Schedule Variance Attribution

2.41  Slippage for developmental and Australianised MOTS projects is attributable to the higher levels of technical complexity and system integration risk. As this report has shown, the higher the technical challenge, the higher the inherent risk to the schedule. Developmental projects are new and often at the leading edge of available technology. As such, it is not uncommon for projects to encounter unforeseen technical difficulties requiring significant modification that results in delay. Similarly, Australianisation can also encounter unforeseen technical difficulties and have an unanticipated impact on existing features of the baseline MOTS product. Rectifications of such issues often require extensive, time consuming remediation work.

2.42  Further analysis for the 2010-11 MPR has revealed additional drivers of schedule delays as shown in Table 2.6. Of the 10 projects that underestimated technical complexity, five could also identify some overestimation of industry capability and performance, and another two were also affected by approved changes to scope (ANZAC ASMD 2A and 2B attained Government approval to acquire the more capable 'Phased Array Radar' based solution over the original 'Very Short Range Air Defence System' solution, though without a corresponding increase to schedule). Industry capability and performance delayed the AWD project and limited platform availability was the primary driver for delays of Collins class submarine projects. Measures to stabilise the Full Cycle Docking program should assist with future scheduling.

Table 2.6 - Attribution of Schedule Variance Factors