as directed below

Frequency of Contact (specify):

1 - daily

2 - weekly

3 - monthly

4 - other

Delegation Guidance/Agreements:

Suspense Action: Suspense Date:

Performance Assessment:

83
DAU PROGRAM MANAGERS TOOL KIT

EFFECTIVE MEETINGS

PRE-MEETING

A. Establish type of meeting

1. Information (quick, crisp)

2. Planning/Strategizing (slow, deliberate)

3. Problem solving (divergent/convergent)

4. Decision (deliberate)

5. Staff/Conference (repetitive, short)

6. Feedback/Evaluation (slow, contemplative)

7. Training (smooth, flowing)

8. Social (rambling)

B. Select participants

1. Based on purpose; relevant; decision auth.

2. Size: 4-7 ideal; 10-12 tolerable; >13 unsat.

C. Circulate agenda (3-5 days in advance)

I.Type, purpose, date, place, start/finish times

2. Topics, time allocated (minutes), speakers

3. Assign recorder

CONDUCTING MEETING

A. Opening

1. Start on time

2. Repeat type and purpose of meeting

B. During

1. Facilitate the meeting

2. Encourage openness and communication

3. Develop cohesion

4. Use active listening

5. Stick to agenda

C. Closing

1. Set time and date of next meeting

2. Summarize agreements, actions, decisions

3. Close on time or before

AFTER MEETING

A. Review minutes with recorder

B. Publish minutes

84
DAU PROGRAM MANAGERS TOOL KIT

PERSONAL COMMUNICATIONS

COUNSELING

'

'

DIRECTIVE

• Give advice

• Evaluate

• Motivate

• Explain

• Reassure

Advantages

• Effective with inexperienced

personnel

• Quick

• Take charge attitude

Disadvantages

• Perceived insulting

• Does not support delegation

• Manager keeps responsibility

NON-DIRECTIVE

• Don't display authority

• Listen carefully

• Don't advise

• Facts only; no opinions

• Employee find solution

Advantages

• Develops commitment

• Good training

• Employee responsible

• Supports delegation

Disadvantages

• Takes time

• Skill/patience required

• Ineffective with

inexperienced personnel

4.

COUNSELING PROCESS

Set up interview - private, confidential,

unhurried

Encourage discussion - open questions,

active listening

Help employee think it through - deal with

facts, no opinions or own views

Let them find the solution - their solution to

theirprob\em

85
DAU PROGRAM MANAGERS TOOL KIT

PERSONAL COMMUNICATIONS

(Continued)

WIN-WIN NEGOTIATIONS

FOCUS: Defeat the problem; not the person

APPROACH:

Resolve conflict

Reach agreement

Normalize relationships

Combine efforts

GOAL:

Acceptable gains by both parties

INTER-PERSONAL NEGOTIATIONS

1. Separate people and emotions from the problem

2. Focus on interests, not positions

3. Generate options for mutual gain

4. Insist on objective criteria

TIME MANAGEMENT

TIME ROBBERS AND AVOIDANCE TECHNIQUES

1. Incoming telephone calls - Screen

N

for importance

- Limit to 2 minutes

2. Outgoing telephone calls - Do all at one time

- Itemize topics before calling

- Don't socialize

3. Unscheduled visitors - Screen for importance

- Do not invite into office

- Remain standing

4. Improper delegation - Re-delegate

5. Poorly conducted meetings - Stay focused on subject

area and on schedule

86
DAU PROGRAM MANAGERS TOOL KIT

TIME MANAGEMENT

(Continued)

HIGH IMPORTANCE LOW

HIGH i

URGENCY

LOW

VERIFY

DOIT &

RE-ASSIGN NOW

1 3

2 4

MID-TO-LONG BUSY

RANGE WORK

PLANNING

1. List all tasks.

2. Categorize tasks using matrix.

3. Review quadrant 3 items; re-assign as 1, 2, or 4 as appropriate.

4. Do quadrant 1 tasks first; consider delegating!

5. Strive to maximize time for quadrant 2 tasks (be proactive!).

6. When all 1 and 2 tasks are complete, do quadrant 4 tasks.

KEEP A "TO DO" LIST

1. List all goals and tasks.

2. Categorize as A - High value

B - Medium value

C - Low value

3. Prioritize within each category (e.g. A-1, A-2, etc.).

4. Accomplish all A tasks, then all B. Do C if time permits.

5. Review list and priorities daily.

87
DAU PROGRAM MANAGERS TOOL KIT

DECISION BRIEFING

Elements ofa Decision Briefing

• Purpose - Issues

• Outline - Agenda

• Background

• Assumptions

• Alternatives Identified

• Evaluation Criteria

• Analysis of Alternatives

• Recommendation

• Implementation Plan

Things to Expect (from Briefee)

• Challenges to assumptions, definitions, methodology

• Does it comply with or change policy?

• Is the situation sensitive to change?

• Issues with analysis, tradeoffs, recommendations, implementation

• Open/closed questions

88
DAU PROGRAM MANAGERS TOOL KIT

MANAGEMENT TOOLS & TECHNIQUES

1. Activity-based Management (ABM). Uses detailed economic

analyses of important business activities to improve strategic and

operational decisions. ABM increases the accuracy of cost information by more precisely linking overhead and other indirect costs to

products or customer segments. Traditional accounting systems

distribute indirect costs using bases such as direct labor hours,

machine hours, or material dollars. ABM tracks overhead and other

indirect costs by activity, which can then be traced to products or

customers.

2. Balanced Scorecard. Defines what management means by

"performance" and measures whether management is achieving

desired results. The Balanced Scorecard translates mission and

vision statements into a comprehensive set of objectives and

performance measures that can be quantifiedandappraised. These

measures typically include: financial, customer value, internal

business process, learningandgrowth, andemployee performance.

3. Cycle Time Reduction. Decreases the time it takes a company or

program to perform key activities throughout its value chain. Cycle

Time Reduction uses analytic techniques to minimize waiting time,

eliminate activities that do not add value, increase parallel processes, and speed up decision processes within an organization.

Time-basedstrategies often emphasizeflexible manufacturing, rapid

response and innovation in order to attract the most profitable

customers.

4. Groupware. Refers to a broad range of technologies that allow

people in organizations to work togetherthrough computer networks.

These products range from sophisticated electronic mail packages

to applications that link offices and employees. Organizations use

such technology-aided communications to better inform strategic

and financial decisions and to more effectively and economically

bring together working groups. (DAU has a Groupware capability in

its Management Decision Center, which is used for management

decision making by offices and agencies throughout DoD.)

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DAU PROGRAM MANAGERS TOOL KIT

MANAGEMENT TOOLS & TECHNIQUES

(Continued)

5. Outsourcing. Occurs whenacompany or Government agency uses

third-parties to perform non-core business activities. Contracting

third-parties enables a company or agency to focus its efforts on its

core competencies. Many companies find that outsourcing reduces

cost and improves performance of the activity. Third-parties that

specialize in an activity are likely to be lower cost and more effective,

given their scale. Through outsourcing, a company or agency can

access the state of the art in all of its business activities without

having to master each one internally.

6. Business Process Reengineering. Involves the fundamental

redesign of core business processes to achieve significant improvements in productivity, cycle times, and quality. In Business Process

Reengineering, companies start with a blank sheet of paper and

rethink existing processes to deliver more value to the customer.

They typically adopt a new value system that places increased

emphasis on customer needs. Companies and/or Government

agencies reduce organizational layers and eliminate unproductive

activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to

improve data dissemination and decision making.

7. Strategic Planning. Is a comprehensive process for determining

what acommercial business or Government agency should become

and how it can best achieve that goal. It appraises the full potential

of a business and explicitly links the business objectives to the

actions and resources requiredtoachievethem. Strategic Planning

offers a systematic process to ask and answer the most critical

questions confronting a management team - especially large,

irrevocable resource commitment questions.

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III

PROBLEM SOLVING TOOLS

BRAINSTORMING

PURPOSE: To stimulate the free flow of ideas.

METHOD: Group members take turns generating ideas. One idea

stimulates another and then another. Freewheeling of ideas is encouraged. Brainstorming stops when all group members run out of

ideas. See the back of this page for questions that may suggest new

ideas for you.

ft

GROUND RULES:

jEl!ff

Put judgment aside. Remember, all ideas can be thought of as

starters.

No criticism allowed. This is not the time to judge an idea. Don't

criticize other ideas no matter how ridiculous they may seem. The

ideas can be discussed in detail later; now, the objective is to generate more ideas.

Welcome free-wheeling or blue-skying. Let those wild ideas come

out—otherwise you may conceal your creative process. The impractical ideas may trigger other ideas that are possible to use.

Strive for quantity, not quality. The more ideas brought out, the

better the chance of a great solution.

Combine and rearrange ideas. Single ideas aren't the only way to

make a suggestion. You can make additions or combinations of

previously suggested ideas to create still better ideas.

Recordall ideas exactly as expressed. This keeps the mind free of

remembering what was said and allows you to build on previous

ideas.

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DAU PROGRAM MANAGERS TOOL KIT

BRAINSTORMING

(Continued)

Why does it work?

Some of the reasons why brainstorming enhances a group's

creativity are that it:

- Increases involvement and participation.

- Produces the most ideas in the shortest time.

- Reduces the need to give the "right" answer.

- Frees up the group; allows the members to have fun and is

interesting.

- Reduces the possibility of negative thinking.

QUESTIONS TO STIMULATE YOUR BRAIN CELLS:

1. Can we use this idea elsewhere? As is? With changes?

2. If we change it,; Is there anything else like it? Any related

issues?

3. Modify? Change? Rearrange? Meaning, color, motion,

sound, odor, taste, form, shape, layout, etc.?

4. Magnify? Add what? More, stronger, larger, new?

5. Minimize? Subtract what? Eliminate, smaller, lighter, slower,

split?

6. Substitute? Who, what, when, where?

7. Reverse? Opposite, backwards, upside down, inside out?

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DAU PROGRAM MANAGERS TOOL KIT

CAUSE AND EFFECT DIAGRAM

Thecauseand effect diagram isagraphical illustration ofthe relationship

between a problem or goal (the effect) and its potential contributors (the

causes). Sometimes called the "fishbone" or Ishikawa diagram.

Usedforanalyzingproblems, acauseandeffect diagram can help:

• Determine root causes of a given effect;

• Identify areas where there is a lack of data.

POOR

PHOTOCOPY

QUALITY

I— Not Level

Roll Condition

|—Speed

Lamp Dirty

MACHINE

FORCE FIELD ANALYSIS

A Force Field Analysis illustrates the relationship and significance of

factors that may influence the problem or goal. This analysis helps us

better understand driving and restraining forces.

GOAL: Stop Smoking

+ Driving Forces Restraining Forces

Poor Health

Burned Clothing

Poor Example

Cost

Impact on Others

Habit

Addiction

Taste

Advetisements

Stubborn

Used for making decisions, force field analysis can help:

• Identify realistic improvement opportunities;

• Develop systematic action plan for problem resolution; and

• Create criteria for evaluating effectiveness of improvement actions.

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DAU PROGRAM MANAGERS TOOL KIT

HISTOGRAM

The histogram chart displays the distribution of a measurable characteristic (for example: weight, length, speed, etc.)- A histogram shows what

the variability of the data is in a graphical or pictorial manner.

Used for data analysis, a histogram can help:

• Present a picture of how the process is operating;

• Compare actual process measurements with an expected

distribution;

• Observe patterns in the data; and

• Investigate process stability.

FREQUENCY

1

MEASURABLE CHARACTERISTICS

SCATTER DIAGRAM

A scatter diagram depicts the correlation between twovariables (X and Y).

Used for data analysis, a scatter diagram can help:

• Confirm a hypothesis that two variables are related.

• Provide both visual & statistical means to test the strength

of a potential relationship.

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SURVEYS

A Survey is usedtocollect datafrom avariable number ofitems or people

for a comparative study. They are used when a new project is planned,

to prove the need and the demand of the customer.

Surveys can be used anywhere in the organization to find out specific

information which is necessary to make improvements in a process.

Surveys:

- Are an inexpensive way to test a system or product.

- Can be used with a large number of people or a small group.

- Can give you an overall view, determined by the questions you ask.

- Show if an organization is meeting its quality goals.

- Help identify satisfied and dissatisfied customers or employees.

Survey Process

1. Determine the group to be studied.

2. Determine what questions will be asked.

C3 SURVEY

1.

2.

3.

4.

Brainstorminq

Note: Train your data collectors thoroughly. Everyone must know how to ask

the questions, who to approach, and how to approach them.

3. Compile your results in chart form using a Pareto chart, histogram,

and other tools that will give you clarification.

4. Use the compounded data to form a base for improvement.

5. Continue to take data to monitor improvements, and make sure the

improvements you have made are working.

Caution!

Data must be collected honestly and consistently.

An untrained collector can skew the data to reflect personal biases.

A poor, inconsistent survey will give you invalid data.

Make sure there is enough time allowed for the collecting process.

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AFFINITY DIAGRAM

An affinity diagram is a technique for organizing verbal information into

a visual pattern. An affinity diagram starts with specific ideas and helps

you work toward broad categories. This is the opposite of a cause and

effect diagram, which starts with the broad causes and works toward

specifics. You can use either technique to explore all aspects of an

issue.

Affinity diagrams can help you:

• Organize and give structure to a list of factors that contribute to a

problem.

• Identify key areas where improvement is most needed.

How to do it:

1. Identifythe problem. Write the problem or issue on a chalkboard

or flip chart.

2. Generate ideas. Use an idea-generation technique to identify all

facets of the problem. Use index cards or sticky-back notes to

record the ideas.

3. Clusteryourideas(on cards orpaper)into relatedgroups. Use

questions like "Which other ideas are similar?" and "Is this idea

somehow connected to any others?" to help group the ideas

together.

4. Createaffinitycards. Foreachgroup,createanaffinitycard,acard

that has a short statement describing the entire group of ideas.

5. Cluster related affinity cards. Put all of the individual ideas in a

group under their affinity card. Now try to group the affinity cards

under even broader groups. You cancontinuetogroupthecards until

your definition of "group" becomes too broad to have any meaning.

6. Create an affinity diagram. Lay out all of the ideas and affinity

cards on a single piece of paper or a blackboard. Draw outlines of

the groups with the affinity cards at the top of each group. The

resulting hierarchical structure will giveyouvaluable insight intothe

problem.

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DAU PROGRAM MANAGERS TOOL KIT

AFFINITY DIAGRAM EXAMPLE

A publication team wantedto reducethe number oftypographical errors

in their program's documentation. As part of afirst step, they conducted

a brainstorming session that produced the following list of factors that

influenced errors.

Computers No Feedback

Proofreading Skill Printers

Unreasonable Deadlines Noise

Lighting Typewriters

Chair Height Comfort

Desk Height Time of Day

Technical Jargon Interruptions

Handwriting Grammar

Slang Spelling

Draft Copy Punctuation

Distribution Font

Final Copy Editing Skill

Computer Skill Typing Skill

No Measurements

The following affinity diagram helped them to focus on areas for further analysis.

Typographical Errors

Environment

Interruptions

Unreasonable

Deadlines

Time of Day

Ergonomics

Noise

Lighting

Desk Height

Chair Height

Comfort

Equipment

Computers

Printers

Typewriters

Original Document

Author Skill Requirements

Handwriting

Grammar

Punctuation

Spelling

Draft Copy

Final Copy

Distribution

Font

Technic

Slang

al Jargon

Training

Typing Skill

Editing Skill

Computer Skill

Proofreading Skill

No Definition

of Quality

No Measurement

No Feedback

Affinity Diagram

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PAIRWISE RANKING

Pairwise ranking is a structured method for ranking a small list of items in

priority order.

Pairwise Ranking can help you:

• Prioritize a small list.

• Make decisions in a consensus-oriented manner.

How to do it:

1

1

Constructapairwise matrix 2

Each box in the matrix represents the intersection 3

(or pairing) oftwo items. If your list has five items, 4

thepairwise matrix would look likethis, withthetop

box representing idea 1 paired with idea 2:

2. Rankeach pair. For each pair, have the group (using a consensusoriented discussion) determine which of the two ideas is preferred.

Then, for each pair, write the number of the preferable idea in the

appropriate box. Repeat this process until the matrix is filled.

2

~~| 3

U

2

1

2 2

4

2

3

4

5

1

2 2

3 3 1 3

4 4

5

1 and 2 compared

2 is better

1 and 3 compared

1 is better

2 2 2

3 1 2 3

4 1 2 3 4

5 5 5 5 5

...and so on

untill...

4 and 5 compared

5 is better

3. Count the number oftimes each alternativeappears in the matrix.

Alternative 5

ranks 1st overall

Alternative 1 2 3 4 5

Count 2 3 1 0 4

Rank

Rankallitems. Rankthe alternatives by thetotal number oftimes they

appear in the matrix. To break atie (wheretwo ideas appear the same

number oftimes), look atthe box in whichthosetwo ideas are compared.

The idea appearing in that box receives the higher ranking.

Alternative 5 appears

4 times in the matrix

Alternative 1 2 3 4 5

Count 2 3 1 0 4

Rank 3rd 2nd 4th 5th 1st

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DAU PROGRAM MANAGERS TOOL KIT

PAIRWISE RANKING EXAMPLE

A program team was asked to recommend a site for testing a unique

portion of a system. A feasibility study produced a list of six possible

locations. The team then used pairwise ranking to determine that

Nellis AFB was best suited for this particular test.

1. FortHuachuca

2. Edwards AFB

3. KirklandAFB

4. Nellis AFB

5. Eglin AFB

6. HanscomAFB

2

1

2 2

*

3 1 3 3 Site 1 2 3 4 5 6

4 4 M 4 4 ^- Count 2 1 1 5 4 2

5 5 5 5 ' /A 5 Rank 3rd 6th 5th 1st 2nd 4th

6 1 6 6 4 5

PARETO CHART

A bar chart which arranges contributing factors/causes to a problem in

order with respect to their degree of contribution to the problem.

Used for analyzing problems, a Pareto chart can help:

• Select improvement opportunities;

• Identify root causes with greatest impact from a cause and effect

diagram;

• Check results of improvement efforts by comparing Pareto charts

before and after action is taken.

40—

30—

20—

10—

(Food Service)

%

Contribution

mmm

POOR

SERVICE COST QUANITY

Causes

TASTE OTHER

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DAU PROGRAM MANAGERS TOOL KIT

BENCHMARKING

Benchmarking is the process of measuring products, services, and

practices againstthe toughest competitors or those known as leaders in

their field. Benchmarking can help you:

• Understand how you compare with similar organizations.

• Identify areas for process improvement.

How to do it:

Identify the process to be benchmarked. Select a process (as

opposedtoa product) thatis importantto both your organization andyour

customers. Be sure the process in your organization is similar to, and

measured in the same manner, as the one it's being compared to.

Study other organizations. Develop a list of organizations with

comparable products and services. Determine what specific processes

the organization performs. Based onthis information, rankthe organizations from best to worst.

Compare and evaluate. Compare your process to the best and worst

cases, and listthe important differences. Thesedifferences can suggest

potential improvements to your process.

Benchmarking Example

Using inputstheircustomers provided, the executive leaders at

AF Product Division B decided

that their source selection process needed improvement. As

part of the initial analysis, they

wantedtosee how their process

compared with others. They determined that the average number of days required for source

selection was an important process measure.

As a result of this analysis, representatives visited AF Product

Division A and Navy Division B

and studied their source selection procedures.

Source Selection

Best

AF Product Division A —i— 75 days

Navy Product Division B

AF Product Division B

(OurOrganization)

— - 95 days

Army Product Division A 110 days

Navy Product Division A 140 days

79 days

Government Agency C —'—200 days

Worst

(Average numberofdays required)

Note: Benchmarking is nor replicating a process from an organization that

excells. (Unless your goal is to be 2nd best.) It is studying the process, clearly

understanding the theory behind the process and then restudying your own

process to determine improvements.

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FLOWCHARTING

A flowchart is a graphic representation of the steps of a process.

Flowcharts help us understand the process by mapping out the steps in

as much or as little detail as needed.

Enlisted Accessions and Training

Used for analyzing a process, a flowchart can help:

• Understand the existing process;

• Locate improvement areas in a process;

• Document changes to a process;

• Show relationships between different steps in a process; and

• Identify critical stages of a process.

There are standard flowchart symbols. When you are developing a

flowchart, especially in a group environment, the goal is to chart the

process. Don't waste time debating which shape a symbol should be. A

flowchart that doesn't use the standard symbols can be just as useful as

a chart that does use them.

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DAU PROGRAM MANAGERS TOOL KIT

STANDARD FLOWCHART SYMBOLS

This Symbol- Represents.,

Start/Stop

Decision Point

Activity

Document

Some Examples:

RecieveTrouble

Report

Machine operable

Approve/Disapprove

Accept/Reject

Yes/No

Pass/Fail

Drop offtravel

voucher

Open access panel

Connector (to

another page or

part of the

diagram)

Fill out trouble

report

dfc-®

DEPLOYMENT FLOWCHARTS

A deployment flowchart shows the process flow and the work groups

involved in each step. It provides a graphic representation of a given

process or system work groups, orindividuals responsiblefor each activity.

A deployment flowchart is used anytime individuals or groups need to

analyze a process in order to improve a system.

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DAU PROGRAM MANAGERS TOOL KIT

Deployment flowcharts are used for various functions such as training

agenda, daily schedule, meeting analysis, emergency procedures, purchasing process, communication procedures, maintenance process, etc.

Deployment Flowcharts:

• Identify involvement in a process, as it relates to the whole process.

• Define work processes, and identify existing loops through people or

departments.

• Visualize a process or system.

dllii Time correlation if applicable

Process Identification

Cast of Characters

Task Box

Circle denotes added support

Meeting

Decision Diamond

Decision Line

Shadow box means more information

on another flow chart

Report

_ . Source: Or. Myron Trlbus

fcna Deployment Flow Charting

Quality & Productivity, Inc.,

Los Angeles, CA 90024

Deployment Process

1. Select a process or system to analyze.

2. Identify the cast of characters (people involved in the process).

3. Document the existing process using the flowchart symbols.

4. Discuss changes to be made in the process with all those involved with

the process.

5. Update the deployment flowchart with the proposed changes and

implement the new process

6. Study the effectiveness of the change and return to step #1 above.

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DAU PROGRAM MANAGERS TOOL KIT

NOMINAL GROUP TECHNIQUE (NGT)

Ranking of consensus

Why?

Allows a team to come to consensus on relative importance of issues,

problems, or solutions by combining individual importance rankings into

a team's final ranking.

What?

• Builds commitment to the team's choice through equal participation in the process

• Allows every team member to rank issues without being pressured

by others

• Puts quiet team members on an equal footing with more dominant

members

• Makes a team's consensus (or lack of it) visible; the major causes

of disagreement can be discussed.

How to do it:

1 .Generate the list of issues, problems, or solutions to be prioritized

|-Cs=i In a new team with members who are not accustomed to team

^-^ participation, it may feel safer to do written, silent brainstorming, especially

when dealing with sensitive topics.

2. Write statements on a flipchart or whiteboard

3. Eliminate duplicate and/or clarify meanings of any of the statements

r^-Og—' As a leader, always ask for the team's permission and guidance

^ when changing statements.

4. Record the final list of statements on a flipchart or whiteboard

Example: Why does faculty have inconsistent output?

A Lack of training

B No documented process

C Unclear quality standards

D Lack of cooperation with other departments in developing

standards

E High turnover

r'nto—' Use letters rather than numbers to identify each statement so that team

members do not get confused by the ranking process that follows.

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DAU PROGRAM MANAGERS TOOL KIT

5. Each team member records the corresponding letters on a piece of

paper and rank orders the statements

Example: Larry's sheet of paper looks like this:

A 4

B 5

C 3

D 1

E 2

rj^vP3This example uses "5" as the most important ranking and "1" as

the least important. Since individual rankings will be later

combined, this "reverse order" minimizes the effect of team

members leaving some statements blank. Therefore, a blank

(value = 0) would not, in effect, increase its importance.

6. Combine the rankings of all team members

John Paul üeorge Ringo Mary Tota

A 4 5 2 2 1 = 14

B 5 4 5 3 5 = 22

C 3 1 3 4 4 = 15

D 1 2 1 5 2 = 11

E 2 3 4 1 3 = 13

"No documented process," B, would be the highest priority. The team

would work on this first and then move through the rest of the list as

needed.

Variation:

WeightedMultivoting

Each team member rates, notranks, the relative importance of choices

by distributing a value, e.g., 100 points, across the options. Each team

member can distribute this value among as many or as few choices as

desired.

Example:

John Paul George Ringo Mary Total

A 20 10 30

B 40 80 50 100 45 315

C 30 5 10 25 70

D 5 10 20 35

E 10 10 20 10 50

With large numbers of choices, or when the voting for the top choices is

very close, this process can be repeated for an agreed upon number of

items. Stop when the choice is clear.

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DAU PROGRAM MANAGERS TOOL KIT

CREATIVE PROBLEM SOLVING

PROCESS STEPS

1. List perceived problems

2. Gather relevant data

3. Define actual problem

4. Determine alternative solutions

5. Analyze and evaluate alternatives

6. Select solution

7. Validate solution

DIVERGENT THINKING*

1. Accept all ideas and alternatives

2. Defer judgment or evaluation

3. Discuss, combine, hitchhike, improve ideas

4. When exhausted, move to converge

CONVERGENT THINKING*

1. Establish categories of alternatives

2. Develop evaluation criteria

3. Avoid premature closure

4. Keep eye on objective

5. List strengths and weaknesses

6. Select best alternative or idea

"Used sequentially during all problem-solving steps

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DAU PROGRAM MANAGERS TOOL KIT

KNOT CHART

The Knot Chart is useful for:

• Initially sorting the wheat from the chaff

• Organizing/coordinating the next steps of the problem solving

process

Know Need to know Opinion Think we know

As you work your way thru the problem, everything should move into

the left column - Know.

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DAU PROGRAM MANAGERS TOOL KIT

QUALITATIVE PROBLEM SOLVING

(Kepner-Tregoe)l/

Deviation Statement: (Describe the actual performance vs . should performance)

Specifying

Question

is Is Not

What is distinctive about

"Is" vs. "Is Not"?

Does the distinction

suggest a change?

What?

(Identify)

Where?

(Location)

When?

(Timing)

Extent?

(Magnitude)

Possible Causes:

Most Likely Cause:

1. Define deviation.

2. Describe what deviation IS and IS NOT.

3. List distinctions between what deviation IS and IS NOT.

4. Do distinctions indicate or suggest a change?

5. Determine possible causes based on distinctions and changes.

1/ Copyright Kepner Tregoe, Inc. (1981). All rights reserved. Reprinted with permission. (Kepner-Tregoe, Inc.,

Research Road, P.O. Box 704, Princeton, N.J. 08542)

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DAU PROGRAM MANAGERS TOOL KIT

GANTT CHART

A Gantt Chart is used for planning schedules and managing projects. It

is a method for basic planning and work instruction.

How to do it:

1. The Gantt Process begins by listing the activities of a project in

order of execution.

ACTIVITIES

1. Requirements are written

2. Finances are arranged

3. Bidding takes place

4. Contractor is selected

5. Prototype is built

6. Testing begins

2. Place the number of each activity across the top of your chart. Time

duration such as days, weeks, years, etc., can replace activity numbers if appropriate.

3. Draw vertical lines across the chart for each item.

4. Starting with number 1 begin comparing the activities. Can number 1

be done at the same time as number 5 or 6?

5. Draw horizontal lines to indicate which activities can be done simultaneously.

ACTIVITIES 1 2 3 4 5 6

1. Requirements are written

2. Finances are arranged

3. Bidding takes place

4. Contractor is selected

5. Prototype is built

6. Testing begins

«Sä*'.*

KSJäS**

pr«—'*W'-i-fJii

SSSE SSHH

Bg*^«!

6. You now have an overview of your project giving you a starting point,

and time saving measures to help you complete the project on time.

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DAU PROGRAM MANAGERS TOOL KIT

Notes

110