© mcr, llc mcr proprietary - distribution limited earned value management application, guidance,...

© MCR, LLC MCR Proprietary - Distribution Limited

Earned Value Management Application, Guidance, and Education

Neil F. AlbertPresident/CEOMCR, [email protected]

2010 Corporate RidgeSuite 350

McLean, VA 22102703.506.4600

www.mcri.com


EVM in the Acquisition Life Cycle

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Operational/FunctionalConcept

PM

EVM

Cost Analysis

SystemsEngineering

RequirementsDefinition

ConceptDefinition

AoA

Life CycleCost Estimate

WBS

Risk Analysis

•Cost•Schedule•Technical


AcquisitionPlan

Integrated BaselineReview

Surveillance

WBS

Performance Measurement

Baseline

AcquisitionCost Estimate

Risk Analysis





Risk Analysis


Risk Analysis


Risk Analysis



ANSI/EIA-748 Earned Value Management Systems

• Contains guidelines for establishing and applying an integrated management system for cost, schedule, and technical performance

• Contains 32 guidelines, grouped into five major categories:

– Organization – Planning, Scheduling, and Budgeting – Accounting Considerations– Analysis and Management Reports – Revisions and Data Maintenance

• NDIA Intent Guide for Earned Value Management Systems

– Provides additional insight into the 32 guidelines

– Describes the typical attributes and objective evidence that support compliance with a given guideline

Management ProcessesOrganization

WBS top level clearly describes one end product or deliverable The WBS represents the entire scope of work and represents products and not

budget categories, organizations, personnel, tasks, functions, or project phases Each WBS subordinate element has only one parent Each subcontracted effort is assigned to a single WBS element (unless

subcontractor is responsible for multiple components) Work Packages are not identified as WBS elements; CA is the point of MANAGEMENT CONTROL and ANALYSIS

Planning, Scheduling, and Budgeting All tasks have unique names, with milestones representing key events Work Packages average less than < 90 days Planning Packages are usually < one year and most often are tied to a Rolling Wave;

the Rolling Waves are tied to significant project events Methods selected to measure work accomplished against plan must be objective

and meaningful Schedule tasks are derived from a product-based WBS Schedule networks are created by linking lowest level tasks only Each schedule task has at least one predecessor and at least one successor

(Exceptions: first and last task or external milestones) Use of schedule lags/leads is minimal; a lag/lead may be injected into the schedule

network only for a specific purpose, not as shortcuts to identifying logical sequences of events or to override event sequencing

Use of task constraints (Must Start On, etc.) is minimal, usually only for key contractual milestones

Stakeholders validate Schedule Scope, Task Logic, and Durations Baseline is set, then an Intergraded Baseline Review (IBR) is conducted Network critical path (+some float) focus of schedule/SPI analysis Track schedule metrics to assess goodness of schedule, include start/finish slips,

tasks near critical path, float/slack, etc Pessimistic/Most Likely/Optimistic estimates are made for costs and time MR is based on risks and opportunitiesAccounting Considerations WBS lowest elements are broken down into convenient ‘packages’ which are used

to group, summarize/monitor elements of cost (i.e., labor, material, ODCs Estimated actuals are utilized to assure realistic actual costs in a timely manner

Analysis and Management Reports Reporting is at lowest WBS level necessary for effective management LOE is extracted when evaluating actual progress and performance Cost, Schedule, Performance along with risks and opportunities are tracked Variances are analyzed, they are neither good or bad, but variations that

indicate areas that might need management action EAC analysis is based on time/cost estimates adjusted for risks/opportunity Project MR ‘burn down’ rates with assumptions regarding potential distribution

Revisions and Data Maintenance CCB approval is required for changes to scope, schedule or budget Develop

realistic CA EACs integrated with tech, cost, and schedule risks/opportunities. Establish Risk baseline (see Risk/Opp Index)

Mitigation plans have triggers, are included in PMB and tied to metrics PM may Re-plan as necessary within scope or Reprogram to new scope

MCR


Pre-Systems Acquisition

Systems Acquisition

EVM ApplicationANSI/EIA-748

Compliant EVMS

Systems Sustainment

EVM ApplicationANSI/EIA-748Scalable EVMS

ANSI/EIA-748

EVMS

Organization and Supplier processes

integrated with EVM capability and documented

Contract or Project

EVMS EVMS Surveillance

Implementation

ANSI/EIA – 748 EVMS Application


National Defense Industrial Association (NDIA)

Program Management Systems Committee (http://www.ndia.org)

• EVM ANSI/EIA-748 Subject Matter Experts • Developed Guides as documented in OMB A-11, Part 7

– ANSI/EIA 748 Intent Guide – maintains the explanations as to the purpose and attributes expected for ANSI/EIA 748 compliance

– Application Guide - describes for all organizations implementing the ANSI/EIA-748, the importance of planning the EVM application through all phases of the acquisition life cycle

– System Acceptance Guide – evaluates whether the EVMS is capable of meeting the intent of ANSI/EIA-748 and obtain EVMS compliance recognition that will meet current and future requirements for an approved EVMS

– Integrated Baseline Review Guide - identifies the IBR Process and integrates the IBR with risk management within the framework of the IBR Process

– Surveillance Guide - defines a standard industry surveillance approach to effective surveillance, encourages efficiencies through the use of a uniform process, and gives consistent guidance for companies implementing the ANSI/EIA 748 EVMS guidelines

• Joint Government/Industry EVM Working Groups – focusing on Industry input to

the revised DoD and OMB EVM Policy and related requirements, including interpretation and guidance


Integrated Program Management Document Framework

Performance Baseline

Performance

Measurement RiskManagement

Integrated

Plan

Surveillance Guide

PM Guide to IBR Process

ANSI/EIA

748

Inte

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Application Guide

Evaluating:ContractingSystems EngineeringRisk Management


Acquisition Life Cycle Acceptance Authority or Customer

EVM System Owner or Supplier

Pre-Systems Acquisition Approval or Award

Recognize:Application GuideSystem Acceptance Guide

Document and Assessment:Application GuideIntent Guide

Systems Acquisition Approval or Award

Accept:Intent Guide & Surveillance GuideIBR Review:IBR GuideSurveillance:Surveillance Guide

Implement:Intent Guide & Surveillance GuideIBR Review:IBR GuideExecution and Surveillance:Surveillance Guide

NDIA Guidance


Project Management Institute – College of Performance Management

(PMI-CPM)

Internationally recognized forum for Earned Value Management and project planning and control,

standards, research, and education(www.pmi-cpm.org)

Objectives• Promote Earned Value Management and Project Planning and Control

– Recognition and use of earned value management and other project planning and control techniques as integrating processes for project management

• Disseminate Information– Provide opportunities for the exchange of ideas, information, solutions and

applications • Improve Community of Practice

– Encourage and enable the advancement of theory and application through research, standards, and education

• Professional Growth– Provide membership with growth opportunities through leadership,

education, networking, professional certification, and other benefits of a professional association



(PMI-CPM)

• Two conferences annually– Spring: Annual CPM Conference “EVM World”– Fall: Integrated Program Management

International Conference (Co-Sponsor w/SCEA and NDIA)

• Training Seminars– Special Topics– Education Program (EVM Certificate)

• Certification– Endorse AACEI – Earned Value Professional

(EVP)



(PMI-CPM)

• Measurable News

• PMI-CPM Forum

• Electronic Library

• EVM Practice Standard

• Research

• Scholarships


EVM Federal - Community of Interest (EVM CoEye)

• Founded in 2005 by volunteers in the PMI-CPM and Civilian Agency Leads (www.fedevm.org)

• Provide information on EVM to workers in the civilian agencies of government.

• EVM-based project management now a mandatory requirement of the US government

– CoEye supports more than 400 people on its distribution list, consisting of public servants and contractors from more than 60 government offices

• Complements formal government organizations by creating a network of well-informed people

– Helps agencies change the focus of their mission-oriented acquisition systems to EVM-based project management systems

• Meets monthly at sponsoring agency location

• Discusses issues in OMB guidance for EVM, including policy, implementation and validation

http://www.fedevm.org/


Other Related Educational Opportunities

• Project Management Institute– www.pmi.org

• Society of Cost Estimating and Analysis– www.sceaonline.org

• Defense Acquisition University– https://acc.dau.mil/evm

• Federal Acquisition Institute– http://www.fai.gov/resource/educate.asp


Questions?

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