SDLC Capacity Management

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SOP 1002: Capacity Management

Objective:

The objective of this Standard Operating Procedure (SOP) is to document the procedures for proactive and operational capacity planning.

Scope:

This SOP defines the activities to perform to ensure that enhancements and new products have an environment that will meet SDLC service standards and contractual obligations. This environment includes hardware, operating systems, network connectivity and bandwidth, tools and utilities and application code. Also, although only the production environment issues are visible to clients, this procedure covers all environments: development, QA, FOA/Beta, staging and production.

Owner:

Chief Technology Officer

Sections:

i	Definitions
1	Process Flow Diagrams
2	Roles and Responsibilities
3	Metrics
4	Procedure Activities
5	Forms
6	Exceptions
7	Tools/Software/Technology Used
8	Attachments

Related Standard Operating Procedures:

1000	Program/Project management
1003	Configuration Management
1004	Procurement and Purchasing
1005	Release Planning
1007	Asset Management
1010	Site Monitoring and Problem management
1040	Requirements Definition
1041	Detail Design

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SOP 1002 - Capacity Management Definitions

This SOP in essence, employs two roles, the proactive role, more commonly known as Capacity Planning, and the reactive role, driven by daily operational problems that create a need for rethinking capacity thresholds. In the attempt to reduce the latter, this SOP utilizes a forward-looking perspective to ensure that enhancements and new products have an environment that will meet SDLC service standards and contractual obligations. This environment includes hardware, operating systems, network connectivity and bandwidth, tools and utilities and application code. Also, although only the production environment issues are visible to clients, this procedure covers all environments: development, QA, FOA/Beta, staging and production.

Additionally, the SOP also supports a reactive process when coping with events that arise, unexpectedly. Although a negative event driving the process differs greatly from a pre-planned environment as driven by a release, the procedure that is executed is the same.

This SOP attempts to reduce production issues caused by capacity problems by utilizing proper advance planning. This, in turn, reduces the need for ad-hoc capacity management as production problems decrease. With a well-defined and properly maintained procedure, capacity related production problems should be controlled and minimized.

Term	Definition/Description
*Program/Project Management* .	The systematic execution of a System Development Life Cycle (SDLC) for a release or projects that have significant impact on an organization’s service delivery. This procedure oversees the SDLC execution; thus, it relies heavily on defined procedure activities and acceptance criteria for inputs and outputs Note: Every unit within SDLC interacts with Program/Project Management. Every release of new and enhanced features and functionality requires the commitment and effort from all departments.
*Project Manager*	The focal point throughout a project who ensures that the responsible party has completed with quality and comply with defined acceptance criteria. The *Project Manager* also acts as the conduit for communicating the progress of the project and decisions made throughout the process to the *Project Sponsor, Contracting Organization, and the Performing Organization*.
*Program Management*	Addresses oversight for a group of projects. *Program Managers* shoulder the responsible for the successful completion of program objectives by supporting and developing project staff. Reporting at this level provides *Executive Management* with the information necessary to make informed decisions and execute actions that optimize benefits to the organization.
*Program Manager*	The tactical manager who facilitates, monitors and communicates the progress and issues in implementing the strategic objectives of an approved program. The *Program Manager* works cross-functionally to develop the blueprint that integrates multiple release deliverables that enhance the program’s portfolio.
*PMO*	The *PMO* is the organization that consolidates all project plans and reports the status to executive management. Impacts from individual projects can be seen from an organizational perspective and responded to rapidly. The *PMO* is where project and program standards, procedures, policies and reporting are established.
*Business Gate*	defined milestone in a project lifecycle when specific requirements must be met in order to make or validate business decisions relating to the project.
*Lock-Down*	The milestone in a project schedule achieved when agreement exists between the Performing Organizations and the Contracting Organizations for the delivery of a defined project scope of work within a defined schedule at a defined cost.
*Management Phase Review*	An event associated with selected business gates where specific decisions concerning the project are made by appropriate levels of management. Deviations in deliverables or timeframe are handled by convening the Gate 6 Review Board. This group will make any decisions concerning scope, cost, and schedule tradeoffs. These business gates are: G-11: Project Strategy Lock-Down G-10: Requirements Scope Lock-Down G-6: Project Lock-Down G-4: Begin Validation G-2: Begin FOA G-0: General Availability
SDLC Business Gates	The foundation is Program/Project Management in the SDLC Business Gates. This Systems Development Life Cycle (SDLC) begins at project initiation and moves through deployment to the production environment.
*Phase*	A collection of logically related project activities, usually culminating in the completion of a major deliverable. The conclusion of a project phase is generally marked by a review of both key deliverables and project performance in order to determine if the project should continue into its next phase as defined or with modifications or be terminated and to detect and correct errors cost effectively.
*Program*	A defined set of projects containing common dependencies, and/or resources and/or objectives overseen by a Program Manager
*Project*	A temporary endeavor undertaken to create a unique product or service. A project has a defined scope of work (unique product or service), a time constraint within which the project objectives must be completed (temporary) and a cost constraint. In the context of SDLC, a project may be one of: an individual feature a collection of features making a release a collection of product releases making up a portfolio a new product development
*System Development Life Cycle (SDLC)*	A predictable series of phases through which a new information system progresses from conception to implementation. All of the activities involved with creating and operating an information system, from the planning phase and/or the initial concept to the point at which the system is installed in a production environment. The major phases are Release Planning, Definition (Requirements and Specifications), Development, Test (Validation), and Deployment.

1. Process Flow Diagrams

Capacity Management Overview

Click Image to Enlarge

2. Roles and Responsibilities

*Role*	*Responsibility*
*Contracting Organization*	The Contracting Organization works with the Performing Organization to appropriately complete the Scope of Work (SOW) documents as they relate to this SOP.
*Performing Organization*	The Performing Organization is responsible for the following deliverables: Resource and cost estimates Advice on capacity requirements Resource plan Capacity plan
*Service Organization*	The Service Function is responsible for the following deliverables: Tools deployment Load/Update Software Problem Resolution Phone Support Deployment Planning Support.
*Operations*	The Operations Function is responsible for the maintenance and execution of this SOP.
*Site Monitoring*	This activity generates information passed to the Operations Function to determine if capacity management is required.
*Development*	The Development Function provides information to the Operations Function detailing expected capacity requirements for current and project capacity requirements for proposed functionality.

3. Metrics

Program/Project Management metrics are focused on the measurement of cycle times and defects. Measurements provide the foundation to quickly identify, isolate and remediate inefficient results from activities that do not meet expected performance levels.

*Metric*	*Description*
*Cycle Time*	The Operations Function is responsible for the maintenance and execution of this SOP.
*Defects*	This activity generates information passed to the Operations Function to determine if capacity management is required.
*Change Agents*	The Operations Function is responsible for the maintenance and execution of this SOP.

4. Procedure Activities

The Performing Organizations review the project scope as defined during the Release Planning Procedure (SOP 1005). Working with the Contracting Organization, the Performing Organizations estimates, hardware, software and development requirements that are to be contained within the Scope of Work (SOW) documents. High-level estimates should take into account the anticipated number of simultaneous users, server capacity thresholds and acceptable peak simultaneous users.

*Gate/Activity*	*Description*
*Click Image to Enlarge*
*G-10: Requirements Scope Lock-Down*	Business Objective: Approve the Scope of Work for which the organization will commit to develop requirements. Owner: Project Manager Review Board: Program Sponsor, Program Manager, Project Manager, Contracting Organization(s), and Performing Organization(s)
*Project Manager*	The Project Manager is responsible for ensuring that the following documents are completed with quality and meet acceptance criteria defined in the Release Planning Procedure (SOP 1005). Contracting Organization (OWN) Initial Portfolio Scope Business Plan Impact Assessment Scope of Work Performing Organization (OWN) Project Resource Plan Responsible for scheduling, notification, meeting materials, meeting facilitation and meeting minutes for this formal *Review Board* meeting.
*Review Board*	Review the results of the concept phase and commit to the definition and planning of a project. Target delivery windows may be established, but this does not constitute a commitment to deliver the project as it is defined at this point. The additional definition and planning which takes place during the definition phase will increase knowledge about the scope, cost and schedule of the project which may result in changes to any or all of those parameters.
*Review Board*	The Review Board’s acceptance of the approved documents by the Receiving Organization moves each SOW document to the Development Function of the Performing Organization for analysis.
*Project Manager*	The Project Manager ensures coordination between Contracting and Performing Organizations. Project Managers facilitate meetings and document meeting outcomes. This effort is focused at reducing cycle time and maintaining the highest level of common understanding between parties. Further, the Project Manager will refine the project plan incorporating data available.
The Operations Group defines the capacity requirements within the high-level configuration management plan. The Capacity Plan feeds the Definition Phase Plan developed by the Project Manager. The capacity requirements defined in this plan should include: Estimated number of users Simultaneous user capacity per server Number of servers Peak users supported, threshold percentage of peak Additionally, Operations* must work with Development to identify any application code specifications that might impair or aid in capacity performance.*
*G-9: Definition Phase Plan Approved*	Business Objective: Approve the plan to execute the definition phase so that the project’s business requirements (scope, timeframe and cost) are met Owner: Project Manager Review Board: Program Sponsor, Program Manager, Project Manager, Contracting Organization(s), and Performing Organization(s)
*Project Manager*	The Project Manager is responsible for ensuring that the following documents are completed with quality and meet acceptance criteria defined in the Requirements Definition Procedure (SOP 1040). Plan for the Definition Phase – Owner: Project Manager
*Organizations:* *Performing* *Contracting*	In order to complete the plan for the Definition Phase, the Project Manager requests and receives the items listed below from various areas of both the Contracting and Performing Organizations. Acceptance criteria for each item listed are defined in the Requirements Definition Procedure (SOP 1040). Contracting and Performing Organizations (CON) Detailed Schedule Resources/Costs Assigned Capital Budget Risk Plan Developed Validation Function of the Performing Organization (CON) Quality Plan Operations Function of the Performing Organization (CON) Configuration Plan
*Project Manager*	The deliverables for G-9b contribute to the development of the project’s communication plan and project plan by the Project Manager. At this point the Project Manager ensures that all known assumptions, dependencies, constraints, and risks are reflected in the project plan. The Project Manager sends recommendations to minimize the impact from assumptions, dependencies, constraints, and risks to the Program Sponsor. The Program Sponsor supports the resolution and/or mitigation of project barriers by working with OCE and/or Unit Managers.
In order to develop a more refined capacity plan, Operations must refer to Service Level Agreements (SLA's) for any relevant considerations. Relevant considerations may include, but are not limited to: Client expectations of maximum load level Client expectations regarding disk space and processor speed Client expectations regarding bandwidth, availability, response time, and other factors that impact site responsiveness for users
*G-8: System Requirements Definition Approved*	Business Objective: Obtain approval of the system requirements definition(s) from the Contracting Organization(s). Owner: Project Manager Review Board: Program Manager, Project Manager, Contracting Organization(s), and Performing Organization(s)
*Project Manager*	The Project Manager facilitates the dialog necessary between all parties that participated in the definition of SOW documents for the Development Function of the Performing Organization to complete Systems Requirements Specifications. The Project Manager has responsibility for ensuring full disclosure of features, functionality and technical constraints that impact the project scope approved at Gate 10.
*Review Board*	The Review Board reviews the approved System Requirements Specifications.
Initial Operations capacity requirements estimates are made based on the Scope of Work (SOW) documents generated in the Release Planning Procedure (SOP 1005) and the System Requirements created in the Requirements Definition Phase. More refined estimates must be completed prior to passing Gate 7. These more refined capacity estimates must include the following: Estimate of risk level Time required to deliver work Resources required to deliver work Hardware, software, network and bandwidth requirements Cost associated with the environment QA, FOA/Beta and Staging Environment capacity specifications Specification for stress testing during the Quality Function Procedure (SOP 1210) These estimates are forwarded to the Project Manager to include in the Project Plan, if necessary. Lastly, procurement needs are considered and the Procurement and Purchasing Procedure (SOP 1004) is executed if purchasing of assets and/or services is required.
*G-7: Lock-Down Level Estimates Complete*	Business Objective: Complete the estimates and scope refinement necessary for Lock-Down. Owner: Project Manager Review Board: Program Manager, Project Manager, Contracting Organization(s), Architecture Function of the Performing Organization(s), and Development Function of the Performing Organization(s)
*Project Manager*	The *Project Manager* is responsible for ensuring that the documents in the next activity are completed with quality and meet acceptance criteria defined in the Requirements Definition Procedure (SOP 1040)
*Organizations:* *Performing* *Contracting*	Performing Organization (OWN) Refined Resources Estimates Architecture Function of the Performing Organization (OWN) Estimation Documentation Development Function of Performing Organization (OWN) Work Breakdown Structure Contracting Organization (OWN) Final Portfolio Scope
*Project Manager*	The Project Manager ensures coordination between Contracting and Performing Organizations. This effort is focused at reducing cycle time and maintaining the highest level of common understanding between parties. Further, the Project Manager will refine the project plan for the release incorporating data provided through this gate. The Project Manager will communicate the final portfolio scope to all interested areas in the organization
Operations, by working with the individuals within the Configuration Management group, will identify final hardware requirements, hardware and software configurations necessary and the execution plan intended. This information will feed the final Configuration Manager plan (SOP 1003). This plan will be presented to the Project Manager and contained in the release project plan for project management purposes.
*G-6: Project Lock-Down* *(Also described as: Go/No Go Decision or Cross-functional Commitment to the Delivery of a Defined Set of Features and Functionality)*	Business Objective: Obtain commitment between the Performing Organization(s) and the Contracting Organization(s) for the delivery of a defined project scope of work within a defined timeframe. (This scope is a refinement of the G-10 scope/plan). Owner: Project Manager Review Board: Program Sponsor, Program Manager, Project Manager, Contracting Organization(s), Performing Organization(s), and Service Organization
*Project Manager*	The *Project Manager* is responsible for ensuring that the documents in the next activity are completed with quality and meet acceptance criteria defined in the Requirements Definition Procedure (SOP 1040).
*Organizations:* *Project Manager* *Contracting* *Performing*	Project Manager (OWN) Project Plan Contracting Organization (OWN) Deployment Plan Business Plan Impact Assessment Performing Organization (OWN) Service Plan
Project Manager	In order to complete the project plan, the Project Manager will request and receive materials listed in G-6d from various areas of both the Contracting and Performing Organizations. Acceptance criteria for each item listed are defined in the Requirements Definition Procedure (SOP 1040).
*Organizations:* *Contracting* *Performing*	Contracting and Performing Organizations (CON) High Level Schedule Through Release General Availability Assigned Resources/Cost Profiles Through Release General Availability Risk Plan Release Scope Program Sponsor, Contracting and Performing Organizations (SUP) Approved Capital Budget QA Function of the Performing Organization (CON) Quality Plan Operations Function of the Performing Organization (CON) Configuration Plan.
*Project Manager*	The Project Manager is responsible for scheduling, notifying participants, creating meeting materials, facilitating meetings and distributing meeting minutes for this formal Review Board meeting. Note: This gate is a significant step in the System Development Life Cycle as it is the point where both the Contracting and Performing Organizations commit to project scope, cost and schedule.
*Review Board*	The Review Board reviews the results of the definition phase and re-evaluates the business objectives of the project. This review may result in agreed upon changes in scope, cost and/or schedule. The resulting agreement represents a commitment between the Performing and Contracting Organizations to deliver the project as defined within the agreed upon scope, cost and schedule constraints.
*Project Manager*	The Project Manager ensures coordination between the Contracting and Performing Organizations. Further, the Project Manager communicates the project scope and schedule to all interested parties.
After Project Lock-Down has taken place, Operations can begin working on preparing the development test environment. In order to do so, Operations will utilize the capacity management data developed in the prior gate. A test environment will be used later for stress testing to analyze and verify recommended capacity requirements.
*G-5: Detailed Plans Complete*	Business Objective: Approve the detailed project plan and commit the appropriate resources to execute the plan. Owner: Project Manager Review Board: Project Sponsor, Program Manager, Project Manager, and Performing Organization
*Project Manager*	The Project Manager is responsible for ensuring that the documents in the next activity are completed with quality and meet acceptance criteria defined in the Detail Design Procedure (SOP 1041).
*Performing Organization*	Development Function of the Performing Organization (OWN) Project Plan Product Functional Specification Architecture Function of the Performing Organization (OWN) Allocated Requirements System Interfaces The Architecture Function of the Performing Organization includes the Development and Operation Functions since they share responsibility for delivery and support of the delivered solution. Development handles the creation of the interface code. Operations manages the receipt, processing and storage or interface data; this includes service level considerations for capacity, turnaround time, and connectivity.
*Project Manager*	In order for the Project Manager to complete the project plan, he/she will use the project plan from the Development Function of the Performing Organization to update the overall project plan. Acceptance criteria are defined in the Detail Design Procedure (SOP 1041).
Stress testing takes occurs in Gates 3 and 2. Stress testing validates or questions the initial capacity requirements defined. In order to properly stress test the environment, the capacity management data in the configuration management plan must include: Number of simultaneous users to simulate Capacity threshold Type of actions that should be performed If the stress testing uncovers an issue with the capacity of the environment, Operations must return to analyzing the environment and create a more refined configuration management plan. Once stress testing has identified that the environment is suitable for the expected capacity, Operations notifies Site Monitoring of the thresholds for reporting exceptions.
*G-3: Begin System Certification* *(Product Acceptance Testing)*	Business Objective: Approve release of the product to System Certification Testing. Owner: Contracting Organization(s) Review Board: Program Manager, Project Manager, Contracting Organization(s), System Certification Function of the Contracting Organization(s), and Validation Function of the Performing Organization(s)
*Project Manager*	The Project Manager is responsible for ensuring that the validation testing in the next activity is completed with quality and meets acceptance criteria defined in the Training and Documentation Procedures (SOP 1101) and Quality Function Procedures (SOP 1210).
*Validation Function of the Performing Organization*	The Validation Function of the Performing Organization completes a review and validation of the Preliminary Documentation provided by the Development Function of the Performing Organization. Acceptance by the Validation Function of the Performing Organization is required prior to beginning system certification.
*Project Manager*	The Project Manager has responsibility for verifying completion and obtaining signoff from the Validation Function of the Performing Organization.

*G-2: Begin FOA/Beta* *(Client Acceptance Testing)*	Business Objective: Approve release of the product for first office application. Owner: Contracting Organization(s) Review Board: Project Sponsor, Program Manager, Project Manager, Contracting Organization(s), System Certification Function of the Contracting Organization(s), Performing Organization(s), Validation Function of the Performing Organization(s), and Service Organization
*Project Manager*	The Project Manager is responsible for ensuring that the documents and actions in the next activity are completed with quality and meet acceptance criteria defined in the Quality Function Procedure (SOP 1210)
*Organizations:* *Performing* *Contracting* *Support* *Training*	Development Function of the Performing Organization (OWN) Product and Documentation Validation Function of the Performing Organization Product and Documentation test results Contracting Organization Certification test results Implementation Deployment Plan Deployment Plan Customer Site Market Analysis Training Organization Service Training Service Organization Deployment Tools
*Review Board*	Gate 2 requires a formal management review. The Deployment Phase represents a significant milestone to the customers in the lifecycle of a project. There is also significant risk associated with this milestone. The project product is expected to be of commercial quality at this time and any data from the validation phase that indicates otherwise must be carefully analysed in terms of its potential impact to the selected customer site. Options at this review include approval to deploy the project product, approval to deploy with exceptions due to some subset of the scope having failed validation, and approval of a schedule delay (and consequent additional cost) to correct problems that are known to exist.
*Project Manager*	Deviations in deliverables or timeframe are handled using a formal process with the results communicated by the Project Manager to all areas participating in the effort. Any decisions concerning scope, cost and schedule tradeoffs, the Gate 6 Review Board shall formally review the situation. Should the Gate 6 Review Board need to assemble, the Project Manager is responsible for scheduling, notifying participants, creating meeting materials, facilitating meetings and distributing meeting minutes for this formal Review Board meeting. The Project Manager updates any resulting changes to the project plan. This may lead to the request and collection of revised estimates from Performing, Contracting, and Service Organizations.
In this gate, the Operations Function works to ensure that the FOA is rolled out smoothly, based on the thresholds obtained during the stress test.
*G-1: Begin Controlled Rollout*	Business Objective: Approve the release of the product for controlled rollout. This gate is only required when a controlled rollout (CRO) is planned as an integral phase of the project. Owner: Contracting Organization(s) Review Board: Project Sponsor, Program Manager, Project Manager, Contracting Organization(s), Performing Organization(s), and Service Organization
*Project Manager*	The *Project Manager* is responsible for ensuring that the documents and actions in the next activity are completed with quality and meet acceptance criteria defined in the Training and Documentation (SOP 1101) and Deployment and Post Implementation Procedures (SOP 1220).
*Organizations:* *Contracting* *Performing*	Performing Organization (OWN) FOA test results Service training Client acceptance Contracting Organization (OWN) Implementation Deployment Plan Customer Site Marketing Analysis Risk Mitigation Plan
*Project Manager*	Since a controlled rollout occurs in the production environment, the documents in G-1b must meet quality and acceptance criteria defined in the Training and Documentation (SOP 1101) and Deployment and Post Implementation Procedures (SOP 1220). When a controlled rollout is an integral phase of the project plan it is mandatory, otherwise, this gate is optional.
Operations works to ensure that general availability rolls out smoothly, based on the thresholds obtained during the stress test, FOA and controlled rollout. Capacity Planning Requirements for Expected Site Spikes Certain events may invite an increase in simultaneous users. If these events are known in advance, capacity management can be executed in order to properly plan for these events. In these cases, capacity management is the same as that for a release with one exception; there are no gates that must be passed. At a minimum, Operations should be notified two weeks prior to the expected event. Capacity Management for On-Going Operations - Reactive Capacity Management Reactive capacity management must be executed in the same manner as stated above. This procedure will be executed when an operational issue arises. Upon notification from Site Monitoring of a production issue, Operations analyses the issue. If the issue is capacity related, Operations follows the procedure as stated above with the exception of the gates. Gates will not be invoked when evaluating capacity needs that are not related to a release.
*G-0: General Availability*	Business Objective: Approve the release of the product for general availability. Owner: Contracting Organization(s) Review Board: Project Sponsor, Program Manager, Project Manager, Contracting Organization(s), Performing Organization(s), and Service Organization
*Project Manager*	The *Project Manager* is responsible for ensuring that the documents and actions in the next activity are completed with quality and meet acceptance criteria defined in the Deployment and Post Implementation Procedures (SOP 1220).
*Organizations:* *Contracting* *Service* *Performing* *Training*	Contract Organization (OWN) Product and Documentation Deployment plan complete Marketing information Market Analysis Risk Mitigation Plan Service (OWN) General Availability Implementation Deployment Plan Template Performing (OWN) Service training FOA test results Order entry system Client acceptance Training (OWN) Customer Training
*Review Board*	Gate 0 requires a formal review process. It is the final management phase review that occurs upon completion of initial field deployments (First Office Application and Controlled Rollout) which are intended to provide final validation of the project product in a live system environment. This review effectively marks completion of the project and acceptance by the Contracting Organizations from the Performing Organization. The Review Board reviews and approves completion of the Gate 0 requirements. Deviations in deliverables or timeframe are handled by convening the Gate 6 *Review Board*. This group will make any decisions concerning scope, cost, and schedule tradeoffs.
*Project Manager*	Should the Gate 6 *Review Board* need to assemble, the *Project Manager* is responsible for scheduling, notifying participants, creating meeting materials, facilitating meetings and distributing meeting minutes for this formal *Review Board* meeting. The *Project Manager* updates any resulting changes to the project plan. This may lead to the request and collection of revised estimates from *Performing, Contracting, and Service Organizations. The Project Manager* is responsible for attending the Program/Project Management post implementation review on the project and holds a meeting with other *Program* and Project Managers to review lessons learned. Trends and issues encountered over a number of projects are discussed as wells as new techniques that proved successful.
*Performing Organization*	The *Validation Function* of the Performing Organization conducts a project post-implementation review in which representatives from all areas participating in the project review the project. Quality issues and their root cause are discussed. The Quality Assurance group documents the post implementation meeting and distributes to all attendees, *all Project Managers* and *Program Managers* as well as the *PMO*.