1. Project Management What is a project?
What management tools are being used?
UH-specific solutions
US regulations
International comparison of best practices

2. Project: A (linear) Progression of Tasks
Scientific goal *
Scientific requirements *
Technical requirements *
Conceptual Design
Cost estimate
Preliminary Design
Final Design
Industrialization
Fabrication
Integration
Testing *
Commissioning *
Operation *
Scientific Research **
Maintenance
Upgrades *

3. The Ideal Project It is rare to find all these conditions fulfilled.
Project goals and requirements are stable
Sponsor support and funding is stable
Project success is undisputed goal
Resources must be matched to the project
Resources must be controlled by the project
Project team “owns” the project
It is rare to find all these conditions fulfilled.

4. The Real Project Usually less than ideal conditions
Problems create distractions for management
Management must bring perturbances under control, or the project might become chaotic.
For astronomical instrumentation:
Cost overruns have ranged from 10 % to 400 %
Schedule overruns from zero to infinity (never delivered)

5. The Astronomer’s Role Principal Investigator Project Scientist
Project Manager
Special Technology Expert (e.g., detectors)
Science Team

6. Contractual Models Grant (NSF ATI, NSF MRI, NASA)
Federal Contract (Gemini, AFRL)
Other Contracts (e.g. NOAJ, LMU)
Commercial Contracts (Oceanit, MKIR)
UH-specific constraints:
No “cost plus fixed fee” contracts
Purchase orders (for relatively simple things)
Fixed price contracts (very dangerous)
Cost-reimbursable service agreements (if you are lucky)

7. Contractual Models
The P.I. does not do the final contract negotiations.
The Office of Research Services does
P.I. writes proposals, incl. schedule and budget
ORS approves proposal
ORS negotiates grant or contract
Both P.I. and fiscal officer must approve expenditures.

8. Different Accounting Methods
US: All costs are being charged to the project, including labor costs.
Europe: Labor is usually paid from Institutes’ base budget, only materials, subcontracts, supplies etc. are charged to the project.
Japan: Rigid adherence to fiscal year budgeting.

9. UH vs. RCUH Research Corporation of the University of Hawaii
A company set up to get around UH purchasing and personnel rules
Most instrumentation projects service order their project to RCUH.
Biggest difference are purchasing rules and the ability to hire staff on a temporary basis.

10. Financing and funding
UH and RCUH usually work under the model of a federal grant: funds get granted in each budget year, get used, and the funding agency gets billed in regular intervals.
Most other contract partners understandably wish to pay after a product (instrument) got delivered.
UH can provide bridge funding in the form of interest-free advance-spending accounts.

11. Cost Estimates:
Comparison with similar projects
Cost scaling (power 2.5)
Inflation adjustments
Bottom up cost estimate after CDR
Best cost estimation method:
Initial estimate based on comparable projects
Final cost not defined at onset of project
Step-by-step approach to funding
Conceptual Design (error 50%)
Preliminary Design (error 20%)
Critical Design (error 10%)
Contractual contingency
Contract amendments
Incentives (e.g. observing time) for on-time, on-budget delivery

12. Purchasing (RCUH)
A large instrument project generates 1000 purchase orders.
3 quotes above $ 2500, but you can select who receives the requests for quotes.
Sole brand purchases
Sole source purchases
Price reasonableness form

13. Personnel Management Faculty time (G-funded) Salary buyout
Summer overload
Direct staff hires
JOS

14. Job Order System A system set up to allow staff allocation by the hour
Gives flexibility.
Controls on spending are difficult.
Control over resources is split.
Team coherence is difficult to achieve.

15. ITAR International Traffic in Arms Regulations
A cold-war relic to protect key military technologies from falling into enemy hands.
Administered by the State Department
Complex and constantly evolving regulations
Our problem: IR detectors are military equipment
Our other problem: UH is still learning
UH now has an “Empowered Official”
UH has retained a law firm in Virginia to advise us.
Technology Assistance Agreements
Screening of publications
Export License process

16. Planning Tools Gantt chart Resource load chart
Funding/Spending profile

17. Gantt Chart

19. Work Breakdown Structure (WBS)