From: Bob Simmons [bsimmons@pppl.gov]
Sent: Monday, October 28, 2002 4:13 PM
To: Reiersen_Wayne
Subject: Adding Critical Decision Definitions to SEMP?

Hi Wayne,

Perhaps the PEP is the best place to do this, but I do think it appropriate
to include a discussion of the Critical Decisions as it pertains to design
phases and locking in the cost and schedule baselines.

How about including the following in the SEMP:

(1) Critical Decision 0 (CD-0) - Approve Mission Need.  This initial CD
initiates the Conceptual Design phase of the project.  Prior to approval of
CD-0, a Mission Need Statement (MNS) is developed which discusses the need
for the project in terms of required capabilities, not equipment,
facilities, or specific products.  For NCSX, CD-0 was approved in May, 2000.
(2) Critical Decision 1 (CD-1) - Approve System Requirements and
Alternatives.  During the Conceptual Design phase, an acquisition strategy
for the project is defined, alternatives and associated risks are evaluated,
capabilities are defined in terms of specific requirements, and a cost and
schedule ranges are defined for the project.  Upon approval of CD-1, the
selected project alternative is defined and the project is authorized to
proceed into the Design (Preliminary and Final) phases.
(3) Critical Decision 2 (CD-2) - Approve the Acquisition Performance
Baseline.  Approximately halfway through the project design, the resulting
design of the selected alternative is defined to a degree of confidence to
permit development of a detailed project plan with associated scope, cost,
and schedule.  The development of this Acquisition Performance Baseline
(APB) that commits the project to execute the project within a specific cost
and schedule threshold and to achieve a specific performance capability.
After approval of CD-2, the project continues engineering design until the
project matures to a point where it is ready of implementation or
fabrication.
(4) Critical Decision 3 (CD-3) - Authorization to Implement. Prior to
committing major budget and resources to implement or fabricate the project,
an executability review is conducted that results in CD-3 approval to
proceed with the procurement and fabrication of the project systems and
components. The project then embarks upon the major procurement,
fabrication, and assembly efforts to bring the project to completion.
(5) Critical Decision 4 (CD-4) - Approve Transition and Turnover. Transition
and closeout is the normal ending processes of the
implementation/fabrication/assembly phase when the project is nearing
completion and has progressed into formal transition from a fabrication and
assembly project to an operations phase.  This period is generally includes
final testing, inspection and documentation of the project as it is
preparing for operations.  CD-4 marks the point where the project requests
approval to transition to operations and the fabrication project declared
completed.  For NCSX , this point will be marked by achievement of first
plasma following completion of a Readiness Assessment (RA) and approval of
CD-4.

Comments?

Bob S.