the agile issue - agile and evm - measurable news 1-2015
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THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
INSIDETHISISSUE
07 11 39Context on Agile Initiatives and the Compendium Articles
By Dale Gillam
A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVM
By Ray W Stratton
Save the Date and Call for Abstracts for EVM World 2015
By Susan Wood
20 USDAUD | 15 EURGBP
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
CONTENTS05 Update from the VP Communications
Mark Phillips PMP MAPM
07 Context on Agile Initiatives and the Compendium ArticlesDale Gillam CPM VP of Research and Standards
11 A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVMRay W Stratton PMP EVP
39 Save the Date and Call for Abstracts for EVM World 2015Susan Wood
41 CPM Washington DC Special Interest Group (SIG) September 18 2014 MeetingBarbara Phillips
43 CPM Tennessee Valley (CPMTV) Chapter Quarterly Meeting ndash December 2 2014Norman Dean
44 VendorsServices
2015 ISSUE 01
THE COLLEGE OF PERFORMANCE MANAGEMENT
2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg
EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg
VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg
VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg
VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg
VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg
VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg
VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg
VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg
PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg
EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg
THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT
EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips
EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors
ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason
SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg
All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply
copy 2015 by the College of Performance Management All rights reserved
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
05
UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM
Happy 2015
Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue
Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA
With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more
We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars
Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg
Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects
Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team
As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg
Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication
SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs
bull Earned value management (EVM) planning scheduling and cost management
bull Program management office (PMO) support and systems engineering
Your Partner in Successful Programs
949 975 1550
wwwsmawinscom
clientservicessmawinscom
A Winning Partnership
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
CONTENTS05 Update from the VP Communications
Mark Phillips PMP MAPM
07 Context on Agile Initiatives and the Compendium ArticlesDale Gillam CPM VP of Research and Standards
11 A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVMRay W Stratton PMP EVP
39 Save the Date and Call for Abstracts for EVM World 2015Susan Wood
41 CPM Washington DC Special Interest Group (SIG) September 18 2014 MeetingBarbara Phillips
43 CPM Tennessee Valley (CPMTV) Chapter Quarterly Meeting ndash December 2 2014Norman Dean
44 VendorsServices
2015 ISSUE 01
THE COLLEGE OF PERFORMANCE MANAGEMENT
2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg
EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg
VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg
VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg
VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg
VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg
VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg
VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg
VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg
PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg
EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg
THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT
EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips
EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors
ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason
SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg
All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply
copy 2015 by the College of Performance Management All rights reserved
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
05
UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM
Happy 2015
Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue
Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA
With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more
We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars
Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg
Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects
Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team
As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg
Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication
SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs
bull Earned value management (EVM) planning scheduling and cost management
bull Program management office (PMO) support and systems engineering
Your Partner in Successful Programs
949 975 1550
wwwsmawinscom
clientservicessmawinscom
A Winning Partnership
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE COLLEGE OF PERFORMANCE MANAGEMENT
2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg
EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg
VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg
VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg
VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg
VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg
VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg
VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg
VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg
PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg
EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg
THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT
EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips
EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors
ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason
SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg
All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply
copy 2015 by the College of Performance Management All rights reserved
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
05
UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM
Happy 2015
Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue
Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA
With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more
We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars
Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg
Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects
Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team
As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg
Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication
SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs
bull Earned value management (EVM) planning scheduling and cost management
bull Program management office (PMO) support and systems engineering
Your Partner in Successful Programs
949 975 1550
wwwsmawinscom
clientservicessmawinscom
A Winning Partnership
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
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oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
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s ap
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ead
by e
xem
plar
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and
com
mitm
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roce
ss
Prog
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Man
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Xx
The
indi
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aditi
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ly d
esig
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ith re
spon
sibi
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for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
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eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
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w
ww
dcm
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ilp
olic
yin
dex
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IGN
DIA
PM
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Ap
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n G
uid
e M
arch
20
07
Rel
ease
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ww
ag
ilep
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01
wha
t-is
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le-i
n-th
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ile-e
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r-p
mo
htm
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tp
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oun
tain
go
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ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
05
UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM
Happy 2015
Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue
Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA
With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more
We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars
Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg
Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects
Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team
As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg
Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication
SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs
bull Earned value management (EVM) planning scheduling and cost management
bull Program management office (PMO) support and systems engineering
Your Partner in Successful Programs
949 975 1550
wwwsmawinscom
clientservicessmawinscom
A Winning Partnership
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
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e M
arch
20
07
Rel
ease
http
w
ww
ag
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gm
co
m2
012
01
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs
bull Earned value management (EVM) planning scheduling and cost management
bull Program management office (PMO) support and systems engineering
Your Partner in Successful Programs
949 975 1550
wwwsmawinscom
clientservicessmawinscom
A Winning Partnership
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
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e M
arch
20
07
Rel
ease
http
w
ww
ag
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gm
co
m2
012
01
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
07
The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story
A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today
The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material
Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists
from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc
bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1
bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26
bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg
bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news
This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects
CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
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e M
arch
20
07
Rel
ease
http
w
ww
ag
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gm
co
m2
012
01
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)
Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg
CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management
CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned
value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research
standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth
opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through
continued development of a professional association
Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars
Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program
Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others
For more information email execadminmycpmorg or call (703) 370-7885
The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW
Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
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iber
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eid
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Role
Agile
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D
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iptio
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uch
Poin
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Exec
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anag
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tX
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orse
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agile
and
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Prog
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risk
and
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trac
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requ
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and
the
user
rsquos op
erat
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ds
Mus
t em
brac
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l pro
cess
es a
ssoc
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d w
ith c
ontr
act e
xecu
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and
chal
leng
e te
am
to fi
nd e
ffici
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ithin
the
requ
ired
proc
esse
s (C
MM
I IS
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748
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ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
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may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
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aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
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01
wha
t-is
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-ro
le-i
n-th
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are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
Membership Type New Member Renewal
Name Date
CompanyOrganization
Select one Government Employee Industry
Academic Consulting
Address Type Work Home
Address
City State ZipPost Code Country
Phone (Daytime) Phone (Evening)
Email Address
Dues Annual Membership Dues - $85
Payment Visa Mastercard Check Enclosed
American Express Discover
Card Number
Exp Date Security Code Billing Address Zip Code
SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics
PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL
College of Performance ManagementATTN Don Kaiser
12100 Sunset Hills Road Suite 130Reston VA 20190
Fax (703) 435-4390 outside US ndash Country Code +1-435-4390
For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885
CPM Membership Application
Fax today to (703) 435-4390
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP
reg
31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom
bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques
bull Learn through training practice symposia as well as workshops
bull Earn PDUs (for PMPs)
bull Network with earned value professionals from around the world
For more information visit
wwwmycpmorg or wwwevmworldorg
copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc
SAVETHE DATE
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
11
Contributors
Luis C ContrerasAzTech International LLC (goAzTechcom)
Howard ZillmanNorthrup Grumman
Eric Christoph PMP EVPL-3 Communications STRATIS
Ron TerbushLockheed Martin ISampGS
Andrea NibertLeidos
Glen B Alleman Niwot Ridge LLC
INTRODUCTION
A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP
Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind
EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery
How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data
The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps
This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert
If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share
WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)
QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices
AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
12 The Measurable News 201501 | mycpmorg
velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners
EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects
DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems
Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles
Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails
THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and
ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)
ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more
CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including
bull EV can be more flexible and consider other ways to organize control accounts and manage changes
bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes
bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance
bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
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e M
arch
20
07
Rel
ease
http
w
ww
ag
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gm
co
m2
012
01
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
13The Measurable News 201501 | mycpmorg
bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc
bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages
bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra
bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables
bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes
bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road
bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work
bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts
bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-
to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan
forecast as needed with risk mitigation and opportunity capture plans
AGILE TERMINOLOGYHoward Zillman Northrup Grumman
1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)
2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking
3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete
4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks
5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral
6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)
7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
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EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
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EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
14 The Measurable News 201501 | mycpmorg
1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804
the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)
8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete
9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking
10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle
EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS
Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile
Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project
EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project
EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
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e M
arch
20
07
Rel
ease
http
w
ww
ag
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gm
co
m2
012
01
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
15The Measurable News 201501 | mycpmorg
2) httpwwwagilemanifestoorghistoryhtml
11
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
Automated Information System
Prime Mission Product Release 1n
Custom Application Software 1n
Enterprise Service Element 1n
Enterprise Information System
1n
External System Interface
Development 1n
System Level Integration
Program Management
System Test and Evaluation
Development Test and Evaluation
Operational Test and Evaluation
Mock-upsSI Labs
Test and Evaluation Support
Test Facilities
Training
Equipment
Services
Facilities
Data
Technical Publications
Engineering Data
Management Data
Support Data
Data Depository
Peculiar Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Common Support Equipment
Test and Measurement
Equipment
Support and Handling Equipment
Figure 1 Partial Work Breakdown Structure for a Military IT System
The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
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Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
16 The Measurable News 201501 | mycpmorg
12
Figure 2 EVM Performance Chart
In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects
The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows
2 httpwwwagilemanifestoorghistoryhtml
We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
13
Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles
Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
Figure 3 Agile Scrum Process
Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 4 Velocity Chart
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
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EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
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see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
17The Measurable News 201501 | mycpmorg
3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric
Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability
COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
14
Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo
Figure 5 The Iron Triangle in EVM and Agile
The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate
For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3
In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required
The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems
Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment
When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
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D E
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LES
An
dre
a N
iber
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eid
os
Role
Agile
EV
D
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iptio
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mm
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uch
Poin
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orse
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agile
and
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sist
on
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ead
by e
xem
plar
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and
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mitm
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ch p
roce
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Prog
ram
Man
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Xx
The
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vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
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lity
for a
nd a
utho
rity
to
acco
mpl
ish
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ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
18 The Measurable News 201501 | mycpmorg
Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data
bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)
This data is used to develop EV performance metrics such as CPI and SPI
Metric Use
Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred
Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted
GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points
Date Submitted
Sprint Planned
Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0
30-Nov-10 1 9 Create a new front page for the application 105 No 0
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0
13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0
27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0
27-Sep-10 1 8 A full audit of emails being printed 115 No 0
27-Sep-10 1 9 Ability to conduct content searches 105 No 0
27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0
29-Oct-10 1 11 Auto populate user signature 11 No 0
27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0
Total 13 0
Figure 6 Example Sprint Backlog Feature List with Story Points
So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value
Sprints Story Points Hours HoursSP $ $SP
Sprint 1 13 58000 4462 $35090 $2699
Sprint 2 16 72000 4500 $43560 $2723
Sprint 3 12 58000 4833 $35090 $2924
188000 $113740
Figure 7 Calculating Story Point Value ($SP)
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
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LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
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iptio
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mm
on To
uch
Poin
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Exec
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e M
anag
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tX
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spon
sibl
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end
orse
the
agile
and
EV
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s an
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sist
on
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ead
by e
xem
plar
ded
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ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
19The Measurable News 201501 | mycpmorg
The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog
Date Submitted
Sprint Req Requirement Story Points
Completed Earned Value
1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699
16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104
30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834
14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -
29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969
13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104
27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -
27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104
27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834
27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834
29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969
27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -
5-Feb-11 1 Interface to existing server 115 No $ -
7-Feb-11 2 User logins from Os 115 No $ -
15-Feb-11 6 Replace underlying Os 115 Yes $ 3104
18-Feb-11 13 Enable workflow 105 Yes $ 2834
Total 175 $ 32388
Figure 8 Capturing Earned Value During a Sprint
As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed
GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance
Sprints Velocity- Plan
$ - PV $SP- Plan
AC Velocity- Actual
EV CPI (EVAC)
SPI (EVPV)
Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092
Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106
Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092
$ 113740 $ 110143 $ 110843 101 097
Figure 9 Sample EV Metrics
It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile
IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
20 The Measurable News 201501 | mycpmorg
but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints
However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM
Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper
LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO
21
Lockheed Martin Gold Card
copy LMCO courtesy of LMCO
copy 2014 Lockheed Martin Corporation All rights reserved
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
21The Measurable News 201501 | mycpmorg
22
Lockheed Martin Gold Card
copy 2014 Lockheed Martin Corporation All rights reserved
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
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ce re
port
s fa
cilit
atin
g In
tegr
ated
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e Re
view
s (IB
Rs)
risk
asse
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ents
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port
ing
surv
eilla
nce
activ
ities
to a
sses
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e EV
MS
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agem
ent p
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sses
and
the
repo
rts
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rodu
ces
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SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
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sis
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sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
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urce
sht
tp
ww
wp
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ico
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gile
-ear
ned
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ue
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ng W
uht
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ww
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mb
yso
ftc
om
ess
ays
agile
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les
htm
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wp
md
ocu
men
tsc
om
20
120
91
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ile-s
crum
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les-
and
-res
po
nsib
iliti
es
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ww
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eman
agem
ent
com
co
ntro
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coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
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ilp
olic
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dex
cfm
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IGN
DIA
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SC
Ap
plic
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uid
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arch
20
07
Rel
ease
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le-i
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e-ag
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nter
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se-f
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26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
22 The Measurable News 201501 | mycpmorg
BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions
A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)
BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort
But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion
To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated
Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change
ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change
The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points
Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline
Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together
Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
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oces
sCo
mm
on To
uch
Poin
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Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
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n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
23The Measurable News 201501 | mycpmorg
AG
ILE
AN
D E
VM
RO
LES
An
dre
a N
iber
t L
eid
os
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Exec
utiv
e M
anag
emen
tX
xRe
spon
sibl
e to
end
orse
the
agile
and
EV
proc
esse
s an
d in
sist
on
thei
r bus
ines
s ap
plic
atio
n L
ead
by e
xem
plar
ded
icat
ion
and
com
mitm
ent t
o ea
ch p
roce
ss
Prog
ram
Man
ager
Xx
The
indi
vidu
al tr
aditi
onal
ly d
esig
nate
d w
ith re
spon
sibi
lity
for a
nd a
utho
rity
to
acco
mpl
ish
prog
ram
obj
ectiv
es fo
r pla
nnin
g b
udge
ting
acq
uisi
tion
risk
and
m
anag
emen
t to
mee
t the
con
trac
tual
requ
irem
ents
and
the
user
rsquos op
erat
iona
l nee
ds
Mus
t em
brac
e al
l pro
cess
es a
ssoc
iate
d w
ith c
ontr
act e
xecu
tion
and
chal
leng
e te
am
to fi
nd e
ffici
enci
es w
ithin
the
requ
ired
proc
esse
s (C
MM
I IS
O A
NSI
748
agi
le e
tc)
M
ay b
e ut
ilize
d as
a ldquob
arrie
r bus
terrdquo
A
lso
may
be
iden
tified
as
Proj
ect M
anag
er o
r Pr
oduc
t Man
ager
In A
gile
the
re m
ay n
ot b
e a
need
for t
he P
M ro
le w
hich
cou
ld b
e ac
com
plis
hed
via
the
SCRU
M m
aste
r rol
e ndash
rela
tive
to c
ompa
ny a
nd c
ontr
act s
ize
(the
larg
er th
e co
ntra
ct a
PM
cou
ld b
e m
ore
of a
cro
ss S
CRU
M te
am c
oord
inat
or a
nd m
anag
e ris
k co
nsen
sus
whe
reas
on
a sm
alle
r con
trac
t th
e PM
cou
ld a
lso
be th
e SC
RUM
M
aste
r)
Agile
pro
ject
man
agem
ent o
ften
put
s th
e tr
aditi
onal
pro
ject
man
ager
in
a di
fficu
lt po
sitio
n H
e or
she
is to
ld f
or e
xam
ple
to m
ake
scop
esc
hedu
le tr
adeo
ff de
cisi
ons
know
ing
that
a p
rodu
ct m
anag
er o
r cus
tom
er m
ight
sec
ond-
gues
s th
ose
deci
sion
s if
the
proj
ect g
oes
poor
ly
Agile
ack
now
ledg
es th
is d
ifficu
lt po
sitio
n a
nd
dist
ribut
es th
e tr
aditi
onal
pro
ject
man
ager
s re
spon
sibi
litie
s W
hat i
s ag
ile a
bout
this
ne
w p
arad
igm
is th
at m
any
of th
ese
dutie
s su
ch a
s ta
sk a
ssig
nmen
t and
day
-to-
day
proj
ect d
ecis
ions
rev
ert b
ack
to th
e te
am w
here
they
righ
tful
ly b
elon
g
Agile
Rel
ease
Pla
nnin
g A
NSI
748
O
rgan
izin
g P
lann
ing
and
Budg
etin
g
Acco
untin
g A
naly
sis
Revi
sion
s
Plan
ning
ndash fo
cus
on p
lann
ing
how
m
uch
(AKA
ldquoqua
ntity
rdquo) w
ill b
e ac
com
plis
hed
let t
he a
gile
pro
cess
m
anag
e th
e pr
iorit
izat
ion
of th
e ba
cklo
g an
d le
t the
EV
chan
ge p
roce
ss
man
age
how
muc
h is
bas
elin
e pl
anne
d to
be
acco
mpl
ishe
d
Dep
uty
Prog
ram
M
anag
erx
If ne
eded
bas
ed o
n co
mpa
ny a
nd c
ontr
act s
ize
may
be
dele
gate
d th
e EV
re
spon
sibi
litie
s on
larg
e pr
ogra
ms
Can
act
as
the
CAM
for t
he p
rogr
am m
anag
emen
t co
ntro
l acc
ount
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Chie
f Eng
inee
r (A
rchi
tect
ure
Ow
ner)
XTh
is p
erso
n is
resp
onsi
ble
for f
acili
tatin
g ar
chite
ctur
al d
ecis
ions
on
a su
b-te
am a
nd
is p
art o
f the
arc
hite
ctur
e ow
ner t
eam
whi
ch is
resp
onsi
ble
for o
vera
ll ar
chite
ctur
al
dire
ctio
n of
the
proj
ect
The
arch
itect
ure
owne
r lea
ds th
eir s
ub-t
eam
thro
ugh
initi
al
arch
itect
ure
envi
sion
ing
for t
heir
sub-
syst
ems
and
will
be
invo
lved
with
the
initi
al
arch
itect
ure
envi
sion
ing
for t
he s
yste
m a
s a
who
le (a
s pa
rt o
f the
arc
hite
ctur
e ow
ner
team
see
bel
ow)
Arc
hite
ctur
e ow
ners
are
diff
eren
t tha
n tr
aditi
onal
arc
hite
cts
in
that
they
are
not
sol
ely
resp
onsi
ble
for s
ettin
g th
e ar
chite
ctur
al d
irect
ion
but i
nste
ad
faci
litat
e its
cre
atio
n an
d ev
olut
ion
Agile
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
24 The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Team
Lea
d S
CRU
M
Mas
ter
xA
faci
litat
or c
oach
and
cha
mpi
on o
f the
Scr
um fr
amew
ork
and
proc
ess
that
the
team
w
ill fo
llow
Au
thor
ity e
xten
ds o
nly
to th
e pr
oces
s an
d its
rsquo use
to g
et a
SCR
UM
team
to
perf
orm
Re
spon
sibl
e fo
r del
iver
ing
a pr
oduc
t ho
wev
er n
ot v
iew
ed a
s re
spon
sibl
e to
cre
dit (
or b
lam
e) fo
r the
suc
cess
(or f
ailu
re) o
f the
pro
ject
D
econ
flict
prio
ritie
s fo
r te
am
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
D
oes
not h
ave
man
y of
the
trad
ition
al P
M re
spon
sibi
litie
s of
sco
pe c
ost
pers
onne
l an
d ris
k m
anag
emen
t
Agile
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e SC
RUM
Mas
ter c
ould
be
the
PM
SCRU
M Te
amX
Resp
onsi
ble
for c
omm
ittin
g to
a S
prin
t goa
l and
pro
mis
ing
to d
eliv
er it
with
in th
e tim
e bo
xed
Sprin
t T
he Te
am is
sel
f-man
agin
g an
d se
lf-or
gani
zed
The
Team
wor
ks
with
the
Prod
uct M
anag
er to
det
erm
ine
wha
t ite
ms
from
the
Prod
uct B
ackl
og th
ey
can
deliv
er in
a S
prin
t T
hey
Team
dec
ompo
ses
the
Prod
uct B
ackl
og in
to a
ser
ies
of
activ
ities
that
mus
t be
acco
mpl
ishe
d as
par
t of t
he S
prin
t S
ince
the
Team
com
mits
to
the
Sprin
t th
ey m
ust e
nsur
e th
at th
ey c
an d
eliv
er o
n w
hat t
hey
prom
ised
Sp
rints
ca
nnot
be
exte
nded
or d
elay
ed
So th
e Te
am w
ield
s gr
eat p
ower
but
the
Team
is
also
hel
d ac
coun
tabl
e fo
r del
iver
ing
on th
eir c
omm
itmen
t
On
larg
e te
ams
man
y fu
nctio
nal a
reas
sho
uld
be re
pres
ente
d ndash
deve
lope
r te
ster
dat
a ba
se i
nteg
rato
r et
c
Agile
spr
int p
lann
ing
and
sprin
t co
mpl
etio
nCa
n lo
ok v
ery
sim
ilar t
o an
OBS
and
re
pres
entin
g m
ultip
le fu
nctio
nal a
reas
Prod
uct O
wne
rx
xRe
spon
sibl
e fo
r del
iver
ing
prod
uct v
alue
(cor
rect
pro
duct
in c
orre
ct o
rder
) and
re
pres
ents
the
stak
ehol
der
The
pro
duct
ow
ner m
ust b
e av
aila
ble
to th
e te
am T
his
mea
ns w
orki
ng w
ith th
e St
akeh
olde
rs to
und
erst
and
thei
r nee
ds a
nd d
evel
opin
g a
Visi
on a
nd a
Pro
duct
Bac
klog
that
aim
s to
ach
ieve
the
Visi
on T
his
role
mig
ht b
e th
e cl
oses
t rol
e to
a c
lass
ic P
roje
ct M
anag
er ro
le
How
ever
the
re a
re s
till s
igni
fican
t di
ffere
nces
Fo
r exa
mpl
e th
e Pr
oduc
t Ow
ner d
oes
not c
ontr
ol w
hat t
he Te
am
com
mits
to c
ompl
etin
g T
he P
rodu
ct O
wne
r prio
ritiz
es th
e lis
t of i
tem
s on
the
Prod
uct B
ackl
og in
seq
uent
ial o
rder
(fro
m 1
to n
) in
clud
ing
scop
e an
d sc
hedu
le
trad
eoff
But
the
Prod
uct O
wne
r can
not f
orce
the
Team
to c
omm
it to
del
iver
ing
beyo
nd w
hat t
he Te
am fe
els
com
fort
able
Thr
ough
any
repr
iorit
izat
ion
durin
g re
leas
e pl
anni
ng m
ay im
pact
the
EV c
hang
e pr
oces
s R
eprio
ritiz
atio
n im
plie
s di
rect
ion
to
cont
ract
or te
am to
imm
edia
tely
upd
ate
the
base
line
plan
if n
eces
sary
reg
ardl
ess
of
any
pote
ntia
l EV
free
ze h
oriz
on
Agile
pla
nnin
g A
NSI
748
Pla
nnin
g amp
Bu
dget
ing
and
Revi
sion
sW
ith P
rogr
am M
anag
er in
set
ting
expe
ctat
ions
for p
roje
ct
Stak
ehol
der
XA
nyon
e w
ho h
as a
n in
tere
st o
r sta
ke in
the
proj
ect
Res
pons
ible
for c
omm
unic
atin
g th
eir n
eeds
and
pro
vidi
ng fe
edba
ck o
n th
e pr
oduc
t W
ork
with
the
Prod
uct O
wne
r to
dev
elop
and
mai
ntai
n th
e Pr
oduc
t Bac
klog
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
25The Measurable News 201501 | mycpmorg
Role
Agile
EV
D
escr
iptio
nPr
oces
sCo
mm
on To
uch
Poin
ts
Cont
rol A
ccou
nt
Man
ager
(CA
M)
xRe
spon
sibl
e fo
r the
pla
nnin
g c
oord
inat
ion
and
achi
evem
ent o
f all
wor
k w
ithin
a
Cont
rol A
ccou
nt a
nd p
rovi
des
a si
ngle
aut
horit
y fo
r all
scop
e te
chni
cal a
nd c
ost
issu
es fo
r the
CA
ndash n
ot a
n ea
sy ta
sk A
ttrib
utes
that
a C
AM
mus
t hav
e ar
e di
vide
d in
to th
ree
umbr
ella
cat
egor
ies
Res
pons
ibili
ty A
utho
rity
and
Acco
unta
bilit
y W
ithou
t th
ese
thre
e cr
itica
l att
ribut
es a
CA
M w
ill n
ot b
e ab
le to
per
form
effe
ctiv
ely
and
will
sim
ply
beco
me
an e
mbe
dded
repo
rter
in th
e Pr
ogra
m
A C
AM
mus
t be
give
n fu
ll re
spon
sibi
lity
for m
anag
ing
the
cost
sch
edul
e an
d te
chni
cal p
erfo
rman
ce o
f th
e Co
ntro
l Acc
ount
and
for s
uppo
rtin
g al
l cus
tom
er m
eetin
gs a
nd d
ata
requ
ests
pe
rtai
ning
to th
e Co
ntro
l Acc
ount
To
be e
ffect
ive
the
CAM
mus
t hav
e ow
ners
hip
of th
e bu
dget
and
full
auth
ority
to d
irect
reso
urce
s (w
ithin
thei
r aut
horiz
ed s
cope
do
cum
ente
d vi
a w
ork
auth
oriz
atio
n)
Isol
ate
inte
rfer
ence
from
ldquoman
agem
entrdquo
to s
tay
focu
sed
on te
chni
cal g
oals
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Dep
endi
ng o
n th
e co
mpa
ny a
nd
cont
ract
siz
e th
e CA
M c
ould
be
the
SCRU
M M
aste
r
Sche
dule
rx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o de
velo
p s
tatu
s an
d an
alyz
e th
e pr
ogra
ms
inte
grat
ed m
aste
r sch
edul
e (IM
S)
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
gSu
ppor
t Rel
ease
and
Spr
int p
lann
ing
sess
ions
to u
nder
stan
d pr
iorit
izat
ion
of
sche
dule
task
s
Earn
ed V
alue
Ana
lyst
Pl
anni
ng C
oord
inat
orx
Supp
ort t
he E
V te
am (C
AM
s P
M) t
o co
nver
t the
IMS
or b
asis
of e
stim
ates
(BO
Es)
into
ear
ned
valu
e da
ta p
oint
s an
d m
etric
s S
uppo
rt th
e EV
team
(CA
Ms
PM
) in
the
anal
ysis
of t
he e
arne
d va
lue
repo
rts
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort R
elea
se a
nd S
prin
t pla
nnin
g se
ssio
ns a
nd P
rogr
am M
anag
er to
an
alyz
e an
y ch
ange
s in
prio
ritiz
atio
n an
d po
tent
ial i
mpa
ct to
PM
B
EV F
ocal
Poi
ntx
Resp
onsi
ble
for e
ffect
ive
polic
y im
plem
enta
tion
with
in th
eir c
ompo
nent
ens
urin
g co
nsis
tenc
y w
ith D
oD p
olic
y an
d th
e pr
ovis
ions
of t
his
guid
e
Resp
onsi
ble
for
dis
sem
inat
ing
curr
ent p
olic
y an
d pr
ovid
ing
advi
ce e
nsur
ing
effec
tive
EVM
im
plem
enta
tion
on n
ew c
ontr
acts
ana
lysi
s of
con
trac
tor p
erfo
rman
ce re
port
s fa
cilit
atin
g In
tegr
ated
Bas
elin
e Re
view
s (IB
Rs)
risk
asse
ssm
ents
sup
port
ing
surv
eilla
nce
activ
ities
to a
sses
s th
e EV
MS
man
agem
ent p
roce
sses
and
the
repo
rts
the
syst
em p
rodu
ces
EVM
SD
AN
SI 7
48 O
rgan
izin
g P
lann
ing
and
Budg
etin
g A
ccou
ntin
g A
naly
sis
Revi
sion
s
Supp
ort E
V an
d Ag
ile te
ams
to e
nsur
e th
at a
ppro
pria
te Q
BD a
nd e
arne
d va
lue
(BCW
P) is
com
plia
nt a
nd re
pres
enta
tive
of p
rogr
ess
So
urce
sht
tp
ww
wp
mro
ico
ma
gile
-ear
ned
-val
ue
Su-
Che
ng W
uht
tp
ww
wa
mb
yso
ftc
om
ess
ays
agile
Ro
les
htm
l ht
tp
ww
wp
md
ocu
men
tsc
om
20
120
91
5ag
ile-s
crum
-ro
les-
and
-res
po
nsib
iliti
es
http
w
ww
pin
nacl
eman
agem
ent
com
co
ntro
l-ac
coun
t-m
anag
ers-
cam
s-ro
le-a
nd-r
esp
ons
ibili
ties
34
0
http
w
ww
dcm
am
ilp
olic
yin
dex
cfm
- E
VM
IGN
DIA
PM
SC
Ap
plic
atio
n G
uid
e M
arch
20
07
Rel
ease
http
w
ww
ag
ilep
gm
co
m2
012
01
wha
t-is
-the
-ro
le-i
n-th
e-ag
ile-e
nter
pri
se-f
or-
the-
pro
gra
m-m
anag
er-o
r-p
mo
htm
l ht
tp
ww
wm
oun
tain
go
atso
ftw
are
com
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
26 The Measurable News 201501 | mycpmorg
4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1
CONNECTING EVM WITH AGILEMultiple Authors
INTRODUCTIONSeveral concepts needed to be established before proceeding
bull The connection of agile development practices starts with the principle of Earned Value Management not Agile development
bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
bull A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics
Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
30
Connecting EVM with AgileMultiple Authors
IntroductionSeveral concepts needed to be established before proceeding The connection of agile development practices starts with the principle of Earned Value
Management not Agile development When the Agile community says VALUE it means Business VALUE not EARNED VALUE The details of ANSIEIAndash748 are shown here In order to incorporate agile development
practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748
A second document is the National Defense Industry Association Earned Value Management Intent Guide The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value
PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo was produced for a given cost in a period of time One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development
The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As
Earned Value Agile Development A Big Picture View of the Projectrsquos performance
Continuous production of useable software
Accurate Estimate at Completion built from the bottom up performance
Prediction of the next iterationrsquos effort using performance from the last iteration
Endndashtondashend value tracking for deliverables measured as Physical Percent Complete
Iteration to iteration tracking of planned deliverables to the customer
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other
Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this
document showing how these seemingly conflicting concepts are in fact supportive of each other
THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below
The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment
With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4
The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
27The Measurable News 201501 | mycpmorg
5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007
AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)
For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks
To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5
bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members
ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of
completionbull Certain intermediate global integration milestones are established and enforced
ndash Milestones and measures of physical percent complete are part of all Earned Value implementations
ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the
component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level
bull Constraining teams to the dates means that functionality for the components must be flexible
ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget
A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
28 The Measurable News 201501 | mycpmorg
32
A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748
Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer
While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management
12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value
Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results
Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage
Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience
Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Business people and developers must work together daily throughout the project
Involve stakeholder every week in setting quantified value goals
Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done
Given developer freedom to find out how to deliver those results
The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation
Involve stakeholder every week in actually using value in increments
Working software is the primary measure of progress
Make sure those results are business results Involve stakeholder every week in actually using value in increments
Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely
Decompose workflow into weekly time boxes or 2 of the total budgeted time
Continuous attention to technical excellence and good design enhances agility
Select design with the best value impacts for the costs and do them first
Simplicity ndash the art of maximizing the amount of work not done ndash is essential
Estimate the impacts of designs on the quantified goals
The best architectures requirements and designs merge from selfndashorganizing teams
At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly
A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems
With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles
of Agile development in this document
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
29The Measurable News 201501 | mycpmorg
6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
33
A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines
Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document
EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self-organizing teams
5 Integrate WBS and OBS Self-organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products amp Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features adjust velocity
28 Incorporate changes Replan missed features adjust velocity
32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
ANSIEIAndash748rsquos stated purpose is
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agile development principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance
measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at
completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
30 The Measurable News 201501 | mycpmorg
34
32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6
ANSIEIAndash748rsquos stated purpose is
] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide
A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND
APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL
There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are
1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a
responsible person or organization for control of technical schedule and cost objectives
3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline
4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate
at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes
Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management
These are divided into five major categories748ndashB EVMIG
Organization Artifacts for This Criteria
Guide 1 21a
Define WBS Work Breakdown Structure (WBS) WBS Dictionary
Guide 2 EVMIG 21b
ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS
Guide 3 EVMIG 21c
Integrate Subsystems
Master intermediate and detail level schedules MRPERP operational schedules
Control Account Plans Performance reports by WBS and OBS
Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d
ID Overhead Control
Cost Accounting Standards (Disclosure Statement) Organizational Charts
Accounting Chart of Accounts Guide 5 EVMIG 21e
Integrate WBS amp OBS
Control Accounts Responsibility Assignment Matrix (RAM)
6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)
36
Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and
detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents
ID Products Milestones
Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events
MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)
Set TimendashPhased Budget
Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document
Significant Cost Elements
Control account plans by element of cost Work authorization documents
Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is
expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans
Discrete Work Packages
Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets
Sum Work Planning Packages
Control account plan total budget Work package budget Planning package budget
ID LOE Activities Control account plans identify level of effort work packages and budgets
Set Overhead for Organizations
Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority
levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base
projections) CAS disclosure statement if applicable Indirect budget and performance reports
ID Management Reserve and Undistributed Budget
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Contract Performance Reports (CPRs) if applicable
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
31The Measurable News 201501 | mycpmorg
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
37
Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets
Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost
Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the
performance measurement baseline
Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system
Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract
paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized
Summarize into Work Breakdown Structure (WBS)
Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report
Summarize into Organizational Breakdown Structure (OBS)
Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)
Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement
ID Equivalent Lot Costs
Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs
or lot costs when needed including differentiation of work in process
Material Accounting Performance reports Control account plans Material system reports
Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums
Monthly performance report (cost variance schedule variance and variance at completion analysis)
Variance analysis data (root causes impacts at completion and management actions)
Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs
Budget Actual Indirects
Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts
Sum Data and Variances
Variance analyses Schedule and cost performance reports
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
32 The Measurable News 201501 | mycpmorg
38
Management action plans Updated schedule and cost forecasts
Manager Action Plans
TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses
Estimate at Complete (EAC) Revision
Control account plans Documented process for developing EACs including subcontractor EAC
integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data
Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget
performance measurement baseline and contract budget base)
Control Retroactive Change
Change control logs Retroactive change control process including approval
Only Authorized Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
Document Performance Measurement Baseline (PMB) Change
Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)
Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable
management reports)
CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
33The Measurable News 201501 | mycpmorg
21 b Identify Program Organizational Structure
39
Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline
Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success
21 a Define Authorized Work Elements
21 b Identify Program Organizational Structure
21 e Integrate WBS and OBS
40
21 e Integrate WBS and OBS
22 a Schedule the Work22 a Schedule the Work
40
21 e Integrate WBS and OBS
22 a Schedule the Work
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
34 The Measurable News 201501 | mycpmorg
22 b Identify Products and Milestones
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget22 c Set Time Phased Budget
41
22 b Identify Products and Milestones
22 c Set Time Phased Budget
23 a Record Direct Costs
42
23 a Record Direct Costs
24 b Determine Variances
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
35
Sidebar footnotes
The Measurable News 201501 | mycpmorg
24 b Determine Variances
42
23 a Record Direct Costs
24 b Determine Variances
24 d Summarize Variances
43
24 d Summarize Variances
24 e Implement Management Plan24 e Implement Management Plan
43
24 d Summarize Variances
24 e Implement Management Plan
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
36 The Measurable News 201501 | mycpmorg
7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml
25 a Incorporate Changes
44
25 a Incorporate Changes
STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7
With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development
These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value
Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria
Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed
Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts
Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project
Discipline - Discipline is the glue that holds the project together
Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing
Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
37The Measurable News 201501 | mycpmorg
Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it
Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal
Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important
EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS
httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus
BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon TRW CH2M Hill SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science
Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom
Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
38 The Measurable News 201501 | mycpmorg
Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing
She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement
Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo
Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges
Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs
Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado
Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
39
EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo
CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg
The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia
The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks
1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications
The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions
The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs
The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks
1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)
SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization
You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM
These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
41
The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting
It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success
CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
website wwwCBTWorkshopcom phone 888bull644bull5613
Let The CBT Workshop Assist You
Staff Augmentation
Tools Implementation and Training
Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants
Short or Long Term Assignments Contract-to-hire personnel
We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools
Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera
Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them
EVMS Services
Web Based EVMS Training
EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews
EVMS Fundamentals and EVMS Advanced training testing and certification
Call UsToday
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
Proposal Support
EVMS StaffAugmentation
EVMS ComplianceReview Preparation
Integrated BaselineReview (IBR)Preparation
EVMSImplementation
EVMS Design andDocumentation
EVMS Requirementsor Gap Analysis
EVMS andProject Management
Training
Humphreys amp AssociatesEVMS
Consulting Services
Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS
As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops
HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification
Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
The Quarterly Magazine of the College of Performance Management | mycpmorg
201501
43
The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen
Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings
Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees
Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs
Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered
Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining
2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow
CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS 201501
44 The Quarterly Magazine of the College of Performance Management | mycpmorg
VENDORS amp SERVICES
PO Box 20996Sarasota FL 34276
Phone (888) 644-5613
wwwCBTWorkshopcom
see our ad on p 42
Planning every step mdash Every step as plannedtrade
EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops
wwwmgmt-technologiescomEarned Value Professional
Get it now
Got your
wwwlexemstrategycom
wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6
wwwsmawinscom
EVMLibraryorg The CPM Online Library
A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics
The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday
Each document has been catalogued by subject area author publication date keywords etc
How You Can Contribute Do you have topical articles speeches or presentations
Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource
wwwsna-softwarecom
see our ad on p 4
S N A Software
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
THE MEASURABLE NEWS
201501The Quarterly Magazine of the College of Performance Management
mycpmorg
top related