Expeditionary Combat Support System: The U.S. Air Force`s $1

9/28/2014
Expeditionary Combat Support System:
The U.S. Air Force’s $1 Billion Failure
Project Management
Students:
Christopher Bronicheski
Stephen Romano
Keegan Scarrow
Professor:
Kevin McGuire P. Eng. PMP
Expeditionary Combat Support System:
The U.S. Air Force’s $1 Billion Failure
1
9/28/2014
Expeditionary Combat Support System:
The U.S. Air Force’s $1 Billion Failure
Outline of our presentation today
• Introduction
• Lessons Learned
• Conclusion
• Questions
2
9/28/2014
Introduction
• 5,400 high tech aircrafts and 330,000 active
personnel
Introduction
• Complex web of IT systems to manage logistics
• Overlapping functions and disconnected
databases
3
9/28/2014
Project Timeline
Scheduled Start of Execution
Actual Start of Execution
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
Project Timeline
Scheduled Start Date
Actual Start Date
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
4
9/28/2014
Project Timeline
Scheduled Start Date
Actual Start Date
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
Project Timeline
Scheduled Start Date
Actual Start Date
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
5
9/28/2014
Project Timeline
Scheduled Start Date
Actual Start Date
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
Project Timeline
Scheduled Start Date
Actual Start Date
Major Problems Encountered
Project Identification and Initiation
Project Terminated
' 00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
' 12
6
9/28/2014
Outline
• Introduction
• Lessons Learned
• Conclusion
• Questions
Lesson 1: Mitigate scope creep by
having a clear and concise scope
• Scope not clearly defined
– Time
– Budget
– Resources
• Three major project resets
7
9/28/2014
Lesson 1: Mitigate scope creep by
having a clear scope
• Define a thorough and detailed scope
• Know when to call it quits
• Be Proactive, Not Reactive
Lesson 2: Manage project costs by
ensuring funding is properly utilized
• The original budget for the
project was 3 billion
– Was predicted that another 1.1
billion would be needed to recover
25% of the original scope
• Firm Fixed Price contract
– Project was of an unprecedented
size and complex changes were
inevitable
8
9/28/2014
Cost Management
3,000,000,000
Cost ($)
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
Planned
Actual
Earned
Value
Lesson 2: Manage project costs.
Ensure funding is properly utilized
• There is a fundamental flaw with how the
Department of Defense handles its finances
– Responsible to taxpayers and not shareholders
– Greater cost accounting discipline as seen in the
private sector would
have helped greatly.
9
9/28/2014
Lesson 3: Create a time management
plan that accounts for delays
• The project had been through several resets due to
unforeseen circumstances
• Contract disputes with various players who had been
awarded a piece of the roll out delayed the project
start date
Lesson 3: Create a time management
plan that can handle delays
• Owner must set realistic key milestones dates in
the schedule
10
9/28/2014
Lesson 4: Knowledge of existing
architecture is critical for project upgrades
• Understanding “As-Is” and “To-Be” Architectures
– Deconstructing Parts of Legacy
– Upgrading Parts of Legacy
– New Programs to Add to Legacy (Bolt-On Programs)
Lesson 4: Knowledge of existing
project is critical for project upgrades
“Once you come up with a premise, you have to
work out how to make it all happen. It's a bit like
coming up with a spectacular roof design first.
Before you can get it up there, you need to build
a solid foundation and supporting structure”
- Linwood Barclay
11
9/28/2014
Lesson 5: Communication between
project teams is crucial for success
• ECSS project had over 1000 team members and was
deemed the largest ERP project taking place in the
world
– multiple project managers were used during the course of
the project
Lesson 5: Communication between
project teams is crucial for success
• Lack of
communication
between Air Force
and Governance
structure
• Each party had their
own milestones and
authority members
they reported to
12
9/28/2014
Lesson 5: Communication between
user teams and new system teams
• Crucial for success
• There was a lack of trust between Legacy
users and ECSS management
• Most tasks were not accomplished
Lesson 6: Develop a proper acquisition
strategy for contracts
• The fixed firm price contract was not flexible
enough given the lack of development of the
program requirements
• Added requirements prolonged
the project schedule especially
during planning
13
9/28/2014
Lesson 6: Develop a proper acquisition
strategy for contracts
• Develop procurement contracts that include
terms and conditions to meet specific needs of
the project
Outline
• Introduction
• Lessons Learned
• Conclusion
• Questions
14
9/28/2014
Conclusion
• Murphy’s Law
• Project management methods and strategies reduces
risks, cuts costs and improves the success rate in any
project
• Most important part is to learn from your mistakes
Acknowledgements
• Project Management Institute
• Kevin McGuire
• Teaching Assistants
• Judges
• Audience
15
9/28/2014
Questions?
Contact Information
Christopher Bronicheski
Phone: 519-719-5759
Email: [email protected]
Stephen Romano
Phone: 519-852-8610
Email: [email protected]
Keegan Scarrow
Phone: 226-927-8329
Email: [email protected]
16