30 October 1978 Management Controls For High Technology Programs
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In early 1975, Pratt & Whitney Aircraft, Government Products Division (P&WA) developed a management system that provided such improved management visibility, flexibility, and control that it was soon adapted to all major programs. An important element of the system is the establishment of management reserves in budget and schedule to offset the risks associated with development unknowns. Program tasks are defined and controlled through a Work Breakdown Structure (WBS). Functional budgets are established for time-phased tasks within each WBS element. Technical requirements are built into detailed milestones that are planned to meet contract and internal program schedules. These budgets and milestone schedules are firmly established as the performance measurement baseline. Simple and timely tracking techniques are utilized to monitor program progress. Daily meetings are held in an Action Center where all work elements, functional budgets, milestone lists, and critical items affecting technical performance, schedule, and cost are reviewed. Milestone status is updated daily and actual costs are posted weekly for monitoring cost trends and variances against budgets. Program performance is summarized monthly and reported in terms of a Performance Index (PI) defined as follows: PI = completed milestones / actual costs PI = planned milestones / planned costs. A PI of 1.0 indicates the full value received for dollars spent. The PI trends are posted to indicate an improving or worsening condition.
© (1978) COPYRIGHT Society of Photo-Optical Instrumentation Engineers (SPIE). Downloading of the abstract is permitted for personal use only.
Ernest A. Kuonen, Ernest A. Kuonen, Sawyer Thompson, Sawyer Thompson, } "Management Controls For High Technology Programs", Proc. SPIE 0151, The Business Side of the Optics Industry IV: Managing Engineering and Research, (30 October 1978); doi: 10.1117/12.956722; https://doi.org/10.1117/12.956722


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