OVERVIEW
Project and product execution, while not unique to the aerospace sector, is especially critical for aerospace projects because they’re typically larger, more costly, more complex, and often mission critical. This course covers the most common causes of product market failures and schedule and cost overruns, and what you can do about them, so your projects hit their targets. The course will highlight specific examples and lessons learned from the aerospace sector.

Market failures and overruns occur with alarming frequency regardless of the industry, government agency, technology, product, project size, or company size. Here are some sobering statistics:

• The average market failure rate of a new product is 40 percent.
• The average overrun is 25 to 33 percent or more.
• New technology projects often miss their targets by triple-digit percentages.
• For every 10 percent of schedule growth, costs rise by 12 percent.
• Only three percent of companies complete all of their projects.
• Poor project performance wastes 11 percent of the investment.
• Only 40 percent of organizations fully realize the benefits of their projects.

• Overview of project management systems and their strengths and weaknesses.
• Hidden causes of project schedule and cost overruns.
• Using new metrics to track and control key activities that drive schedule progress.
• Preventing overruns with process changes focused on the hidden causes of overruns.
• Managing and optimizing resource capacity.
• How bottom-up pricing, indirect costs, and contribution margins drive profitability.
• Detailed course outline below

Class 1: Overview of project management systems.

• Earned value
• Critical path project management
• Critical chain project management
• Agile project management

Class 2: Hidden causes of project overruns.

• Failing to recognize and manage uncertainty.
• Using aggressive targets to avoid overruns.
• Tracking projects using only lagging indicators.
• Failing to manage resource overloads.
• Funding projects without reserves to protect against overruns.
• Underestimating due to the planning fallacy.
• Adopting a get-it-sold-and-keep-it-sold mindset.
• Assessing risks optimistically.
• Underinvesting in technical execution.
• Exhibiting unjustified optimism

Class 3: Use metrics to stay on track.

• Using leading metrics to track critical activities
• Measuring and tracking what slows you down
• Establishing cost and schedule reserves
• Measuring process improvement opportunities

Class 4: Prevent overruns with process changes.

• Let history be your guide: reference class forecasting
• Conducting project management reviews
• Simplifying internal approvals
• Strengthening project scope management
• Improving supply chain management
• Investing in technical execution
• Using AI to accelerate product development

Class 5: Manage resource capacity.

• Using project-based organizational structures
• Using core teams composed of standard roles
• Using a workload metric to optimize resource workloads
• Optimizing resource usage with a mathematical model

Class 6: Drive profitability after market launch.

• Defining direct and indirect costs
• Leveraging contribution margins to grow revenue
• Matching indirect rates to your business model
• Justify cost estimates with a basis of estimate
• Calculating bottom-up estimates for pricing decisions

INSTRUCTOR

Paul M. Streit is an expert in business execution for new and growing aerospace companies or other firms that manufacture high-tech, engineering-driven, mission-critical, high-reliability products, especially in a complex, regulated environment.

Experience:

• General Management: P&L management experience with strong focus on revenue, profitable growth, performance metrics, executive management, customer development and satisfaction, product and market development, negotiation and conflict resolution
• Project Management: Program management, product development, product lifecycle management, earned value, contract management, scope management, government contracting, metrics, PMI PMP Certification
• Marketing & Sales: Direct (territory) sales, understanding customer demand, market segmentation, sales lead generation, sales team leadership, sales operations, key account management, customer relationship management, customer development and satisfaction, customer-focus
• Operations/Manufacturing: Process design, JIT metrics, supply chain design and development, inventory strategies, outsourcing, world class manufacturing

As Program Executive at Airbus US:

• Led planning and execution of a satellite factory expansion for production on major contracts
• Led an Airbus US business specializing in flying payloads on the ISS
• Consulted to executive management on program management performance measurement

As SVP at Sierra Nevada Corporation Space Systems:

• Led the integration of MSI, Inc. and SpaceDev, Inc. to form SNC Space Systems
• Subsequently led the integration of Orbitec, Inc. into SNC Space Systems
• Grew equity value 35x without debt to an independent valuation of $1.2B
• Grew revenue 15x from $34M to over $500M with over $3B backlog
• Grew employment 17x from 60 employees to over 840 plus another 200 contractors
• Grew facilities and infrastructure from one location to 12 locations across five states
• Products included actuators, pin pullers, pin pushers, gimbals, satellites, thermal louvers, solar arrays, spacecraft, spacecraft constellations, subsystems, and larger systems
  

• Turned around the business from losing $150K/month on $36M of revenue to breaking even within 18 months of arrival

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Classroom hours / CEUs: 12 classroom hours / 1.2 CEU/PDH

Course Delivery and Materials

• The course lectures will be delivered via Zoom. 
• Access to the Zoom classroom will be provided to registrants near to the course start date.
• All sessions will be available on-demand within 1-2 days of the lecture. Once available, you can stream the replay video anytime, 24/7.
• All slides will be available for download after each lecture. No part of these materials may be reproduced, distributed, or transmitted, unless for course participants. All rights reserved.
• Recommended Text by the Instructor: Blind Spots: Why Product Development Projects Miss Their Targets

Cancellation Policy: A refund less a $50.00 cancellation fee will be assessed for all cancellations made in writing prior to 5 days before the start of the event. After that time, no refunds will be provided.

Contact: Please contact Lisa Le or Customer Service if you have questions about the course or group discounts (for 5+ participants).

Frequently Asked Questions