The overall plan tied customer payment to milestones, as firm, fixed-price contracts require. “I don’t think we had a choice,” Gowans says. “That’s the only way the customer is assured that, when the dollars are paid, progress is made. But you must pick increments that are achievable.”
The setup provides management challenges, especially when managing the critical path proactively, Abramovici says. “On one hand, payment milestones are good because they allow a continuous focus on those deliverables and permit the customer to see progress being made,” Abramovici says. “But if there are too many milestones too closely spaced, it takes away flexibility as the program progresses. You can’t use a rolling-wave approach because the milestones are locked down based on payment.”
The original (baseline) cost and schedule was amended through the life of the project by incorporating customer-mandated and approved changes of scope proposals, which consequently modified the project cost and acceptance review date.
Progress Report
Engineering work paralleled the SPDM product design effort. The engineering team and management scrutinized any changes requested by the customer to ensure the existing design would meet the new demands and to define whether or not the new requirements were within the original scope. The team immediately discussed out-of-scope changes with the customer and, if the customer approved implementation, the team analyzed these requests to identify technical, cost, schedule, human resources, facilities and risk impacts.
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