1、Lessons Learned Entry: 1342Lesson Info:a71 Lesson Number: 1342a71 Lesson Date: 2003-01-01a71 Submitting Organization: ARCa71 Submitted by: DR MendozaSubject: Project Management: Diminishing Budgets, Increasing Overhead and the Cost of Doing Business Description of Driving Event: Due to three major f
2、actors the Projects budget was not sufficient to meet its primary objectives. One, the Project was the most significant and often times only customer for a very large and unique test resource: the National Full-scale Aerodynamic Complex (NFAC). This meant that most of the NFACs operating costs were
3、burdened on the Project since the cost could not be spread over a large customer base. Two, the Center had several emergencies and had to increase the amount of taxes levied on all its projects. Three, while the Project was considered to be a critical component of the Nations effort to address the g
4、oals for improving the civil and military air transportation systems, it was hindered by frequent Agency re-prioritizations and budget realignments. Thus, the Project had to frequently re-plan for diminishing budgets and increasing overhead (reaching almost 50% of the Projects total budget) that was
5、 not planned for. As a result the Project could not meet its initial objectives and had to de-scope its requirements.Lesson(s) Learned: 1. Being dependent on a facility that does not have an adequate customer base increases projects budgetary and schedule risk significantly.2. Being funded on a year
6、-to-year schedule (not having a multi-year funding guideline) increases a projects risk significantly since it becomes susceptible to short term inconsistencies in higher-level strategies, priorities, and funding alignments.3. Having a major DOD customer does not guarantee adequate support within NA
7、SA.4. Recommendation(s): 1. Ensure that the projects risk management plan assesses the availability, maintainability, and Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-other overhead costs of each facility it will use. Determine what other business
8、 a facility is dependent on to guarantee their operational cost, including the Centers plan for institutional funding. Ensure that these risks are documented and communicated to all project personnel and senior management. Identify alternative facilities and budget reserves/sources if possible and e
9、nsure all stakeholders understand the ramifications (such as de-scoping) of escalating operational costs to the projects requirements.2. Try and secure senior management approval for a multi-year budget. A risk assessment should be accomplished for the planned funding profile and any deviations from
10、 it that may occur. Tie the projects milestones to the time-frame in which, funding is secure and stable. Identify what requirements will not be accomplished under reduced or delayed funding schedules, communicate this list to all stakeholders. If possible write the risk list into the project plan t
11、hat gets reviewed and approved by senior management.3. Ensure all stakeholders are aware of the projects risk and more importantly, find appropriate ways to include them in risk mitigation plans. Identify and continually track risk indicators such that customers and advocates can act as early as pos
12、sible to help mitigate risks.4. Evidence of Recurrence Control Effectiveness: N/ADocuments Related to Lesson: N/AMission Directorate(s): a71 Exploration Systemsa71 Sciencea71 Space Operationsa71 Aeronautics ResearchAdditional Key Phrase(s): a71 Logisticsa71 Policy & Planninga71 Risk Management/Asses
13、smentAdditional Info: Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-Approval Info: a71 Approval Date: 2003-07-22a71 Approval Name: Andrew Hockera71 Approval Organization: ARCa71 Approval Phone Number: 650-604-4120Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-
