Earned Value Managed Services
0 likes188 views
The document outlines the essentials of Earned Value Management (EVM), emphasizing its integration of people, processes, and tools for effective project management. It details critical business systems, core components, performance indicators, and success factors essential for successful EVM implementation. Additionally, it highlights the importance of objective technical measures and the relationship between cost, schedule, and technical performance in achieving project success.
Earned Value Managed Services
- 1. + Earned Value Management Essentials Earned Value Management is more than people, processes, and tools. It is an integrated service that provides actionable information to the decision makers
- 2. + The Six Business Systems Needed for Project Success 2 Accounting Material Management Estimating Property Management Earned Value Management Procurement
- 3. + The Core Systems Needed for Earned Value Management 3 Accounting Material Management Estimating Property Management Earned Value Management Procurement
- 4. + Z 44 Data Elements of a Baseline Earned Value Management System 1. Contract scope 2. Contract Modifications 3. WBS and CWBS Dictionary 4. Work Authorization 5. Summary Level Planning Packages 6. Control Account Performance Reports 7. RESERVED 8. Integrated Master Plan 9. Organization Charts 10. Organizational Breakdown Structure 11. Responsibility Assignment Matrix 12. Integrated Master Schedule 13. Intermediate Schedule 14. Detailed Schedule(s) 15. Proposal Basis of Estimates 16. Schedule Update Forms 17. Resource Plan 18. EAC Updates 19. EV Update Form 20. Subcontractor / Vendor IMS 21. Material Schedules 22. Staffing performance Reports 23. Material Labor 24. Baseline Change Report 25. Bill of Materials 26. OBS / WBS Performance Report 27. Material Status 28. Material Data 29. Subcontractor Data 30. Estimated Actuals 31. Indirect Performance Reports 32. Accounting System Data 33. Summary Performance Reports 34. Earned Value Metrics 35. Variance Reports 36. External Performance Reports 37. RESERVED 38. Corrective Action Plans 39. Risk Management Reports 40. Technical Performance Reports 41. Baseline Change Request 42. Contract Change Requests 43. Change Logs 44. Budget Logs 4
- 5. + Activities That Use This Data 5 § Define the work § Assign responsibili3es § Define indirect procedures § Establish proper management controls § Schedule all work § Authorize all work § Time-‐phase the work § Develop cost accounts § Material costs § Unit/lot costs § Cost summariza3on § Understand contract status § Use data for decision-‐making Assignments made to responsible organiza3ons Maintenance of budget, work, and schedule rela3onships Do not modify past budget or actuals (w/ o permission) All documents properly maintained Planning Scheduling and Budge3ng Organiza3on Analysis and Management Reports Accoun3ng Considera3ons Revisions
- 6. + 11 of the 32 EIA-748-C Guidelines Critical to Program Success 6 1. Define a Work Breakdown Structure 2. Identify the Organizations doing the work 5. Integrate WBS and OBS into a RAM 6. Schedule all Planned Work 7. Identify Products and Milestones 8.Time Phase the Budget 16. Record all Direct Costs 23. Determine all Variances 25. Sum These Variances 26. Manage Action Plans 28. Incorporate Changes
- 7. + Performance Indicators Derived from EVMS Data and Processes 7
- 8. + These Indicators … … must reveal root causes of performance shortfall. 8 Unrealistic Performance Expectations missing Measures of Effectiveness and Performance Unrealistic Cost and Schedule estimates based on inadequate risk adjusted growth models Inadequate assessment of risk and unmitigated exposure to these risks without proper handling plans Unanticipated Technical issues without alternative plans and solutions to maintain effectiveness Cost and Schedule Impacts TheLensofthe PerformanceIndicators “Borrowed” from Gary Bliss, Director, Performance Assessments and Root Cause Analyses (PARCA), Office of Assistant Secretary of Defense for Acquisition.
- 9. + 10 Critical Success Factors for Deploying an EVMS 9 1. If a project has a scope, schedule and budget, EVM can be an effective project management tool. 2. EVM's principles are reliable predictors of project success. 3. Expert planning is required to use EVM effectively. – This expertise can be learned through coaching, mentoring, and external advice 4. EVM works best in collaborative organizations where teamwork and frequent communications are present. 5. EVM complements other project management techniques. 6. VM metrics are reliable, consistent, and trustworthy. 7. Contract type doesn't influence EVM's benefit. 8. Retrofitting EVM after a project is under way is a bad idea. – This is exactly what happens, so we’ll just have to deal with it 9. EVM's mechanics can be emphasized individually for maximum benefit. 10. Active, top-down support is required to increase EVM acceptance.
- 10. + The Integrated Program Management System … n Budget processes – assign, authorize, and record n Fully Integrated cost and schedule – all work has budget n Status reporting – expenditures of time and budget with resulting technical progress n Change management – to maintain the integrity of the baseline n Earned Value performance techniques – that Objectively assesses accomplishments at the work performance level. … must address each principal of success with data,processes and actionable information 10
- 11. + Connecting the Dots Between Cost, Schedule and Objective Assessment of Technical Performance The role of the Earned Value Management System (EVMS) is to connect the dots between budget (BCWS), performance (BCWP) – informed by technical performance, schedule, risk reduction activities, and estimates to complete 11
- 12. + Sources of Objective Technical Measures of Technical Performance Risk SOW Cost WBS IMP/IMS TPM PMB GA 12
- 13. + The Dots and Their Connections Each data element and its connection increases the visibility to the program’s performance assessment 13 WBS TPMs EVM ETC EAC Irreducible uncertainty in reference classes Reducible uncertainty held in Risk Register Schedule Margin in DI-‐MGMT-‐81861 Cost Con3ngency † Risk re3rement in PMB Management Reserve covers unmi3gated risk MOE MOP Physical % Complete PE SA AC JROC KPP IMP IMS WP KPPs
- 14. + Technical Performance Informs Earned Value Critical Success of Program Management means connecting the dots of Cost,Schedule,and Technical Performance Integrate cost and schedule performance with objec7ve technical measures of performance Objec3ve Technical Measures Cost Performance Schedule Performance Conven3onal Earned Value + = Basis of Es3mate developed from scope of work and historical performance, and risk adjusted for all classes of cost, to produce a resource loaded PMB with MR established in the EVMS. The ETC and EAC updated as the program progresses using objec3ve technical measures of performance. Cost Measures of Effec3veness (MOE), Measures of Performance (MOP), Technical Performance Measures (TPM), Key Performance Parameters (KPP), and, other …ili7es of the technical aspects of the program performance inform the Physical Percent Complete used to Inform BCWP. Objec3ve Technical Measures Determinis3c IMS derived from the IMP / Statement of Work (SOW), showing how all deliverables defined in the WBS will be produced and reducible risks mi3gated with Re7rement Plans, and Irreducible risks mi3gated with schedule margin and Management Reserve, to establish the Credible PMB. Schedule GA 14
- 15. +Assembly the moving parts into a successful EVMS People, processes, and tools are the start. For real sustainable success more is needed 15
- 16. +To be successful in this assembly … 16 We need the ability to install, train,mentor,coach,surveil, operate,and sustain a program’s Program Planning and Controls functions to provide actionable information to the decision makers
- 17. +Tools n Ready for market DOD, DOE, NASA, OMB Circular A-11, Part 7 compliant Earned Value Management System n All IPMR formats n Integrated risk management for Schedule Risk Analysis and Technical Risk Management n Cost Accounting integration for PMB management n EVM in a Box notion n Ready to use version n Requires only WBS, Control Account, and Work Package structures n Charge Numbers n Contains data elements associated with EVM 17
- 18. +Processes n Earned Value Management System Description n EVMS Guidelines tailored to program need n Work Instructions for baseline processes n Tailored sections for integrated systems n Control Account Manager resources n Training n Coaching n Check list cards n Forms n Program Manager resources n Reports n Forecasting tools n Variance analysis tools 18
- 19. +People n Subject Matter Experts – in EVMS, Program Planning and Controls, Risk Management and Integrated Master Planning and Scheduling. n System Integration people and processes – capable of connecting data and process between the six business systems. n DCMA / DCAA validation experience and processes – based on DAU 262 and DCMA training and processes. n Broad federal government agency and commercial experience in EVMS and Program Performance Management. 19
- 20. 20