SPACE SHUTTLE PROGRAM COST GUIDELINES • DEFINE COSTS ACCURATELY PRIOR TO START OF PRODUCTION • ESTABLISH FIRM COST CEILING FOR EACH JOB • MEET ESTABLISHED COST TARGETS NASA HQ MH72-6928 FIGURE 159 Cost per Flight Management Another important consideration is the reduction of costs per flight (CPF). A cost per flight management plan has been instituted which makes CPF an engineering design characteristic, to be considered a measurable performance parameter. Such factors as turnaround time, maintenance manpower and spares requirements are under continuous review. In addition, each technical tradeff study is analyzed for its effect on costs per flight. CPF receives top management attention during the decisionmaking process and is used as a means of measuring program performance. Recent vehicle design decisions have provided some margin relative to the ten million, five hundred thousand dollars ($10.5M). MANAGEMENT SYSTEMS While the size and complexity of the Space Shuttle program requires a degree of uniformity, this does not mean that each program element should be structured to conform to a common set of management systems and procedures. The Shuttle management approach is based on the conviction that each industry participant in the program has a background of development experience and capability to develop space systems. To utilize each contributor's resources most effectively. management system objectives and general criteria are specified to be used as a reference by all program participants. At the same time, it is left up to the discre tion of the major participants to utilize systems and techniques best suited to their specific organizational structure, capability and management methods. This balanced approach makes it possible to have available all the necessary tools for decisionmaking, without burdening either the contractors or NASA with costly management systems which place heavy demands on the time and energies of personnel and increase program costs. To assure that program objectives are achieved on schedule and within authorized funding, particular attention is being paid to measuring contractor's schedule, cost and technical performance and to control program changes which could have an impact on program costs and schedules. This is being accomplished by establishing cost targets as part of the design requirements at all work levels; instilling extreme cost consciousness in all participants by holding them responsible for adhering to cost targets; making maximum use of existing facilities and capabilities; controlling manpower build-up both at the contractors' plants and at NASA installations; and by making use of the contractor's own management and information systems without compromising safety. Performance Management System (PMS) A major problem confronting management in programs of the magnitude and complexity of the Space Shuttle is how to measure progress, and how to gage the impact of schedule or performance slippages on the achievement of program objectives. A key prerequisite for effective program management is a thorough understand of program content and structure. The Work Breakdown Structure, (WBS) which defines all program effort required to achieve program objectives is the principal element to the Statement of Work (SOW) given to the Shuttle program prime contractors. The statement of work clearly defines each contractor's tasks, while the WBS divides them into logical and manageable elements, each representing an item of hardware, a service or a function to be performed (figure 160). For each element of the WBS, discrete schedules, cost argets and organizational responsibilities are assigned and the contractor held accountable for their accomplishment. The Work Breakdown Structure, detailed unctional program plans and design specifications are used by the individual ontractors to prepare "logic networks" which are time-phased diagrams detailing The sequence and interrelationship of all program activities, resulting events r milestones and identifying all program interfaces and significant constraints. The work breakdown structure, program plans and logic diagrams provide the rincipal input to the "Performance Management System" (PMS), a management technique designed to permit project managers to evaluate schedule and ost performance simultaneously in order to predict successful accomplishment of assigned tasks. Corrective action is taken in those cases where serious schedule or cost siippages are indicated. This system supplies not only information required by management to make intelligent decisions, but it also provides visibility to technical personnel engaged in carrying out these tasks and are held directly accountable for their performance. While the measurement of cost and schedule performance is a key element of successful program management, the tracking of technical accomplishments is no less vital if performance objectives are to be achieved. Technical Performance Measurement (TPM) provides this capability by comparing predicted with actual technical performance. TPM defines data requirements; establishes a technical evaluation performance profile for each selected parameter and for associated critical design factors; establishes milestone and plots actual versus planned values for each factor; assesses the impact on systems performance when trends develop; and, finally, provides a technical evaluation profile, which is reported to NASA program management. TPM tracks performance during the entire hardware development cycle, including simulation, ground and flight tests. Configuration Management In highly complex research and development programs, schedule and cost overruns are frequently caused by design changes made in response to technical problems, or on the basis of changed mission requirements. Unless such changes are properly controlled, and their impact on schedules and cost evaluated before they are implemented, they can seriously affect program cost and schedule objectives. For this reason, a balanced Configuration Change Control Management System is being implemented in the Space Shuttle program which is designed to establish effective controls and to preclude any unauthorized changes to the baseline programs, while at the same time permitting the contractor sufficient flexibility to exercise design options when necessary. Actual control is exercised through Program Requirement Control Boards (PRCB) composed of key technical and management personnel who review all change proposals and recommend approval or disapproval to the chairman of the PRCB. Space Shuttle PRCB's are associated with appropriate program levels in accordance with the Shuttle program structure (figure 161). PRCB's also perform a program integration function by ex ercising interface control and by determining the effect of changes on other elements of the program. PRCB board procedures insure that each proposed change to the baseline is completely described (including impacts); is thoroughly coordinated, reviewed, and evaluated; is authorized and implemented in an approved manner; and that the contractor properly implements changes processed in this manner. The activities of the PRCB's are closely tied to key decision points of the hardware development cycle to insure, both at the systems and the major contractor end-item level, adequacy of systems design, and compatibility of the hardware, software and systems design with program baseline requirements. These four critical "decision points" are the Program Requirements Reviews (PRR), the System Requirements Reviews (SRR), the Preliminary Design Reviews (PDR) and the Critical Design Review (CDR) (figure 162). These SPACE SHUTTLE REVIEW SYSTEM REVIEW PROGRAM REQUIREMENTS REVIEW (PRR) SYSTEM REQUIREMENTS REVIEW (SRR) CONTRACT PRELIMINARY DESIGN REVIEW (PDR) CONTRACT CRITICAL DESIGN REVIEW (CDR) MONTHLY PROGRAM REVIEWS QUARTERLY PROGRAM REVIEWS SYSTEM PRELIMINARY DESIGN REVIEW (PDR) NASA HQ MH72-6771 FIGURE 162 reviews, supported by the program requirements Control Board System allow program management to maintain control over hardware configuration and insure that contractors comply with program requirements in terms of technical performance, costs and schedules. Information Management One of the principal cost drivers in complex R. & D. programs is the requirement for generation of vast amounts of data and documentation. In past programs, as much as 25% of total costs represented the cost of reports and other documentation. The Space Shuttle program is making a calculated effort to reduce data costs by exercising control over data generation and distribution. At the same time, care will be taken to insure that all information necessary to assure program success is prepared, is compatible with program requirements and available to users. For this purpose, a Space Shuttle "Information Management" activity has been established which is responsible for controlling, nonitoring and directing all activities pertaining to information requirements. To assist in the orderly flow of information from the contractor's plants to NASA management, a documentation tree has been developed which clearly identifies all major data requirements for the Space Shuttle program. The content of each report and the basic approach to the data generation is described, leaving details to the internal operating procedures of the performing activities. Contractors must provide assurance that their proposed approaches and techniques are sound and when implemented, will provide the information required to accomplish program objectives. In all information activities advanced communications and display techniques are being employed to further reduce the need for written documentation and reports. Management Information Centers For day-to-day management of the Shuttle program, Management Information Centers (MIC) are being installed at NASA facilities and contractors' plants which provide continuing program visibility for Shuttle management and op erating personnel (figure 163). MIC's serve as focal points for planning and status MANAGEMENT INFORMATION CENTER NETWORK SPACE SHUTTLE data and display integrated tcehnical and programmatic data for use by all levels of management. MIC data is closely tied to the Shuttle Work Breakdown Structure used throughout the program. Each MIC contains a common data base and detailed information geared to center and project requirements. This permits manage ment at different locations to communicate easily and aids in program decision making. The information displayed at MIC's and selectively presented to any level of NASA management constitutes data already available from the cor tractor's own management systems. It does not involve generation of new data either in content or format. Utilization of the contractors' displays reduces data requirements and minimizes the costs involved. MIC's are linked by a highfidelity conference telephone system which, coupled with a facsimile data transmission capability, permits display of data at a high rate for teleconferences. All government MIC's are being equipped with hardware available from previous programs, making it unnecessary to purchase or lease new equipment. The Shuttle MIC system represents an important management tool designed to complement the Shuttle management concept and intended to provide a lowcost management capability. |