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NDIA Program Management

S

t

C

itt

(PMSC)

Systems Committee (PMSC)

Northrop Grumman

Northrop Grumman

Our Approach to Program Management

August 10, 2011

Dr. John Chino

Vice President

Corporate Programs, Quality and Engineering

(2)

Topics

Brief Corporate Overview

Our Performance Culture

Program Management Initiatives

Reasons Why Programs Succeed

Reasons Why Programs Succeed

(3)

Northrop Grumman – Business Portfolio

By Segment

By Customer

23%

24%

11%

38%

By Segment

By Customer

20%

6%

4%

Aerospace Systems

Electronic Systems

Information Systems

Technical Services

Air Force

Army

International

Navy

10%

28%

11%

25%

Other Department of Defense

Other Government

U.S. Commercial

(4)

Four Operating Sectors at a Glance

Technical Services

Electronic Systems

Aerospace Systems

Information Systems

Aircraft

Subsystem/Component Sustainment & Modernization Air Defense Systems

Airborne Ground Surveillance / C2

Command & Control Systems

Sustainment & Modernization Aircraft System/Platform Sustainment & Modernization

Defense and Government Services

C4ISR Networked Systems

EO/IR Targeting & Surveillance

M i & U d S t C4ISR

Directed Energy Systems Electronic Combat

Operations Environmental & Space

Communications Cybersecurity Enterprise Systems and Security Ground Vehicle Reconstitution Integrated Logistics and

Modernization Irregular Warfare/Quick Marine & Undersea Systems

Navigation & Positioning Systems

Propulsion & Power Environmental & Space

Science Satellite Systems Global / Theater Strike

Systems ISR Satellite Systems Large Scale Systems

and Security Federal, State/Local & Commercial Health IT Irregular Warfare/Quick Reaction Capability Live, Virtual and Constructive

Domains

Nuclear Security Services Generation

Radar Sensors & Systems

RF/IR Countermeasures Large Scale Systems

Integration MILSATCOM Systems Missile Defense Satellite

Systems Naval BMC2

Homeland Security Intelligence

Intelligence, Surveillance & Reconnaissance Systems

Technical and Operational Training Support

Training Solutions Space Sensors

Naval BMC2 Strategic Space Systems

Unmanned Systems

(5)

Northrop Grumman Leadership Team

Chairman, CEO

and President

Wes Bush

Aerospace

Systems

Gary Ervin

Business

Management

Communications

Jim Palmer

Darryl Fraser

Jim Pitts

Corp VP & President

Electronic

Systems

Corp VP &

President Corp VP & CFO Corp VP

E t

i

Enterprise

Shared

Services

Gloria Flach

Corp VP & President

General

Counsel

Corp VP

Government

Relations

Sheila Cheston

Sid Ashworth

Corp VP

Information

Systems

Linda Mills

Corp VP &

President

Human

Technology

Resources

Technical

Services

July 2011 Corp VP & CTO

Alexis Livanos

5

VP & Acting Chief Human Resources Officer

Debora Catsavas

Tom Vice

Corp VP & President
(6)

Corporate Programs, Quality & Engineering

Wes Bush

Chairman, CEO

and President

John Chino

Vice President

Programs Quality & Engineering

Programs, Quality, & Engineering

Corp Program

Mgmt Council

(CPMC)

Corp Quality

Nick Yorio

Corporate Director, Programs

Bob Waters

VP, HR Strategy & Talent Management

Steve Palmer

Corporate Director, Programs Non-Advocate Reviews (NARs)

Carol Armstrong

Corporate Director, Quality Quality Assessments

Chris Orlowski

Corporate Director, Engineering Engineering Assessments Non-Advocate Reviews (NARs)

Corp Engrg

Council

(CEC)

Corp Quality

Council

(CQC)

( ) & Assessments Co-Chair CPMC Co-Chair CQC Co-Chair CEC ( ) & Assessments

(CEC)

(7)

Our Performance Culture . . .

A Company Highly Valued By Our Customers

A Company Highly Valued By Our Customers

F i R t

i O

I d

t

F

Sh

h ld

Fair Returns in Our Industry For Shareholders

A Magnet For Talent At All Levels

7

(8)

Our Focus . . .

Ethical Behavior

Reduce Cost and Improve Affordability

Reduce Cost and Improve Affordability

Drive for Stable & Predictable Program Performance

Collaborate Openly and Candidly

Customer Satisfaction

Customer Satisfaction

Expanding Diversity and Inclusion

Corporate Citizenship

Quality Performance

y

(9)
(10)

Roles & Functions –

Corporate Program Management Council (CPMC)

p

g

g

(

)

Provides an Enterprise-Level Forum to Share Program Mgmt (PM)

Processes, Procedures, Resources and Best Practices

Processes, Procedures, Resources and Best Practices

Establishes Company-wide Solutions to Address Common PM Issues

Planning and Cost/Schedule Management

Requirements Management

– Planning and Cost/Schedule Management

– Requirements Management

– Risk and Opportunity Management

– Integration & Test Approaches

– Content of Management/Technical Reviews

– Contract/Subcontract Management

– Performance Metrics

– Acquiring and Training Personnel

– Performance Metrics

– Acquiring and Training Personnel

Provides Development and Training Opportunities for PMs

Building PM Bench Strength

– Building PM Bench Strength

– Mentoring Across Sectors

– Generating Pipeline of Talent

(11)

Program Management Initiatives (cont’d)

Utilize Results of DCMA’s Observations & Feedback to

Improve EVM at Northrop Grumman

p

p

DCMA CAR Data Updated Bi-monthly in Corporate-wide Database

• CARs and CAPs Available for Review on Shared Intranet Site

CARs and CAPs Available for Review on Shared Intranet Site

• Metrics Reported to Senior Management for Review and Action, As

Required

• Each Sector’s EVM Focal Points Meet Bi-monthly to Exchange Information

Each Sector s EVM Focal Points Meet Bi monthly to Exchange Information

on Corrective Actions & Process Improvements

Identify Opportunities For Process Improvem

y

pp

p

ents

• Reinforce Program Mgmt organized assessments of the Financial

Health of Programs

(12)

Program Management Initiatives (cont’d)

Evaluation of Toolsets

– Identify Most Effective Tools, Increase Standardization & Decrease

Costs

St i

t I

P di t bilit

– Strive to Increase Predictability

– Identify Trends

• Contrast Plans & Actuals

• Contrast Plans & Actuals

Membership of the CPMC Includes the VPs of Programs

From Each Sector

(13)

Key PM Processes . . .

13

(14)

Key Reasons Why Programs Are Successful . . .

Requirements Management

Planning – Schedule & Financial

Risk & Opportunity Identification & Management

Risk & Opportunity Identification & Management

Integration

Subcontract & Supplier Management

Right People & Skills At the Right Time

(15)

Traits of Successful Program Managers

9.

Focused on Results

1.

Organized

10. Integrity

11. Sound Judgment

2.

Frames Strategy

3.

Patient

12. Customer Satisfaction

13. Persistence

4.

Business Savvy

5.

Multi-Disciplinary

Team Builder

14. Passionate About Success

15. Sense of Urgency

Team Builder

6.

Communicator

7.

Adaptable

7.

Adaptable

8.

Develops Talent

. . . “DNA” for Program Managers

15

(16)

Summary

Deliver Products on/or Ahead of Schedule with High &

M

d L

l

f Q

lit

Measured Levels of Quality

Continue the Focus on Strong Program Management

Predictable & Stable Performance

Fair & Equitable Financial Returns for Our Shareholders

Attract & Train Diverse & Inclusive Talent

(17)

References

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