Project Control System Manual

Project Control System Manual

Jefferson Science Associates, LLC

Project Control System
Manual
Revision 5
1 November 2009

Thomas Jefferson National Accelerator Facility

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Manual
Approved by:
Original document on file in the Project Management & Integrated Planning Division

_________________________ _________________________
R.K. Cothren Date L.S. Wells Date
Project Services Manager OPM Financial Manager

_________________________ _________________________
C.H. Rode Date A.F. Lung Date
Director, Office of Project Management 12 GeV Project Director

_________________________ _________________________
M.C. Erwin Date K.S. Caccetta Date
Chief Financial Officer Associate Director, Admin Div.

_________________________ _________________________
S. Chattopadhyay Date L.S. Cardman Date
Associate Director, Accelerator Div. Associate Director, Physics Div.

_________________________
C.W. Leemann Date
Jefferson Lab Director
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Document Revision Log

Revision Change
Section Date
Number Description
Annual Review
1 All 1 Oct 06
and Update
Annual Review
2 All 1 Aug 07
and Update
3 EVMS Cert All 1 Nov 07
Review Update
4 Post-EVMS All 1 Jul 08
Cert Review
Update
5 Annual Review All 1 Nov 09
and Update

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Table of Contents

100 Introduction ............................................................................................................... 2
101 Roles and Responsibilities ............................................................................... 4
102 References ......................................................................................................... 5
103 Revision of the JSA Project Control System Manual ................................... 5
200 Organization .............................................................................................................. 8
201 Project Control System Integration ............................................................... 8
202 Work Breakdown Structure ........................................................................... 8
202.1 WBS Development ............................................................................... 9
202.2 WBS Dictionary ................................................................................. 10
203 Project Organization ..................................................................................... 10
204 WBS and Organization Integration ............................................................. 10
205 Responsibility Assignment Matrix ............................................................... 11
206 Exhibits ........................................................................................................... 12
300 Scheduling and Budgeting...................................................................................... 19
301 Schedule Planning .......................................................................................... 19
301.1 Schedule Management System.......................................................... 19
301.2 Schedule Development ....................................................................... 21
302 Cost Planning ................................................................................................. 22
302.1 Cost Management System ................................................................. 22
302.2 Funding Guidance.............................................................................. 23
302.3 Cost Estimating .................................................................................. 23
303 Integrated Project Baseline Development ................................................... 23
303.1 Performance Measurement Baseline................................................ 25
304 Exhibits ........................................................................................................... 26
400 Work Authorization System .................................................................................. 32
401 Work Authorization Process......................................................................... 32
402 Specific Authorizations .................................................................................. 33
402.1 Control Account Labor Authority ................................................... 33
402.2 Procurement Authority ..................................................................... 33
403 Exhibits ........................................................................................................... 33
500 Accounting ............................................................................................................... 36
501 Cost Collection and Control .......................................................................... 36
501.1 Cost Reporting and Collection.......................................................... 36
501.2 Labor ................................................................................................... 37
501.3 Accounts Payable via Purchase Order Voucher ............................. 37
501.4 Travel .................................................................................................. 39
501.5 Accounts Payable via A/P Vouchers ................................................ 39
501.6 Procurement Credit Cards (P-Card) ............................................... 40
501.7 Journal Entry ..................................................................................... 40
501.8 Inventories .......................................................................................... 40
501.9 Machine Shop Service Center Costs ................................................ 40
501.10 Indirect Costs ................................................................................... 40
501.11 Interface of Accounting System and Project Control System ..... 41

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501.12 Correction of Mischarges ................................................................ 41
501.13 Closing of Control Accounts ........................................................... 41
502 Material Accounting System ......................................................................... 41
503 Exhibits ........................................................................................................... 42
600 Progress Status ........................................................................................................ 46
601 Earned Value Management Indicators ........................................................ 46
601.1 Planned Value..................................................................................... 46
601.2 Earned Value ...................................................................................... 46
601.3 Actual Costs ........................................................................................ 48
602 Remaining Duration ...................................................................................... 48
603 Collection of Project Data ............................................................................. 49
604 Exhibits ........................................................................................................... 49
700 Analysis and Reporting .......................................................................................... 52
701 Variance Analysis........................................................................................... 52
701.1 Variance and Performance Indicators ............................................. 52
701.2 Estimate at Completion ..................................................................... 54
701.3 Variance at Completion..................................................................... 56
701.4 Contingency ........................................................................................ 56
702 Project Reports............................................................................................... 56
702.1 Financial Management System Reports .......................................... 57
702.2 Schedule and Cost Management Systems Reports ......................... 57
703 Meetings and Reviews.................................................................................... 59
704 Exhibits ........................................................................................................... 59
800 Change Control ....................................................................................................... 72
801 Change Control Process ................................................................................ 72
801.1 Request Phase ..................................................................................... 73
801.2 Review Phase ...................................................................................... 74
801.3 Documentation Phase ........................................................................ 75
802 Exhibits ........................................................................................................... 75
900 Glossary ................................................................................................................... 86
1000 Earned Value Management System Guidelines Compliance............................ 93
1001 Organization ................................................................................................. 93
1002 Planning, Scheduling and Budgeting ......................................................... 94
1003 Accounting Considerations ......................................................................... 95
1004 Analysis and Management Reports ............................................................ 96
1005 Revisions and Data Management ............................................................... 97
1100 EVMS Surveillance ............................................................................................. 100
1200 Project Control System Procedures ................................................................... 102
PCS-01 Schedule Planning .................................................................................. 103
PCS-02 Cost Planning ......................................................................................... 108
PCS-03 Performance Reporting ......................................................................... 113
PCS-04 Change Control ...................................................................................... 119

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Table of Exhibits

Exhibit 1. WBS Example ............................................................................................... 13
Exhibit 2. WBS Diagram Example ............................................................................... 14
Exhibit 3. WBS Dictionary Example............................................................................ 15
Exhibit 4. Project Organization Example.................................................................... 16
Exhibit 5. Responsibility Assignment Matrix Example ............................................. 17
Exhibit 6. Baseline Milestones Schedule Example ...................................................... 27
Exhibit 7. Intermediate Milestones Schedule Example .............................................. 28
Exhibit 8. Detail Schedule Example ............................................................................. 29
Exhibit 9. Control Account Plan Sheet ........................................................................ 30
Exhibit 10. Work Authorization Document ................................................................ 34
Exhibit 11. Project Status Report Example ................................................................. 43
Exhibit 12. Outstanding Commitment Detail Report Example................................. 44
Exhibit 13. Status Update Report Example................................................................. 50
Exhibit 14. Earned Value Chart ................................................................................... 60
Exhibit 15. Open Commitments Report Example ...................................................... 61
Exhibit 16. Project Status Report Example ................................................................. 62
Exhibit 17. 12 Month Report Example ........................................................................ 63
Exhibit 18. Spending by Month Report Example ....................................................... 64
Exhibit 19. Project Analysis Report Example ............................................................. 65
Exhibit 20. Red Flag Report Example ......................................................................... 66
Exhibit 21. Standard Variance Threshold Flags......................................................... 67
Exhibit 22. Variance Analysis Report Example .......................................................... 68
Exhibit 23. Earned Value Management Performance Chart Example .................... 68
Exhibit 24. Performance Indicator Chart Examples .................................................. 70
Exhibit 25. Change Request Form ............................................................................... 76
Exhibit 26. Change Request Log .................................................................................. 82
Exhibit 27. Change Request Summary Report ........................................................... 83
Exhibit 28. Change Request Classifications ................................................................ 84

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100
Introduction

Revision 5

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100 Introduction

A. Jefferson Science Associates, LLC (JSA) is a Southeastern Universities
Research Association-Computer Sciences Corporation limited liability
corporation created specifically to manage and operate Jefferson Laboratory
for the Department of Energy. This JSA Project Control System Manual is a
system description that defines the processes and procedures for implementing
an Earned Value Management System on projects conducted by Jefferson
Science Associates at the Jefferson Lab. All Jefferson Lab projects with a
total budget of $5 million or more will employ an Earned Value Management
process as described in this manual. The JSA Project Control System Manual
supports the Jefferson Lab mission by facilitating the achievement of project
success regardless of project size or complexity. Earned Value Management
is an acknowledged management process for the organization, planning,
performance measurement, and controlling of projects. A project’s technical
scope of work is integrated logically with its schedule and budget to form an
approved project baseline. Accomplished work and accrued costs during
project execution provide essential earned value information to measure
performance for comparison to this baseline. Project management gains
valuable insight into the health of the project by examining the earned value
indicators.

B. Earned Value Management is a systematic framework to communicate project
progress and performance across all levels of the project management team
and to the project customer. The Earned Value Management System is more
than just a method to report the status of a project. It is a vital management
tool that allows project leadership to “manage by exception” and focus on the
critical issues of a project. The earned value indicators provide quantifiable
project data for identifying, analyzing, understanding, and resolving problems.
The project management team can be proactive in engaging potential
problems before they have a major impact to the project and thus prevent
surprises that cost the project time and money.

C. The JSA Project Control System Manual is organized along the Earned Value
Management Systems guidelines established in the American National
Standards Institute (ANSI)/Electronic Industries Alliance (EIA) Standard-748-
B-2007. This project management standard defines 32 “best practice” criteria
for implementing the Earned Value Management process. By implementing
the Earned Value Management processes and procedures documented in this
manual, the project management team can:

• establish a standard approach to organizing the various elements of a
project.

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• facilitate the formation of a comprehensive time-phased budget by
thorough schedule planning and cost estimating.
• control project activity flow by defining how work is formally
authorized.
• capture actual costs on the project via the Lab accounting system.
• determine specific work progress on the project at a detail level.
• perform variance analysis on the resultant earned value data to
measure performance against the approved project baseline.
• establish a consistent process for controlling changes to the project
baseline.

D. Successful implementation of the Earned Value Management System at
Jefferson Lab will result in numerous benefits to the organization and to the
project management team.

• Detailed planning at the beginning of a project often addresses
problems that may surface later in the effort, preventing schedule slips,
increased costs, and/or technical rework. Project leaders can easily
identify problem areas and pin down the specific sources of the
problems with detailed planning.
• Better visibility into the performance of the project is gained due to the
integrated method of extensive planning, earned value analysis, and
baseline control.
• Project accountability is fostered and overall project quality is
enhanced by the identification of a responsible person/organization at
each work level.
• Project risk reduction is enhanced by the availability of earned value
metrics allowing project management to mitigate impacts by making
early adjustments to the project. Accurate estimates of schedule
completion and projected final costs can be produced.
• A single, integrated management control system provides reliable data
for analysis. Integrity of the project performance data will be
enhanced and informed decisions can be made based on objective data
collected by the project.
• The level of information overload experienced can be reduced by
employing the principle of “management by exception.”

E. Tailoring: The guidelines and procedures described in the JSA Project Control
System Manual are not directive in nature, but represent the standard approach
to controlling projects undertaken at the Jefferson Lab. Certain customers
(e.g., Department of Energy) will require the full implementation of an Earned
Value Management System based on the dollar threshold of the project’s

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anticipated cost. Other projects are highly encouraged to avail themselves of
the tools and processes highlighted in this manual to establish a proactive
project management environment. Depending on the size, complexity and
risk of the project, the processes can be tailored to best facilitate the successful
achievement of the project goals. Projects with low complexity and risk
factors may not require the same level of insight, management and control
associated with a more complex project requiring significant planning and
resources. Implementation of the JSA Project Control System Manual should
be addressed specifically in all Project Execution Plans. Plans should identify
those Earned Value Management elements deemed not applicable and provide
a rationale for their exclusion.

F. Training: The Jefferson Lab Project Management Qualification curriculum
includes a course on Earned Value Management and its implementation using
the JSA Project Control System Manual.

101 Roles and Responsibilities

The following roles are the key management elements responsible for
implementing the processes delineated in the JSA Project Control System
Manual.
• Project Customer
The ultimate stakeholder with a vested interest in the positive
outcome of the project. Responsible for project funding and the
establishment of project requirements.
• Project Manager
The senior leader of the project management team. Responsible
for all aspects of project control from planning and budgeting to
analysis and reporting.
• Associate Project Manager
The next level down from the Project Manager. There may be
multiple Associate Project Managers with responsibility for
managing top-level system elements of the project.
• Control Account Manager
The key person responsible at the detail level of project planning
and execution. Manages one or more control accounts
representing the lowest level where project performance is
measured.

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• Manager, Project Management & Integrated Planning Division
(PM&I)
The PM&I Manager and staff are responsible for the JSA Project
Control System Manual and the implementation of the Earned
Value Management System process at Jefferson Lab.
• Chief Financial Office
Responsible for the financial system where accounting for project
costs occurs.

102 References

The following documents were used as guidance in the development of the
Project Control System Manual.

• DOE Order 413.3A, Program And Project Management For The
Acquisition Of Capital Assets (7-28-06; Chg 1 11-17-08)

• DOE Guide 413.3-10 Earned Value Management System (5-06-2008)
• DOE Guide 413.3-5 Performance Baseline (9-12-08)
• American National Standards Institute (ANSI)/Electronic Industries
Alliance (EIA) Standard - 748-B-2007, Earned Value Management
Systems (EVMS) approved September 10, 2007
• Project Management Institute Practice Standard of Earned Value
Management (2005)
• National Defense Industrial Association ANSI/EIA-748-A Standard for
Earned Value Management Systems Intent Guide (November 2006
Edition)
• National Defense Industrial Association Surveillance Guide (October
2004 Edition)

103 Revision of the JSA Project Control System Manual

The JSA Project Control System Manual is maintained by the Jefferson Lab
Project Management & Integrated Planning Division. Questions, comments, and
suggested revisions concerning this manual can be addressed to the PM&I staff.
The Project Management & Integrated Planning Division will review the JSA
Project Control System Manual annually to assess the need for revisions to this
document. Proposed changes to the manual will be evaluated for impacts to the

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Earned Value Management process that could potentially affect system
certification. All revisions will be approved by the Manager, Project
Management & Integrated Planning Division. Approved revisions to the manual
will be annotated in the Document Revision Log. The completed JSA Project
Control System Manual document is then posted to the Jefferson Lab website and
relevant organizations notified of the new updated version.

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200
Organization

Revision 5

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200 Organization

This section of the JSA Project Control System Manual describes the
organizational elements of the Project Control System process. Data for Jefferson
Lab projects are organized in three main databases and managed by an integrated
software suite. Project work to be performed is organized by developing a Work
Breakdown Structure (WBS). A functional organization, composed of Jefferson
Lab personnel and possibly outside contractors, is formed to assign project work
activities to groups or individuals who will be responsible for performing the
work. Using the WBS structure, control accounts are established to facilitate the
preparation of accurate project cost and schedule estimates, and the collection and
development of data for project control.

201 Project Control System Integration

There are three JSA system components that are integrated to form the prime
management tool for the Project Control System. All of the projects at Jefferson
Lab are organized under the JSA Enterprise Project Structure. This enterprise
structure is a master project database containing information on projects under
development and those in the execution phase. The Schedule Management
System is the core software for this master project database. It is used extensively
during project schedule planning, development and monitoring. The second
component of the Project Control System is the Lab’s financial system. This
accounting database of fiscal transactions provides actual project costs to the third
component, the Cost Management System. This software system integrates the
project’s resource-loaded schedule with the accounting system data to generate
and analyze a project’s cost and schedule performance. By linking the various
project databases, the Schedule and Cost Management Systems can provide the
project management team with the requisite earned value data to determine the
current project status and to forecast cost and schedule estimates at project
completion.

202 Work Breakdown Structure

A. Each Jefferson Lab project using an Earned Value Management System will
be assigned a JSA Enterprise Project Structure code. This code will represent
the Level 1 WBS number element for the project.

B. The Work Breakdown Structure (Exhibit 1) with its associated WBS
dictionary is the key element for organizing a project. Its purpose is to divide
the project into manageable segments of work to facilitate planning and
control of technical scope, schedule and cost. A well designed WBS will

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ensure all required work is incorporated in the project and that no unnecessary
work is included.

C. The WBS is a structural organization of related elements that defines the total
work scope required to accomplish project objectives. It takes the form of a
multi-level hierarchical framework depicting the overall project deliverable
down to the smallest system component. Each descending level represents an
increasingly detailed definition of a project component. The project WBS
describes the technical content of the project, and is the basis for project
management, cost estimating and budgeting, schedule management, cost and
schedule control, and reporting of cost and schedule performance. A high-
level WBS is developed early in the conceptual stage of the project with more
detail added as the project definition is refined. The level of detail in a WBS
is a function of the size of the project and a balance between complexity, risk,
and the Project Manager’s need for control.

D. Early and accurate WBS planning is essential to getting a project off to a good
start. If project requirements change however, the WBS will evolve with the
project. Revisions to the WBS may be required due to the expansion or
contraction of project scope and/or the movement of a project through its
various stages (i.e., design, engineering, development, production/installation,
and operation). Modifications to the WBS are implemented by means of the
Change Control process.

202.1 WBS Development

A. The project WBS is a decomposition of the project (Exhibit 2) and is
organized in multiple levels of increasing detail. The first four levels of the
WBS are defined to facilitate overall assignment of project management
responsibilities and the logical aggregation of cost data. WBS Level 1 is the
entire project and represents the total responsibility assigned to the Project
Manager. For WBS Level 2, the overall project is divided into segments that
depend upon the reporting requirements of the Project Customer. For DOE
projects, these Level 2 segments will normally be funding types [Budget and
Reporting (B&R) Classification Codes] while DOD projects will normally
have product-oriented elements. WBS Level 3/4 elements are definable
product-oriented components of Level 2 segments that accomplish a specific
purpose.

B. Additional levels of the WBS (Levels 5, 6, etc.) can be included as needed to
extend the WBS to a level of detail necessary to reflect the complexity of the
work scope. Not all legs of the WBS must be composed of the same number
of levels.

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C. Each WBS element is assigned a unique WBS number (see Exhibit 1). The
WBS number is used to accumulate and report performance measurement data
(cost estimates, budgets, earned value, and actual costs) and to summarize
data at higher WBS levels. Performance measurement data are derived
directly from entry-level data collected or prepared at the appropriate level of
the WBS.

202.2 WBS Dictionary

A complete Work Breakdown Structure requires an associated dictionary (Exhibit
3) to provide descriptive information for each WBS element. The WBS
dictionary thoroughly describes the scope of each work element (including
deliverables) identified in the WBS. It also outlines the resources and processes
required to produce each element. As with the WBS itself, the WBS dictionary is
revised to reflect project changes via the Change Control process and is kept up to
date during the life of the project.

203 Project Organization

A complementary arrangement to the WBS is the organizational structure (Exhibit
4) that will provide the resources required to perform the project work activities.
Project leadership can design a hierarchical framework where unique work
responsibilities can be established for each part of a project. The framework
establishes the formal authority relationships that exist among the various
organizational team elements. This can take the form of a standard organization
chart with the structure progressively detailed downward to the lowest levels of
management.

204 WBS and Organization Integration

A. Integrating Jefferson Lab organizations with the Work Breakdown Structure
ensures that all project work is accounted for and that each element of work is
assigned to the level of responsibility necessary for planning, execution,
tracking progress, accumulating costs, and reporting. At selected levels of the
WBS, the Project Manager establishes the project control accounts. A control
account is comprised of a WBS work element and a Control Account Manager
assigned from a Jefferson Lab organization with the responsibility and
authority to accomplish this work. Control accounts represent a management
control point where work performance can be measured via Earned Value
Management methods.

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B. Control accounts are made up of one or more work packages and planning
packages.

• Work packages constitute the basic building blocks used in planning,
execution, measuring, and controlling project work. Work packages
consist of a series of discrete, apportioned, or level of effort activities
that have been planned, scheduled and budgeted in detail. Work
packages are a subdivision of a control account and normally reside at
the lowest level of a WBS branch. This may not necessarily be at the
lowest level of the project WBS. Once work for a control account is
authorized, a charge code is assigned to work packages allowing costs
to be accumulated in the Jefferson Lab financial system.
• Planning packages are created during initial baseline planning when
work scope within a control account is identified, scheduled and
budgeted, but not defined in enough detail for proper execution. They
reside at similar levels in the WBS as work packages and are normally
developed for far-term work scope where precise estimates of work,
schedule or budget are not possible. Planning packages must be
refined with more detail to become work packages before charge codes
can be assigned and work started. In certain situations, a work
package may have a “planning activity” that gets refined at a later
date. This usually involves a project procurement where the
subcontract details have not yet been finalized. Procurement
pegpoints, as described in Section 600, are an example of a planning
activity.
• It is possible for there to be intermediate roll-up WBS levels between
where the control account is established and the level where the
work/planning packages for that control account are developed.

205 Responsibility Assignment Matrix

The Responsibility Assignment Matrix (RAM) (Exhibit 5) is developed to
correlate the relationship between the project work scope and an appointed
authority responsible for accomplishing this work. The matrix is created such that
the intersection of a WBS element and a project organization identifies the control
account. The RAM is “dollarized” by annotating the control account cell with the
amount of project budget (derived from the Cost Management System) that is
allocated to the control account. The RAM is updated when baseline changes are
made to the control account.

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206 Exhibits

1. WBS Example
2. WBS Diagram Example
3. WBS Dictionary Example
4. Project Organization Example
5. Responsibility Assignment Matrix Example

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Exhibit 1. WBS Example

WBS Level
1 2 3

1. 12 GeV Upgrade Project
1.0. CDR
1.1. R&D
1.2. PED
1.3. Accelerator Systems
1.3.1. Cryomodules
1.3.2. Power Systems
1.3.3. Cryogenics
1.3.4. Beam Transport
1.3.5. Extraction
1.3.6. I&C / Safety Systems
1.4. Upgrade Hall A, B & C
1.4.1. Hall A
1.4.2. Hall B
1.4.3. Hall C
1.5. Hall D
1.5.1. Solenoid
1.5.2. Detectors
1.5.3. Computing
1.5.4. Electronics
1.5.5. Beamline
1.5.6. Infrastructure
1.6. Civil
1.6.1. Accelerator
1.6.2. CHL
1.6.3. Hall D
1.7. Project Management
1.8. Pre-Ops

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Exhibit 2. WBS Diagram Example

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Exhibit 3. WBS Dictionary Example

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Exhibit 4. Project Organization Example

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Exhibit 5. Responsibility Assignment Matrix Example

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300
Scheduling and Budgeting

Revision 5

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300 Scheduling and Budgeting

This chapter of the JSA Project Control System Manual describes the planning
processes required to develop a practical project plan that can be implemented by
the designated project team. The major goal of this planning effort is an
integrated project schedule and budget. Schedule planning results in a schedule
that describes the sequence of technical work and the task interdependencies
necessary for a successful project outcome. Cost planning begins with the
development of a cost estimate for all authorized work that eventually leads to the
establishment of the project budget. Proper project planning ensures the amount
of work to be accomplished, the time allotted to accomplish the project activities,
and the resources required to complete the work scope are evenly balanced. Once
the schedule and cost planning are concluded, the resultant plans can be merged to
form a time-phased project budget that is seamlessly integrated with the network
schedule. This resource loaded schedule and initial project budget are validated
and approved as the Integrated Project Baseline which is endorsed by the project
team as the Performance Measurement Baseline, a foundational element of earned
value management. Meaningful earned value performance metrics enable better
management insight and decision making to help keep the project on track.

301 Schedule Planning

The objectives of schedule planning are to generate a reasonable schedule of work
that leads to project completion, and to establish a schedule baseline that, when
integrated with a cost baseline using resource loading techniques, will result in an
Integrated Project Baseline for the project. The core of the schedule planning
process is the Schedule Management System and its associated scheduling
software. This system provides the requisite project management tools to plan
and sequence project milestones and work activities, to assign resources to the
activities, to monitor progress of activities toward project objectives, to forecast
future schedule performance, and to provide the basis for earned value and
performance calculations.

301.1 Schedule Management System

A. The Enterprise Suite consists of schedule and cost software packages that are
part of the overall JSA Enterprise Project Structure. The central component to
the Schedule Management System is the Enterprise Suite scheduling software.
It is a powerful and flexible scheduling tool that is used to perform time
analyses of logic network, maintain baseline and status information, prepare
standard reports at regular intervals and special custom reports as needed, and
provide the basis for earned value and performance calculations by seamless
connectivity to the Cost Management System.

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• Time analysis is the process of calculating the earliest start and finish
dates and the latest start and finish dates of each activity, based on the
duration of the activities, the logical relationships between them and
the desired completion date of the project. In addition to these
calculations, the scheduling software also determines free float (the
amount of time an activity can be delayed without delaying subsequent
activities), total float (the amount of time an activity can be delayed
without delaying project completion as a whole), and the critical path
(the longest path from the logic network start to finish and the
sequence of activities with the least total float). Any delay in a critical
path activity will extend the total project schedule.

• For each work activity in the project schedule, the scheduling software
maintains the early start, early finish, late start, late finish, and, after
they occur, the actual start and the actual finish dates. Actual start and
finish dates affect the remainder of the logic network by changing the
early and late start and finishes of subsequent activities. Therefore, a
time analysis is conducted after each status update. The scheduling
software also maintains a separate file of baseline start dates, baseline
finish dates and other baseline data in the schedule baseline. These
baseline dates are not affected by actual starts and finishes. Instead
they are retained for comparisons between planned and actual dates.

• The scheduling software produces reports in three different formats
(Gantt chart, logic diagram or in tabular format), and has flexible
report generation routines. The use of relational databases and the
manner in which the information is coded permit the creation of
special reports. These are useful to assess the effects of various
schedule alternatives, to extract portions of the project, or to select
categories of milestones/activities for review.

B. The scheduling group within the Project Management & Integrated Planning
Division is responsible for administration of the Schedule Management
System. This includes schedule preparation, horizontal and vertical
integration of elements of the scheduling system, maintenance of schedule
baselines, status reporting, and programming enhancements to the scheduling
system. Information is obtained from all levels of project management in
carrying out these responsibilities.

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301.2 Schedule Development

A. Baseline Milestones (Exhibit 6)

The schedule planning process begins with the determination of the baseline
milestones. These level 1 and 2 milestones with their planned dates form a
master schedule for the project. This top-level schedule contains significant
events and critical decision points that could affect the technical, schedule,
and/or cost performance of the project. The baseline milestones and their
associated definitions are mutually developed by the Jefferson Lab Project
Manager and the Project Customer. They are re-examined and rescheduled, if
necessary, during customer reviews. Based on the decisions by the Project
Customer and the Project Manager, PM&I develops the baseline milestones
schedule of planned and proposed dates for each milestone.

B. Intermediate Milestones (Exhibit 7)

Once the baseline milestones schedule has been created, the next level of
detail can be incorporated by designating the project’s intermediate
milestones. The intermediate milestones are level 3 and 4 elements and
provide a secondary level of scheduling. These intermediate milestones are
selected by the Project Manager and the Associate Project Managers.

C. Detail Milestones

To complete the milestone schedule development, the Control Account
Managers generate level 5 and 6 detail milestones, as needed.

D. Detail Schedule (Exhibit 8)

The baseline milestones schedule, populated with the intermediate and detail
milestones, serves as the framework to add work activities to the project
schedule. The detail schedule is developed from the Control Account Plans
created by the Control Account Managers (see section 303 Integrated Project
Baseline Development). PM&I incorporates the schedule information
contained in the Control Account Plans and builds a comprehensive schedule
logic sequence within the Schedule Management System that includes the
sequence, start and finish dates and duration of every work activity required to
complete the project. The resulting detail schedule contains all project
milestones, the work activities, and the logical ties between the various
schedule elements. After subsequent refinement, this then becomes the
schedule baseline of the project.

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E. Working Detail Schedule

While the schedule baseline constitutes the performance standard against
which actual progress is compared, the Working Detail Schedule is a working
tool for evaluating schedule plans and projecting future progress. In order to
preserve its value as a baseline, changes to the schedule baseline are carefully
controlled and documented. On the other hand, the Working Detail Schedule
is continuously revised as actual work activity status and completion dates are
entered and their effects on future scheduled work activities are calculated.
Consequently, this results in changes to early and late, start and finish dates
that may no longer be consistent with the schedule baseline. These revised
dates are used to forecast when detail, intermediate and baseline milestones
will actually be accomplished, and to guide management corrective action.

302 Cost Planning

A. Cost planning is the other major planning activity required to develop an
Integrated Project Baseline. The purpose of cost planning is to identify the
resources needed to accomplish the scope of work and estimate the associated
costs. Cost represents the dollar value required to accomplish the technical
work scope within schedule and programmatic constraints. A preliminary
cost estimate can be started after an initial Work Breakdown Structure is
developed. Cost estimate integration with the WBS occurs when the work
scope in each project work and planning package has a definitive
cost/resource estimate associated with it. Once the cost estimate is approved
at all management levels, it becomes the cost baseline, i.e., the project’s
budget.

B. Elements of the cost estimate include both direct charges and indirect charges.
Direct charges are costs applicable to, and identified specifically with, the
project work scope. Examples of these types of costs include labor, travel,
material, subcontractor costs, etc. Indirect charges are costs that cannot be
consistently or economically identified against a specific Jefferson Lab
project and are spread over the total laboratory project portfolio based on the
JSA/JLab Cost Accounting Standards Disclosure Statement.

302.1 Cost Management System

The Cost Management System is an integral element of the Enterprise Suite
software package used at Jefferson Lab. Initial budget data enters the Cost
Management System via its link to the Schedule Management System. Direct and
indirect actual costs are imported from the Lab’s financial system. The Cost
Management System, together with the Schedule Management System, forms an

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integrated cost/schedule database that enables the project management team to
understand a project’s costs at the transaction level.

302.2 Funding Guidance

At the start of project cost planning, the Project Customer may provide funding
guidance to the Project Manager that may include a fiscal year breakout. The
Project Manager can use the funding guidance to establish a project budget
profile across the WBS Level 2. Target budgets are developed and distributed to
the Associate Project Managers and Control Account Managers. This represents
the Project Manager’s guidance to Associate Project Managers and Control
Account Managers when they develop the details of the cost estimate for their
portion of the project. The Project Customer may elect to hold in reserve some
funding from the total project cost as contingency funds. The Project Manager
may withhold management reserve funds at the project level to account for any
risk uncertainty that may arise during the execution of the project plan.

302.3 Cost Estimating

A disciplined and systematic cost estimating process will promote integrity in a
new project. As project performance will be measured against the project
baselines, it is important that an accurate cost estimate be determined prior to the
establishment of the cost baseline. This necessitates an extensive project
management evaluation of the proposed project cost be accomplished. Multi-
level dialogue among the Project Manager, the Project Management & Integrated
Planning Division, Associate Project Managers, and the Control Account
Managers will be required to reach consensus on a final cost estimate for the
project. Areas can be identified where actions must be taken to restructure work
scope or reassess resource requirements to meet anticipated fiscal year and total
project funding constraints. Through validation of the cost estimate, a cost
baseline can be established for the project. However, cost estimating is a
continuous process conducted throughout project execution for refining future
work costs.

303 Integrated Project Baseline Development

A. With any budget targets provided by the Project Manager, the Control
Account Manager can start to develop his/her Control Account Plan. While
the initial cost estimate for the control account may be a rough order of
magnitude, the Control Account Manager will eventually make use of the
Control Account Plan (CAP) sheet (Exhibit 9) to refine his schedule and cost
estimate. As a control account will normally consist of multiple work
packages, the Control Account Manager will use the CAP sheet to produce a

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detailed plan for the work packages. Once completed, these series of CAP
sheets will form the initial Control Account Plan.

B. The Control Account Manager develops work activities to divide the work
package into discrete manageable and measurable segments of work for the
purpose of developing plans and determining progress. Each activity is
sequenced in a manner that provides logical support for the project schedule.
Work activities are at or below the reporting requirements such that earned
value performance measurement takes place at the control account level.

C. With the work activities identified in the Control Account Plan, the Control
Account Manager estimates the resources (labor, expenses, and procurements)
and the quantity (hours, dollars) required to accomplish the work activities.
Labor resources are estimated according to various cost element categories,
such as Plant Engineer, Mechanical Engineer, and Scientist, etc. Expense
estimates are prepared for such items as supplies and materials, travel, and
consulting. Labor and expense estimates are assigned to the month/fiscal year
during which they will be used or expended. Estimates for procurements are
also made and are assigned to the month/fiscal year in which payment is
anticipated to occur. Nominally, the cost estimates are entered in current year
direct dollars. Once the resources have been identified and their costs
estimated, a schedule of the work activities is developed with start dates,
activity durations, and activity predecessors. Data from the Control Account
Plan sheet is used to develop the initial Detail Schedule within the Schedule
Management System as discussed in section 301.2 Schedule Development.
Once this initial resource-loaded Detail Schedule is created using the Control
Account Plan sheets, the Detail Schedule then becomes the basis for future
development of the Control Account Plans.

D. One essential product of the Control Account Plan is the identification of the
types and levels of labor resources that must be provided by each functional
organization supplying labor to the project. Summary reports showing labor
requirements in support of work scope as documented in the Control Account
Plans are prepared by Project Management & Integrated Planning and used by
senior project management to assure the availability of such personnel when
needed.

E. At this stage in the planning process, three project baselines have been
established: the technical baseline, the schedule baseline, and the cost
baseline. The technical baseline, organized around a WBS framework,
describes the desired configuration, performance, and characteristics of the
project and establishes the project’s mission, technical objectives, and
functional requirements. The required work activities to satisfy the project’s
mission need are logically linked in a schedule baseline integrating the entire
work scope while reflecting all programmatic constraints. The cost baseline is

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based on validated cost estimates developed for the project work scope and
ensures resources for labor, services, subcontracts, and materials are
established at the requisite levels. In total, these three baselines produce the
Integrated Project Baseline. The approved Control Account Plans that form
the Integrated Project Baseline represent the life-cycle budget plan for
accomplishing all of the project work scope.

F. The Integrated Project Baseline lays the foundation through which project
objectives can be achieved and progress can be managed and monitored
during project execution. Data that form the Integrated Project Baseline are
recorded in an integrated cost/schedule database using the Cost and Schedule
Management Systems. These systems share the data to produce a resource-
loaded schedule and time-phased budget plan.

303.1 Performance Measurement Baseline

A. After an in-depth review, the project management team validates the
Integrated Project Baseline thereby establishing the Performance
Measurement Baseline. This time-phased budget plan encompasses all the
individual work activities of the control accounts with the dollars and
resources necessary to accomplish them. Within the Performance
Measurement Baseline, any budget not yet specifically identified with a
control account may be held in the short term holding account Undistributed
Budget. Undistributed Budget is a transient amount and should be allocated
in a reasonably timely manner. The Performance Measurement Baseline sets
the criteria against which actual performance is measured during project
execution. This comparison process helps identify problem areas early and
aids the development of a recovery plan.

B. Earned Value Management employs three sets of project data to provide
project management with insight into the progress of the project. From the
Performance Measurement Baseline, the Budgeted Cost of Work Scheduled
(BCWS) can be established. This metric represents the sum of the time-
phased budgets established for all effort scheduled to be accomplished within
a given time period. BCWS can be called “Planned Value.” At the project
completion time point, the BCWS should equal the Budget At Completion
(BAC). BAC is the budgetary goal for accomplishing all of the authorized
work contained in the control accounts. While BCWS is derived from project
planning, Budgeted Cost of Work Performed (BCWP, the second set of data)
is determined during project execution. BCWP, or “Earned Value,” is the
sum of the time-phased budgets for work completed during a specified time
period; i.e., the value of the work accomplished. The third set of data, also
collected during project execution, is Actual Cost of Work Performed
(ACWP) or “Actual Costs.” Actual Costs are the project costs incurred and
recorded in accomplishing the work performed (i.e., Earned Value) within a

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given time period. With these three earned value metrics, project
management can evaluate the status of the project in relation to the technical,
schedule, and cost baselines established for the project. An Estimate At
Completion (EAC) can be calculated that sums the actual costs incurred to
date plus the estimate of costs for all authorized work remaining. Additional
detail on Earned Value Management is provided in chapters 600 Progress
Status and 700 Analysis and Reporting of the JSA Project Control System
Manual.

304 Exhibits

6. Baseline Milestones Example
7. Intermediate Milestones Example
8. Detail Schedule Example
9. Control Account Plan Sheet

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Exhibit 6. Baseline Milestones Schedule Example

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Exhibit 7. Intermediate Milestones Schedule Example

- 28 -


Exhibit 8. Detail Schedule Example

- 29 -


Exhibit 9. Control Account Plan Sheet

- 30 -



400
Work Authorization
System

Revision 5

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400 Work Authorization System

A work authorization system is required during the project execution phase to
control the flow of work to be accomplished within the authorized project budget.
This formal procedure is used to sanction project work with limits being imposed
on managers in their authority to commit and expend resources that will be
charged to the project. These limitations provide assurance to the Project
Manager that no work is authorized unless it has been properly planned and
budgeted. Work authorization is the specific mechanism where Control Account
Managers receive the authority to begin the work defined in their validated and
approved Control Account Plans.

401 Work Authorization Process

A. After the Project Customer has given the project team official authority to
commence work and funding has been provided, the work authorization
process is employed to initiate project execution. The authorization process is
a key communication link between senior project management and the
Control Account Managers because it confirms the cost, schedule, and the
scope of work required to meet project objectives. Control Account Managers
are formally delegated the responsibility for their work scope and the schedule
and budget performance parameters.

B. To authorize the expenditure of effort and budget for a control account, the
Project Manager will issue a Work Authorization Document (WAD) (Exhibit
10) to the Control Account Manager at the appropriate period in the project
schedule. The WAD contains the control account information, a list of
associated work packages, approval signatures, and acceptance signature of
the Control Account Manager. The signed WAD empowers the Control
Account Manager to implement the Control Account Plan.

C. Once a Work Authorization Document has been signed by all relevant parties,
Project Management & Integrated Planning will open control account
numbers through the Jefferson Laboratory Chief Financial Office allowing
charges to the control account’s work packages.

D. A work authorization is for the lifecycle of the project. Funding will be authorized
incrementally based on schedule status and funding availability, and communicated
to CAMs by other means. The approved control account can only be changed with
appropriate change approval. WADs shall be updated to reflect each change
request approval.

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402 Specific Authorizations

402.1 Control Account Labor Authority

Authority for a Control Account Manager to apply labor resources to work scope
contained within the control account is contingent upon:

• the Control Account Manager receiving delegation of signature
authority according to procedures established in the Jefferson Lab
Administrative Manual,

• the Control Account Manager receiving approval from the Associate
Project Manager and the Project Manager to accomplish the applicable
work scope (i.e., the Work Authorization Document), and

• the Chief Financial Office receiving notification from the Project
Manager directing the appropriate Project ID Number(s) to be opened
that are associated with the applicable work scope.

402.2 Procurement Authority

Authority for any individual to commit project funds to outside vendors for
delivery of products or services is limited to only those persons defined in the
JSA/JLab Acquisition Policy Manual.

403 Exhibits

10. Work Authorization Document

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Exhibit 10. Work Authorization Document

- 34 -



500
Accounting

Revision 5

- 35 -


500 Accounting

A. The Jefferson Lab Financial Management System is a key component of the
Earned Value Management System. The purpose of the accounting system is
to collect the actual costs incurred by a project, which when compared with
Earned Value data, can provide project management with the status of a
project’s budget. Labor (in-house and contracted) and purchased
material/equipment represent the bulk of a project’s expenses. Accurate
accounting for both expense categories is essential to gaining a true
understanding of how a project is performing with regards to the Performance
Measurement Baseline.

B. There are five paths for project costs to enter the accounting system:

• Labor (payroll) via time sheets

• Accounts payable via purchase order (PO) voucher

• Travel via expense report

• Accounts Payable via A/P voucher

• Journal Entry

C. All costs are assigned a Project/Organization/Account (POA) number which
provides identification to the proper cost objective.

501 Cost Collection and Control

501.1 Cost Reporting and Collection

A. The Projects module of the accounting system is used for cost reporting. The
Project/Organization/Account alphanumeric numbering convention, shown
below, makes reporting labor and material costs easy for tracking. The costs
are reported by project, organization, and account combination.

Project Code: XXXXXX.XX.XX.XXX.XXX.XXX.XX.XX

Organization Code: X.XX.XXX.XXXX.XX

General Ledger
Account Code: XXXX - XXX

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B. The Projects module in the Financial Management System and the MIS web
Project Status Report permit Finance and Project Management & Integrated
Planning to track costs for the life of the project.

501.2 Labor

A. The accounting system source data for labor entries is the time sheet for each
individual. Time sheets must be signed electronically by the individual
employee attesting to the time worked or by a supervisor or division
coordinator in their absence. The time sheets are then electronically counter-
signed by an individual authorized to approve labor charges. In some cases,
an additional project signoff is required based on project requirements.

B. Completed time sheets are received electronically in the Payroll Department.
Costs are not entered into the payroll system directly. They are first captured
in the timesheet module which allocates the cost to the cost accounts.
Because Jefferson Lab is on a semi-monthly payroll system, the number of
hours a person works in a pay period will vary.

C. The Project Status report (Exhibit 11) provides a breakout of labor costs for
each POA. This report is available on the Jefferson Lab MIS web portal to
Control Account Managers, Associate Project Managers, and the Project
Manager for review and verification.

501.3 Accounts Payable via Purchase Order Voucher

A. Processing of Purchase Requisitions

A Purchase Requisition (PR) is required for the acquisition of all Jefferson
Lab goods and services except items purchased via a JSA P-Card or non-PO
related items such as utilities, honorariums, etc. The PR is generated online
via the Lab’s requisition system by the requesting project office and must
include a description of the goods/services required, the appropriate
Project/Organization/Account (POA) number, and a cost estimate. The PR is
routed electronically for signature approval based on the value of the request
and on other Lab required verifications.

B. Procurement Objectives and Constraints

In processing PRs and placing Purchase Orders (PO) with vendors, the
Procurement Department (PD) must provide timely support to requisitioners
in accordance with JSA’s Acquisition Policy Manual, which is approved by
the Department of Energy. Procurement guidance is available on the Lab’s
website to assist requisitioners in processing their requirements.

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C. Processing of Purchase Orders

• When the PD reaches agreement with a vendor to provide the goods or
services requested, a formal purchase order/subcontract is
awarded/generated. At this time, the requisition becomes a
PO/subcontract and is entered into the laboratory’s Financial
Management System. Status of the requisition is available through the
Lab’s requisition system.

• The accounting system tracks these commitments by the POA number
and reports the commitment information until the goods or services are
received. A commitment can be reviewed in the Outstanding
Commitment Detail report (Exhibit 12) via the Jefferson Lab MIS web
portal. The total commitment for a POA can be viewed in the Project
Status Report in the column labeled ‘Open PO Commits’. For multi-
year procurements, only the dollar amount actually obligated to the
vendor in the approved phase of the contract is included in the
commitment listings. (For example, a phased subcontract with a total
value of $10,000,000 might only reflect a current-year commitment of
$300,000. According to a schedule stated in the subcontract, the
remainder will become a commitment shortly after the beginning of
each new fiscal year upon written notice to the vendor via a contract
modification.)

• When goods are received by Jefferson Lab, they are entered into the
accounting system by Shipping and Receiving, and both a receiving
report and the goods are forwarded to the requisitioner for acceptance.
At this time, the goods are classified as "received but not booked," but
are still recognized as commitments in the laboratory reporting
mechanism. At month end, commitments that have been received but
not yet invoiced are accrued as costs and are not reported as
commitments. This entry is reversed immediately in the next period
and received items are recognized as open commitments.

• When an invoice is received and approved for payment, it is entered
into the accounting system. Once there is a line-by-line match
between the purchase order, the receiving report, and the invoice, the
amount is removed from the commitment list and added to the Non-
labor Detail report. It also moves the amount from the commitment
column to the current, year-to-date and cumulative cost columns on
the Project Status Report. These amounts are used by the Project
Management & Integrated Planning Division at the end of the
accounting period as part of the Earned Value reporting.

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• Actual payment of the invoice is a financial function and depends on
the terms and conditions of the Purchase Order.

• For large subcontracts, the process described above may result in
understated actual costs if the vendor/subcontractor delays the
submittal of an invoice or if the submittal falls just after the normal
close of the accounting period. To assure these actual costs are not
understated, subcontracts are accrued at month end as delineated by
the Procedure for Procurement Accruals in the Jefferson Lab
Subcontract Purchase Order Process document.

• Each month, the Project Status Report lists material and service
expenses and commitments by POA.

501.4 Travel

A. Travel is initiated by a Travel Authorization Request. This form includes a
total estimate of the trip cost, the proper POA number, and a list of any
prepayments (e.g. for registration) needed. The Travel Authorization is routed
electronically for approval signature. Travel arrangements are coordinated
through the Jefferson Lab travel agent by travel coordinators in the divisions.
The Travel Authorization Request is sent to Travel Services.

B. After completion of the trip, a Travel Expense Voucher is prepared in
accordance with the Administrative Manual - Travel Section and matched up
with the corresponding Travel Authorization Request. The completed forms
are sent to Travel Services for processing. Based on the Travel Expense
Voucher, actual costs are recorded in the accounting system to the approved
POA.

C. An accrual of travel costs is prepared at month end based on any open Travel
Authorization Requests with a trip start date on or before the end of the
month. This entry is reversed out the following month and is offset by the
actual Travel Expense Voucher. Any differences fall in the month the Travel
Expense Voucher is processed.

501.5 Accounts Payable via A/P Vouchers

A/P Vouchers are used to pay for non-purchase order expenses (e.g., utilities,
honorariums, petty cash reimbursements, Job Related Training registration, etc.).
Since there is no PO or receiving report entered into the system, these vouchers
require approval by appropriate division personnel prior to data entry. Project
cost is identified at time of voucher distribution posting.

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501.6 Procurement Credit Cards (P-Card)

A. The P-Card is used by authorized users to purchase items in lieu of preparing
a requisition or issuing a purchase order in accordance with JSA’s Acquisition
Policy. Purchased items are recorded in a credit card log by the card holder
noting the date ordered, POA, vendor, item description, and amount. These
entries are reflected on the MIS web Project Status Report.

B. An accrual of P-Card costs is prepared at month end based on any
unbilled/un-reconciled credit card log items for the end of the month and
prior. This entry is reversed out the following month and is offset by the
actual P-Card invoice. Any differences fall in the month the P-Card invoice is
processed.

501.7 Journal Entry

A Journal Entry is used to accrue and/or record various types of costs. Examples
are materials received, but not yet vouched, credit card accruals, estimated travel
expenditures, stockroom inventory withdrawals, etc. Journal entries are also used
for adjusting/correcting the classification of costs to the proper POA.

501.8 Inventories

Jefferson Lab maintains a stock supply inventory. Monthly distribution of these
costs is based on actual withdrawals and charged to the using POA.

501.9 Machine Shop Service Center Costs

The Machine Shop Service Center performs in-house machining services (jobs) at
Jefferson Lab for various Projects/Organizations as requested. The in-house
machining costs include salaries, fringe benefits, statutory payroll expenses, and
other direct costs associated with operating the machine shop. These costs are
allocated based on the actual number of machine shop labor hours used for each
job. A target hourly rate is developed, monitored, and charged throughout the
year. At year end, the target rate is replaced with the actual rate which is applied
retroactively to all jobs for the fiscal year.

501.10 Indirect Costs

The Chief Financial Office is responsible for managing all indirect costs at
Jefferson Lab. Target indirect rates are calculated at the beginning of the fiscal
year and monitored monthly. If there is a major deviation from the target, the rate
is changed in the accounting system and retroactively adjusted back to the
beginning of the fiscal year. At the end of the fiscal year, the target rate is

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changed to equal the actual rate in order to reflect the year-to-date adjustment in
the current month. Reference the JSA/JLab Cost Accounting Standards
Disclosure Statement for details.

501.11 Interface of Accounting System and Project Control System

Each month, Project Management & Integrated Planning downloads actual cost
data and commitments by POA from the Financial Management System. This file
is then imported into the Cost Management System. Data from the Schedule
Management System is then uploaded into the Cost Management System to
measure the actual costs against the schedule and planned costs to provide Cost
and Performance Reports.

501.12 Correction of Mischarges

Control Account Managers identify incorrect charges and submit corrections to
Finance for appropriate action.

501.13 Closing of Control Accounts

The Project Management & Integrated Planning Division identifies project
control accounts for which work has been completed (i.e., cumulative BCWP
equals BAC) or for which there is no work scheduled during the year. They then
meet with affected Control Account Managers and determine if the control
accounts should be closed. PM&I takes appropriate action when deemed
necessary.

502 Material Accounting System

A. The Material Accounting System provides full accountability of all material
procurements. Material items purchased for Jefferson Lab projects are
managed in accordance with the Jefferson Lab Property Management Manual
to ensure that all property is properly acquired, inventoried, utilized and
disposed. Cost accumulation for material procurement and assignment to the
appropriate accounts (POA) are handled by the Lab’s Financial Management
System.
B. This accounting system also provides for effective performance measurement
of material acquisition effort. Planned purchases of material items are listed
as activities in a project’s Control Account Plans. Projected procurement
dates are assigned to these activities, thus integrating material acquisition into
the project’s time-phased budget. Earned value for materials is normally
credited when the item arrives at the Jefferson Lab Shipping and Receiving
Office. As with direct labor, actual costs for material items are charged to the
appropriate account by use of the Project-Organization-Account number.

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Actual costs for material should be reported in the same accounting period
that earned value is taken. This practice prevents distortions in the
performance measurement data that would reflect incorrect progress status. In
situations where earned value is claimed but the invoice has not been paid,
estimated actual costs (accruals) are incorporated into the actual cost database
from purchase order information, P-Card logs, Travel Requisitions, and
journal entries.

503 Exhibits

11. Project Status Report Example
12. Outstanding Commitment Detail Report Example

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Exhibit 11. Project Status Report Example

- 43 -


Exhibit 12. Outstanding Commitment Detail Report Example

- 44 -



600
Progress Status

Revision 5

- 45 -


600 Progress Status

This chapter of the JSA Project Control System Manual explains how the status of
the project is determined during the execution of the project plan. On a monthly
basis, actual project work, schedule and cost data are collected and then compared
to the Performance Measurement Baseline using an Earned Value Management
methodology. Ensuring the collected data are valid and accurate is crucial to
producing credible progress status reports. This knowledge of the project status
aids all levels of project management in taking proper corrective action when
deviations to the project plan surface.

601 Earned Value Management Indicators

There are three basic sets of indicators in an Earned Value Management System.
It is through these metrics that a project’s current schedule and cost status can be
established and a final completion date and cost for the project can be estimated.
Data for these indicators are normally measured in dollars ($).

601.1 Planned Value

The first data set generated by a project is the Budgeted Cost of Work Scheduled
(BCWS) or Planned Value. Planned Value is that segment of the total cost
estimate planned to be spent on a project activity. This data set is derived from
the Performance Measurement Baseline established during the project’s planning
phase where the work scope is scheduled and budget levels are assigned to the
scheduled work. It is calculated cumulative to date by summing the monthly
budgeted value of control accounts from the start of the project to the end of the
current accounting period.

601.2 Earned Value

A. Data for Budgeted Cost of Work Performed (BCWP) or Earned Value are
collected during project execution by measuring the progress of the control
account work activities. When measuring Earned Value for a project, there
are many methods available to assess the status of each work activity.

Projects at Jefferson Lab normally make use of these methods:

• 50 /50: In using this earned value method, the Control Account
Managers get credit for 50% of the Planned Value when work on an
activity has started, and the remaining 50% when work on an activity
has been completed. This method is used for activities with less than
$50K (direct $) budget or less than two months duration.

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• Level of Effort (LOE): A Level of Effort activity is work that does
not readily lend itself to measurement of discrete accomplishment and
normally has a duration of one fiscal year. LOE is measured only in
terms of resources actually consumed within a given time period. It is
generally characterized by a uniform rate of activity over a specific
period of time and thus Earned Value is always equal to Planned
Value. Earned Value for project management activities is usually
determined in this manner.

• Procurement Pegpoints: For large procurements, pegpoints are
established to assess progress on project procurement activities. Major
procurements will use 12-month phased contract place holders and
then be replaced with the actual procurement pegpoints at time of
award. These pegpoints are a 0/100 Earned Value method; credit is
not taken until the pegpoint is accomplished.

• Percent Delivered: This method is used for procurement activities
where contracted items are delivered.

• Percent Units Complete: This method is used for activities where
fabrication, receiving, installation, testing, or checkout of multiple
units is taking place.

• Percent Effort Civil Construction: Civil construction contracts
require submission of cost-loaded schedules from the construction
contractor prior to the start of on-site work. Each activity on the
schedule will be a definable portion of work measurable in the field
and the total of the activities will equal the contract value. The
approved construction contractor’s schedule will be incorporated by
change request as the baseline schedule. With monthly payment
requests, the construction contractor will provide an updated schedule
with the percentage complete of each activity.

• Special (Percent Complete): The Control Account Managers assess
the progress of each activity in their control accounts and provide a
percentage of the work in that activity that has been completed.
Objective measurements are used to establish percent complete.
Before work starts on a particular work activity, Control Account
Managers must develop an objective criteria list for determining
percent complete. This list will be approved by the Project Manager.

• Milestone: As milestone activities have zero duration and zero
budget, there is no earned value claimed for these schedule elements.

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• Zero Budget: Used for activities that currently have zero budget. As
such, there is no earned value claimed for these schedule elements.

B. Effort Codes, as described in the table below, are used for each activity in the
Schedule Management System to identify the Earned Value method used.

Code Earned Value Method
H 50/50
E Level of Effort
P Procurement Pegpoints (0/100)
D % Delivered
U % Units Complete
C % Effort Civil Construction
S Special (Percent Complete)
M Milestone
Z Zero Budget

C. Earned Value is the cost originally budgeted to accomplish the work activities
that have been completed and can include a percent complete of work
activities that are still open. Earned Value is calculated both for the current
status period and cumulative to date. When compared to Planned Value and
Actual Cost, the Earned Value data provide an assessment of a project’s
schedule and cost performance.

601.3 Actual Costs

During project execution, costs are incurred for work accomplished. These
transaction data are recorded as Actual Cost of Work Performed (ACWP) or
Actual Costs. Actual Costs are determined for the current period and cumulative
from the start of the project.

602 Remaining Duration

Another important data item for measuring progress on a project is remaining
duration. Remaining duration is a Control Account Manager’s estimate
(independent of the percent complete assessment) of the number of working days
(or weeks) required to complete the work remaining on an activity. Remaining
duration is used by the Schedule Management System in determining the project’s
schedule status.

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603 Collection of Project Data

A. Schedule and cost data are collected each month from the Control Account
Managers and the Jefferson Lab financial system, respectively, to establish the
performance of the project. The Project Management & Integrated Planning
Division will schedule a status update session with each project Control
Account Manager or identified responsible person to review the progress
made on each relevant activity. Project schedule data may be collected via e-
mail from the Control Account Managers using the Status Update Report
(Exhibit 13). This MS Excel spreadsheet is available for use by the Control
Account Managers to update their control account progress. The report
contains a list of the work package activities within a control account. Control
Account Managers annotate in the report those activities that have started with
the start date; those activities that have been completed with the finish date;
and those activities that are still ongoing with a percent complete (or Level of
Effort) and remaining duration assessment. Alternate status input methods,
compatible with the Scheduling Management System such as Primavera
“Contractor,” may be used.

B. After the Status Update Reports for all control accounts are completed, PM&I
updates the Working Detail Schedule in the Schedule Management System
and conducts a time analysis of the logic network. New early/late start and
finish dates, float and the critical path are calculated. Additionally, the
project’s incurred costs are imported from the accounting system into the Cost
Management System. With this collected project data, the PM&I generates
monthly reports that highlight important Earned Value Management
indications of the project’s schedule and cost health.

604 Exhibits

13. Status Update Report Example

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Exhibit 13. Status Update Report Example

- 50 -



700
Analysis and Reporting

Revision 5

- 51 -


700 Analysis and Reporting

This chapter of the JSA Project Control System Manual explains how the
performance status is determined, analyzed and documented during the execution
of the project plan. The Performance Management Baseline is the basis for
performance analysis and reporting. Analysis provides the project team an
understanding and assessment of the project and its progress. Reporting is the
communication means to ensure managers comprehend the Earned Value
Management information. Schedule and cost variances from the Performance
Measurement Baseline are derived by analyzing a project’s earned value metrics.
Variance thresholds are established to enable project management to focus
attention and resources on those variances with the most significance to the
project. Results from the variance analyses provide the stimulus for management
action to resolve project issues before they become substantial problems.

701 Variance Analysis

The purpose of variance analysis is to identify problems early so that prompt
corrective action can be taken to minimize cost and schedule impacts, cost
overruns, and schedule delays to the project. Variance analysis quantifies the
deviations from the timed-phased budget based on the work accomplished and
cost data collected. Variance within Earned Value Management is described by
two metrics: Cost Variance and Schedule Variance. Other project performance
measurements are obtained from these two expressions. Variances and other
performance measurements (current period and cumulative) are calculated
monthly at the project work package level and summarized for each individual
control account. Variances can be aggregated at higher WBS and organizational
levels to include the total project.

701.1 Variance and Performance Indicators (Exhibit 14)

A. Schedule Variance (SV): The difference between the Budgeted Cost of Work
Performed (BCWP, Earned Value) and the Budgeted Cost of Work Scheduled
(BCWS, Planned Value).

SV = BCWP – BCWS

If the result is a zero (0), it is an indication that the project is on schedule.

If the result is a positive (+) value, it is an indication that the project is ahead
of schedule.

If the result is a negative (-) value, it is an indication that the project is behind
schedule.

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While Schedule Variance indicates the dollar value difference between
accomplished and planned work activities, it does not specify the amount of
time the project is ahead or behind schedule. Analysis of the project schedule
in the Schedule Management System will reveal the status of specific
activities, milestones, and critical events. It is important that both schedule
and performance measurement analysis be performed to accurately monitor
schedule performance.

B. Cost Variance (CV): The difference between the Budgeted Cost of Work
Performed (BCWP, Earned Value) and the Actual Cost of Work Performed
(ACWP, Actual Cost).

CV = BCWP – ACWP

If the result is zero (0), it is an indication that the project is on budget.

If the result is a positive (+) value, it is an indication that the project is
underrunning its budget.

If the result is a negative (-) value, it is an indication that the project is
overrunning its budget.

C. Schedule Performance Index (SPI): The ratio of the Budgeted Cost of Work
Performed to the Budgeted Cost of Work Scheduled and represents the
schedule efficiency of the project.

SPI = BCWP / BCWS

If the result is equal to 1.0, it is an indication that the project is on schedule.

If the result is greater than 1.0, it is an indication that the project is ahead of
schedule, accomplishing more work than planned for the considered time
period.

If the result is less than 1.0, it is an indication that the project is behind
schedule, accomplishing less work than planned for the considered time
period.

Note: SPI will trend toward 1.0 as the project nears completion. Earned
Value equals Planned Value at the end of the project, i.e., the work you
planned to do is finally accomplished.

- 53 -


D. Cost Performance Index (CPI): The ratio of the Budgeted Cost of Work
Performed to the Actual Cost of Work Performed and represents the cost
efficiency of the project.

CPI = BCWP / ACWP

If the result is equal to 1.0, it is an indication that the project is on budget.

If the result is greater than 1.0, it is an indication that the project is running
under budget, spending less for the accomplished work than planned for that
work.

If the result is less than 1.0, it is an indication that the project is running over
budget, spending more for the accomplished work than planned for that work.

E. Calculated Earned Value Management performance indicators will provide an
early warning that the project is not executing to plan. To get to the root
causes of the variances, the affected control account schedule and cost reports
must be thoroughly examined. Once the causal analysis has been completed,
then a corrective action plan can be formulated and implemented.

701.2 Estimate at Completion

A. The next step in the analysis is to evaluate the earned value data and develop a
projection for the future of the project based on the progress made to date. An
estimate of when the project will be completed and the cost to complete can
be established.

B. For schedule projections, there are approximation methods to arrive at an
estimate of the completion date. The most common method is to divide the
Schedule Variance (SV) by the average monthly budgeted cost of work
scheduled (BCWS). This method provides an approximate duration in months
of how far a project is ahead or behind schedule, but assumes current and
future work will be accomplished at the same average monthly rate. A more
accurate forecast can be made by analyzing the schedule data (e.g., critical
path) in the Schedule Management System.

C. For cost projections, an Estimate at Completion (EAC) can be derived using a
number of methods. The EAC is the actual cost to date on the project plus an
estimate of costs for the remaining authorized work (referred to as Estimate to
Complete, ETC).

EAC = ACWP + ETC

- 54 -


An objective ETC can be generated by a detailed “bottoms up” approach
where the Control Account Managers provide a description of the remaining
activities in their accounts and an update to the estimated resources or cost for
completing these activities. This comprehensive EAC method represents the
best estimate of the total cost at the completion of the project and is required
to be formulated at least once a year. Another approach is to declare the
current Planned Value for the remaining work represents the ETC. This
method for estimating the EAC assumes that all remaining work is
independent of the dollar burn-rate established for the project to date.

D. For calculating an Independent Estimate at Completion (IEAC) based solely
on performance factors, there are multiple methods that can be used.

• The first IEAC formula uses the Budget at Completion (BAC) and the
Cost Performance Index (CPI) to calculate IEAC:

IEAC = BAC / CPI,

where BAC is the sum of all project control accounts (and
equal to a project’s total BCWS, Planned Value).

This formula assumes that the project dollar burn-rate remains
constant for the remainder of the project.

• Another IEAC formula uses the Actual Cost, Budget at Completion,
Earned Value and the Cost Performance Index to calculate IEAC:

IEAC = AC + [(BAC – BCWP )/ CPI]

This formula is the same as formula 1 as long as a rebaselining that
sets cost and/or schedule variances to zero has not occurred. If such an
occurrence has happened, this equation should be used with the CPI
being based on performance subsequent to the rebaselining.

• Finally, the following formula considers the potential cost impact of a
schedule variance:

IEAC = BAC/[0.8 (CPI) + 0.2 (SPI)]

In this formula, the EAC is weighted by 80% of the CPI and 20% of
the SPI.

E. As no single technique consistently provides the best answer, the Project
Manager will decide which EAC method or group of methods represents the

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best approach for the project. An EAC will be generated each month for each
control account and for the total project, and for other WBS levels as required
for reporting to the Project Customer. The EAC for each control account will
be reviewed at the monthly progress meeting.

701.3 Variance at Completion

EAC (or IEAC) is used to determine the Variance at Completion (VAC) for the
project. The VAC is calculated as follows:

VAC = BAC – (I)EAC

If VAC is positive, the project is projecting an underrun; negative, an overrun.

701.4 Contingency

For certain Jefferson Lab projects, part of the Total Project Cost is carried as
contingency to cover any unanticipated project costs.

TPC = BAC + Contingency

The contingency percentage (on a cost-to-go basis) for a project is calculated by
dividing the contingency dollars by the Obligation Estimate To Complete dollars:

Contingency Percentage (%) = Contingency ($) / ETCob ($)

where Contingency = Funds remaining – ETCob,

and Funds remaining = TPC – ACWP – Obligations,

and ETCob = BAC – BCWPcum – Obligations

702 Project Reports

Formal project reports are an integral part of the Earned Value Management
System. Summarized project data from the control account to the senior
management reporting level provide the project management team with the
insight into how the project is performing compared to the baseline project plan.
Reports are generated by the Financial, Schedule and Cost Management Systems.
The Financial Management System provides various cost reports and these can be
found on the Jefferson Lab MIS web portal (Web Applications/Finance Related
Applications). Project performance reports with Earned Value Management data
will be produced by the Project Management & Integrated Planning Division
from the Schedule and Cost Management Systems. The following list of reports

- 56 -


is the nominal set appropriate for all levels of projects at Jefferson Lab. Other
management and Project Customer-specified reports can be generated by the
Schedule and Cost Management Systems and tailored to the particular needs of
the project.

702.1 Financial Management System Reports

A. Open Commitments Report (Exhibit 15)

The Open Commitments Report lists those procurement items for a project
that have been ordered but have not been delivered or completed.

B. Project Status Report (Exhibit 16)

The Project Status Report details the incurred costs and open Purchase Order
commitments on the project including labor, expenses, and overhead (indirect
cost).

C. 12 Month Report (Exhibit 17)
The 12 Month Report breaks the project costs down to a monthly level.
Previous fiscal year totals are provided for labor and expenses and then for
each month of the current fiscal year.

D. Spending by Month Report (Exhibit 18)

The Spending by Month Report is similar to the 12 Month Report but also
provides a breakout of indirect costs (fringe benefits and G&A).

702.2 Schedule and Cost Management Systems Reports

A. Project Analysis Report (Exhibit 19)

The Project Analysis Report is the primary earned value report for the project.
These reports are normally provided at WBS Level 2, but can be produced
down to WBS Level 4. The report displays the BCWS (Planned Value),
BCWP (Earned Value), and ACWP (Actual Costs) for the current period and
as a cumulative to date. The Schedule and Cost Variances, along with the
associated performance index, are provided as well as the Budget at
Completion, Estimate at Completion and Variance at Completion data.

B. Red Flag Report (Exhibit 20)

The Red Flag Report is the core of the variance reporting system. This
monthly report summarizes cumulative performance data as of the end of the
accounting period and identifies those control accounts with cost or schedule

- 57 -


variances exceeding thresholds established by the Project Manager. Variance
thresholds are established for the value of the variance as well as the
associated performance index (see Exhibit 21). Unless specified otherwise in
a project’s Project Execution Plan, the thresholds listed in Exhibit 22 will be
the standard for all Jefferson Lab projects. Based on these thresholds, control
accounts with a significant negative variance are identified by a color-coded
flag on the Red Flag Report. Depending on the variance level, a yellow or
red flag highlights the control account. A yellow flag is a warning and
indicates a slightly unfavorable variance. A red flag indicates an unfavorable
variance and initiates a Variance Analysis Report.

C. Variance Analysis Report (Exhibit 22)

Those control accounts identified with a red flag require the initiation of a
Variance Analysis Report. (Note: While Variance Analysis Reports are
normally generated at the control account level, these reports can be produced
for other WBS levels at the discretion of the Project Manager.) The purpose
of this report is to provide project management with an understanding of the
nature of the problem causing the variance and its impact to the overall
project. The Project Management & Integrated Planning Division will issue
the Variance Analysis Report form to the appropriate Control Account
Manager. After being completed by the Control Account Manager, the
Associate Project Manager and the Project Manager will review the form to
confirm accurate variance causes are identified and adequate corrective plans
are established. Variance Analysis Reports will be evaluated monthly to
monitor the implementation of current action plans.

D. Earned Value Management Performance Chart (Exhibit 23)

Earned Value Management Performance Charts are prepared each month
summarizing cost performance and obligation status for the project as a whole
and for each Level 2 WBS system. The cost performance graphs show BCWS
(Planned Value), BCWP (Earned Value), and ACWP (Actual Cost) as a
function of time. The obligation status graph shows commitments and
pending obligations for the same period.

E. Performance Indicator Charts (Exhibit 24)

Performance Indicator Charts are prepared each month for the project as a
whole and for each Level 2 WBS system. These graphs show the schedule
and cost performance data and are useful for tracking variance trends.

- 58 -


703 Meetings and Reviews

Project management initiates regularly scheduled meetings and reviews to
determine project status. Early detection of technical, schedule, and cost
difficulties is imperative to maintaining good project performance. The status of
a project at the 15 to 20 percent completion point is an accurate indicator of the
final success of the project. Depending on a project’s size and complexity, the
Project Manager and his staff will decide on the appropriate meeting types,
frequency, and required attendees. Types of meetings include executive
management meetings, project staff meetings, technical and design reviews,
project performance reviews, and of course, customer meetings. Open discussion
at these forums will reveal specific project technical, schedule, and cost issues
requiring management attention and/or decision. Addressing programmatic issues
in a timely manner will help prevent greater problems in the future.

704 Exhibits

14. Earned Value Chart
15. Open Commitments Report Example
16. Project Status Report Example
17. 12 Month Report Example
18. Spending by Month Report Example
19. Project Analysis Report Example
20. Red Flag Report Example
21. Variance Threshold Flags Example
22. Variance Analysis Report Example
23. Earned Value Management Performance Chart Example
24. Performance Indicator Chart Examples

- 59 -


Exhibit 14. Earned Value Chart

$

EAC

VAC

BAC
ACWP

CV BCWS
PMB SV

BCWP

Now Time

PMB Performance Measurement Baseline
BCWS Budgeted Cost of Work Scheduled (or Planned Value)
BCWP Budgeted Cost of Work Performed (or Earned Value)
ACWP Actual Cost of Work Performed (or Actual Cost)
SV Schedule Variance
CV Cost Variance
BAC Budget at Completion
EAC Estimate at Completion
VAC Variance at Completion

- 60 -


Exhibit 15. Open Commitments Report Example

- 61 -


Exhibit 16. Project Status Report Example

- 62 -


Exhibit 17. 12 Month Report Example

- 63 -


Exhibit 18. Spending by Month Report Example

- 64 -


Exhibit 19. Project Analysis Report Example

- 65 -


Exhibit 20. Red Flag Report Example

- 66 -


Exhibit 21. Standard Variance Threshold Flags

- 67 -


Exhibit 22. Variance Analysis Report Example

Exhibit 23. Earned Value Management Performance Chart Example

- 68 -

12 GeV 1.2.1.6 Instrumentation, Controls and Safety Systems
Earned Value $K
1,200

1,100

1,000

900

K$
800

- 69 -
700

600 CTD
thru Sep- Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
08
BCWS 653 707 744 770 832 861 905 994 1,073 1,105 1,132 1,144 1,145 1,145 1,145 1,145 1,145 1,145 1,145
BCWP 630 635 644 658 756 809 817 835 955 973 993 993 1,145
ACWP 684 703 717 731 751 789 832 878 901 925 935 944 994
Obligated 686 703 717 731 751 792 832 878 902 925 935 944 994
Pending 686 703 717 731 751 799 837 879 902 925 935 947 994
Funding 1,146 1,151 1,151 1,151 1,151 1,151 1,151 1,142 1,142 1,142 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138
CAM EAC 1,131 1,135 1,135 970 970 970 970 970 1,030 1,030 1,030 1,030 994
Exhibit 24. Earned Value Management Performance Chart Example


Exhibit 24. Performance Indicator Chart Examples

- 70 -



800
Change Control

Revision 5

- 71 -


800 Change Control

A. The Change Control process delineated in this section is to be used for
requesting, reviewing, and documenting changes to the approved project
baseline for projects conducted at the Jefferson Laboratory. Baseline changes
may occur as a result of contractual modifications, application of
undistributed budget, use of contingency/management reserve funds,
replanning, or formal reprogramming. Managing change to the project
baseline is crucial to ensure the project’s work scope, schedule, and cost do
not spiral out of control. Changes to baseline documents should be minimized
and are normally approved only in the interest of work scope changes, design
adequacy, reliability, performance, cost reduction, or safety/environmental
considerations.

B. The purpose of the Change Control process is to ensure that:
• The cost, schedule, and technical impacts of the proposed changes are
developed and considered by all affected parties.
• The collected evaluations are considered in the approval or rejection of the
proposed changes.
• All affected parties are informed of proposed changes and their
dispositions.
• Baseline documentation is controlled and updated as appropriate to reflect
approved changes.
• Action on proposed changes occurs deliberately, but without undue delay
and without interfering disproportionately with project progress.

C. The stated goals of the Change Control process are:
• To anticipate, recognize, and predict changes to the approved project
baseline
• To prevent unauthorized or unintended deviations from the approved
project baseline
• To evaluate and understand the technical, schedule, cost and safety/quality
assurance impacts of each change to the approved project baseline
• To identify, understand, and control the consequences of changes to the
approved project baseline
• To ensure each change is evaluated, reviewed, and dispositioned at the
proper authority level

801 Change Control Process

A. The Change Control process allows the project team to identify, evaluate,
approve, and document proposed changes to the project baseline. The process

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is initiated with the generation of a Change Request. The Change Request is
the formal mechanism for proposing and assessing a change, waiver, or
deviation to the project. After an evaluation of the Change Request, an
approval is granted at an appropriate level and the Change Request becomes a
Change Order for implementation. The Change Order is expeditiously
communicated to affected parties and incorporated in the project baseline
documentation in an auditable manner. The Change Control process is
accomplished in three phases: the Request Phase, the Review Phase, and the
Documentation Phase. The Request Phase is where the Change Request
originates and appropriate classification is determined. For the Review Phase,
an assessment of the proposed Change Request is accomplished and approval
is obtained from the appropriate authority level. Approved changes are
implemented and integrated project baseline documents are revised in the
Documentation Phase.

B. During the course of project execution, errors in accounting and cost/schedule
databases can occur. Integrity of the Performance Measurement Baseline is
vital to a clear understanding of project status. Retroactive changes to the
performance measurement data are to be avoided. Action should be taken
promptly when errors are identified and will be controlled by the Project
Management & Integrated Planning Division (PM&I). Adjustments can be
made to correct accounting and data entry errors and do not require instituting
the formal change request process. These adjustments will not be made to
historical project data, only for the current and future accounting periods.

801.1 Request Phase

A. The Change Control process begins with the generation of a Change Request
form (Exhibit 25). Any project team member can initiate a change to the
project technical, schedule, and cost baselines by completing the Change
Request form in electronic format. (Project changes as a result of customer
direction, such as a change in funding levels or project scope, are called
directed changes. These directed changes will be initiated by the Project
Manager and approved by the Project Customer before implementation). The
originator fills out the Identification, and Description and Justification,
sections of the Change Request. The Change Request is then submitted to a
member of the project Change Control Board (normally the one most
affected) for consideration. Upon concurrence, the Change Control Board
member signs the Change Request and assigns an appropriate person(s) to
ensure the Change Impact Assessment is accomplished. The Change Impact
Assessment section records the potential impacts of the proposed change to
the project baseline and addresses safety/quality concerns. The impacts of not
approving the change are also included. The assessment is to be all-inclusive
and thorough to ensure the consequences of implementing (or not
implementing) the proposed change are fully understood.

- 73 -


B. After the Change Control Board member has concurred with the Change
Request, PM&I enters the Change Request into the Change Request Log
(Exhibit 26). Change Requests are numbered sequentially (scheme: FY -
sequence #, e.g., 08-001) in order of receipt for tracking purposes. Any
budget changes with an impact to project contingency are categorized as
either “In-Scope” or “New Scope.” The Change Request Log is updated each
time there is a change to the status of a Change Request. When the status of a
Change Request is updated, PM&I will notify all Associate Project Managers
and Control Account Managers connected with that WBS level and send a
notice to each member of the project Change Control Board for informational
purposes only. The affected Control Account Manager will coordinate inputs
to the Change Request form and, if appropriate, draft a revised Control
Account Plan reflecting impacts due to the proposed change.

C. If PM&I concurs with the classification level assigned by the Control Account
Manager, the Change Request form is signed and the Change Request Log is
updated. PM&I also produces the Change Request Summary Report (Exhibit
27). For Class 1-2 and Class 3 Change Requests (see the next section for
Class definitions), PM&I distributes the Change Request to members of the
Change Control Board. The Change Request is placed on the agenda for the
next board meeting. The Change Request then enters the Review Phase of the
Change Control process.

801.2 Review Phase

A. The Review Phase is dictated by the Classification level of the Change
Request. Changes are classified according to the extent that they impact the
project baseline. The Classification and Approval Authority levels are
determined by use of the criteria listed in Exhibit 28.

B. Class 1-2 Change Request: This classification of Change Request requires the
approval of the Project Customer. The Change Control Board evaluates the
Change Request and provides a recommendation to the Project Manager. The
Project Manager reviews the Change Request before forwarding to the
customer for approval which may include a Baseline Change Control Board
review. After receiving the customer approval, the Project Manager reviews
the action directed by the customer. PM&I updates the Change Request Log
and the Change Request process enters into the Documentation Phase.

C. Class 3 Change Request: This classification of Change Request requires the
approval of the Project Manager. The Change Control Board evaluates the
Change Request and provides a recommendation to the Project Manager.
Based on the recommendation, the Project Manager approves/disapproves the
Change Request. Upon approval, PM&I updates the Change Request Log and
the Change Request process enters into the Documentation Phase.

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D. Class 4 Change Request: This classification of Change Request requires the
approval of the Associate Project Manager. Once PM&I concurs with the
Classification level, the Change Request goes to the Associate Project
Manager for approval. Upon approval, PM&I updates the Change Request
Log and the Change Request process enters into the Documentation Phase.

E. Class 5 Change Request: This classification of Change Request only requires
the approval of the Control Account Manager. Once PM&I concurs with the
Classification level, the Change Request goes to the Control Account
Manager for approval. Upon approval, PM&I updates the Change Request
Log and the Change Request process enters into the Documentation Phase.

F. During the review process, any disapproved Change Request is sent back to
the affected Control Account Manager who will consult with the originator to
determine any further action.

801.3 Documentation Phase

A. The Documentation Phase is where the project baseline is revised and the
approved change is implemented. Once the Change Request documents have
been signed by the proper level of authority, the Change Request becomes a
Change Order. For changes to the project’s technical design or scope, the
Associate Project Manager is responsible for ensuring the relevant technical
documentation is revised to reflect the change. PM&I is responsible for
revising cost/schedule baseline documents for changes impacting these project
baselines. When appropriate, a new project baseline will be generated for
each approved Change Request. This action will improve traceability
between the Change Request and the Schedule and Cost Management
Systems.

B. Once the baseline documents are revised, PM&I updates the Change Request
Log and the appropriate Control Account Manager(s) implements the Change
Order within his/her work scope.

802 Exhibits

25. Change Request Form
26. Change Request Log
27. Change Request Summary Report
28. Change Request Classifications

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Exhibit 25. Change Request Form

- 76 -


- 77 -


- 78 -


- 79 -


Exhibit 25. Change Request Form (cont.)

Instructions for Change Request Form

(Note: Use the Continuation Page on last page of the Change Request form if more space
is required. Label with section reference for any input to this page.)

Project Name: Self-explanatory.

Change Request #: This number will be filled in by PM&I. The forms will be
numbered consecutively as they are received and will be entered into the Change Request
Log.

Title: A brief descriptive title.

WBS #: Work Breakdown Structure Number(s) affected by the change.

Date: Originator enters the date for the submission of the Change Request.

Date Required: Originator enters the estimated date approval is needed to avoid adverse
impacts on technical performance, schedule, cost or quality/safety.

Originator Name: Name of individual submitting the Change Request.

Item Name: Enter name of item or procedure (component, subassembly, assembly,
system, test, etc.) to be changed.

Drawing/ Spec #: The drawing/specification number(s) of the drawing/specification (s)
affected by the change.

Vendor Name: If the item has been purchased, or a subcontract issued, enter the
vendor's name(s) here.

Purchase Order #: If a purchase order(s) has been issued for the item, enter the
number(s) here.

Change Request Status: This field in the Change Request form is a drop-down list
(New / Open / Deferred / Duplicate / Approved / Disapproved / Withdrawn). PM&I will
update the status of the Change Request as it progresses through the procedure.

Description of Proposed Change: Describe the change requested. Use the continuation
page, as required.

- 80 -


Justification for Proposed Change: Justify the proposed change. Describe the problem
or defect that will be corrected by the proposed change. Indicate the experience that
dictates the need for the change. Summarize the capability to make the change. Include
the impact if the change is not approved. Use the continuation page, as required.

Change Control Board Member Concurrence: The Change Control Board member
who concurs with the proposed change signs this block. Note: A Change Control Board
member may not concur on a Change Request originated by him/herself.

Impact Assessment Assigned To: The individual assigned to coordinate inputs to the
Change Impact Assessment section of the Change Request is identified in this block.

Change Impact Assessment: Provide a statement of impact to technical performance,
schedule, cost, quality/safety, and environment. Use the continuation page, as required.

Name(s): Add the names of individual(s) who contributed and concurred to the pertinent
assessment section.

Classification Level: The Classification field in the Change Request form is a drop-
down list. Select Class 1, 2, 3, 4, or 5. The Control Account Manager, Associate Project
Manager, and PM&I sign in the appropriate block.

Recommendation and Disposition: Recommendations and decisions concerning the
Change Request are documented in this section. Use the continuation page, as required.

Change Control Board Review: Names of the board members in attendance are
inserted in this block after review and recommendation by the board.

Final Approval: Based on the Change Request classification, the project customer or
appropriate project member will sign in the designated signature block.

- 81 -

as of: 1 Oct 09
FY10 Change Request Log
12 GeV Upgrade
CR Date Date CCB Contingency Mngmt Reserve Impact Approval Implementation
CR # Class WBS # Title Submitted Required Originator Concur (Burd. CY$K) (Burd. CY$K) Assessment Status Date Cost Sheet Cost Mgt P6

- 82 -
Exhibit 26. Change Request Log


Exhibit 27. Change Request Summary Report

- 83 -


Exhibit 28. Change Request Classifications

Classification* Class 1-2 Class 3 Class 4 Class 5
Control
Project Project Assoc Project
Account
Approval Customer Manager Manager
Manager
Authority Approval Approval Approval
Approval
Required Required Required
Required
Changes to Changes to Changes to Changes to
work scope or work scope or work scope or work scope or
performance performance performance performance
requirements requirements requirements requirements
Technical specified by that affect that affect that do not
Work the customer multiple multiple affect other
Scope or included in APMs, but do CAMs, but do CAMS
the Mission not require not affect other
Need approved customer APMs
by the approval
customer
Changes to Changes to Changes to Changes to
Level 1-2 Level 3 Level 4 Level 5
Schedule/ milestones that milestones milestones milestones
Milestones are under
customer
control
Changes to the Changes that Changes that Changes that
customer- involve a affect multiple do not affect
approved transfer of CAMs, do not other CAMs
Project Budget work scope affect other
Cost
Base (TPC & and its APMs
TEC) associated
budget
between APMs

* Unless superseded by the Project Execution Plan

- 84 -


900
Glossary

Revision 5


900 Glossary

• Actual Cost of Work Performed (ACWP)
The direct costs incurred in accomplishing the project work activities, including
labor, expenses, and procurement, plus indirect costs.

• Actual Cost
See ACWP.

• Authorized Work
Work effort that has been defined, funded, and for which authorization has been
received.

• Baseline Milestones
Top-level schedule events, deliverables and critical decision points of the project
that signify completion of a planned effort.

• Budget at Completion (BAC)
The total authorized budget for accomplishing the work scope of a control
account, summary account, reporting element, or project.

• Budgeted Cost of Work Performed (BCWP)
The sum of the budgets for completed work activities and completed portions of
open work activities, plus the applicable portion of the budgets for Level of Effort
activities.

• Budgeted Cost of Work Scheduled (BCWS)
The sum of the budgets for all project work activities scheduled to be
accomplished within a given time period.

• Change Control
The management process for requesting, reviewing, approving, and implementing
changes to the project technical, schedule, or cost baselines.

• Change Order
An approved Change Request.

• Change Request
A form used to initiate a change to the Integrated Project Baseline.

• Change Impact Assessment
A section of the Change Request form used to document the technical, schedule,
cost, and quality assurance/safety impacts of a proposed change.

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• Class 1-2 Change
A change to a project baseline that affects elements reserved by the Project
Customer for its change authority.

• Class 3 Change
A change to the project baseline approved by the Project Manager that affects
multiple Associate Project Managers, but does not require customer approval.

• Class 4 Change
A change to the project baseline approved by an Associate Project Manager that
does not affect any factors relevant to Class 1-3 changes.

• Class 5 Change
A change to the project baseline approved by a Control Account Manager that
does not affect any factors relevant to Class 1-4 changes.

• Change Control Board (CCB)
Senior project management team members who are responsible for evaluating and
approving or disapproving proposed changes to the project baselines and for
ensuring implementation of approved changes.

• Chart of Accounts
The list of all accounting elements for a particular project.

• Contingency
Reserve project funding held for possible changes in project work scope and to
cover potential cost overruns. Contingency is not associated with project work
scope and is not part of the Performance Measurement Baseline. Contingency is
normally held by the project customer.

• Control Account
The Work Breakdown Structure levels where organizational responsibility is
assigned, cost estimates are developed, Control Account Plans are prepared,
actual costs are accumulated and earned value is assessed. Control accounts can
have one or more work/planning packages.

• Control Account Plan (CAP)
The Enterprise Suite project baseline document that contains the detailed schedule
and budget information for the control account.

• Cost Baseline
The approved project budget as documented by the project Control Account
Plans.

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• Cost Management System
An Enterprise Suite software package where the project budget is managed.
Linked with its counterpart, the Schedule Management System, to form an
integrated cost/schedule database that is the heart of the Earned Value
Management System.

• Cost Variance (CV)
The Earned Value Management metric for measuring the cost performance on the
project. It is the difference between BCWP and ACWP, and can be calculated at
all WBS levels (Working package to control account to project level).

• Cost Performance Index (CPI)
An efficiency measurement defined by the work accomplished for the resources
expended. Calculated by dividing BCWP by ACWP for a given time period.

• Critical Path
The series of project activities that must be finished per the schedule plan in order
for the entire project to finish on schedule. It represents the activity path with the
longest duration and all activities on the critical path are critical activities.

• Detail Milestones
A tertiary level of project milestones established after the Intermediate Milestones
have been determined providing greater detail to the project schedule.

• Detail Schedule
The final phase of project schedule development with all milestones (Baseline,
Intermediate, and Detail) and activities defined and appropriately linked.

• Direct Costs
Any costs (labor, expenses, procurement) that may be identified specifically with
a particular project activity.

• Earned Value
See BCWP.

• Earned Value Management System (EVMS)
An integrated management process where all work is planned, budgeted, and
scheduled in time-phased increments resulting in a cost and schedule baseline
against which project performance is measured.

• Estimate at Completion (EAC)
Actual project costs to date plus the forecast of costs to complete unfinished work.

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• Estimate to Complete (ETC)
The current estimated cost to accomplish the remaining project work scope.

• Indirect Costs
Costs not identifiable to a specific project or work element, but are shared among
an organization’s units. Usually includes supervisory and administrative labor,
and expendable type materials.

• Integrated Project Baseline
The validated and approved project plan consisting of the technical baseline, the
cost baseline, and the schedule baseline.

• Intermediate Milestones
A secondary level of project milestones established after the Baseline Milestones
have been determined providing more detail to the project schedule.

• Level of Effort (LOE)
A sustained level of effort on a project that is general or supportive in nature and
does not produce a definite end product. Examples include supervision, project
management and administration activities.

• Management Reserve (MR)
An amount of the total project budget set aside for project management control
purposes rather than being allocated for the accomplishment of specific activities.
MR is not associated with project work scope and is not part of the Performance
Measurement Baseline. MR is normally held by the project manager.

• Organizational Structure
The functional depiction of the project organization indicating the hierarchical
relationships of the organizational elements and designating the project work
responsibilities when integrated with the Work Breakdown Structure.

• Percent Complete
For an activity or group of activities, a ratio, expressed as a percentage, of the
amount of work that has been completed to the total planned work.

• Performance Measurement Baseline (PMB)
The approved time-phased budget plan for accomplishing scheduled project
activities as documented in the Control Account Plans and maintained in the
integrated cost/schedule database. Contingency and Management Reserve are not
included in the Performance Measurement Baseline.

• Planned Value
See BCWS.

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• Planning Package
Planning packages are project work scope within a control account that is
identified, scheduled and budgeted, but not defined in enough detail for proper
execution. They are normally developed for far-term work scope where precise
estimates of work, schedule or budget are not possible. Planning packages are
refined with more detail to become work packages.

• Project-Organization-Account (POA) Number
An accounting numbering system established for the accumulation and collection
of project costs.

• Responsibility Assignment Matrix
A summary of the project WBS elements and the management elements of the
project team that identifies work effort with the organizational entity responsible
for its accomplishment.

• Schedule Baseline
The validated and approved dates for starting and completing project work
activities and achieving the project baseline, intermediate, and detail milestones.

• Schedule Management System
An Enterprise Suite software package where the project schedule is managed.
Linked with its counterpart, the Cost Management System, to form an integrated
cost/schedule database that is the heart of the Earned Value Management System.

• Schedule Variance (SV)
The Earned Value Management metric for measuring the schedule performance
on the project. It is the difference between BCWP and BCWS, and can be
calculated at all WBS levels (Working package to control account level to project
level).

• Schedule Performance Index (SPI)
An efficiency measurement defined by the work performed compared to the work
that was planned to be accomplished. Calculated by dividing BCWP by BCWS
for a given time period.

• Technical Baseline
Organized by the approved Work Breakdown Structure, the performance criteria
and design specifications for systems and components as described in the
project’s technical documentation.

• Undistributed Budget (UB)
Project budget that has not yet been allocated to specific control accounts.

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• Variance at Completion (VAC)
The difference between the Budget at Completion and the Estimate at
Completion. It represents the amount of expected project cost overrun or
underrun, before the allocation of Management Reserve or Contingency.

• Variance Analysis
The analytical examination of Cost Variances, Schedule Variances, and At
Complete Variances to determine the cause for the variance, any impact the
variance may have, and any corrective action necessary to meet project
objectives.

• Variance Threshold
Established by the Project Customer and Project Manager, the cost and schedule
variance criteria that will require the generation of a formal Variance Analysis
Report.

• Work Activity
A discrete effort that includes the work to be accomplished, the schedule of
expenditures and use of resources, and that serves as a vehicle for monitoring and
reporting progress.

• Work Authorization
The process of sanctioning specified project work to be performed during a
specified time period. Implemented through the Work Authorization Document.

• Work Breakdown Structure (WBS)
The hierarchical framework that defines the technical work scope of the project
and is the basis for project management, cost estimating, scheduling, project
cost/schedule control and performance measurement.

• Working Detail Schedule
A working tool of the Schedule Management System for evaluating project
schedule plans and forecasting future progress.

• Work Package
Work packages are a subdivision of a control account and constitute the basic
building blocks used in planning, execution, measuring, and controlling project
work. Work packages consist of a series of discrete, apportioned, or level of
effort activities that have been planned, scheduled and budgeted in detail.

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1000
EVMS Guidelines
Compliance

Revision 5

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1000 Earned Value Management System Guidelines Compliance

This chapter of the JSA Project Control System Manual identifies the chapters
and sections that address the 32 Earned Value Management System guidelines
established in the ANSI/EIA Standard-748-A-1998.

1001 Organization

A. Define the authorized work elements for the program. A work breakdown
structure, tailored for effective internal management control, is commonly
used in this process.
• 202 Work Breakdown Structure

B. Identify the program organizational structure, including the major
subcontractors responsible for accomplishing the authorized work, and define
the organizational elements in which work will be planned and controlled.
• 203 Project Organization

C. Provide for the integration of the company’s planning, scheduling, budgeting,
work authorization and cost accumulation processes with each other, and as
appropriate, the program work breakdown structure and the program
organizational structure.
• 300 Scheduling and Budgeting
• 400 Work Authorization System
• 500 Accounting
• 204 WBS and Organization Integration
• 205 Responsibility Assignment Matrix

D. Identify the company organization or function responsible for controlling
overhead (indirect costs).
• 501.10 Indirect Costs

E. Provide for integration of the program work breakdown structure and the
program organizational structure in a manner that permits cost and schedule
performance measurement by elements of either or both structures as needed.
• 701 Variance Analysis

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1002 Planning, Scheduling and Budgeting

A. Schedule the authorized work in a manner which describes the sequence of
work and identifies significant task interdependencies required to meet the
requirements of the program.
• 301 Schedule Planning
• PCS-01 Schedule Planning Procedure

B. Identify physical products, milestones, technical performance goals, or other
indicators that will be used to measure progress.
• 301.2 Schedule Development

C. Establish and maintain a time-phased budget baseline, at the control account
level, against which program performance can be measured. Budget for far-
term efforts may be held in higher level accounts until an appropriate time for
allocation at the control account level. Initial budgets established for
performance measurement will be based on either internal management goals
or the external customer negotiated target cost, including estimates for
authorized but undefinitized work. On government contracts, if an over-target
baseline is used for performance measurement reporting purposes, prior
notification must be provided to the customer.
• 303 Integrated Project Baseline Development
• 303.1 Performance Measurement Baseline

D. Establish budgets for authorized work with identification of significant cost
elements (labor, material, etc.) as needed for internal management and for
control of subcontractors.
• 302 Cost Planning
• PCS-02 Cost Planning Procedure

E. To the extent it is practical to identify the authorized work in discrete work
packages, establish budgets for this work in terms of dollars, hours, or other
measurable units. Where the entire control account is not subdivided into
work packages, identify the far term effort in larger planning packages for
budget and scheduling purposes.


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F. Provide that the sum of all work package budgets plus planning package
budgets within a control account equals the control account budget.


G. Identify and control level of effort activity by time-phased budgets established
for this purpose. Only that effort which is unmeasurable or for which
measurement is impractical may be classified as level of effort.
• 601.2 Earned Value

H. Establish overhead budgets for each significant organizational component of
the company for expenses which will become indirect costs. Reflect in the
program budgets, at the appropriate level, the amounts in overhead pools that
are planned to be allocated to the program as indirect costs.

I. Identify management reserves and undistributed budget.
• 302.2 Funding Guidance

J. Provide that the program target cost goal is reconciled with the sum of all
internal program budgets and management reserves.

1003 Accounting Considerations

A. Record direct costs in a manner consistent with the budgets in a formal system
controlled by the general books of account.

• 501 Cost Collection and Control

B. When a work breakdown structure is used, summarize direct costs from
control accounts into the work breakdown structure without allocation of a
single control account to two or more work breakdown structure elements.
• 501.1 Cost Reporting and Collection

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C. Summarize direct costs from the control accounts into the contractor’s
organizational elements without allocation of a single control account to two
or more organizational elements.


D. Record all indirect costs which will be allocated to the contract.

E. Identify unit costs, equivalent unit costs, or lot costs when needed.
• 501.3 Accounts Payable via Purchase Order (PO) Voucher

F. For EVMS, the material accounting system will provide for:

⎯ accurate cost accumulation and assignment of costs to control accounts in
a manner consistent with the budgets using recognized, acceptable, costing
techniques;
⎯ cost performance measurement at the point in time most suitable for the
category of material involved, but no earlier than the time of progress
payments or actual receipt of material; and
⎯ full accountability of all material purchased for the program including the
residual inventory.
• 502 Material Accounting System

1004 Analysis and Management Reports

A. At least on a monthly basis, generate the following information at the control
account and other levels as necessary for management control using actual
cost data from, or reconcilable with, the accounting system.

⎯ Comparison of the amount of planned budget and the amount of budget
earned for work accomplished. This comparison provides the schedule
variance.
⎯ Comparison of the amount of the budget earned and the actual (applied
where appropriate) direct costs for the same work. This comparison
provides the cost variance.
• 702.2 Schedule and Cost Management Systems Reports
• PCS-03 Performance Reporting Procedure

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B. Identify, at least monthly, the significant differences between both planned
and actual schedule performance and planned and actual cost performance,
and provide the reasons for the variances in the detail needed by program
management.

C. Identify budgeted and applied (or actual) indirect costs at the level and
frequency needed by management for effective control, along with the reasons
for any significant variances.
• 702.1 Financial Management System Reports

D. Summarize the data elements and associated variances through the program
organization and/or work breakdown structure to support management needs
and any customer reporting specified in the contract.

E. Implement managerial actions taken as the result of earned value information.
• 700 Analysis and Reporting
• 703 Meetings and Reviews

F. Develop revised estimates of cost at completion based on performance to date,
commitment values for material, and estimates of future conditions. Compare
this information with the performance measurement baseline to identify
variances at completion important to company management and any
applicable customer reporting requirements including statements of funding
requirements.
• 701.2 Estimate at Completion
• 702 Project Reports

1005 Revisions and Data Management

A. Incorporate authorized changes in a timely manner, recording the effects of
such changes in budgets and schedules. In the directed effort prior to
negotiation of a change, base such revisions on the amount estimated and
budgeted to the program organizations.

• 801 Change Control Process

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• PCS-04 Change Control Procedure

B. Reconcile current budgets to prior budgets in terms of changes to the
authorized work and internal replanning in the detail needed by management
for effective control.

C. Control retroactive changes to records pertaining to work performed that
would change previously reported amounts for actual costs, earned value, or
budgets. Adjustments should be made only for correction of errors, routine
accounting adjustments, effects of customer or management directed changes,
or to improve the baseline integrity and accuracy of performance
measurement data.

D. Prevent revisions to the program budget except for authorized changes.

E. Document changes to the performance measurement baseline.
• 801.3 Documentation Phase

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1100
System Surveillance

Revision 5

- 99 -


1100 EVMS Surveillance

A. The JSA Project Control System Manual defines the processes and procedures
for implementing an Earned Value Management System on projects
conducted at the Jefferson Lab. Once an Earned Value Management System
has been implemented, it is essential that an ongoing surveillance process be
initiated to evaluate the effectiveness of this management tool in
communicating to project management a project’s cost, schedule, and
technical performance. The Project Management & Integrated Planning
Division is responsible for conducting the Earned Value Management System
surveillance program at Jefferson Lab. Results from this assessment are used
by the Project Management & Integrated Planning Division and on-site
project management teams to make process corrections and improvements
where needed. The Earned Value Management System surveillance
accomplishes two goals: First, it determines if the processes and procedures
described in the JSA Project Control System Manual are working as intended;
second, it ascertains whether these processes and procedures continue to
comply with the guidelines set forth in the American National Standards
Institute/Electronic Industry Alliance (ANSI/EIA) 748-A Standard for Earned
Value Management Systems. The primary focus of the surveillance process is
on insight into the Earned Value Management System for Jefferson Lab
projects. Its use is to identify problem areas with the implementation of the
JSA Project Control System Manual and not as a project audit. Solutions to
any issues are proposed and action is taken. With regular surveillance
reviews, the Lab’s process for the Earned Value Management System will
provide the following benefits:
• Project performance information will depict actual conditions and
trends.
• Earned Value Management data will be timely, accurate, and reliable.
• Actual or potential problems will be indicated soon enough for
corrective action.
• Integrity of the Integrated Project Baseline will be maintained.

B. The Project Management & Integrated Planning Division will ensure that an
annual surveillance review of its Earned Value Management System is
conducted. A list of all potential candidate projects to be surveyed will be
generated and one or two of them will be selected for review. The procedures
for this review are as follows:
• A small team will be established to accomplish the review. The
members of the team will be acquainted with the Earned Value
Management process as described in the JSA Project Control System

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Manual and the ANSI/EIA 748-A Earned Value Management Systems
standard.
• A surveillance plan will be produced that will described the approach
of the review including the responsibilities, the evaluation methods,
and the schedule.
• The surveillance team will conduct interviews of selected Control
Account Managers and other project management leaders, as
appropriate. The main focus of the interviews is to gain an
understanding of how the JSA Project Control System Manual is being
used and how the 32 ANSI-748 Earned Value Management guidelines
are implemented on the selected project.
• For each reviewed project, a list of findings will be generated from the
results of the interviews and a corrective action plan established.
Action to resolve identified problems may be required for the project
itself and/or the Project Control System Manual.
• When the surveillance reviews have been completed, the results are
documented in a surveillance database. The overall health of the Lab’s
Earned Value Management System can be tracked using this data and
systemic problems across multiple projects identified. With these
results, system training can be updated and process improvements can
be initiated. Lessons learned from the surveillance reviews will be
shared with all project teams.

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1200 Project Control System Procedures

1200
Procedures

Revision 5

- 102 -

PCS-01 Schedule Planning

Procedure
PCS-01
Schedule Planning

- 103 -


PCS-01 Schedule Planning Procedure

CONTENTS

1.0 General

2.0 Procedures

3.0 Process Flow Diagrams
3.1 Schedule Baseline Development Flow Diagram

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PCS-01 Schedule Planning Procedure

1.0 General

This document defines the procedures and responsibilities for developing a
project baseline schedule. In cooperation with the Project Customer, all levels of
the project management team are involved in the process of establishing a
timetable of milestones and activities that will lead to a successful project
outcome.

2.0 Procedures

The following Schedule Planning procedures are graphically displayed in
Diagram 3.1.

1 - The Project Customer and the Project Manager jointly determine the Baseline
Milestones.
The Project Manager, collaborating with the Project Customer, selects the
project key events and decision points that constitute the master schedule.
Titles, definitions and planned dates are determined for each Baseline
Milestone.

2 - The Project Management & Integrated Planning Division (PM&I) develops
the Baseline Milestones Schedule.
PM&I loads the Baseline Milestones (Level 1 and 2) with their associated
planned dates into the Schedule Management System forming a Baseline
Milestones Schedule.

3 - The Project Management & Integrated Planning Division, the Associate
Project Manager, and the Control Account Manager identify the Intermediate
Milestones.
Based on the defined Baseline Milestones, PM&I, the Associate Project
Manager(s), and the Control Account Manager(s) identify the important
Level 3 and 4 milestones of the project.

4 - The Project Management & Integrated Planning Division develops the
Intermediate Milestone Schedule.
PM&I loads the Intermediate Milestones with their associated planned
dates into the Schedule Management System forming an Intermediate
Milestones Schedule.

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5 - The Control Account Managers develop the Detail Milestones.
Appropriate Detail Milestones are identified by the Control Account
Managers for their control accounts.

6 - The Project Management & Integrated Planning Division develops the Detail
Schedule.
With the schedule data from the Control Account Plans, PM&I develops
the project Detail Schedule. Start dates, duration, preceding activities, and
succeeding activities are entered for each activity. Resources and budgets
allocated to the Control Account Plan activities are also integrated into the
Detail Schedule.

7 – The Associate Project Manager and Project Manager approve the Detail
Schedule.
After PM&I integrates the information from the Control Account Plans
into the Detail Schedule, the Associate Project Manager and Project
Manager review and approve the Detail Schedule.

8 - The Project Management & Integrated Planning Division establishes the
schedule baseline.
After the Detail Schedule has been approved, this schedule becomes the
schedule baseline. With the resources and budgets identified in the cost
baseline integrated with the activity schedule in the schedule baseline, the
project Time-Phased Cost Profile is established. PM&I also generates a
Working Detail Schedule.


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- 107 -

PCS-02 Cost Planning

Procedure
PCS-02
Cost Planning

- 108 -


PCS-02 Cost Planning Procedure

CONTENTS

1.0 General

2.0 Procedures

3.1 Cost Baseline Development Flow Diagram

- 109 -


PCS-02 Cost Planning Procedure

1.0 General

This document defines the procedures and responsibilities for developing a
project cost baseline. With funding guidance from the Project Customer, all
levels of the project management team are involved in the process of producing a
project cost estimate. When combined with the project schedule, a timed-phase
budget will be established against which project performance can be measured.

2.0 Procedures

The following Cost Planning procedures are graphically displayed in Diagram
3.1.

1 - The Project Customer provides funding guidance.
Based on the desired final product and the expected funding availability,
the Project Customer will usually provide the Project Manager with a
funding profile for the project.

2 - The Project Manager determines an initial project budget target.
Taking the funding guidance provided by the Project Customer, the
Project Manager establishes initial budget targets for the project. With a
preliminary WBS framework, proposed budgets may be prescribed as well
as a fiscal year breakouts.

3 - The Control Account Manager develops the Control Account Plan.
The Control Account Manager develops an initial Control Account Plan
that will be used to establish the initial cost estimate.

4 - The Associate Project Manager reviews the Control Account Plan.
The Associate Project Manager reviews the Control Account Plan(s)
within his area of responsibility. Plans that are not complete are returned
to the appropriate Control Account Manager for revision. Once
satisfactory, the Control Account Plan(s) is/are forwarded to the Project
Management & Integrated Planning Division.

5 - The Project Management & Integrated Planning Division reviews the Control
Account Plans.
PM&I reviews the Control Account Plans to ensure that the project cost
estimate does not exceed any pre-established funding constraints.

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6 - The Project Management & Integrated Planning Division establishes the initial
cost estimate.
The costs from each Control Account Plan are summarized to establish an
initial cost estimate.

7 - The Project Management team reviews and finalizes the cost estimate.
The Project Management team reviews the consolidated cost estimate for
the project, and through negotiation, finalize the estimate. The Control
Account Manager revises the Control Account Plan for each relevant
control account based on the final negotiated cost estimate for the project.

8 - The Project Management & Integrated Planning Division establishes the cost
baseline.
With approved Control Account Plans, the project cost baseline is
established. This cost baseline is then integrated with the schedule
baseline to produce the project Time-Phased Budget.


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- 112 -

PCS-03 Performance Reporting

Procedure
PCS-03
Performance Reporting

- 113 -


PCS-03 Performance Reporting Procedure

CONTENTS

1.0 General

2.0 Procedures

3.1 Performance Reporting Flow Diagram

- 114 -


PCS-03 Performance Reporting Procedure

1.0 General

This document defines the procedures and responsibilities for collecting and
reporting cost and schedule performance data and analyzing these data to assess
current and projected future project status. Cost and schedule performance is
measured and reported monthly for each control account and WBS element, as
appropriate.

2.0 Procedures

The following Performance Reporting procedures are graphically displayed in
Diagram 3.1.

1 - The Project Manager determines the variance thresholds.
The Project Manager determines the thresholds used to flag variances for
each control account and WBS element, as appropriate.

2 - The Control Account Manager prepares the Status Update Report.
At the end of the accounting period, the Control Account Manager reports
the control account work progress and accomplishments by providing
input on the Status Update Report.

3 - The Associate Project Manager reviews the Status Update Report.
The Associate Project Manager validates work activity completions and
makes assessment of interim progress.

4 - The Project Management & Integrated Planning Division determines the
Budgeted Cost of Work Performed.
Exporting the data from the Status Update Reports to the Scheduling
Management System, PM&I calculates BCWP (Earned Value) by
summing the budgets of work accomplished and completed portions of
work in progress for each control account.

5 - The performing organizations report expenses incurred.
Performing organizations charge actual costs incurred throughout the
reporting period using the Jefferson Lab accounting system.

6 - The Chief Financial Office prepares the cost reports.
The Chief Financial Office converts time sheets, purchase orders, receipts
and invoices, travel expense vouchers, and other entry documents into
costs and commitments for each control account. Labor and cost reports

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are prepared by the Chief Financial Office and are available to the Control
Account Managers and Associate Project Managers for review and to
PM&I for entering into the performance database.

7 - The Control Account Manager reviews the cost reports.
The Control Account Manager reviews the cost reports for accuracy and
control of costs. Unusual or excessive charges are investigated and errors
are reported to the Chief Financial Office.

8 - The Associate Project Manager reviews the cost reports.
Each Associate Project Manager reviews actual costs with the Control
Account Manager directing the effort.

9 - The Project Management & Integrated Planning Division prepares the
performance reports.
PM&I combines ACWP (Actual Costs) data from accounting, BCWS
(Planned Value), and Budget At Completion from the Performance
Measurement Baseline, BCWP (Earned Value) as determined in step 4
above, and Estimate At Completion to calculate cost, schedule, and at-
completion variances. Results are published in monthly performance
reports (Project Analysis Reports) and charts (Earned Value Management
Performance Charts/Performance Indicator Charts). The Red Flag Report
is also generated where significant variances are flagged in accordance
with the thresholds established by the Project Manager.

10 - The Project Management team reviews the Control Account Performance
Report.
The Control Account Performance Report consists of those combined
performance reports available to the Control Account Manager from the
financial management system and the schedule/cost management systems.
Each Control Account Manager reviews the Control Account Performance
Report, notes variances, and determines reasons for above or below
planned performance. Each Associate Project Manager reviews the
Control Account Performance Reports and the technical progress for their
area of responsibility and discusses the work, cost, and schedule status
with the responsible Control Account Manager. The Project Manager
reviews the all reports and identifies reporting elements of the WBS for
which formal Variance Analysis Reports are required.

11 - The Project Management & Integrated Planning Division issues the Variance
Analysis Report form.
PM&I issues a Variance Analysis Report form for each reporting element
requiring a Variance Analysis Report.

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12 - The Control Account Manager completes the Variance Analysis Report.
The Control Account Manager conducts a variance analysis to include the
reasons for the variances, the anticipated effect on the project cost,
schedule or technical parameters, and proposed corrective action.

13 - The Project Manager reviews the Variance Analysis Reports with the Control
Account Managers and Associate Project Managers.
The Project Manager reviews the Variance Analysis Reports with the
Control Account Managers and Associate Project Managers to ensure
accurate variance causes are identified and adequate corrective plans are
established. The Variance Analysis Report form is signed by the Control
Account Manager and the Associate Project Manager/Project Manager.

14 - The Project Management & Integrated Planning Division prepares the
monthly project report.
PM&I collects all pertinent project performance data and summarizes it
for the monthly report. PM&I forwards the monthly report, including the
revised Estimates At Completion, to the Project Manager.

15 - The Project Manager submits the monthly report to the Project Customer.
The Project Manager reviews the monthly report and submits it to the
Project Customer.


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- 118 -

PCS-04 Change Control

Procedure
PCS-04
Change Control

- 119 -


PCS-04 Change Control Procedure

CONTENTS

1.0 General

2.0 Procedures
2.1 Request Phase
2.2 Review Phase
2.3 Documentation Phase

3.1 Request Phase Flow Diagram
3.2 Review Phase Flow Diagrams
• External Approval
• Internal Approval
3.3 Documentation Phase Flow Diagram

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PCS-04 Change Control Procedure

1.0 General

The Integrated Project Baseline is the approved technical, schedule and cost plan
for accomplishing all project activities. As the project progresses, this baseline
may change due to Project Customer redirection, internal replanning, or redesign.
Changes are classified according to the extent that they impact the Integrated
Project Baseline. The review process and the approval authority required for a
proposed change depend upon its classification. This document defines the
procedures and responsibilities for requesting, reviewing, and documenting
changes to the Integrated Project Baseline, and to assure timely implementation of
changes once they are approved.

2.0 Procedures

The following procedures for requesting, reviewing and documenting change
requests are keyed to the Change Control process flow diagrams (Section 3.0).

2.1 Request Phase (See Diagram 3.1)

Any project team member may request a change to the technical, schedule, and
cost baselines by generating a Change Request form and submitting it to a
member of the Change Control Board for concurrence.

1 - The Originator prepares the Change Request.
The originator prepares the Change Request form in accordance with the
document instructions. Change Request status at this stage is “New.”

2 - The Change Control Board member concurs with the Change Request.
The originator must then obtain the concurrence of one member of the
Change Control Board in order for the request to be accepted for
consideration. The concurring member signs the Change Request in the
‘Concurrence’ block.

3 - The Change Control Board member initiates the Change Impact Assessment
process.
If the Change Impact Assessment has not been completed on the Change
Request form, the Change Control Board member assigns actions for
analyses of potential technical, schedule, cost and quality/safety effects of
the proposed change. Primary responsibility is typically assigned to a
Control Account Manager.

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4 - The Project Management & Integrated Planning Division enters the Change
Request in the Change Request Log.
After Change Control Board member concurrence is obtained, PM&I
assigns a number (scheme: FY - sequence #, e.g., 05-001) to the Change
Request and enters it in the Change Request Log as “Open.” PM&I
maintains this log as a database, updating information each time there is a
change to the status of a Change Request. For Class 1-2 and Class 3
changes, PM&I distributes the Change Request to members of the Change
Control Board, and places the Change Request on the agenda for the next
Change Control Board meeting.

5 - The Control Account Manager coordinates inputs to the Change Impact
Assessment.
The assigned Control Account Manager completes the Change Impact
Assessment. The Change Impact Assessment records the potential
impacts of the proposed change to the technical, schedule and cost
baselines and also to safety and quality. The impacts of not approving the
change are also documented. The Control Account Manager coordinates
inputs from relevant parties, such as scientists, engineers, contractors, and
quality and safety personnel, to document these potential impacts.
Continuation pages are attached to the Change Request form where space
is insufficient. Where drawings, specifications, purchase orders, Control
Account Plans, etc., are affected, changes are marked on copies and
attached.

6 - The Control Account Manager establishes the classification of the Change
Request.
After reviewing the Change Impact Assessment and exhibits, the Control
Account Manager establishes the Change Request classification. The
Control Account Manager selects the appropriate class and signs the
appropriate block on the Change Request form.

7 - The Associate Project Manager concurs with the classification of the Change
Request.
The Associate Project Manager reviews the classification assigned by the
Control Account Manager and, if he concurs, signs the adjacent block.

8 - The Project Management & Integrated Planning Division approves the
classification of the Change Request.
The PM&I Manager reviews the classification assigned by the Control
Account Manager and, if he concurs, signs the next block on the Change
Request form. The classification may also be reviewed and changed by
the Change Control Board.

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2.2 Review Phase (See Diagram 3.2)

After the Change Request has been generated, impacts have been assessed, and an
approved classification level has been established, it enters the Review Phase
where the proposed change is evaluated and approved by an appropriate authority.
For Class 1-2 Change Requests that will go to the Project Customer, this will be
an external approval process. Class 3-5 Change Requests follow an internal
approval process.


9 - The Project Management & Integrated Planning Division updates the Change
Request Log.
Once PM&I has approved the classification level, the Change Request
enters the Review Phase. PM&I monitors the status of Change Requests
awaiting action.

10 - The Change Control Board evaluates the Class 1-2 Change Request.
For Class 1-2 Change Requests, PM&I distributes the Change Request to
members of the Change Control Board and places the Change Request on
the agenda for the next board meeting. The Change Control Board
evaluates the Class 1-2 Change Request package and recommends action
to the Project Manager.

11 - The Project Manager reviews the Class 1-2 Change Request.
The Project Manager reviews the Class 1-2 Change Request package and
Change Control Board recommendations. The Project Manager prepares a
submission to the Project Customer in accordance with customer
procedures which may include a Baseline Change Control Board. This
may include the Change Request as received, with some or all of the
exhibits, or it may be a letter extracted from the Change Request material
with additional amplification where necessary.

12 - The Project Customer approves/disapproves the Class 1-2 Change Request.
For Class 1-2 Change Requests, the Project Customer is the final
approving authority. Approval is indicated by signature in the appropriate
'Final Approval' block on the Change Request form. The approved Class
1-2 Change Request package is then returned to the Project Manager.

13 - The Project Manager reviews the Project Customer Change Request actions.
The Project Manager reviews the decisions of the Project Customer and
documents any impacts to the project plans in the Recommendation and
Disposition section of the Change Request.

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approval status of the Change Request.
PM&I updates the Change Request Log after the review process has been
completed. At this stage, the Change Request can be deferred, approved,
disapproved or determined to be a duplicate of a previously submitted
Change Request. Any disapproved CR is sent back to the affected Control
Account Manager who will consult with the originator to determine any
further action.


9 - The Project Management & Integrated Planning Division updates the Change
Request Log.
Once PM&I has approved the classification level, the Change Request
enters the Review Phase. PM&I monitors the status of Change Requests
awaiting action.

10 - The Change Control Board evaluates the Class 3 Change Request.
For Class 3 Change Requests, PM&I distributes the Change Request to
members of the Change Control Board and places the Change Request on
the agenda for the next board meeting. The Change Control Board
evaluates the Class 3 Change Request package and recommends action to
the Project Manager.

11 - The Project Manager reviews the Class 3 Change Request.
The Project Manager reviews the Class 3 Change Request package and
Change Control Board recommendations.

12 - The Project Manager approves/disapproves the Class 3 Change Requests.
For Class 3 Change Requests, the Project Manager is the final approving
authority. Approval is indicated by signature in the appropriate 'Final
Approval' block on the Change Request form. The approved Class 3
Change Request package is forwarded to PM&I.

13 - The Associate Project Manager evaluates the Class 4 Change Request.
The Associate Project Manager evaluates Class 4 Change Requests.

14 - The Associate Project Manager approves/disapproves the Class 4 Change
Request.
For Class 4 Change Requests, the Associate Project Manager is the final
4 Change Request package is forwarded to PM&I.

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15 - The Control Account Manager evaluates the Class 5 Change Request.
The Control Account Manager evaluates Class 5 Change Requests.

16 - The Control Account Manager approves/disapproves the Class 5 Change
Request.
For Class 5 Change Requests, the Control Account Manager is the final
5 Change Request package is forwarded to PM&I.

approval status of the Change Request.
PM&I updates the Change Request Log after the review process has been
completed. At this stage, the Change Request can be deferred, approved,
disapproved or determined to be a duplicate of a previously submitted
Change Request. Any disapproved CR is sent back to the affected Control
Account Manager who will consult with the originator to determine any
further action.

2.3 Documentation Phase (See Diagram 3.3)

After the Change Request has been reviewed and approved by the appropriate
authority, it enters the Documentation Phase where the proposed change is fully
documented and implemented.

18 - The Project Management & Integrated Planning Division issues the Change
Order.
PM&I issues a Change Order for the approved Change Request. The
Change Order is a completed, approved Change Request.

19 - The Associate Project Manager updates the technical documentation.
Upon receipt of a Change Order, the affected Associate Project Manager
ensures any relevant technical documentation (drawings, specifications,
etc.) is revised.

20 - The Project Management & Integrated Planning Division updates the
Performance Measurement Baseline and Working Detail Schedule.
PM&I updates the Performance Measurement Baseline, the Working
Detail Schedule and the associated Earned Value data. Historical EV data
will not be revised. To improve document traceability, a new project
baseline will be generated for each approved Change Request.

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21 - The Control Account Manager implements the approved Control Account
Plan.
The Control Account Manager performs the effort in accordance with the
updated Control Account Plan.

3.2 Review Phase Flow Diagrams

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3.2 Review Phase Flow Diagram (External Approval)

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3.2 Review Phase Flow Diagram (Internal Approval)

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End of Document

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Project Control System Manual

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Project Control System Manual