1. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. Predictive Measures of Program Performance March 19, 2009 Industrial Committee on Program Management (ICPM)

2. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 2 Agenda What should we measure? How should we measure them? How are these metrics interrelated? Why are these the core common metrics? What are the next steps? Core Common Metrics for Improved Program Performance Data Driven Decisions

3. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 3 What should we measure? Requirements Stability & Completeness Funding Stability & Contract Health Technical Performance & Productivity Variance Risk & Opportunity Management Program Cost & Schedule Staffing & Critical Skills Supply Chain Performance Resources Issues & Help Needed Customer Satisfaction Key Categories Shared Metrics and Data

4. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 4 Key CategoriesMetrics Requirements Stability & CompletenessRequirements Volatility TBD/TBR Burn down Requirements Traceability Funding Stability & Contract HealthProgram Funding Plan Program Funding Status Contract Change Volume Technical Performance & Productivity VarianceTPM (Summary quick look) TPM Progress/Regress Burn Down Chart Software Productivity Risk & Opportunity ManagementRisk / Opportunity Summary Risk / Opportunity relative to MR Risk Mitigation Plan Program Cost & ScheduleCost Performance Index Schedule Performance Index Statistical EACs Cum CPI vs. TCPI EAC Baseline Execution Index Late/On-time Starts Critical Path Staffing & Critical SkillsCritical Skills Staffing Profile Supply Chain PerformanceParts Demand Fulfillment Supplier Acceptance Rate Supplier Late Starts ResourcesTop 8 IT Readiness Indicators Physical Inventory, Maintenance, Records, Relief of Stewardship Issues/Help NeededAction Tracking / Burndown Customer SatisfactionCPAR Award Fee Product Performance How should we measure them?

5. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 5 How are they interrelated? Requirements Stability and Completeness Program Funding Requirements Completeness  Requirements Completeness Program Funding (Plan vs Status), Contract Change Volume –Program Funding Often Constrains Early Start-up Activities within a Development Program –Contract Change Volume driven by Funding Flow less than Plan may Subsequently Drive Requirements Rigor –Volatility/Burn-down/Traceability Drive Reqmts Completeness, which Affects TPMs, that Drive R&O affecting EAC. Requirements Volatility TBD / TBR Burn Down Contract Change Volume Requirements Traceability

6. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 6 How are they interrelated? Program Cost & Schedule Schedule Performance Index IT Physical Inventory Baseline Execution Index  IT Physical Inventory Directly Affects Program Start-up & Efficiency. If Planned Staff is on Program Without the Right Tools –Planned Work does not Complete as Scheduled –Usually Utilizes Some Work-around Process –Work Around was not Originally Planned or Budgeted  Baseline Execution Index Indicates Whether Resources are being Applied to the Planned Baseline Work or Resources are being Applied to Unscheduled Work Because –Other Resources are not Available BEI is a Predictive Indicator of Schedule Performance Supplier Metrics Parts Demand Fulfillment Drives Supplier Starts Integrating Supplier Late Starts Predicts Late Finishes Product Acceptance Rate (Planned Vs Actual) –Supplier Product Delivery should be Included in the IMS –Supplier Delivery Rate is a Definitive Leading Indicator of Prime Contractor Performance –Where The Supplier Is An External Dependency On Or Near The Critical Path Supplier Product Acceptance Rate Supplier Late Starts Supplier Parts Demand Fulfillment

7. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 7 LEADING INDICATORS EVM Supplier Performance Engineering Critical Path Requirements How are they interrelated? Roadmap of Predictive Metrics

8. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 8 LEADING INDICATORS Cum CPI vs TCPI EAC Trip Wire Funding Late Staffing Late Starts How are they interrelated? Roadmap of Predictive Metrics

9. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 9 Why are these the core common metrics? Shared view of program performance by customers and industry Establishes critical behaviors / techniques for program success Portfolio management Transparency of data to avoid surprises –Clear Understanding of Requirements –Win-Win Business Arrangement –Transparency of Technical Performance –Cost / Schedule Performance, Risk Management, Resources, and Supplier Performance –Help Needed Culture – Across All Program Lines and Open Communication Relative to Issues –Clear, Continuous Feedback from the Customer One Plan / One Set of Metrics

10. Copyright © 2008 Industrial Committee on Program Management. All rights reserved. 10 What are the next steps? Beta Test the Metrics Pilot Programs Select –Specific Metrics for Each Category –Metric Format –Performance Parameters –Systems & Tools DoD / Services Select Pilot Programs –Recommend Selection of 1 New Program from Each Service