1. Linac Ops Budget Structure & Approach WBS 1 – LCLS Mgmt & Admin
Mark Reichanadter
LCLS Deputy Director
SLAC National Accelerator Laboratory

2. Outline Budget Structure Development Management & Performance
Linac Ops WBS Organization
Scope Statements
Management & Performance
Work Authorization, Account Mgrs, WBS Mgrs
Business Rules / Configuration control
Assessment & Feedback
Out-Year Planning & Lessons Learned
LCLS Mgmt & Admin (WBS 1)
FY09 Linac Ops Review
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3. Budget Development September 2006 Linac Ops Review
Bottoms-up (activity-based)
No experimental ops
February 2009 Linac Ops Review
Bottoms-up (improved activity-based w/defined scope)
LCLS Operations FY09 budget includes:
$96.7M Linac operations and SLAC core competencies and capabilities supporting LCLS science
$2.0M Experimental operations & user support/administration
Includes work authorization and change management
FY09 Linac Ops Review
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4. Work/Budgets align with Organization
WBS 1.X – LCLS Directorate
Supports general mgmt & administrative costs
WBS 2.X – Accelerator Operations
Supports LCLS accelerator operations
WBS 3.X – Engr & Physics Operations
Centralized engineering/physics staff assigned to 2.x, 4.x, 5.x)
WBS 4.X – Experimental Operations
Supports LCLS photon operations, beamlines, user admin
WBS 5.X – Strategic Projects (LCLS/LUSI LI, Upgrades)
Supports LCLS/LUSI construction, upgrades, new projects
WBS 8.X – SLAC Operations
Supports LCLS core competencies or services above the G&A level
WBS 9.X – SLAC Engineering & Technical Support
Supports LCLS core competencies in ETS
FY09 Linac Ops Review
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5. Budget Model - Categories of Support
Direct program – direct costs of supporting Linac Operations or LCLS Experimental Operations.
WBS 1, 2, 3, 4, 5
Core competencies – cost of all technical infrastructure at SLAC essential to support LCLS Linac Operations or Experimental Operations
WBS 8, 9 (BES Primary Stewardship of SLAC)
Indirects - site-wide support such as ES&H, Business Services, Site Maintenance, IGPP, LDRD
Rates: 45.0% labor, 8.0% M&S
LCLS and LUSI projects use major capital project rate
FY09 Linac Ops Review
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6. Building/Scrubbing the Ops Budget
Initial budget submission
LCLS Division Directors estimate internal needs
Ops and ETS Departments estimate budgets to support Linac Ops
Bottoms-up budgets for Linac Ops in 2009
Check against September 2008 (HEP-BES) actuals
Include LCLS AIP (S20-S30) and planned upgrades/legacy issues
Roll up/review budget
All budgets require detailed L3 scope statements and resource detail at L4.
Scrubbing process removed unrealistic scope increases and/or hiring.
Pushed some planned work into FY10 to provide small reserve.
FY09 Linac Ops Review
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7. LCLS Operations Budget (FY09)
2.5% Linac Ops and 6% Exp Ops reserve allocated
to address issues (emergencies, opportunities, etc.).
FY09 Linac Ops Review
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8. FY09 Staffing FY09 ~361 FTEs Most Engineers matrixed from EPD
Most Technicians matrixed from Ops/ETS
Significant ramp-up in Photon operations over next 3 years.
Some new hires
Some roll-off of construction project
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9. LCLS Ops Base Cost (FY09 – FY12)
FY09 Linac Ops Review
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10. LCLS Ops Escalated (FY09 – FY12)
Assumes annual escalation of 4% labor, 2.5% M&S
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11. LCLS Ops FTEs (FY09 – FY12)
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12. LCLS Scope Statements Define the Work
WBS, Scope title, responsible managers
Scope of work statement
Responsible organization
Fund Type
Work Authorization
FY09 Linac Ops Review
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13. Basis of Estimate Methodology
Basis of estimate is done at WBS L4
Labor estimates
How many (and fraction of) FTE’s
Type of FTE (engineer, scientists, IT professional, etc.)
Average resource rate table (validated against actual salaries)
Performing Organization (ETS, Ops, LCLS Directorates)
Shop labor
M&S estimates
Travel
Equipment
Basis of estimate is included in the backup documentation
FY09 Linac Ops Review
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14. Work is authorized at WBS Level 3
Scope statements integrate fund management & accounting processes to track performance.
WA Signed off by:
Account Manager
Responsible for L3 accounts
WBS Manager (typically Division Director)
Responsible for WBS L2 and related L3 accounts
LCLS Associate Laboratory Director (ALD)
Responsible for LCLS FWP (Linac Ops & LCLS Exp Ops)
LCLS Business Manager
Ensures adequate funds available
LCLS ‘business rules’ are under document control.
Included in backup documentation
FY09 Linac Ops Review
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15. Procurement Approval Thresholds
Technical Approval
Account Manager
<$10,000
WBS Manager
<$50,000
LCLS ALD
<1,000,000 for WBS 1,2,3,4,5
LCLS ALD and Ops/ETS ALD
<1,000,000 for WBS 8/9
SLAC Director
>1,000,000
Budget Approval
LCLS Finance Manager
<$10,000
LCLS Business Manager
<$1,000,000
SLAC CFO
>$1,000,000
FY09 Linac Ops Review
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16. Monthly status reporting
Budgets versus actuals
Linac Ops does not use “earned-value” but activity-based budgets allow for variance analysis at L3/L4
Change management
L3 budgets are increased (or decreased) as necessary to optimize performance of science program.
Update and reauthorize work consistent with new budgets and overall funding availability.
FY09 Linac Ops Review
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17. Linac & Exp Ops Budgets vs Actuals
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18. Budget Process for FY10 and Out-Years
Detailed budget process starts mid-July
Set next years strategic goals
Machine performance, planned AIPs
Operation statistics, MTBF, legacy issues
# of hours to users, power costs
Assess current year costs versus scope
Use June actuals (3 of 4 quarters costed)
Integrate Ops and ETS core competencies
Lab G&A, lessons learned
Iterate on budget versus goals to optimize balanced goals of LCLS science and safe operations
Budget approved by LCLS ALD mid-Sep
FY09 Linac Ops Review
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19. Summary
Linac Ops and Exp Ops budgets are bottoms-up, activity-based and resource-loaded.
Work and budget are linked to provide transparency.
SLAC core capabilities necessary to support the LCLS mission are included in Linac Ops budget.
Management tools adequate to track operations
“Just enough” project management
Yearly budget cycle will address future operational and programmatic goals and legacy issues.
Draw upon previous results + lessons learned
Independent assessments and feedback
FY09 Linac Ops Review
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20. WBS 1.X – LCLS Mgmt & Admin WBS 1.1 Scope of work Directorate Support
ALD and Sr Mgmt Team
Administration
ES&H, WP&C
Special Project Support
Business Office
Business Mgr & Deputy
PMCS, Finance
Procurement
Info Technology
Centralized funding for general travel and M&S
WBS 1.1 Total
~ $3.98M FY09
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21. LCLS Directorate
FY09 Linac Ops Review
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22. Mgmt/business processes (from projects) are mature and effective
LCLS Business Office
Mgmt/business processes (from projects) are mature and effective
Migrate BO to centralize business practices and policies to support ops
FY09 Linac Ops Review
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23. FY10 – FY12 FTE/Budget Forecast
FY09
FY10
FY11
FY12
1.1.ALD Office
4.6
7.5
1.2.Dir Wide Support
0.0
1.3.Business Support
6.7
7.7
8.5
TOTAL FTEs
11.3
15.2
16.0
WBS 1.X staffing mostly in place.
FY10-FY12 additions:
ALD Head + Sr. Science
Work Planning & Control
Administrative Staff
Deputy BO/PMCS Lead
FY09
FY10
FY11
FY12
1.1.ALD Office
1,637
2,109
2,191
2,278
1.2.Dir Wide Support
571
705
760
786
1.3.Business Support
1,771
2,052
2,234
2,316
TOTAL K$ as ESCALATED
3,979
4,866
5,185
5,380
FY09 Linac Ops Review
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24. Risks and Mitigations
LCLS business model moving from project to operations
SLAC business model moving from single to multi-program
LCLS – establish scope statements, transparent accounting
SLAC – Significant effort in Operations to establish common financial reporting, metrics and accounting practices across all Directorates.
Ability to hire and retain high-quality staff
Hire new ALD and complete senior management team
PMCS and Procurement teams are critical to project delivery
Ramp-up photon ops, instr scientists and user admin are key to success
Taking ‘eye off the ball’ on LCLS and LUSI projects
Maintain LCLS and LUSI cost and schedule performance
Business Office to maintain all project tools and processes (certified EVMS, procurement cell, risk registry)
FY09 Linac Ops Review
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25. Summary
LCLS transformation from project to ops/project organization basically complete.
Using centralized and uniform business rules and processes.
Directorate and BO designed to support operations as well as capital projects.
Centralize ES&H / WP&C function.
Maintain EVMS certification and procurement cell through LCLS and LUSI projects.
Continue active risk management through full transition to ops.
FY09 Linac Ops Review
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