economics, policy and political process presentation to lmu systems engineering leadership program...
TRANSCRIPT
Economics, Policy and Political Process
Presentation to LMU Systems Engineering Leadership Program
Marilee J. WheatonMarch 19, 2015
Marilee J. WheatonEducation:
Bachelor Degrees in Math and SpanishMagna Cum Laude, California Lutheran University
Graduate coursework in Mechanical Engineering (Thermal Fluids)
California State University, Northridge
Masters in Systems Engineering from USC Viterbi
Industrial and Systems Engineering Department, 1993
UCLA Executive Education ProgramAnderson School, 2001
PhD Program, Systems Architecting and Engineering, Astronautical Engineering Department, USC Viterbi
CMMI certified team member, Six Sigma Black Belt training
Marilee J. WheatonWork Experience:Started at Lockheed California Company in BurbankThe Aerospace Corporation, from 1980 to 1999 and 2002 to present
FFRDC for Space Systems, GSE&I, Architect-Engineer for Space SystemsCurrently Systems Engineering Fellow, Systems Engineering DivisionPreviously General Manager, Computer Systems and Systems Engineering Divisions, The Aerospace InstitutePrevious program office experience in Milstar, SDI Programs, Ground Systems programs (AFSCN, IC)
Industry experience at TRW Systems (now NGIS) from 1999 to 2002
Marilee J. WheatonTeaching Experience:USC Viterbi School of EngineeringOriginally taught CS 510, Software Engineering Economics, Fall 2003
Request by Dr. Barry Boehm, Director CSSE, who was on sabbatical
Then started teaching SAE 549 in 2004 through 2008
Share Dr. Rechtin’s vision for the importance of system architecting concepts and heuristics
Fall 2006 taught ISE 561, Advanced Engineering EconomicsFall 2008, Spring and Fall 2009, Co-Developer and Instructor, SAE 560, Economic Considerations for SAEFall 2010, Full circle to CS 510 againSpring 2011, Back to SAE 549Spring 2013, Back to SAE 560
Marilee J. WheatonProfessional Affiliations:Fellow, AIAA
Immediate Past Chair, Economics Technical CommitteeLeadership Team, Space 2009 through Space 2011 Conferences
Fellow Life Member, Society of Women Engineers
Past SWE LA President, National Life Membership Coordinator
Long time active member in Cost SocietiesInternational Society of Parametric Analysts (ISPA) and Society for Cost Estimating and Analysis (SCEA)Past Board Chair, Board Member and Conference Chair for ISPAMember, Space Systems Cost Analysis Group
Fellow, International Council on Systems Engineering (INCOSE)
Member, Corporate Advisory Board (CAB)Technical Program Chair, CSER 2011 and 2014
6
Management Relationships: The Political Process
• Why is this subject important?• Some reasons why an engineer might care:
– The political process determines budgets– The political process often sets time limits to
accomplish a project• And then doesn’t provide enough resources to
accomplish that project
– The political process often imposes regulations and constraints on designs
7
Management Relationships: The Political Process
• The domain of the system architect in a project:
Technical
Management
Business
Political
People
People
People
People
Performance
Focus Is On:
Schedule
Cost
PoliticsTechnical PoliticalAwareness Awareness
Level of Level of
HIGH
HIGHlow
low
Operating domain of theSystem Architect
8
Management Relationships: The Political Process
• The political system:– Not just formal political institutions (Congress &
White House)• Interagency rivalries• Intra-agency tensions• Dozens of lobbying groups• Influential external review groups• Powerful individuals both within and outside
government• And always, the media
9
Management Relationships: The Political Process
• The political system:– Extremely complex interaction– Impossible to model quantitatively
• Too many variables• Most unquantifiable• Constant unpredictable change
– Confusing, sometimes chaotic– But -- determines budgetary funding levels
10
Management Relationships: The Political Process
• Either enables engineering design process to go forward or imposes constraints:– Budget cuts– Schedule stretch outs– Technical reviews– Reporting requirements– Threat of outright cancellation
11
Management Relationships: The Political Process
• Why so complex?– Power is very widely distributed in Washington– No single, clear-cut locus of authority to support
for long-term, expensive programs– Support must be cobbled together from grab-bag
of widely varying groups– Each may perceive program's worth very
differently; interests may diverge radically when pressure is on
12
Management Relationships: The Political Process
• Coping skills for the modern design engineer:– First essential skill: ability to think in its terms– Must understand: political process logic system
is entirely different from the one in which scientists and engineers are trained
– D.C. uses logic of politics, which is rigorous - but:• Premises & rules profoundly different from scientific &
engineering logic• Will repeatedly arrive at different conclusions on basis
of same data
13
Management Relationships: The Political Process
• Coping skills for the modern design engineer:– Scientific/engineering proof = firm assumptions +
accurate data + logical deduction– Political logic structured entirely differently
• Not logical proof• Based on negotiation, compromise & appearances
– Proof = "having the votes" • If so: program = worthy, useful and beneficial to the
nation• If not: no matter what its technological merits, will lose
out
14
Management Relationships: The Political Process
• Focal point for the system architect’s study is the budget process
• The budget: the ultimate political value judgment– That's where the money is– No money means no program, regardless of need
or of the program’s technical merit– Remember that this value judgment repeated each
year
15
Management Relationships: The Political Process
• Federal budget process best understood as struggle over political values because outcome embodies nation's current consensus (or its lack) as to the relative importance of its innumerable priorities
• Government is nothing like military or corporation– No "bottom line" instead, must decide what its
goal is
16
Management Relationships: The Political Process
The facts of life:
• Not in priority order!
• All are “money = politics”#1 Politics, not technology, controls what
technology is allowed to achieve
#2 Cost rules
#3 A strong, coherent constituency is essential
#4 Technical problems become political problems
#5 The best engineering solutions are not necessarily the best political solutions
17
Smarter Buyer 1 Course Primary Learnings
Key topics – Wall Street Demands: How does influence of Wall Street impact
a government program?– Sector Demands: How do the aerospace/defense industry
sector financials impact individual program design and execution?
– Industry Bid/no-bid decision making and customer influence– Demands on the industry Program Manager: What does this
mean for the System Program Director (SPD)?• Take Aways for Future Reference
– The “X” chart: The key players in government/industry interaction and their roles
– The Financial Pyramid: financial measures important to industry– Smarter Buyer Reference Sheet: summary of key points we
heard from industry
18
Government Risk-Reward “Vee” Diagram
Top-Dow
n
Dem
ands and
Constraints Pr
ogra
m
Succ
ess
Con
trib
utio
ns
Time
Demands (Risk)Outcome(Reward)
Sp
ace
Dem
and
sW
arfi
gh
ter
and
Po
licy
Mak
erD
eman
ds
Pro
gra
m
Dem
and
sS
pace
Cap
abilities
Warfig
hter
Cap
abilities
Pro
gram
C
apab
ilities
USecAF/DNROPortfolio
PEO’s and NRO Director’s Space Portfolio
DoD/ ICBudget
Obligate all money
PortfolioSuccess
Mission Success
Space Budget
Program Requirements And Constraints
System Program Director
Space Contributions to Mission Area
PEO’s Space Portfolio
Congress
Taxpayers
19
SHAREHOLDERS
Industry Risk-Reward “Vee” Diagram
Top-Dow
n
Dem
ands and
Constraints Pr
ogra
m
Fina
ncia
lC
ontr
ibut
ions
Time
Demands (Risk)Financial Outcome(Reward)
Sec
tor
Dem
and
sW
all S
tree
t D
eman
ds
Pro
gra
m
Dem
and
sS
ector
Fin
ancials
Co
rpo
rate F
inan
cialsP
rog
ram
Fin
ancials
CEO targetsfor sectors
Sector targets for programs
Industry Program Manager
Corporate Financial Expectations
Sector PortfolioReturns
Corporate Earnings Stability and Predictability
Sector Expectations
Program FinancialPerformance Pressures
Program Financial Returns
Corporate Returns
Sector Returns
BOD
20
The “X” Diagram
Obligate all money
Demands (Risk) (Reward)
Program Demands
Program Capabilities
System Program Director
Program Req’ts And Constraints
Program Financials
Program Demands
Financial Outcome (Reward)Demands (Risk)
DoD/IC Budget Mission SuccessCongress
Taxpayers
Corporate Financials
Wall Street Demands
Corporate FinancialExpectations
Corporate Financial Results
BOT
SHAREHOLDERS
Industry Program ManagerProgram Financial Returns
Program Financial Performance Pressures
Space BudgetSpace Demands
SpaceCapabilities
Portfolio Success
Sector Financials
Sector Demands
Sector PortfolioReturnsSector Expectations
Warfighter and PolicyMakerDemands
Warfighter and PolicyMakerCapabilities
21
Financial Pyramid
• What are these financial parameters?
• How do these parameters relate to one another?
• What is the role of the CEO, Sector GM/VP, and Program Manager in their use?
• How can the government influence industry financial metrics?
• How do these financial metrics impact your program?
Orders
Sales
Earnings/Cash Flow
Share Value
$
This financial pyramid is the central link between Wall Street and industry through the CEO, VP/GM, and the Program Manager
Opportunities
22
Shared Financial Risk Management Metrics
PM
SPD
BusDev
VP/GMCEO
Return metric
Cash flow
Schedule
Hurdle rate
Return metric
Sales Growth
Cash flow
Cash flowAward fee
Acquisitions
Return metric
Sales Growth
Cash flow
Hurdle Rate
23
S M A R T E R B U Y E R R E F E R E N C E S H E E T In d u s tr y A s s e s s m e n t : N e c e s s a ry to u n d e rs ta n d c h a n g in g in d u s tr y e n v iro n m e n t
C o m p e t it iv e la n d s c a p e W a ll S tre e t ’s v ie w o f v ia b ility – th e s p a c e in d u s try a n d in d iv id u a l c o n tra c to r re tu rn s C o n tra c to r
R e c e n t w o n / lo s t re c o rd M a rg in s fo r p a r t ic u la r d iv is io n /g ro u p – R e tu rn B a c k lo g : W h a t is th e C o n tra c to r d o in g to d a y – re s o u rc e s a v a ila b le W h a t e ls e a re th e y b id d in g o n /t im in g o v e r la p S k ills a n d c o m p e te n c ie s – P a s t p e rfo rm a n c e , s u b c o n tra c to rs S tra te g ic p la n : to w h e re o r in to w h a t b u s in e s s d o th e y w a n t to m o v e , i.e . f ro m s u b
to p r im e ? R is k /R e tu rn : u n d e rs ta n d th e fa c to rs a n d re la t io n s h ip s to k e e p th is in b a la n c e
R is k a n d s u c c e s s fa c to rs d e f in e d a n d u n d e rs to o d – T e c h n ic a l, S c h e d u le , C o s t P ro g ra m re tu rn is c o m m e n s u ra te w ith r is k fo r C o n t ra c to r C o n s is te n c y b e tw e e n c o n tra c t T ’s a n d C ’s – a n d w h a t is to b e in c e n t iv iz e d
C o s t: b e a w a re o f th e m o tiv a t io n s b e h in d th e c o s t f ig u re s R e a lis t ic in d e p e n d e n t c o s t e s t im a te Is th e p ro p o s a l a b id - to -w in o r p r ic e - to -c o s t ( In c u m b e n t lo s e s 7 5 % o f th e t im e ) F o c u s o n v a lu e p ro p o s it io n o f C o n tra c to r /p ro p o s a l a n d n o t o v e r ly e m p h a s iz e d o n c o s t
C a s h F lo w : h e lp c o n s is te n t C o n tra c to r e a rn in g s M a k e re g u la r p a y m e n ts : b o th fo r s c h e d u le a n d a c tu a l re c e ip ts T im e d b e tw e e n f ro n t -e n d a n d b a c k -e n d : b e tw e e n p ro g re s s p a y m e n ts a n d in -o rb it
s u c c e s s S tru c tu re s a v in g s s o th a t C o n tra c to r is a b le to k e e p s o m e
P ro c e s s : In te g ra te th e G o v ’t a n d C o n tra c to r b u s in e s s p ro c e s s e s a n d c o m m u n ic a t io n In s u re o p t im a l re q u ire m e n ts u n d e rs ta n d in g a n d e v a lu a t io n - a d e q u a te t im e b e tw e e n d ra f t
a n d f in a l R F P a n d a ls o b e tw e e n th e R F P a n d P ro p o s a l S u b m it ta l O p tim a l t im in g b e tw e e n S o u rc e S e le c t io n a n d P ro g ra m s ta n d -u p to m in im iz e re s o u rc e s
u n d e r /n o n -e m p lo y e d C o m m u n ic a t io n o f te n a lo n g e n t ire p ro c e s s
M e tr ic s : U n d e rs ta n d m e tr ic s u s e d b y C o n tra c to r le v e ls o f m a n a g e m e n t
In te rn a l m e tr ic s C o n tra c to r u s e d to m e a s u re p ro g re s s o f p ro g ra m A c c e s s to d a ta ; h o w o f te n a n d b y w h a t v e h ic le in fo s h a re d R e a liz e th a t in te rn a l m e tr ic s c h a n g e m a y a ls o c h a n g e c o n tra c to r p e r fo rm a n c e
F e e : D e s ig n a n d m a in ta in a fe e s tru c tu r e th a t in c e n t iv e s th e r ig h t s u c c e s s g o a ls
S p re a d a m o n g b a s e , a w a rd a n d in c e n t iv e S p lit a m o n g te c h , s c h e d u le , c o s t a n d m a n a g e m e n t th a t is a lig n e d w ith g o a ls A d e q u a te p o o l a s a m o t iv a t io n in c e n t iv e fo r c o n tra c to r to re s p o n d to G o v e rn m e n t
c o n c e rn s U n e a rn e d p o r t io n w ith p o s s ib ility o f ro llo v e r
24
Top 10 IPA Team Finding Areas
1. Poor government cost baseline (e.g., awarding the acquisition contract based on less than government cost estimate)
2. Poor schedule baseline (e.g., awarding the acquisition contract based on a schedule shorter than government schedule estimate, “meet me at the pass” planning, not using technology on/off ramps effectively
3. Changes in major requirements after acquisition contract award
4. Poor government SPO technical baseline (e.g., at KDP B)
• Missing or poor SOO, TRD, WBS/SOW, CARD, Approved Acquisition Strategy
• Cutting corners during preparation to save time in getting on contract
• Using success-oriented plans (over promise/ under perform)
• Assuming that none of those problems that other programs have encountered will happen to this program
Source: S. Soderquist, Director, SMC Acquisition Center of Excellence (ACE), presented Jan 2007 Space Systems Cost Analysis Group (SSCAG) Meeting
25
Top 10 IPA Team Finding Areas (Cont.)
5. Poor contractor processes and poor implementation of those processesIMS/IMP, EVMS, engineering/qualification equipmentParts/box/subsystem/system testing, configuration control
6. Poor government oversight of contractor processes and testing
7. Program disruption due to problems in government decisionsTime required to provide data to independent teams, and lack
of timely access to decision makersTime required for RFP preparation and source selectionBudget cut drillsDifficulties in meeting obligation and expenditure standards,
resulting in OSD budget cuts8. Other system engineering shortfalls
Test and Evaluation planning, requirements decomposition and traceability, trades, interface planning
9. SPOs not applying the lessons learned and best practices derived from past program experience
10. Too few qualified people in the SPO and contractors
26
Tom Young Panel on NSS Acquisition
1) Cost #1, not mission success2) Unrealistic estimates = unrealistic
budgets = unexecutable programs3) Undisciplined system requirements 4) Government space acquisition
capabilities seriously eroded5) Industry failed to implement proven
management and engineering practices
26
27
Cost and Schedule Estimating
• Recognizes that best value is not necessarily lowest cost bid
• Government must place value on non-deliverables essential to mission success (Examples: SE, MA, QA,…)
– Then industry will also value them
– Exclude “name-that-tune-in-three-notes” bids
• Has a well-established Independent Cost Estimating (ICE) and program control function
• Budget program to 60 - 80% confidence, including a management reserve sized by risk– Expend reserves to execute unforeseen elements of baseline
program—not new requirements
28
Stability
• Stable, manageable baselines—requirements, budget, and schedule also include managing expectations– Manage necessary but unplanned changes
– Rigorous systems engineering process for assessing impact of new requirements
– New requirements must come with new funding
• Allows trade spaces vs. “cast-in-concrete” requirements– Capabilities, cost, and schedule
• Architectures that allow right-sized programs (can be executed in about 5 years)– Regulates appetite of user community
University of Southern California
Center for Systems and Software Engineering
Next Generation Systems and Software Cost Estimation
Barry Boehm, USC-CSSE
University of Southern California
Center for Systems and Software Engineering
Next-Generation Measurement Challenges
• Emergent requirements– Example: Virtual global collaboration support systems– Need to manage early concurrent engineering
• Rapid change– In competitive threats, technology, organizations,
environment
• Net-centric systems of systems– Incomplete visibility and control of elements
• Always-on, never-fail systems– Need to balance agility and discipline
University of Southern California
Center for Systems and Software Engineering
The Broadening Early Cone of Uncertainty (CU)
ConOps Specs/Plans IOC
• Need greater investments in narrowing CU– Mission, investment, legacy
analysis
– Competitive prototyping
– Concurrent engineering
– Associated estimation methods and management metrics
• Larger systems will often have subsystems with narrower CU’s
Global Interactive, Brownfield
Batch, Greenfield
Local Interactive,Some Legacy
18 February 2009©USC-CSSE 31
X8
X4
X2
University of Southern California
Center for Systems and Software Engineering
32
COSYSMO
SizeDrivers
EffortMultipliers
Effort
Calibration
# Requirements# Interfaces# Scenarios# Algorithms
Volatility Factor
- Application factors-8 factors
- Team factors-6 factors
- Schedule driver WBS guided by ISO/IEC 15288
COSYSMO Operational Concept
University of Southern California
Center for Systems and Software Engineering
Next-Generation Systems Challenges
• Emergent requirements– Example: Virtual global collaboration support systems– Need to manage early concurrent engineering
• Rapid change– In competitive threats, technology, organizations,
environment
• Net-centric systems of systems– Incomplete visibility and control of elements
• Always-on, never-fail systems– Need to balance agility and discipline
University of Southern California
Center for Systems and Software Engineering
©USC-CSSE
3415 July 2008
Rapid Change Creates a Late Cone of Uncertainty– Need evolutionary/incremental vs. one-shot development
Feasibility
Concept of Operation
Rqts. Spec.
Plans and
Rqts.
Product Design
Product Design Spec.
Detail Design Spec.
Detail Design
Devel. and Test
Accepted Software
Phases and Milestones
RelativeCost Range x
4x
2x
1.25x
1.5x
0.25x
0.5x
0.67x
0.8x
Uncertainties in competition, technology, organizations,
mission priorities
University of Southern California
Center for Systems and Software Engineering
Effects of IDPD on Number of Increments
0
20004000
60008000
10000
1200014000
1600018000
20000
1 2 3 4 5 6 7 8
Build
Cumulative KSLOC
0% productivity decline10% productivity decline15% productivity decline20% productivity decline
• Model relating productivity decline to number of builds needed to reach 8M SLOC Full Operational Capability
• Assumes Build 1 production of 2M SLOC @ 100 SLOC/PM
– 20000 PM/ 24 mo. = 833 developers
– Constant staff size for all builds
• Analysis varies the productivity decline per build
– Extremely important to determine the incremental development productivity decline (IDPD) factor per build
2M
8M
SLOC
University of Southern California
Center for Systems and Software Engineering
Next-Generation Systems Challenges
• Emergent requirements– Example: Virtual global collaboration support systems– Need to manage early concurrent engineering
• Rapid change– In competitive threats, technology, organizations,
environment
• Net-centric systems of systems– Incomplete visibility and control of elements
• Always-on, never-fail systems– Need to balance agility and discipline
University of Southern California
Center for Systems and Software Engineering
Further Attributes of Future Challenges
©USC-CSSE
37
Type Examples Pros Cons Cost Estimation
Systems of Systems
•Directed: Future Combat Systems
•Acknowledged: Missile Defense Agency
•Interoperability•Rapid Observe-Orient-Decide-Act (OODA) loop
•Often-conflicting partner priorities
•Change processing very complex
•Staged hybrid models•Systems engineering: COSYSMO•Multi-organization development costing
•Lead Systems integrator costing•Requirements volatility effects
•Integration&test: new cost drivers
Model-Driven
Development
•Business 4th-generation languages (4GLs)
•Vehicle-model driven development
•Cost savings•User-development advantages
•Fewer error sources
•Multi-model composition incapabilities
•Model extensions for special cases (platform-payload)
•Brownfield complexities•User-development V&V
•Models directives as 4GL source code
•Multi-model composition similar to COTS integration, Brownfield integration
Brownfield
•Legacy C4ISR System
•Net-Centric weapons platform
•Multicore-CPU upgrades
•Continuity of service
•Modernization of infrastructure
•Ease of maintenance
•Legacy re-engineering often complex
•Mega-refactoring often complex
•Models for legacy re-engineering, mega-refactoring
•Reuse model for refactored legacy
18 February 2009
University of Southern California
Center for Systems and Software Engineering
Further Attributes of Future Challenges (Continued)
©USC-CSSE 38
Type Examples Pros Cons Cost Estimation
Ultrareliable Systems
•Safety-critical systems
•Security-critical systems
•High-performance real-time systems
•System resilence, survivability
•Service-oriented usage opportunities
•Conflicts among attribute objectives
•Compatibility with rapid change
•Cost model extensions for added assurance levels
•Change impact analysis models
Competitive
Prototyping
•Stealth vehicle fly-offs
•Agent-based RPV control
•Combinations of challenges
•Risk buy-down•Innovation modification
•In-depth exploration of alternatives
•Competitor evaluation often complex
•Higher up-front cost
•But generally good ROI
•Tech-leveling avoidance often complex
•Competition preparation, management costing
•Evaluation criteria, scenarios, testbeds
•Competitor budget estimation•Virtual, proof-of-principle, robust prototypes
18 February 2009
University of Southern California
Center for Systems and Software Engineering
Net-Centric Systems of Systems Challenges
• Need for rapid adaptation to change– See first, understand first, act first, finish decisively
• Built-in authority-responsibility mismatches– Increasing as authority decreases through Directed,
Acknowledged, Collaborative, and Virtual SoS classes• Incompatible element management chains, legacy
constraints, architectures, service priorities, data, operational controls, standards, change priorities...
• High priority on leadership skills, collaboration incentives, negotiation support such as cost models– SoS variety and complexity makes compositional cost
models more helpful than one-size-fits-all models
University of Southern California
Center for Systems and Software Engineering
October 2007 ©USC-CSSE 40
Comparison of Cost Model Parameters
Parameter Aspects COSYSMO COSOSIMO
Size drivers # of system requirements
# of system interfaces
# operational scenarios
# algorithms
# of SoS requirements
# of SoS interface protocols
# of constituent systems
# of constituent system organizations
# operational scenarios
“Product” characteristics Size/complexity
Requirements understanding
Architecture understanding
Level of service requirements
# of recursive levels in design
Migration complexity
Technology risk
#/ diversity of platforms/installations
Level of documentation
Size/complexity
Requirements understanding
Architecture understanding
Level of service requirements
Component system maturity and stability
Component system readiness
Process characteristics Process capability
Multi-site coordination
Tool support
Maturity of processes
Tool support
Cost/schedule compatibility
SoS risk resolution
People characteristics Stakeholder team cohesion
Personnel/team capability
Personnel experience/continuity
Stakeholder team cohesion
SoS team capability
University of Southern California
Center for Systems and Software Engineering
Next-Generation Systems Challenges
• Emergent requirements– Example: Virtual global collaboration support systems– Need to manage early concurrent engineering
• Rapid change– In competitive threats, technology, organizations,
environment
• Net-centric systems of systems– Incomplete visibility and control of elements
• Always-on, never-fail systems– Need to balance agility and discipline
University of Southern California
Center for Systems and Software Engineering
Always-on, never-fail systems• Consider using “weighted SLOC” as a productivity metric• Some SLOC are “heavier to move into place” than others
– And largely management uncontrollables– Examples: high values of COCOMO II cost drivers
• RELY: Required Software Reliability • DATA: Database Size• CPLX: Software Complexity• DOCU: Required Documentation• RUSE: Required Development for Future Reuse• TIME: Execution Time Constraint• STOR: Main Storage Constraint• SCED: Required Schedule Compression
• Provides way to compare productivities across projects– And to develop profiles of project classes
15 July 2008 ©USC-CSSE 42
University of Southern California
Center for Systems and Software Engineering
Conclusions• Future trends imply need to concurrently address new
DoD estimation and management metrics challenges– Emergent requirements, rapid change, net-centric systems of
systems, ultrahigh assurance
• Need to work out cost drivers, estimating relationships for new phenomena– Incremental Development Productivity Decline (IDPD)
– ESLOC and milestone definitions
– Compositional approach for systems of systems
– NDI, model, and service composability
– Re-engineering, migration of legacy systems
– Ultra-reliable systems development
– Cost/schedule tradeoffs
• Need data for calibrating models
15 July 2008 ©USC-CSSE 43
University of Southern California
Center for Systems and Software Engineering
15 July 2008 ©USC-CSSE 44
References Boehm, B., “Some Future Trends and Implications for Systems and Software Engineering Processes”,
Systems Engineering 9(1), pp. 1-19, 2006. Boehm, B. and Lane J., "21st Century Processes for Acquiring 21st Century Software-Intensive Systems of
Systems." CrossTalk: Vol. 19, No. 5, pp.4-9, 2006. Boehm, B., and Lane, J., “Using the ICM to Integrate System Acquisition, Systems Engineering, and
Software Engineering,” CrossTalk, October 2007, pp. 4-9.Boehm, B., Brown, A.W.. Clark, B., Madachy, R., Reifer, D., et al., Software Cost Estimation with COCOMO
II, Prentice Hall, 2000.Dahmann, J. (2007); “Systems of Systems Challenges for Systems Engineering”, Systems and
Software Technology Conference, June 2007.Department of Defense (DoD), Defense Acquisition Guidebook, version 1.6, http://akss.dau.mil/dag/, 2006.
Department of Defense (DoD), Instruction 5000.2, Operation of the Defense Acquisition System, May 2003.
Department of Defense (DoD), Systems Engineering Plan Preparation Guide, USD(AT&L), 2004.
Galorath, D., and Evans, M., Software Sizing, Estimation, and Risk Management, Auerbach, 2006.Lane, J. and Boehm, B., “Modern Tools to Support DoD Software-Intensive System of Systems Cost
Estimation, DACS State of the Art Report, also Tech Report USC-CSSE-2007-716Lane, J., Valerdi, R., “Synthesizing System-of-Systems Concepts for Use in Cost Modeling,” Systems
Engineering, Vol. 10, No. 4, December 2007.Madachy, R., “Cost Model Comparison,” Proceedings 21st, COCOMO/SCM Forum, November, 2006,
http://csse.usc.edu/events/2006/CIIForum/pages/program.htmlMaier, M., “Architecting Principles for Systems-of-Systems”; Systems Engineering, Vol. 1, No. 4 (pp 267-
284).Northrop, L., et al., Ultra-Large-Scale Systems: The Software Challenge of the Future, Software
Engineering Institute, 2006. Reifer, D., “Let the Numbers Do the Talking,” CrossTalk, March 2002, pp. 4-8.Valerdi, R, Systems Engineering Cost Estimation with COSYSMO, Wiley, 2009 (to appear)
University of Southern California
Center for Systems and Software Engineering
15 July 2008 ©USC-CSSE 45
List of Acronyms
AA Assessment and Assimilation
AAF Adaptation Adjustment Factor
AAM Adaptation Adjustment Modifier
COCOMO Constructive Cost Model
COSOSIMO Constructive System of Systems Integration Cost Model
COSYSMO Constructive Systems Engineering Cost Model
COTS Commercial Off-The-Shelf
CU Cone of Uncertainty
DCR Development Commitment Review
DoD Department of Defense
ECR Exploration Commitment Review
ESLOC Equivalent Source Lines of Code
EVMS Earned Value Management System
FCR Foundations Commitment Review
FDN Foundations, as in FDN Package
FED Feasibility Evidence Description
GD General Dynamics
GOTS Government Off-The-Shelf
University of Southern California
Center for Systems and Software Engineering
15 July 2008 ©USC-CSSE 46
List of Acronyms (continued)
ICM Incremental Commitment Model
IDPD Incremental Development Productivity Decline
IOC Initial Operational Capability
LCA Life Cycle Architecture
LCO Life Cycle Objectives
LMCO Lockheed Martin Corporation
LSI Lead System Integrator
MDA Model-Driven Architecture
NDA Non-Disclosure Agreement
NDI Non-Developmental Item
NGC Northrop Grumman Corporation
OC Operational Capability
OCR Operations Commitment Review
OO Object-Oriented
OODA Observe, Orient, Decide, Act
O&M Operations and Maintenance
PDR Preliminary Design Review
PM Program Manager
University of Southern California
Center for Systems and Software Engineering
15 July 2008 ©USC-CSSE 47
List of Acronyms (continued)
RFP Request for Proposal
SAIC Science Applications international Corporation
SLOC Source Lines of Code
SoS System of Systems
SoSE System of Systems Engineering
SRDR Software Resources Data Report
SSCM Systems and Software Cost Modeling
SU Software Understanding
SW Software
SwE Software Engineering
SysE Systems Engineering
Sys Engr Systems Engineer
S&SE Systems and Software Engineering
ToC Table of Contents
USD (AT&L) Under Secretary of Defense for Acquisition, Technology, and Logistics
VCR Validation Commitment Review
V&V Verification and Validation
WBS Work Breakdown Structure