Kirk Johnson (IWS 3A SM PM)
Tim Lardy (RMS SM6 PM)
1 June 2009
Standard Missile 6 Cooperative Earned
Value Program Management
Copyright © 2009 Raytheon Company. All rights reserved.
Customer Success Is Our Mission is a registered trademark of Raytheon Company.
Page 2Non-technical data per ITAR 120.10(5) 04/21/23
SM-6 Program Summary
Overview – May ‘08Overview – May ‘08
DesignDesignProgram PlanProgram Plan
CapabilityCapability• Provides Area Defense
• Capable of Over-The-Horizon Engagements
• Enabler for Integrated Fire Control
• Capable against Overland Cruise Missile
• Milestone B completed 15 Jun ‘04
• Contract Award 03 Sep ‘04
• SRR/SFR Dec ‘04 – SFR Completed 2 Months Early
• IBR Feb 05
• PDR/Gate 7: Jun ‘05 – Completed 2 Months Early
• DRR/Gate 8: Mar ‘06 – Completed 4 Months Early
• WSMR Testing: ‘07-’09 – Direct Hit on first 2 guided
flights
• DT/OT FY10
• IOC planned in FY10
Guidance Section ElementsAMRAAM
Electronics Stack TransmitterBattery/ECU Power
STANDARDInterface ComputerStable PlatformPlate 3A Two Way Data LinkGPS / IMU Growth Allocation
New SM Size Antenna, MissionComputer
Modify FRU For Semi-active
STANDARD Missile Propulsion Stack, Airframe, Warhead/TDD, Radome
Common Factory ForAMRAAM & SM-6Guidance Sections
Common Factory ForCommon Factory ForAMRAAM & SMAMRAAM & SM--66Guidance SectionsGuidance Sections
Guidance Section ElementsAMRAAM
Electronics Stack TransmitterBattery/ECU Power
STANDARDInterface ComputerStable PlatformPlate 3A Two Way Data LinkGPS / IMU Growth Allocation
New SM Size Antenna, MissionComputer
Modify FRU For Semi-active
STANDARD Missile Propulsion Stack, Airframe, Warhead/TDD, Radome
Common Factory ForAMRAAM & SM-6Guidance Sections
Common Factory ForCommon Factory ForAMRAAM & SMAMRAAM & SM--66Guidance SectionsGuidance Sections
• 80% Complete ITD CPI: .98, ITD SPI: 0.99
• GTV 1 June 08 – Direct Hit
• GTV 2 Sept 08 – Direct Hit
• CTV 29 Jan 09 – Did not launch Retest Aug 09
• GTV 3 scheduled for Nov 09
• First DT/OT missile hardware in work for delivery this fall
Page 3Non-technical data per ITAR 120.10(5) 04/21/23
LEGACYACQUISITION
MODEL
LEGACYACQUISITION
MODEL
STREAMLINED ACQUISITION MODEL
STREAMLINED ACQUISITION MODEL
Detailed Statement of Work Many Specifications Separate Seeker Developments Subjective Award Fee Separate Factories Customer/Contractor
Relationship
5 Page Statement of Objectives
Single Msl Performance Specification
Common Active Seeker Family
Results-Oriented Objective Award Fee
Common Factories, Volume Production
ToPP- Total Performance Partnering
Acquisition/Cultural ChangesIts Not All Rocket Science
Acquisition Philosophy Must Be As Innovative As Technical SolutionAcquisition Philosophy Must Be As Innovative As Technical Solution
Page 4Non-technical data per ITAR 120.10(5) 04/21/23
Culture / Communication– High Priority From the Beginning– Develop a Consistent Focused Team Intent on Mission of Delivering
Capability– Small, Engaged, Informed Govt Teaming inside Contractor IPTs– Counterparts Identified and Maintained throughout phase– Web Based Information Sharing System (WISDM)– Combined Contractor/Government Reviews
Business, technical, programmatic– Arbinger Training– Raytheon Six Sigma
Acquisition/Cultural ChangesIts Not All Rocket Science
New Culture Requires Partnership Between Team MembersNew Culture Requires Partnership Between Team Members
Page 5Non-technical data per ITAR 120.10(5) 04/21/23
Cooperative Successes Government and contractor teams participated in Alpha contracting
process to generate technical scope, schedule & cost baseline for the program– Required alignment of technical objectives, schedule and budget realities– Scope agreements hammered out early in the baselining process– Schedule development took into account the possibility of test failures and
resulted in an executable program plan Successful IBR in Feb 2005
– Baseline is still in effect today (no re-baselines since contract start) RMS provides an EV “quick look” to USN cost team 10 days after
month end to facilitate timely & objective analysis– Data provided in USN preferred WINSIGHT format
Government (USN and DCMA) participates in RMS monthly Earned Value reviews– Diligent participation by execution team and management
SM6 EVMS DCMA COE Audit Results– Kudos received from both DCMA audit teams on SM6 use of Earned Value – SM6 management team received an RMS excellence award for performance
during 2006 EV audit
Cooperation & Management Focus Drove SuccessCooperation & Management Focus Drove Success
Page 6Non-technical data per ITAR 120.10(5) 04/21/23
Program EVM “Early Warning”Benefits• Principle benefit of EVM during program execution phase is
providing an early warning for future problems– Generated “Watch Account” metric to be able to track Control Account
Performance to EAC CAM’s were spending to EAC but it was not clear if they were actually achieving
the performance necessary to meet EAC New metric tracks actual performance to promised performance
– Allocated MR to antenna supplier to build additional tooling to improve delivery schedule and mitigate risk #183 Antenna delivery schedule from supplier was predicted to drive build of POM GS’s Supplier indicated that additional tooling would improve cycle times and reduce
schedule pressure Antennas are no longer the critical path for GS build
– MBIT Performance metrics (cost/schedule variance, EAC, TCPI, etc.) were showing that
the team was starting to struggle Program worked with functional department to bring in new resources and make
surgical personnel changes Team is back on track, performance has improved & product will be delivered in
time to support production
Page 7Non-technical data per ITAR 120.10(5) 04/21/23
SM-6 Managing Using EV
Weekly
Monthly
Bi-Monthly
Schedule Updates Critical Path Reviews
(Chaired by PM and Planner)
Schedule Updates Critical Path Reviews
(Chaired by PM and Planner)
Schedule/Critical Path Reviews
(Chaired by PM and Planner)
Schedule/Critical Path Reviews
(Chaired by PM and Planner)
Mangement Reviews
(Chaired by PM)
Mangement Reviews
(Chaired by PM)
Risk/Opportunity Reviews
(Chaired by CE)
Risk/Opportunity Reviews
(Chaired by CE)
Daily
Daily Standup Meetings Status of Pacing Items
(Chaired by PM and CE)
Daily Standup Meetings Status of Pacing Items
(Chaired by PM and CE)
Page 8Non-technical data per ITAR 120.10(5) 04/21/23
SM-6 Monthly Management Metrics Sampling
CPI/SPI Trend
0.88
0.92
0.96
1
1.04
1.08
1.12
J an-06 Feb-06 Mar-06 Apr-06 May-06 J un-06 J ul-06 Aug-06 Sep-06 Oct-06 Nov-06
Month
Actu
als
CPI
SPI
ITD LABOR and MATERIAL CPI/SPI
0.8
0.85
0.9
0.95
1
1.05
1.1
1.15
Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06
Material ITD CPI
Labor ITD CPI
Material ITD SPI
Labor ITD SPI
CPI/SPI Trend Data
WBS Desc CAM SvCurCvCur SvCur CvCur SpiCur CvCur % Comp BAC LRE
1 C1G2 SWES/CIL/HIL De Hunter Scott -256.7 -335.7 0.000 -335.7 91.13 9,044.1 10,480.3
2 C1F2 Aerodynamic Ana Parry, James -229.9 0.0 0.000 0.0 90.82 1,541.5 1,699.7
3 A2D TDD SHROUD Graffam Ray -137.8 -17.0 0.108 -17.0 46.17 1,883.3 2,062.6
4 A4B15 CSCI Integratio Cohen Amy -128.9 -45.2 0.000 -45.2 38.00 2,570.4 2,516.3
5 A7A7 Missile Level E Badillo Ivelise -119.7 -32.2 0.000 -32.2 10.02 2,556.5 2,409.6
6 A4B11 CSCI Developmen Cohen Amy -112.8 -252.0 0.709 -252.0 33.16 22,445.3 21,686.1
7 A4B14 Target Detectio Abraham, Lisa -89.3 -103.7 0.162 -103.7 56.78 3,428.3 3,742.2
8 A4A5AH Mission Compute Smith Rex -69.1 -40.2 0.198 -40.2 94.02 3,146.5 3,853.4
9 A4A21MN Antenna Prototy Albrecht Ken -67.4 -117.6 0.801 -117.6 84.98 2,487.0 2,897.9
10 A4C21N BIT (NRE) Fritz Bill -64.3 -42.9 0.672 -42.9 35.48 7,989.6 7,755.6
WBS Desc CAM SvCurCvCur SvCur CvCur SpiCur CvCur % Comp BAC LRE
1 C1G2 SWES/CIL/HIL De Hunter Scott -256.7 -335.7 0.000 -335.7 91.13 9,044.1 10,480.3
2 A4B11 CSCI Developmen Cohen Amy -112.8 -252.0 0.709 -252.0 33.16 22,445.3 21,686.1
3 G1D1 MK 698 GMTS Upg Randall Robert H 146.6 -233.1 5.964 -233.1 82.06 3,356.3 2,997.2
5 A2C3N MK 45 Factory Graffam Ray 10.3 -186.7 1.060 -186.7 57.01 3,726.7 4,289.4
6 A4A23M1 Space Stabilize Albrecht Ken 10.7 -138.9 1.201 -138.9 94.09 1,158.2 1,164.8
7 A7A2A GTV1 Integratio Adams, Charlie 28.4 -137.4 1.453 -137.4 23.65 1,811.4 1,678.5
8 A4A21MN Antenna Prototy Albrecht Ken -67.4 -117.6 0.801 -117.6 84.98 2,487.0 2,897.9
9 A4B14 Target Detectio Abraham, Lisa -89.3 -103.7 0.162 -103.7 56.78 3,428.3 3,742.2
10 A4A42M1 Semi-Active FRU Albrecht Ken -0.8 -85.2 0.942 -85.2 62.99 890.2 1,091.8
11 G1D2 AUR BIT Tester Randall Robert H 100.8 -54.6 1.165 -54.6 58.40 4,945.1 4,909.1
Top 10 CM Cost Drivers
-600.0
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
C1G2-SW
ES/CIL
/HIL
Develo
pmen
t
A4B11
-CSCI D
evelopm
ent
G1D1-
MK 6
98 G
MTS U
pgrad
e
A2C3N-M
K 45
Facto
ry
A4A23
M1-
Space
Sta
bilize
d Plat
form
Pro
totyp
e
A7A2A
-GTV1
Integ
ratio
n & A
ccep
tanc
e Tes
t Dev
elopm
ent
A4A21
MN-A
ntenna
Pro
totyp
e
A4B14
-Targ
et D
etec
tion D
evice
(TDD)
A4A42
M1-
Semi-A
ctive
FRU P
roto
type
A2C3R-M
K 45
Facto
ry
A2D-T
DD Shr
oud
$$
Oct-06
Sep-06
Aug-06
Top Ten Cost/Schedule Drivers
EAC Watch AccountsSimulation, Algorithms & Performance - C1F1
11,489.9
$558.6
$680.4 $720.7
$833.8
0.0
3,000.0
6,000.0
9,000.0
12,000.0
15,000.0
Jan-09 ITD Actuals Feb-09 ITD Actuals Mar-09 ITD Actuals Apr-09 ITD Actuals May-09 Jun-09 Jul-09
ITD
Act
ual
s/IT
D F
ore
cast
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
$1,600.0
$1,800.0
$2,000.0
Exp
ecte
d -
Ach
ieve
d P
erfo
rman
ce D
elta
ITD Actuals BCWP - (Actuals * TCPIeac) LRE * TCPIeac Achieved Perf ITD LRE 1st Qtr '09 EAC
Total LRE $14,806.7KQ109EAC $15,017.3K3-Mth CPI = 2.70TCPI1Q09eac 1.08
CPI
TCPI
BCWR
August '10 Completion
1.09
1.03
3738.8
1.08
1.08
3919.9
1.09
1.01
3634.3
1.10
.98
3461.3
GTV-3 Tasks / All Teams
33253337
3268
-64
-49
-50
2
3
-42
-22
-35
2500
2600
2700
2800
2900
3000
3100
3200
3300
3400
3500
Tas
ks C
om
ple
ted
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
Del
ta t
o B
asel
ine
Pla
n/F
utu
re C
om
ple
tes
B/L Plan Forecast Finish Cum Actual Delta to Baseline Plan Future Completes Late and Critical to GTV-3
The average number of tasks completed per month is 59 and 15 tasks were completed this month
Now looking as tasks that did not meet their baseline dates.
2008 2009
December January February March April May June July August September
Path 16 d
Path 27 d
Path 38 d
Path 48 d
Path 514 d Progress Risk
4/25/09
Program Milestone - Flight Test (ADSAM4/CTV-1a) Critical Paths 1-5 to
(14517) G/S - Build G/S (ADSAM4/CTV-1a)
(14518) G/S - Deliver G/S to Integration (ADSAM4/CTV-1a)(14269) G/S - Integrate (ADSAM4/CTV-1a)
(14519) G/S - Vibe/Skin/Leak/Fill/Weight CG (ADSAM4/CTV-1
(15424) SIT - AUR Kit Complete (G/S, TDD, PCT, IFTS, ET, (15425) SIT - Assemble Flight Round (ADSAM4/CTV-1a)
(21651) SIT - Test Readiness Review (TRR) ADSAM4/CTV-1a)
(15428) SIT - ADSAM4/CTV-1a Flight Round Test EAT - Tucso
(21652) SIT - ADSAM4/CTV-1a Flight Round EAT Data Review (15430) SIT - Consent to Ship (Gate 9) from Tucson to WSM
(15431) SIT - All ADSAM4/CTV-1a AUR Kit Items Received at
(15432) SIT - Assemble ADSAM4/CTV-1a Flight Round with or
(21653) SIT - TRR for ADSAM4/CTV-1a Flight Round I and T (15436) SIT - ADSAM4/CTV-1a Flight Round I and T (WSMR)
(20142) SIT - ADSAM4/CTV-1a Dress Rehearsal and Flight Te
(15438) SIT - MRR (ADSAM4/CTV-1a)(15372) SIT - CTV-1 Flight Test
8/20
Program Milestone - Flight Test (ADSAM4/CTV-1a)8/28
(12860) AUR - Assemble IFTS (ADSAM4/CTV-1a)
(12861) AUR - IFTS Delivered (ADSAM4/CTV-1a)
(11373) G/S - SE Integration - ADSAM4/CTV-1a
(21654) SIT - ADSAM4/CTV-1a Flight Round I and T Data Rev
(20143) SIT - ADSAM4/CTV-1a Permit to Ship (PTS)(15437) SIT - MCP (ADSAM4/CTV-1a)
(20141) SIT - ADSAM4/CTV-1a WSMR DS/Range Intg. (IOM-2.2b
Critical Path
CPLI (FCA): 1.12
Schedule EV Baseline Execution Indices (BEI) as of April 09
0
1000
2000
3000
4000
5000
6000
Task
Fin
ishe
s
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1.200
Cum Completed by Status Date 4189 4262 4347 4433 4492 4552 4635 4744 4841 4927 5032 5113
Cum Sched. to Complete by Status Date 4261 4392 4474 4579 4672 4759 4837 4930 4992 5057 5129 5201
BEI 0.983 0.970 0.972 0.968 0.961 0.957 0.958 0.962 0.970 0.974 0.981 0.983
Monthly Hit Index 0.614 0.618 0.646 0.571 0.409 0.517 0.462 0.527 0.548 0.385 0.569 0.486
Nov 08Dec 08
Jan 09 Feb 09 Mar 09 Apr 09May 09
Jun 09 Jul 09 Aug 09 Sep 09 Oct 09
Page 9Non-technical data per ITAR 120.10(5) 04/21/23
Summary
Diligent application of management processes (EV) produce significant benefits to the war fighter– Stable technical baseline - no scope creep
– Stable funding requirements
– Predictable Performance
– All major program milestones met on time
– 2 guided flights, 2 direct hits
On Time, On Budget Delivery of Warfighter CapabilityOn Time, On Budget Delivery of Warfighter Capability
Page 10Non-technical data per ITAR 120.10(5) 04/21/23
Page 11Non-technical data per ITAR 120.10(5) 04/21/23
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