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CS5.2.1 Cleaning Up the Rivers to Cleanse the Lake. Project Scheduling and Reporting – an issue of Rubbish In, Rubbish Out Steve Onus. WEDNESDAY 10 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007

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WEDNESDAY 10 OCTOBER, 2007 Project Management - Setting the Standard


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    1. CS5.2.1 Cleaning Up the Rivers to Cleanse the Lake. Project Scheduling and Reporting – an issue of Rubbish In, Rubbish Out Steve Onus WEDNESDAY 10 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007

    2. Project Scheduling and Reporting in the Defence Materiel Organisation 10 Oct 07 Steve Onus Director, DMO Schedule Improvement Project

    3. Overseas: • USA • Europe Darwin Cairns Townsville Exmouth Amberley Oakey Brisbane Williamtown Sydney Wollongong Richmond Perth Rockingham Edinburgh Adelaide Nowra Bandiana Canberra Melbourne East Sale Hobart The DMO Context (50 locations in Australia and overseas)

    4. The DMO Context (Business Profile)

    5. DMO (Budget Profile 07-08) Major Capital Equipment Projects Sustainment Minors

    6. DMO LEADERSHIP TEAM – August 2007 My direct supervisor

    7. Cleaning Up the Rivers to Cleanse the Lake

    8. Background • DMO has an annual Acquisition budget of around $5B with a total project cost in the order of $60B covering close to 400 Capital Acquisition projects ranging in value from less than $1M to many Billions. • These projects are located in many of the 50 DMO locations around Australia and overseas with some projects in multiple locations.

    9. Background • The challenge for DMO is putting in place systems and processes to give the project manager autonomy to run the project but provide easy access at a corporate level to project data to allow DMO to inform management and meet our reporting obligations as a Prescribed Agency.

    10. Portfolio Budget Statement 2007/2008 • Section Two – Defence Materiel Organisation • Strategic priorities for 2007-08 (page 243) • “The DMO is strongly focused on continuing to improve its acquisition and sustainment core business, ensuring the effective implementation of enhancements to its business processes and systems, and continuing the reform program • Key priorities for 2007-08 are: • A standardised approach to schedule management to reduce slippage in major projects”

    11. DMO ..Customer , Supplier DMO (Supplier / Customer) Defence (Customer) Industry (Supplier / Customer) Service Fee • Requirements • Contract • $ • GFX • Requirements • Contract • Requirements • Agreement • $ • GFX Project Effort Contractor Master Schedule Project Schedule • Deliverables • Project Status • Deliverables • Project Status Reporting • Deliverables • Project Status Reporting

    12. Project Management in DMO Project Performance Reporting Project Closure Project Performance Reporting Report to Defence Committee & Minister ( ongoing until project delivery) Contract Performance Reporting Company Score Card Enter Contract Delivery Project Enters DCP 1st pass Government Approval 2nd pass Government Approval • System Integrator • Foreign Government • Other Government Agencies • Multiple Contracts • Prime System Integrator Reporting to Customer & Government Agencies (ongoing until closure)

    13. Typical Project Environment Government Approved project Scope Contractor’s Master Schedule Government Approved Project Scope Data Warehouse Schedule of Schedules DMO Executive Reporting Contract Project Management Reports Governance Reporting; Audit Reporting; DMO Reporting Systems Project Schedule Prescribed Agency Reports • Budget Agreement with Customer • Actuals • Budget Estimates • Additional Estimates

    14. The Goal • Customer requirement • Budget • Actuals • Project Effort • Resourcing • Contractors Master • Schedule • Standard Reports • Executive Reports • Project Reports • External Reports Automated Environment

    15. Cleaning Up the Rivers to Cleanse the Lake Lake Pedder 1972; before flooding

    16. In Conclusion “Schedule is King” “Schedule is 80% of overall problem” “Project Management is DMOs Core Business” CEO DMO Dr Stephen Gumley “Project Managers who succeed in meeting their project schedule have a good chance of staying within their project budget. The most common cause of blown project budgets is lack of schedule management”. Project Management 101 F. John Reh