Progress in Improving Project Management at the Department of Energy 2003 Assessment (2004) / Chapter Skim
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Appendix D: Compilation of Findings and Recommendations
Appendix D: Compilation of Findings and Recommendations
Pages 70-96
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From page 70... ...
The recurring objectives include the following: · Develop policies and procedures to define the DOE method of managing projects; · Create a project management culture across the agency that supports the consistent implementation of policies and procedures; · Provide leadership that ensures disciplined planning and execution of projects as well as support for continuous process improvement; · Provide a project management champion at the highest level of the depart ment to ensure that a focus on the importance of project management is established and maintained; · Develop competence in fulfilling the owner's role in front-end project planning, risk management, and project execution; · Apply rigorous project reporting and controls that include earned value systems, link day-to-day management data to periodic reporting, forecast time and cost to complete, and maintain historical data with which to benchmark project performance; · Document processes and performance to support benchmarking and trend analysis; 70
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From page 71... ...
Many DOE projects do not have comprehensive project management plans to define project organization, lines of authority, and the responsibilities of all parties. Finding.
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From page 72... ...
As a part of its project management system, DOE should issue fundamental policies, procedures, models, tools, techniques, and standards; train project staff in their use; and require their use on DOE projects. DOE should develop and support the use of a comprehensive project management system that includes a requirement for a comprehensive project management plan document with a standard format that includes a statement of the project organization covering all participating parties and a description of the specific roles and responsibilities of each party.
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From page 73... ...
Recommendation. OECM should assure that policies and required procedures add value by streamlining the process and improving project performance.
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From page 74... ...
DOE often sets project baselines too early, usually at the 2- to 3-percent design stage, sometimes even lower. (An agreement between Congress and DOE's chief financial officer for establishing baselines at the 20- to 30-percent design stage is scheduled to be implemented in fiscal year 2001.)
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From page 75... ...
The committee supports continuing efforts by Congress and the DOE to develop project baselines at a point of adequate definition beginning with fiscal year 2001. Recommendation.
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From page 76... ...
OECM should assure that all program offices have a documented front-end planning process that meets the intent of O 413.3, and that the information used as input for Energy Systems Acquisition Advisory Boards (ESAABs) and ESAAB-equivalent readiness reviews, as well as the outcomes of these reviews, is documented and used to assess project performance and progress in improving project planning.
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From page 77... ...
DOE should use standard industry procedures where applicable; however, the PMSOs should provide supporting policies and procedures tailored to the specific projects and needs of each program. The PMSOs and OECM should assure the adequacy of front-end project planning prior to each critical decision, to assure that projects are not unnecessarily delayed by poor plans and that time constraints do not cause projects to be approved without adequate planning.
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From page 78... ...
With rare exceptions, there are no risk models for ongoing DOE projects, and back-fitting risk assessment to ongoing legacy projects does not seem to be part of the acquisition risk management (ARM) study.
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From page 79... ...
DOE project management personnel should be trained in risk assessment methodology. This training should cover not only risk analysis methodology and techniques, but also the managerial responsibilities related to interpretation of risk assessments and mitigation and management of risks.
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From page 80... ...
Recommendation. Until DOE project managers can be adequately trained in risk management, OECM should establish a cadre of experienced risk assessment personnel, who can be detailed or seconded to projects in the very early stages, to provide risk assessment expertise from the beginning of projects and incorporate risk management into the initial project management plan.
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From page 81... ...
Recommendation. DOE should conduct an immediate and thorough risk assessment of all ongoing DOE projects with significant remaining time and costs.
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From page 82... ...
The deputy secretary as secretarial acquisition executive, and the chief financial officer, assisted by the PSOs and OECM, should define and state DOE policy on management reserves. This policy should be clarified in a future release of O 413.3.
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From page 83... ...
Recommendation. In addition to redefining end states, DOE EM should consider all possible methods for improving its project management processes, preparing its project managers, and achieving earlier project completion, some of which are outlined above.
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From page 84... ...
The committee had great difficulty in locating information documenting project decisions, the project management process, and project performance. [Defense Programs]
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From page 85... ...
DOE has shown little commitment to developing project management skills, as indicated by the lack of training opportunities and the absence of a project management career path. Successful organizations recognize that project management skills are an essential core competency that requires continuous training.
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From page 86... ...
There is reason to believe, based on the reported numbers of DOE project management personnel and the volume of DOE projects, that DOE is understaffed in the area of project managers and essential project management support staff. The committee concludes that there may not be enough DOE project management personnel to discharge their responsibilities as the owner's representatives.
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From page 87... ...
Recommendation. In a previous report, an NRC committee recommended that DOE should "develop and maintain a cadre of professional certified project managers who would be assigned to manage DOE projects for all program offices" (NRC, 1999, p.
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From page 88... ...
Recommendation. Copies of briefings by the 2002 award recipients should be distributed to all field offices that have project personnel.
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From page 89... ...
EIR program continues to identify significant management issues in the projects reviewed and in DOE's operation in general. Absent substantial evidence of improvement in DOE project management and project performance, the EIR program needs to be continued.
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From page 90... ...
Finding. A more thorough review analysis for defining mission need and setting a preliminary baseline range during the front-end project planning phase would give the decision makers more useful information.
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From page 91... ...
Recommendation. DOE should strengthen its commitment to contract reform focusing on the assessment and quantification of project uncertainties, the selection of the appropriate contract type and scope for each job, and increased use of performance-based incentive fees rather than award fees to meet defined project cost and schedule goals.
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From page 92... ...
Recommendation. The detailed descriptions of PBC alternatives and their application to DOE projects should be included in the revised PMP and PPM.
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From page 93... ...
The committee believes that the August 2002 draft PPM provides a good framework for addressing acquisition strategy issues and offers a useful model for DOE project managers to follow in preparing and planning their efforts. However, it finds that the acquisition strategy documents being reviewed by OECM are of mixed quality and believes that this indicates a need for more training and development of additional reference documents.
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From page 94... ...
Finding. Too many people in DOE act as if they were project managers for the same project, and too many organizations and individuals outside the official project organizations and lines of accountability can affect project performance.
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From page 95... ...
· Capture metrics on planning effort and project performance. · Require owner involvement and leadership in front-end planning.
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From page 96... ...
Senior managers should continue to emphasize the importance of improving the project management processes and procedures to assure long-term improvement throughout the organization. PROJECT MANAGEMENT CULTURE 2002 Finding.
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