portfolio management framework: improving project...
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Portfolio Management Framework:Improving Project ManagementImproving Project Management
Rodrigo (Rod) V Rimando JrRodrigo (Rod) V. Rimando, Jr.Acting Deputy Assistant Secretary
Office of Project ManagementOffice of Project Management
Environmental Management
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• Update on restructuring EM’s portfolio of Recovery Act worky– Effects and results of change– Recovery Act portfolio performanceRecovery Act portfolio performance
• EM’s Journey to ExcellenceTranslating Recovery Act change to– Translating Recovery Act change to continuous improvement in project management
Topics
management
Topics
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• Project Baseline Summary (PBS) “Projects”– DOE O 413.3A applied– All-inclusive scope → “kitchen sink”– Prolonged durations → spanned decades
Hi h TPC lif l t $ billi– High TPCs → life-cycle costs → $ billions• American Recovery and Reinvestment Act
“O i ht” i f i f $6 billi– “Overnight” infusion of $6 billion– Execute “shovel-ready” projects– Save and create jobs “yesterday”
The Need for Change
– Save and create jobs yesterday
The Need for Change
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ARRA J b F iARRA J b F iARRA Jobs FairsARRA Jobs Fairs
The Catalyst for ChangeThe Catalyst for Change
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• Issued July 14, 2009• Differentiate programs, p g
projects and activities from each other– Apply DOE O 413.3A to
capital asset work only– Smaller more– Smaller, more
manageable projects– Deliver project success
A Significant ChangeA Significant Change
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EM’s Recovery Act PortfolioEM s Recovery Act Portfolio
Capital Asset Projects
$2 4BOperations
$2.4B40%
& Programs$3.6B60%60%
The Result of ChangeThe Result of Change
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Change in MotionChange in Motion
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49 Ops• 49 Ops• 42 CAPs
P t $4 020B• Payments= $4.020B• BCWS = $3.700B
C $• BCWP = $3.736B• ACWP = $3.532BSPI = 1.01CPI = 1.06
Changing to “GREEN”“GREEN”EAC = $5.662B
Changing to GREENGREEN
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EM’s “Base” Portfolio
CapitalAsset Projects
70 IPABS accounts
29%Operations & 29%pPrograms174 IPABS accountsaccounts
71%
The Continuum of ChangeThe Continuum of Change
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• What We Do1. Complete three major tank waste projects2. Reduce lifecycle costs; accelerate cleanup3. Disposition 90% of legacy TRU by 20154. Reduce legacy footprint by 40% in 2011
leading to 90% in 2015Ho We Do It• How We Do It5. Zero accidents, incident and defects6 Improve contract and project management
Journey to Excellence
6. Improve contract and project management7. Excellence in management and leadership
Journey to Excellence
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FY11 Metric 1.1FY11 Metric 1.1– Maintain CPI and SPI between 0.9 to 1.15
FY11 Metric 1.2e c– 90% of CPRs are performed as planned
FY11 Metric 1.3– 90% of CPR corrective actions are closed out
within six monthsFY11 Metric 1.4
– Develop meaningful performance measures and track monthly
Goal 1: Successful Completion of Tank and track monthly
Waste Treatment Construction Projects
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PROJECT CPIcum SPIcum TPCcum cumWaste Treatment Plant 1.00 1.00 $12,263M
Salt Waste Processing Facility 0.95 0.94 $1,339M
Sodium BearingSodium Bearing Waste Treatment 0.92 0.95 $571M
Performance of Construction ProjectsPerformance of Construction Projects
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FY11 Metric 6 1FY11 Metric 6.1– Complete 90% of projects within 10% of original
performance baselineFY11 Metric 6.2
– Achieve and maintain 95% to 98% data accuracy among field, IPABS & PARS II
FY11 Metric 6.990% f j h FPD i d– 90% of projects have FPDs assigned at appropriate certification level
Goal 6: Improve Contract and Project Management to Deliver Success
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Forecast of Cleanup Project Successes
DOE
3-year Rolling Average (100%, 93%,
EM FY 2011 Metric 6.1
9% 11%
70%
80%
90%
100%
100%91% 89%
40%
50%
60%
70%
5 of 5 21 f 23
10%
20%
30%
40% 5 of 5 21 of 23 24 of 27
Metric 6 1: Project Successes
0%
10%
FY10 FY11 FY12
Metric 6.1: Project Successes
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Field Element & Contractort i f ti t fmanagement information systems for
capital asset projects
DOE’s managementIPABS ISEM’s lifecycle
management information
DOE’s management information system for all capital asset
IPABS-IS
Metric 6 2: Data Accuracy
management information system for its portfolio projects
Metric 6.2: Data Accuracy
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FY 2009 FY 2010 FY 2011Percentage of FPDs certified
FY 2009 FY 2010 FY 2011
Actual Target Actual Target Projection Target
at appropriate level 58% 85% 92% 88% 92% 90%
Metric 6 9: FPD CertificationMetric 6.9: FPD Certification
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• Change has been good– Recovery Act portfolio restructuring more
manageable work scopes project success• Smarter management of work
G t t i t t– Greater returns on investment– Ability to do more work
Building off of Change• Building off of Change– “Chunked” entire EM portfolio
• Change = Continuous Improvement EM’s
Conclusion
• Change = Continuous Improvement EM s Journey to Excellence
Conclusion
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Don’t get caught flat-footed!
Parting ThoughtParting Thought