Tutorial on Environmental Managements PerformanceBased Project Management

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Tutorial on Environmental Managements
Performance-Based Project Management

• Jay E. Rhoderick
• Director, Office of Project Oversight
• Office of Environmental Management
• November 29, 2006

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Project Management Within DOE

• Late 1990s, National Research Council (NRC)
  conducted a study to Improve Project Management
• Construction and environmental projects take
  much longer and cost about 50 more then
  comparable projects by other federal agencies or
  projects in the private sector (NRC)
• Improvements made by implementation of DOE Order
  413.3A (2003)
• Five Critical Decision gates for senior
  management decisions on projects
• Emphasis on earned value management
• Safety in design
• Certification of Federal Project Directors
• Monthly Reporting to the Deputy Secretary on
  earned value for all DOE Projects

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DOE Acquisition Management System
External Independent Review for Projects 100M
External Independent Review for Projects 750M
(Major Systems)
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Project Management Within DOE (Continued)

• DOE Order 413.3A (2006) Improvements
• Required safety reviews and safety documentation
  earlier in design process
• Delegated independent reviews of projects less
  than 100M to Program Offices
• Bolstered role of Integrated Project Teams
• Defined specific requirements cleanup projects

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Integrated Management Framework for EM
Completion Remediation (Cleanup) Requirements(1)
RESPONSE ACTION IMPLEMENTATION
RESPONSE ACTION COMPLETION
RESPONSE ACTION EVALUATION
RESPONSE ACTION PROPOSAL
RESPONSE ACTION SELECTION
SITE DISCOVERY PROBLEM DEFINITION
EM COMPLETION
LONG TERM RESPONSE ACTION
CLEANUP LIFE-CYCLE
US DOE Project Management Requirements(2)
Typical Project Life-Cycle
LONG-TERM RESPONSE ACTION AND LONG-TERM
STEWARDSHIP
CD0
CD1
CD2
CD3
CD4
CLOSEOUT TRANSITION PHASE
EXECUTION PHASE PERFORMANCE BASELINE(33)
INITIATION PHASE
DEFINITION PHASE
EM Baseline Management Requirements
CD0
CD1
CD2
CD3
CD4
PLANNING PHASE
PERFORMANCE PHASE
POST-COMPLETION PHASE DISPOSITION BASELINE(4)
(1) The typical CERCLA cleanup process
is shown. Other programs (e.g., RCRA, TSCA,
USNRC, etc.) have a similar structure.
(2)
Typical structure for capital asset and line item
projects. Department policy is to apply project
management principles to cleanup.
(3)DOE Manual 413.3-1 requires a
Performance Baseline at Critical Decision 2(CD2)


(4)Refer to DOE Order 430.1B regarding
requirements for preparing Disposition Baseline
for real property assets.
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Table 1 Crosswalk of Baseline Management, Project
Management and Remediation Phases and
Requirements
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Table 1 Crosswalk of Baseline Management, Project
Management and Remediation Phases and
Requirements
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Project Management Within EM

• EM has applied project management to the entire
  environmental cleanup effort, not just capital
  asset projects
• EM has 87 projects with a total project cost of
  160 billion
• EMs Projects undergo rigorous External
  Independent Reviews
• Review for certification of DOE contractors
  Earned Value Management System are conducted by
  Defense Contract Management Agency (DCMA) in
  accordance the industry guidelines and standards
• Contractors system is certified by DOE once all
  corrective actions have been completed

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Project Management Within EM (Continued)

• Certification of EM Federal Project Directors
• 58 currently certified
• 25 additional by April 2007
• Levels 1 through 4 required based on the value of
  the project and complexity
• Ongoing education of maintain certification
• EM Project Management Policy
• EM Acquisition Advisory Board (EMAAB)
• Contingency Policy
• Risk Management Policy and Guidance
• Federal Project Director Workshops
• Training
• Successes and Lessons Learned
• Break-out sessions of similar projects
• Project Validations and Reporting

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Project Reporting Within EM

• Critical Decisions by the Acquisition Executive
• Environmental Management Acquisition Advisory
  Board
• Baseline Change Control
• Monthly reporting of project performance to the
  Deputy Secretary
• Quarterly Progress Reviews with the Assistant
  Secretary for Environmental Management
• Project closeout and reporting of Lessons Learned

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EARNED VALUE MANAGEMENT

SITE Savannah River Site PBS SR-0013
Assessment Title Solid Waste
Stabilization and Disposition Original BAC
2,450M (PARS Baseline) Current BAC 1,881M
(2005 GEN-2 Report BCPs) EAC 3,059M (2006
Project Execution Plan) Near Term Baseline
311.8M Validated TPC (LCC) Yes _____ No
__X __ FPD Douglas E. Hintze, (803)
208-6076 Contractor Washington Savannah River
Company LLC (WSRC) Status Phase 3 (Pre
CD-2) Project Narrative Description Storage,
treatment, and disposal of transuranic,
low-level, mixed, hazardous, and sanitary waste
as well as Pollution Prevention, Waste
Minimization, Waste Certification, other waste
management support functions, and SRS
infrastructure.
Sept 2006 CPI 1.17 SPI 1.05
Project To Date CV 13,353 CPI 1.04 SV
(22,387) SPI 0.93 Last Six Months CV
15,259 CPI 1.28 SV 8,131 SPI 1.13
PROJECT RISK and RISK MITIGATION The updated
Solid Waste Stabilization and Disposition Project
Risk Management Plan (issued July 2006) documents
the systematic process for assessing and managing
the risks and opportunities for the project.
The risk management plan identifies 14
PBS-level risks and risk handling
strategies. Risk Providing adequate drum feed
to Central Characterization Project (CCP)
characterization operations in FY 2007 to meet EM
baseline shipping schedule and Battelle Columbus
Agreement with South Carolina (Risk Event
ID009) Planned Action Complete Low Activity
drum remediation by January 2007. Risk Nuclear
Regulatory Commission (NRC) license of
Transuranic Package Transporter Model III (Risk
Event ID017) Planned Actions CBFO will
fabricate (complete) and drop test (on schedule)
unit by December 2006 and resubmit license
application to NRC (2Q07). Large container
characterization equipment is being developed and
deployed by EM-21.
SAFETY PERFORMANCE
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EM Project Management Systems Accomplishments

• EM has made significant improvement in project
  performance in FY06
• January 2006 15 red/yellow projects
• October 2006 3 red/yellow projects
• 58 Certified Federal Project Directors
• Use of industry-standard project management and
  business management processes
• 36 of Projects have Certified EVMS

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Summary

• DOE has had a significant culture change in the
  last five years in applying a more rigorous
  project management structure
• EM has applied DOE Order 413.3A to our entire
  portfolio
• EM continues to complete cleanup in a safe,
  compliant manner with Senior management focus on
  controlling cost and schedule

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Backup
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Project Management Career Development Program
Certification Requirements Matrix (Draft)