State of NC Internal Use Only – Do Not Distribute 1 Project Portfolio Management (PPM) Tool Change...

State of NC Internal Use Only – Do Not Distribute1

Project Portfolio Management (PPM) Tool

Change Request Training

Enterprise Project Management Office (EPMO)

March 2011


Change Request TrainingAgenda

Agenda

1. Types of Change Requests

2. Change Requests and Phases

3. Change Request Timeline Decisions

4. Entering a Budget Change Request

5. Change Request Approval Process

6. Examples & Scenarios

7. Best Practices to Help Avoid Entering Change Requests

8. Frequently Asked Questions & Answers

9. Documentation Links


Change Request TrainingTypes of Change Requests

Types of Change Requests



Types of Change Requests

Agency Registered Projects ≤ $100K

State Registered Projects < $500K

Scope changes for Projects ≥ $500K

Schedule changes for Projects ≥ $500K

Budget changes for Projects ≥ $500K



Projects With Total Investment < $500K (Registered and Agency Registered Projects)

A Change Request is NOT required unless it is a Budget change that pushes the Total Investment cost over $500K

If the budget change takes the project over $500K, the “Project Range” attribute on the Project Info tab must be updated to reflect the new dollar range of the project.

The project will move back to Initiation and go through the normal approval process for a new project.


Change Request TrainingScope Change Requests

Scope Changes Projects ≥ $500K

Must be approved at Agency Level by project Sponsor before being entered

Attach Change Request approval to Document Management tab Approval form can be email or formal Change Request document

Update appropriate attributes on Project Info, Status, Schedule and Document Management tabs


Scope Changes – Approved at the Agency Level Attach Agency Approval Form in Documents Management Tab Update Appropriate Attributes in PPM

Change Request TrainingScope Change Requests

Tab Attributes Updated

Project Info • Project Goals• Project Deliverables• Items Out of Scope• Proposed Strategy• High Level Assumptions and Constraints

Status • Business Functional Requirements (Scope)• “Scope” Indicator Comment

Schedule • Milestones

Document Management • New Documents


Types of Change RequestSchedule Change Requests

Schedule Changes Projects ≥ $500K

Must be approved at the Agency level by the Project Sponsor before being entered

Attach Change Request approval to Document Management tab Approval form can be email or formal Change Request document

Update appropriate attributes on Project Info, Cost Forecast, Schedule, Status and Document Management tabs

Update the phase planned hours in the Staffing Plan


Schedule Changes – Approved at the Agency Level Attach Agency Approval Form in Documents Management Tab Update Appropriate Attributes in PPM

Change Request TrainingSchedule Change Requests

Tab Attributes Updated

Project Info • End Date

Cost Forecast • Additional Months added to Phase

Status • “Milestones” Indicator Comment

Schedule • Actual Percent Complete• Milestones/Phases Forecast Dates

Document Management • New Documents• Staffing Plan


Change Request TrainingNon-Iterative, Waterfall Projects ≥ $500,000

Closeout

Implementation(Imp)

Execution & Build(E&B)

Planning & Design(P&D)

Initiation

From this point forward, slides pertain to Non-Iterative, Waterfall Projects ≥ $500,000


Budget Changes

Follow PPM Change Request Process If: Project TCO is ≥ $500K or Part of a Program

Project is in P&D and P&D budget will exceed the SCIO approved phase budget by over 5%

Project is in E&B or Implementation and budget will exceed the SCIO approved phase budget by over 5%

DO NOT Need to Enter Change Request if: Project is in P&D and the budget for E&B or Implementation is

changing Just make necessary changes on Budget Cost tab and Cost

Forecast tab

Change Request TrainingBudget Change Requests


Change Request TrainingKey Points for Non-Iterative Waterfall Projects ≥ $500K

• Not entering a CR for a ≥ 5% increase to a Phase Approved Budget will result in the Quality Assurance (QA) representative entering a Yellow Phase Cost Jellybean

• Not entering a CR for a ≥ 10% increase to a Phase Approved Budget will result in the QA entering a Red Phase Cost Jellybean. Such infractions will be brought to the EPMO Director’s attention and potentially the State Chief Information Officer (SCIO).

• In the current phase, the Project Manager can move money around in the ‘Forecast’ tab, but should not increase the ’Budget Cost’ tab phase total or the ‘Forecast tab’ phase total without Business Sponsor approval and without a Change Request.

• An increase to an Approved Phase Budget without a Change Request will cause the QA team to enter an Issue. The same applies to Scope and Schedule.

• During P&D, changes to subsequent phases identified during P&D do not require a Change Request as the later phases have not been baselined. Budget and forecast cost changes to later phases can be documented on the ‘Budget Cost’ and ‘Forecast Cost’ tabs. At Gate Approval, the budget changes will be reviewed and approved as part of the State Approval Process.

• Once a project has been approved for Execution & Build, the ‘Budget Cost’ tab is Read Only and the information constitutes the Original Budget.

• During Implementation, changes in Scope, Schedule or Budget which lead to Change Requests that impact the Original Budget result in a Revised Budget.

• Never process a partial change (e.g., processing a change to the phase schedule prior to budget change approval)



Change Requests & Phases


Change Request TrainingChange Requests & Phases

Initiation

Change Requests cannot be entered



Current Phase - Planning & Design

Changes to P&D Phase Budget Adjustments to the P&D approved phase cost total should be made

within the change request cost breakdown tab Only enter the amount of the dollar change (positive or negative) DO NOT enter the new Budget amount

Changes to E&B, IMP or O&M DO NOT require a CR because later phases have not been base

lined Budget and Forecast cost changes can be recorded on the Budget

Cost and Cost Forecast tabs



Current Phase – E&B or Imp

Changes to E&B, IMP or O&M Budget Adjustments to approved phase cost total should be made within

the change request cost breakdown tab Only enter amount of the dollar change (positive or negative) DO NOT enter the new Budget amount Entering the new required budget amount will double your budget


Change Request TrainingNon-Iterative Waterfall Projects ≥ $500,000



Change Request Time Line Decisions


Plan Ahead – Enter CR before Status Report Due Date

Enter the CR at the first sign you will need one

Enter the CR prior to entering Monthly Status Report

It is best to have the CR entered and approved prior to submitting monthly Status Report

Change Request TrainingChange Request Time Line Decisions



If CR Affects Current Reporting Month If the change request has not been approved, the status report

cannot be done until the change request is processed This could result in a Yellow jellybean for late the Monthly Status

Reporting Better to have a Yellow jellybean for a late status report than a

Yellow or Red jellybean for Phase Cost as a late status report does not impact the triple constraints



If CR Affects Future Reporting Months If the change request does not impact the current status reporting

month, then the status report can be assessed by the QA team without the CR being approved first.

This could result in a “yellow” or “red” jellybean in the Phase Cost if the project is over budget for the phase and the change request has not been processed.

If CR is Retroactive OSBM typically will not approve retroactive Change Requests.

Approving budgets that have already been spent does not follow the process.



CR submitted prior to Monthly Status Report due date?

Does OSBM approve?Is CR Retroactive?

Will receive Yellow or Red Phase Cost

Jellybean

CR does not impact current month, but is

required to align phase costs?

Will CR impact current Monthly Status Report?

No

Enter CR into the PPM Tool.

Do not complete Monthly Status Report until CR has been approved. PPM tool

numbers will be wrong if you do the Status Report before CR is approved.

Monthly Status Report Jellybean will be Yellow, but No Impact to Overall

Jellybean

Yes

No

Enter CR into the PPM Tool

YesEnter CR into the

PPM Tool

Will receive Yellow or Red Phase Cost

Jellybean until CR is Processed

Will receive Yellow Jellybean for

Monthly Status Report

Monthly Status Report

Submitted?Yes

No

No

No

No Action RequiredNo

Change Request Time Line Decisions



Entering a Budget Change Request in PPM


Change Request TrainingEntering a Change Request - ‘Project Info’ Tab


Change Request Training‘Change Request List’ & ‘Add Change Request’ Tabs

Valid Change Request Status Values

RAISED: The system generated status when a Change Request is initially entered.

APPROVED: Approval was granted to proceed and steps should be taken to implement the Change Request.

REJECTED: No further action should be taken as the Change Request was not approved for implementation.

• Change Requests are not editable after the request has been APPROVED or REJECTED


Change Request TrainingEntering the Change Request – ‘Add Change Request’ Tab


Change Request TrainingWhat to Include in the Change Request!

When entering Budget, Scope and/or Schedule Change Requests, where applicable consider providing answers to the following questions

What is changing? Have you received Business Sponsor approval? If so, attach the approval

documentation via the ‘Document Management’ tab and identify the file name in the CR. Is the Change Request a re-allocation of monies between phases or an increase to a

phase or multiple phases? What is the budget impact of the Change Request?

Budget Codes - Include the appropriate accounting budget codes that are associated with the project.

— Example: Budget Code – 14410 Cost Centers - Populate the appropriate cost center with monetary values that

identify the funding source of the Change Request— Benefits— Federal Funds or Grants— Local Funds— Non-Federal Grants— Receipts/User Fees— State Appropriations

What is the business value of the change? What is the business impact if the change is not made?


Change Request TrainingWhat to Include in the Change Request!

When entering Budget, Scope and/or Schedule Change Requests, where applicable consider providing answers to the following questions

What is the breakdown of the additional costs? Are additional resources required? If so,

— Internal, External or both? — How many resources?— Rates for External Resources?— For what duration of time are the Resource required?

What Hardware or Software must be secured? Why is the HW required?

— What is the cost of Hardware? Why is the SW required?

— What is the cost of Software Licenses?Are there Other External Costs or Other Costs not listed?What is the schedule impact of the Change Request?

What is the reason for the schedule extension? What dates at changing?

— From Date— To Date

Has other relevant documentation been attached to the project via the ‘Document Management’ tab?


Change Request TrainingEntering the Change Request – additional tabs


Change Request TrainingEntering the Change Request – ‘Cost Breakdown’ Tab


Cost Breakdown tab tips:• Dollars need to be entered at Level 4 and in the correct

month• Dollars entered on the Cost Breakdown tab DO NOT need to

be added to the Cost Forecast; this will happen automatically when the CR is approved

Change Request TrainingEntering the Change Request – ‘Cost Breakdown’ Tab


Change Request TrainingApproval Process

1. When the submitter clicks the ‘ADD’ button at the bottom of the Change Request screen, by default the EPMO Director will receive an email alerting him/her that a Change Request has been submitted.

2. The EPMO Director logs onto the tool, reviews and vets the Change Request (including the description and cost breakdown tab).

3. The EPMO Director determines if the she/he has the authority and if so, Approves or Rejects the Change Request.

Examples of Change Request that can be approved by the EPMO Director: Change Requests that are needed to correct PPM Tool entry mistakes made by the PM Increases in internal resource costs.

4. If the Change Request requires OSBM approval, the EPMO Director will ensure necessary information is present in order for OSBM to understand the change. This may result in a meeting with the PM to discuss the changes.

Examples of Change Request that can be approved by OSBM Change Requests that cross fiscal years Projects ≥ $500,000

Note: If the Change Request is saved before it is ready for review, send an e-mail to the EPMO Director and your PMA letting them know it is not ready for review. Send a second e-mail when the Change Request is complete and ready for review.

Approvals should generally be completed within seven (7) calendar days of receiving the email notification that the Change Request is ready for review.


Change Request TrainingApproval Process – Post Approval

After the Change Request is approved the Cost Forecast is increased by the amount of the Cost Breakdown in the Change Request for the appropriate months.

The Budget Cost tab continues to contain the original budget costs and will NOT contain the change request costs

The ‘Total Approved Phase Budget’ (Status Tab) needs to be updated to match the new Revised Budget TC for the phase

You should NOT: Update the Cost Forecast tab with the additional dollars for the change

request; updating the Cost Forecast tab will cause the phases Forecast Cost to be overstated

Update the Budget Cost tab to show the additional dollars for the change request


Change Request TrainingPossible Change Request Rejection Reasons

Retroactive Typically, the Office of the State Budget and Management (OSBM) does not approve

retroactive Change Requests. If the budget has already been exhausted, there is nothing to approve.

Incorrect Information If the information identified in the Change Request is not deemed feasible, the Change

Request will be rejected.

No Funding If there are budget increases associated with the Change Request, the proper funding

codes must be included or the Change Request will be rejected.

No Budget Code If a budget increase is associated with the Change Request and no values have been

entered into the ‘Cost Breakdown’ tab or if the values entered don’t reflect the correct difference between the current approved phase budget and the proposed revised phase budget, the Change Request will be rejected.

No Business Sponsor Approval Approval from someone other than the Change Request submitter is required. The

Business Sponsor/Owner is responsible for approving project changes. Such procedures keep the chain of responsibility intact and prevents unannounced or unauthorized project changes. If the Business Sponsor approval is not stored in the Document Management tab, the Change Request will be rejected.



Examples & Scenarios


Change Request TrainingExamples & Scenarios

Change Request Scenario 1:

Increase to Planning & Design Phase Budget while in Planning & Design


Changes to multiple phases (Execution & Build, Implementation, Project Closeout)


Decrease in budget and resource hours initially planned


Change Request TrainingChange Request Scenario 1

Description of Change Request Scenario 1:

An additional 2 months are required to complete the P&D phase of the project since it was decided the development work will be handled internally instead of using a vendor.

P&D Original Phase Budget TC: $28,600 P&D Change Request TC: + $50,000P&D Approved Revised Budget TC: $78,600

This scenario requires a Change Request to be entered for $25,000 for the months of June '10 and July '10.


Change Request Training‘Cost Breakdown’ Tab & CR Amounts


Change Request TrainingOriginal Budget + Change Request = Revised Budget


Change Request TrainingRevised Budget TC – Forecast Cost TC = Forecast Var. TC


Change Request TrainingImpact to ‘Cost Forecast’ after the Change Request is Approved



Description of Change Request Scenario 2:

The results of the migration process testing indicated the migration process needed to be redesigned and rework is required for E&B. During the Implementation phase, more Internal Personnel are required and External Vendors will not be needed as previously thought. The Project Closeout phase will increase as a result of added activities.

Original Budget Total Cost: $4,169,826

Change Request Total Cost: + $65,235

Revised Budget Total Cost : $4,235,061

Original CR Revised

Phase Amount Phase

Execute & Build Phase Budget: $98,426 $44,635 $143,061

Implementation Phase Budget: $203,950 $17,800 $221,750

Project Closeout Phase Budget: $1,700 + $2,800 $4,500

$65,235


Change Request Training‘Cost Breakdown’ Tab & CR Amounts – Scenario 2


Change Request Training‘Cost Tracking’ Tab

Note, a negative amount ($20,240) was entered to account for not requiring External Personnel during the Implementation phase.



Description of Change Request Scenario 3: Original budget included dollars for a full-time contract PM and contract IT Specialist. PM work is now being handled in-house and internal resource costs have come in under monthly forecast. IT Specialist position is not going to be filled. Internal Personnel and External Personnel need to be reduced.

Cost TrackingP&D Original Phase Budget TC: $1,927,224P&D Change Request TC: + $1,011,143 P&D Approved Revised Budget TC: $916,081


Change Request TrainingCost Breakdown Tab & CR Amounts


Change Request TrainingImpact to Cost Forecast After Change Request is Approved

Cost Forecast Before CR Approved

Cost Forecast After CR Approved and CR amounts are applied

Note: There is no need to update the Cost Forecast tab manually. After the CR is approved the dollars from the Cost Breakdown tab are applied



Best Practices to Help Avoid Entering Change Requests


•Ensure all stakeholders are identified early on and understand the project’s impact to their agency in order to avoid the need to add scope

•Define the skills needed for the project and obtain people with those skills to avoid having to secure additional resources

•Determine early on if the project will encounter resource constraints as a result of resources working on multiple projects

•Allow enough time for procurement, the process typically takes longer than expected

•Use expert judgment and historical information from similar projects to ensure time estimates for activities are realistic

•Plan for quality in order to limit the amount to time and money required to fix defects

•Allow time and resources for documentation and testing

•Prior to submitting CR’s, have your PMA or a peer validate the data entry to avoid having to enter another CR to correct mistakes

Change Request TrainingBest Practices to Help Avoid Entering CR’s


Frequently Asked

Questions & Answers

Change Request TrainingFrequently Asked Questions & Answers



When should I enter the CR? CR’s should be entered at the first sign additional monies will be needed. The longer you wait, the more likely you are already spending money that has not been approved. Note, OSBM does not typically approve retroactive CR’s.

After entering the CR, why is my phase budget doubled? Usually doubling happens when the new budget total has been entered instead of the additional request amount.

What must be done prior to entering a CR? Obtain agency approval and attach the approvals to the project using the Document Management tab.

What is the text box character limit? Text box input is limited to 3,950 characters. Attach additional documentation to the project’s Document Management tab.

How can I confirm the total amounts for the CR? Copy and paste the rows from the CR Cost Breakdown tab into Excel. Use the Excel sum function to identify the totals.

Should I submit the project’s monthly status report if I have a pending CR? No, it is better to have a yellow or red status report jellybean/indicator than a yellow or red phase cost jellybean. Submit the report after the CR is approved.



If the CR alters the project range, what should be done? Contact your PMA to inform them of the project range change and they will advise what action should be taken.

Can I entered negative numbers for a CR? Yes, negative CR amounts are allowed

Am I required to entered a CR if the total phase budget has not changed? No, only increases to the total phase budget ≥ 5% are required. However, if the phase budget increase is ≥ 5%, a CR is required.

If the CR project date range does not extend to required dates needed, what should be done? The first month displayed in the CR Cost Breakdown tab is the month in which the

CR was entered. The last month in the Cost Breakdown tab is based on the “Actual End Date” in the

Schedule tab plus the number of months in the “Capitalization Period” (60). The Actual End Date on the Schedule tab should be the same as the latest Phase

Planned End Date and the End Date on the Project Information tab.

Am I required to enter the budget code in the CR if the budget code is currently associated with the original project scope? Yes, add the budget code associated with the CR.


Are there additional updates to consider once a CR has been approved? If a substantial amount of money is required, a revised business case may be

needed When applicable, ensure the staffing plan is updated to reflect the change and

document additional milestones

If the CR impacts each one of the triple constraints- Budget, Schedule and Scope, how should I proceed? Obtain Sponsor approval for all three constraints Enter the Budget portion of the CR After Budget approval is granted enter the Scope and Schedule CR

This avoids entering Scope and Schedule data unnecessarily if the Budget CR is not approved



Change Request TrainingDocumentation - Direct Links

Change Request Training:http://www.epmo.scio.nc.gov/library/pps/NCHelp/Change_Request_Training.pps

Change Request Guidelines: http://www.epmo.scio.nc.gov/library/pdf/ChangeRequestGuidelines.pdf

Project Change Request Form:http://www.epmo.scio.nc.gov/library/docs/Change_Request_Form.doc


Change Request TrainingDocumentation - NC Help


Change Request TrainingContacts for Change Request Questions

Charles Richards

[email protected]

(919)754-6612

Janet Stewart

[email protected]

(919)754-6555

EPMO Staff

http://www.epmo.scio.nc.gov/staffDirectory/default.aspx

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