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Progress in Improving Project Management at the Department of Energy 2002 Assessment (2003) / Chapter Skim
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7. Readiness to Proceed for First-of-a-Kind Projects
Pages 40-48

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From page 40...
... Even if the individual components are commercial off-the-shelf, their integration into a new, high-performance system may be unprecedented. Senior management, faced with the alternatives whether to wait until all technical uncertainties are resolved or to move forward concurrently with project design and the development of new technologies will often opt for the faster approach.
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From page 41...
... CHARACTERISTICS OF FIRST-OF-A-KIND PROJECTS First-of-a-kind projects are, by definition, highly diverse, but regardless of their purpose construction of a new weapons processing plant, decontamination and remediation of a site with unique or unusual conditions, or construction of a new scientific instrument or laboratory that could achieve scientific and technological leadership these endeavors share a number of features. One of the significant issues in environmental restoration projects, among them decontamination and remediation, is that conditions at many sites are unknown, owing to inadequate or incomplete characterization of the wastes.
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From page 42...
... This is especially true for DOE environmental restoration projects, which may involve state and local governments, public and private environmental protection groups, and other stakeholders. Information technology enables all stakeholders and concerned parties to keep a close eye on the project and to react if some of their interests are affected.
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From page 43...
... To address this issue, an explicit risk management program should be undertaken, from the earliest phases of preconceptual planning and continuing throughout the entire project development process. Cost and Schedule Contingency The inherent uncertainty in project definition for first-of-a-kind projects results in more changes and a corresponding need for larger contingency for both costs and schedules, making the construction control process more difficult.
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From page 44...
... For acquisition executives to make these critical decisions, they need adequate information. Therefore, during the preproject planning phase of first-of-a-kind projects, special procedures are needed to assure the development of information that will facilitate a responsive decision-making process.
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From page 45...
... The following issues should be addressed in the review of risk assessments, project procurement and execution plans, and other management areas for firstof-a-kind projects. It is unlikely that all of these issues would be faced on any single project, but all of the methods cited here have been used on some DOE projects.
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From page 46...
... Adequate attention should be paid to the uncertainties in scope definition and the likelihood that design development will identify additional costs. Top-down cost estimates should be made using whatever parametric or statistical methods may be applicable and used as reality checks on the bottom-up estimates.
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From page 47...
... The project planning and scheduling process should specify in the project schedule the dates by which these technological decisions have to be made to avoid extending the project completion date. MANAGEMENT PLANNING AND CONTROL As discussed above, management planning and control are the areas that need the most improvement for DOE first-of-a-kind projects.
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From page 48...
... Recommendation: DOE managers and acquisition executives should pay particular attention to the unique characteristics of first-of-a-kind projects by considering the issues discussed above for example, costs and benefits, scope, cost and schedule budgets, constructability, alternatives, management planning, and project controls at all critical decision points.
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Key Terms

  • breakdown structure
  • project planning
  • management planning
  • critical decision
  • project development

  • organizational breakdown
  • environmental restoration
  • explicit risk
  • project schedule
  • cost estimates

  • preconceptual planning
  • uncertainty inherent
  • earliest phases
  • work performed
  • management program

  • acquisition executives
  • schedule overruns
  • uncertainty caused
  • budgeted cost
  • project costs

  • performance shortfalls
  • critical decisions
  • management plan
  • entire project
  • restoration projects

  • projects call
  • performance depends
  • project changes
  • construction process
  • unique characteristics


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