Using CMMI to Improve Earned Value Management

Using CMMI£
to Improve Earned
Value Management
Paul Solomon
October 2002
Software Engineering Process Management
Unlimited distribution subject to the copyright.
Technical Note
CMU/SEI-2002-TN-016

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CMU/SEI-2002-TN-016 i
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Abstract................................................................................................................v
1 Basics of Earned Value Management .........................................................1
1.1 EVMS-Related CMMI Process Areas .........................................................1
1.2 Performance-Based Management Systems .............................................2
1.3 National Standards.....................................................................................2
2 Comparison of CMMI to EVMS ....................................................................3
2.1 Strong Relationships..................................................................................3
2.2 CMMI Expected and Informative Components Supporting EVM
Principles .............................................................................................................7
2.2.1 Requirements Management...................................................................10
2.2.2 Measurement and Analysis ...................................................................10
2.2.3 Process and Product Quality Assurance .............................................11
2.2.3.1 Process Quality Assurance.........................................................11
2.2.3.2 Product Quality Assurance .........................................................11
2.2.4 Requirements Development..................................................................12
2.2.5 Risk Management...................................................................................12
3 Framework for Process Improvement.......................................................13
3.1 Requirements Management.....................................................................13
3.2 Measurement and Analysis......................................................................13

ii CMU/SEI-2002-TN-016
3.3 Process and Product Quality Assurance ............................................... 13
3.4 Requirements Development.................................................................... 14
3.5 Risk Management .................................................................................... 14
4 Technical Performance Measurement (TPM) ........................................... 15
5 Guidance for Process Improvement and Appraisal................................. 16
6 Summary .................................................................................................... 18
References......................................................................................................... 19
Appendix............................................................................................................ 21

CMU/SEI-2002-TN-016 iii
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Table 1: Strong Relationships of CMMI to EVMS.............................................4
Table 2: CMMI Expected and Informative Components Supporting EVM
Principles .............................................................................................7
Table 3: EVMS Guidelines .................................................................................9
Table 5: Glossary Sources ...............................................................................21

CMU/SEI-2002-TN-016 v
$EVWUDFW
For organizations using Earned Value Management (EVM) or that plan to implement EVM
during Capability Maturity Model Integration (CMMI
) implementation, this technical note
provides guidance for cost-effective process improvement and appraisal. Mapping and
comparison tables between CMMI and the U.S. national standard on EVM are provided.
These tables can be used to identify practices within CMMI that are not included in the EVM
standard but, if added to an organization’s processes, will strengthen adherence to EVM
principles. The tables also can be used to develop instruments that will provide evidence to
an appraisal team to enable it to quickly verify and validate specific practices based upon
effective implementation of EVM.
Furthermore, information such as glossary components, typical work products, and examples
are included in this technical note to aid those using CMMI for process improvement. For
organizations using technical performance measurement, a primary base measure for earned
value, additional guidance and information is provided. Finally, additional references and an
EVM glossary are provided.

CMMI is registered by Carnegie Mellon University in the U.S. Patent and Trademark Office.

CMU/SEI-2002-TN-016 1
Basics of Earned Value Management
Earned Value Management is a method for integrating work scope, schedule, and budget and
for measuring project performance. It compares the amount of work that was planned with
what was actually accomplished to determine if cost and schedule performance were
achieved as planned.
The principles of an EVM system include the following:
• Break down the program work scope into finite pieces, called work packages, that
can be assigned to a responsible person or organization for control of technical,
schedule, and cost objectives.
• Integrate program work scope, schedule, and cost objectives into a performance
measurement baseline against which accomplishments can be measured.
• Objectively assess accomplishments at the work package level.
Some basics of EVM and a bibliography for obtaining more in-depth information are
contained in the technical report Using EVMS (Earned Value Management System) with
COTS-Based Systems [Staley 02].
1.1 EVMS-Related CMMI Process Areas
The following process areas are those that are primarily related to EVMS:
• Measurement and Analysis
• Project Planning
• Project Monitoring and Control
• Requirements Development
• Requirements Management
• Integrated Project Management
EVMS also relates to specific practices in the following process areas:
• Supplier Agreement Management
• Risk Management
• Process and Product Quality
Assurance
Each of the process areas listed has a role in specifying and tracking project work,
developing operational definitions of how that work is measured, or verifying that
completion criteria for work products have been satisfied.

2 CMU/SEI-2002-TN-016
1.2 Performance-Based Management Systems
The U. S. national standard for EVM is Earned Value Management Systems (EVMS) [ANSI
02]. U. S. government policies for performance-based acquisition management require the
use of performance-based management systems that meet the guidelines of EVMS. The
Office of Management and Budget also requires that all agencies of the Executive Branch of
the government that are subject to Executive Branch review must use performance-based
management systems that meet the EVMS standard [OMB 02].
Department of Defense (DoD) Directive 5000.1, Section 4.2.4, Performance-Based
Acquisition, requires performance-based strategies for the acquisition of products and
services [DoD 02b]. When using performance-based strategies, contractual requirements
shall be stated in performance terms.
The related acquisition regulation, DoD 5000.2-R, Section 2.9.3.4.1, states that the program
manager shall require that contractors’ management information systems used in planning
and controlling contract performance meet the EVM system guidelines set forth in the EVMS
[DoD 02a].
1.3 National Standards
The primary national standard of EVM is EVMS. The EVMS guidelines incorporate best
business practices to provide strong benefits for program or enterprise planning and control.
The processes include integration of program scope, schedule, and cost objectives and the use
of earned value techniques for performance measurement during the execution of a program.
Section 2 of EVMS provides thirty-two guidelines for companies to use in establishing and
applying an integrated EVMS. (See Table 3 for an abridged version of the guidelines.)
A secondary national standard that includes guidelines for EVM is the Project Management
Institute Guide to the Body of Knowledge (PMBOK1
Guide) [PMI 00]. The PMBOK Guide
describes EVM in Sections 7.4.2.3 and 10.3.2.4 and is the source of some of the definitions in
the Glossary.
1
PMBOK is a trademark registered in the United States and other nations.

CMU/SEI-2002-TN-016 3
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For organizations using Earned Value Management (EVM) and Capability Maturity Model
Integration (CMMI
), the comparison tables in this section can be used to identify CMMI
practices that are not included in the EVM standard but, if added to an organization’s
processes, will strengthen adherence to EVM principles.
To assist in preparing for process improvement and appraisals, three tables are provided in
this technical note. One table maps relevant CMMI-specific practices and informative
components to the corresponding EVMS guidelines and other EVMS information.
The second table lists CMMI expected and informative components that provide more
information for achieving the principles of an EVM system than that which is provided by
EVMS. The second table could be included within the framework for process improvement
by organizations that comply with EVMS because compliance with EVMS does not
necessarily provide evidence that the organization has implemented the CMMI practices. The
third table lists the EVMS guidelines.
Within CMMI specific practices are expected model components. Expected components
describe what an organization will typically implement to achieve required components (i.e.,
process area goals). These components guide organizations that are implementing
improvements or appraisals.
Informative model components, such as subpractices and typical work products, help CMMI
users understand model goals and practices and how they can be achieved. EVMS guidelines
represent best practices to assist tracking of project progress, so they are frequently
mentioned in these components of the relevant CMMI process areas. While “informative”
from a CMMI perspective, EVMS guidelines may be “required” in many environments as
described above.
2.1 Strong Relationships
CMMI emphasizes an integrated and quantitative approach to project management, including
integrating a project’s planning parameters for cost, schedule, and technical performance.
There are four process areas that are highly consistent with the EVMS. These process areas
have specific practices and informative components that have strong relationships with the

CMMI is registered by Carnegie Mellon University in the U.S. Patent and Trademark Office.

4 CMU/SEI-2002-TN-016
EVMS guidelines. A strong relationship exists where there is a one-to-one relationship to the
material in both documents. A strong relationship may also indicate that an organization that
uses EVM may have achieved high levels of capability and maturity, and that EVM
implementation may provide objective evidence to substantiate practice implementation
during an appraisal.
The following CMMI process areas are highly consistent with EVMS:
• Project Planning
• Project Monitoring and Control
• Supplier Agreement Management
• Integrated Project Management
Table 1 maps the expected and informative components of CMMI that have strong
relationships to EVMS. The far right column lists the EVMS section numbers that are
described in Table 3.
Table 1: Strong Relationships of CMMI to EVMS
Project Planning Specific Goal 1: Establish Estimates
Specific Practice 1.1
Estimate the Scope of the Project
Informative Components
Typical work products: task descriptions, work package descriptions,
and WBS
Subpractices:
1. Develop a WBS based on the product architecture.
2. Identify the work packages in sufficient detail to specify estimates
of project tasks, responsibilities, and schedule.
EVMS
sections
2.1.a
2.1.b
Establish Estimates of Work
Product and Task Attributes
Informative Component
Examples of size measures include the following: number of
functions, function points, source lines of code, number of classes
and objects, number of requirements, number of interfaces, and
number of pages.
EVMS
section
2.2.b
Determine Estimates of Effort and
Cost
Typical work products: estimation rationale, project effort estimates,
and project cost estimates
EVMS
section
2.2.c
Project Planning Goal 2: Develop a Project Plan
Establish the Budget and Schedule
Typical work products: project schedules, schedule dependencies,
and project budget
Subpractices:
1. Identify major milestones.
3. Identify constraints.
4. Identify task dependencies.
5. Define the budget and schedule.
Establishing and maintaining the project’s budget and schedule
typically includes the following:
• defining the committed or expected availability of resources and
facilities
• determining time phasing of activities
• determining a breakout of subordinate schedules
• identifying milestones for delivery of products to the customer
• defining a management reserve based on the confidence level
in meeting the schedule and budget
EVMS
sections
2.2.b
2.2.a
2.2.a
2.2.c,
2.2.d
2.2.a,
2.2.c
2.1.c
2.2.b
2.2.i

CMU/SEI-2002-TN-016 5
Project Planning Goal 2: Develop a Project Plan (continued)
Plan for Project Resources
Typical work products: WBS work packages, WBS task dictionary,
and staffing requirements based on project size and scope
EVMS
section
2.2.e
Project Monitoring and Control Goal 1: Monitor Project Against Plan
Monitor Project Planning
Parameters
Monitoring typically involves measuring the actual values of project
planning parameters, comparing actual values to the estimates in the
plan, and identifying significant deviations.
Typical work products: Records of project performance and records
of significant deviations
Subpractices:
1. Monitor progress against the schedule.
2. Monitor the project’s cost and expended effort.
3. Monitor the attributes of the work products and tasks.
EVMS
section
2.4.a
Conduct Progress Reviews
Subpractices:
2. Review the results of collecting and analyzing measures for
controlling the project.
3. Identify and document significant issues and deviations from the
plan.
6. Track change requests and problem reports to closure.
EVMS
sections
2.4.d
2.4.d
2.4.e
Project Monitoring and Control Goal 2: Manage Corrective Action to Closure
Analyze Issues
Subpractices:
1. Gather issues for analysis.
Examples of issues to be gathered include:
• Significant deviations in the project planning parameters from
the estimates in the project plan
2. Analyze issues to determine need for corrective action.
EVMS
sections
2.4.a
2.4.f
2.4.b,
2.4.c
Take Corrective Action
Subpractice 1: Determine and document the appropriate actions
needed to address the identified issues.
Examples of potential actions include the following:
• Modifying the statement of work
• Modifying requirements
• Revising estimates and plans
• Renegotiating commitments
• Adding resources
• Revising project risks
EVMS
sections
2.4.e,
2.4.f,
2.5.a,
2.5.e
Manage Corrective Action
Subpractice 1: Monitor corrective actions for completion.
EVMS
section
2.4.e
Supplier Agreement Management Goal 2: Satisfy Supplier Agreements
Execute the Supplier Agreement
Typical work products: supplier progress reports and performance
measures
EVMS
section
2.2.d

CMU/SEI-2002-TN-0166
Integrated Project Management Goal 1: Use the Project’s Defined Process
Integrate Plans
Integrate the project plan and the
other plans that affect the project to
describe the project’s defined
process.
Subpractice 1: Integrate other plans that affect the project with the
project plan.
EVMS
section
2.1.c
Integrated Project Management Goal 1: Use the Project’s Defined Process (continued)
Manage the Project Using the
Integrated Plans
Typical work products: work products created by performing the
project’s defined process; collected measures (actuals) and progress
records or reports; revised requirements, plans, and commitments;
and integrated plans
Subpractices:
2. Monitor and control the project's activities and work products
using the project's defined process, project plan, and other plans
that may affect the project.
This task typically includes the following: Using the defined entry and
exit criteria to authorize the initiation and determine completion of the
tasks; monitoring the activities that could significantly affect the actual
values of the project’s planning parameters; tracking the project’s
planning parameters using measurable thresholds that will trigger
investigations and appropriate actions; monitoring product and project
interface risks; and managing external and internal commitments
based on the plans for the tasks and work products of implementing
the project’s defined processes.
3. Obtain and analyze the selected measures to manage the project
and support the organization’s needs.
5. Periodically review and align the project's performance with the
current and projected needs, objectives, and requirements.
EVMS
sections
2.1.c,
2.1.e,
2.2.d,
2.4.a
through
2.4.f,
2.5.a,
2.5.e
Manage Dependencies
Subpractice 2: Identify each critical dependency.
EVMS
section
2.2.a
Measurement and Analysis Goal 1: Align Measurement and Analysis Activities
Establish Measurement Objectives
The sources for measurement objectives may be management,
technical, project, or process implementation needs. Sources of
information needs and objectives may include the following:
• Project plans
• Monitoring of project performance
• Established management objectives
• Formal requirements or contractual obligations
• External industry benchmarks
EVMS
section
2.2.b
Specify Measures
Subpractice 1: Identify candidate measures based on documented
measurement objectives.
EVMS
section
2.2b

CMU/SEI-2002-TN-016 7
2.2 CMMI Expected and Informative Components Supporting EVM
Principles
In the expected and informative model components of five process areas, CMMI provides
more explicit guidance than does EVMS for implementing process improvements towards
achieving the principles of an EVM system. CMMI specific practices and informative
components provide additional guidance regarding the EVM principles of controlling a
project’s technical, schedule, and cost objectives and objectively assessing accomplishments.
In some instances, EVMS guidelines are nominally similar to CMMI, but are dissimilar in
substance or intent. Consequently, an organization that uses EVM may find that, after
mapping its processes to the nominally similar CMMI practices, there are gaps between its
processes and the practices expected by CMMI. The organization may need to improve its
documentation or add activities to its current processes to meet CMMI requirements.
The following process areas have specific practices and informative model components that
address control of a project’s technical, schedule, and cost objectives or objective assessment
of accomplishments but have no counterparts in EVMS:
• Requirements Management
• Measurement and Analysis
• Process and Product Quality
Assurance
• Requirements Development
• Risk Management
Table 2 shows the CMMI specific practices and informative components that provide
information that will support more effective implementation of EVM principles but which are
not included in EVMS. The far right column of Table 2 cites the EVMS section that is
nominally similar to CMMI or displays “N” if there is no counterpart to CMMI in EVMS.
Table 2: CMMI Expected and Informative Components Supporting EVM
Principles
Requirements Management Goal 1: Manage Requirements
Identify inconsistencies between
Project Work and Requirements
Subpractices:
1. Review project’s plans, activities, and work products for
consistency with the requirements and the changes made to them.
3. Identify changes that need to be made to the plans and work
products resulting from changes to the requirements baseline.
EVMS
sections
2.1.c
2.5.a,
2.5.d,
2.5.e

CMU/SEI-2002-TN-0168
Measurement and Analysis Goal 1: Align Measurement and Analysis Activities
Specify Measures
Data for base measures are obtained by direct measurement.
Examples of commonly used base measures include the following:
estimates and actual measures of work product size (e.g., number of
pages), estimates and actual measures of effort and cost (e.g.,
number of person hours), and quality measures (e.g., number of
defects, number of defects by severity).
Examples of commonly used derived measures include the following:
earned value, schedule performance index, defect density, peer
review coverage, and test or verification coverage.
Subpractice 3: Specify operational definitions for the measures.
Operational definitions are stated in precise and unambiguous terms.
They address two important criteria as follows:
i. Communication: What has been measured, how it was
measured, what are the units of measure, and what has been
included or excluded?
ii. Repeatability: Can the measurement be repeated, given the
same definition, to get the same results?
EVMS
section
N
Specify Data Collection and
Storage Procedures
Specify how measurement data will
be obtained and stored.
Typical Work Product: data collection and storage procedures
Subpractice 3: Specify how to collect and store the data for each
required measure.
Explicit specifications are made of how, where, and when the data will
be collected. Procedures for collecting valid data are specified.
EVMS
section
N
Process and Product Quality
Assurance Goal 1: Objectively Evaluate Processes and Work Products
Objectively Evaluate Processes
Typical work products: evaluation reports, noncompliance reports,
and corrective actions
EVMS
section
5.3
Objectively Evaluate Work Products
and Services
Objectively evaluate the designated
work products and services against
the applicable process descriptions,
standards, and procedures.
Subpractice 2: Establish and maintain clearly stated criteria for the
evaluation of work products.
EVMS
section
N
Process and Product Quality
Assurance Goal 2: Provide Objective Insight
Communicate and Ensure
Resolution of Noncompliance
Issues
Typical work products: corrective action reports, evaluation reports,
quality trends
EVMS
section
5.3
Establish Records
Typical work products: evaluation logs, quality assurance reports,
status reports of corrective actions, and reports of quality trends
EVMS
section
5.3
Requirements Development Goal 3: Analyze and Validate Requirements
Analyze Requirements
One of the other actions is the determination of which key
requirements will be used to track technical progress.
Typical work product 4: technical performance measures (TPM)
Subpractice 5: Identify TPMs that will be tracked during the
development effort.
EVMS
sections
2.2.b,
2.2.b
Risk Management Goal 2: Identify and Analyze Risks

CMU/SEI-2002-TN-016 9
Identify Risks
Subpractice 1: Identify the risks associated with cost, schedule, and
performance in all appropriate product life-cycle phases.
EVMS
section
3.5.4
Risk Management Goal 3: Mitigate Risks
Implement Risk Mitigation Plans
Monitor the status of each risk
periodically and implement the risk
mitigation plan, as appropriate.
Refer to the Project Monitoring and Control process area for
information about revising the project plan.
Subpractices:
4. Establish a schedule or period of performance for each risk-
handling activity that includes the start date and anticipated
completion date.
5. Provide continued commitment of resources for each plan to allow
successful execution of the risk-handling strategy.
6. Collect performance measures on the risk-handling activities.
EVMS
section
3.5.4
Table 3 shows EVMS guidelines. The narrative description is an abstract of the full text. The
shaded section numbers are not related to CMMI. The EVMS sections that are shaded are
primarily applicable to indirect costs and financial controls.
Table 3: EVMS Guidelines
Section Abstract of EVMS Text
2.1.a Define the authorized work elements for the program. A work breakdown structure (WBS) is commonly
used in this process.
2.1.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.
2.1.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.
2.1.d Identify the organization responsible for controlling overhead (indirect costs).
2.1.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.
2.2.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.
2.2.b Identify physical products, milestones, technical performance goals, or other indicators that will be used
to measure progress.
2.2.c Establish and maintain a time-phased budget baseline, at the control account level, against which
program performance can be measured.
2.2.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.
2.2.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.
2.2.f Provide that sum of all work package budgets equals the control account budget.
2.2.g Identify and control level of effort activity (unmeasurable effort).
2.2.h Establish overhead budgets for expenses that will become indirect costs.
2.2.i Identify management reserves.
2.2.j Provide that the program target cost is reconciled with the sum of all internal budgets plus management
reserve.
2.3.a through
2.2.f
Miscellaneous accounting considerations.

CMU/SEI-2002-TN-01610
Section Abstract of EVMS Text
2.4.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:
(1) comparison of the amount of planned budget and the amount of budget earned for work
accomplished (Schedule Variance)
(2) comparison of the amount of the budget earned and the actual direct costs for the same work (Cost
Variance)
2.4.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.
2.4.c Identify budgeted and actual indirect costs at the level and frequency needed by management for
effective control, along with the reasons for any significant variances.
2.4.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.
2.4.e Implement managerial actions taken as the result of earned value information.
2.4.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.
2.5.a Incorporate authorized changes in a timely manner, recording the effects of such changes in budgets
and schedules.
2.5.b Reconcile current to prior budgets.
2.5.c Control retroactive changes to records pertaining to work performed that would change previously
reported actual costs, earned value or budgets.
2.5.d Prevent revisions to the budget except for authorized changes.
2.5.e Document changes to the performance measurement baseline.
2.2.1 Requirements Management
The purpose of Requirements Management is to manage the requirements of the project’s
products and product components and to identify inconsistencies between those requirements
and the project’s plans and work products.
EVMS addresses only work requirements, not product requirements. Although EVMS
discusses the use of a work breakdown structure to segregate work scope requirements into
definable product elements (section 3.2) and discusses preventing revisions to the budget
except for authorized changes (section 2.5.d), it does not discuss the work, plans, budgets, or
schedules in relation to the product requirements.
2.2.2 Measurement and Analysis
CMMI addresses establishing quantifiable measures and operational definitions for the
measures, stated in precise and unambiguous terms (SP 1.2). This notion is especially
important to developing clear definitions of completion for earning value. EVMS does not
require precise, quantifiable measures or operational definitions.

CMU/SEI-2002-TN-016 11
For example, the EVMS process discussion in the guidelines states that objective earned
value methods are preferred, but it also states that management assessment may be used to
determine the percentage of work completed for a task or a group of tasks and that
management assessment may include the use of metrics for work measurement (Section 3.7).
CMMI expects that measures be specified to address the measurement objectives, including
work package progress and completion. CMMI recognizes earned value as a derived measure
built upon defined base measures. EVMS, on the other hand, does not address the definition
of the base measures upon which earned value is built. Taking all these points into
consideration, an organization’s implementation of EVMS may not provide sufficient,
objective evidence to substantiate implementation of SP 1.2.
CMMI requires specification of how measurement data will be obtained and stored (SP 1.3).
EVMS is silent on this issue.
2.2.3 Process and Product Quality Assurance
CMMI and EVMS differ in both product and process quality assurance.
3URFHVV 4XDOLW $VVXUDQFH
Both CMMI and the EVMS rely strongly on process quality assurance to provide objective
insight into processes and associated work products. The difference is in how they address
the documentation of the process. Whereas CMMI consistently addresses objective
evaluation of processes for adherence to applicable process descriptions, standards, and
procedures, the EVMS does not specifically address this.
3URGXFW 4XDOLW $VVXUDQFH
There is a difference between CMMI and the EVMS regarding the criteria for completing
work and taking earned value. That difference, which concerns measurement of the quality of
work products, is similar to the difference in Measurement and Analysis regarding precise,
quantifiable measures or operational definitions.
CMMI describes a work product as any artifact produced by a process and a work package as
a singular work unit that can be separately assigned, performed, and tracked. A work product
may also have attributes that are stated as project planning parameters and have clearly stated
criteria for evaluation. Consequently, per CMMI, the completion of a work package is
dependent on that work package’s work product meeting clearly stated criteria for its
evaluation. The criteria for declaring that a work package is complete may include quality
and technical criteria, not just a measure of the quantity of work accomplished.
Per SP 1.2, designated work products are objectively evaluated against the applicable process
descriptions, standards, and procedures. For example, the criteria for completion of a

CMU/SEI-2002-TN-01612
software component may be that all planned functionality is included and has been tested
successfully.
The EVMS is internally inconsistent regarding the criteria for completing a work package.
Per EVMS Section 3.8, Performance Measurement, the following is true:
• Earned value is a measurement of the quantity of work accomplished.
• The quality and technical content of the work performed are controlled by other
processes.
This assertion that earned value is dependent only on the quantity of work performed is
inconsistent with EVMS Section 3.7.1 that states that a discrete work package has a definable
scope and objectives on which progress can be measured.
Because of the inconsistent guidance regarding the quality and technical content of the work
performed, and, as discussed above, the EVMS’ lack of a requirement for precise,
quantifiable measures and operational definitions for the measures, an organization’s
implementation of EVMS may not provide sufficient, objective evidence to substantiate
implementation of SP 1.2 during an appraisal.
2.2.4 Requirements Development
The Requirements Development process area addresses the identification of key requirements
to be used in tracking technical progress and asserts that these key requirements have a strong
influence on cost, schedule, functionality, risk, or performance. In the CMMI context, these
are product and product component requirements.
As discussed in 2.2.1, EVMS addresses only work requirements, not product and product
component requirements.
2.2.5 Risk Management
The Risk Management process area relates to several other process areas including the
Project Monitoring and Control process area. EVMS is silent on risk management. Risk
management is inferred, but not explicitly stated, in the discussion of management reserve.
The discussion states management reserve is held for growth within the currently authorized
work scope, rate changes, and other program unknowns (EVMS, Section 3.5.4). However,
EVMS provides no information regarding the identification, analysis, or mitigation of risks.

CMU/SEI-2002-TN-016 13
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Recommended process improvements are provided in this section to close the gaps and
inconsistencies discussed in the previous sections. This section addresses the deficiencies that
an organization may have if it were only following the EVMS guidelines without also
implementing the practices of the related CMMI process areas. If an organization’s
documented process descriptions, standards, and procedures for the application of EVM do
not achieve the intent of the associated goals, then the organization may need to identify and
implement process improvements to achieve the related CMMI specific goals.
3.1 Requirements Management
Refine the documentation of process descriptions, standards, and procedures to ensure that
inconsistencies between the project work and requirements are identified. This
documentation requires the following:
• The project plans, activities, and work products are reviewed for consistency with the
product requirements and the changes made to them.
• Changes are identified that need to be made to the plans and work products resulting
from changes to the requirements baseline.
3.2 Measurement and Analysis
Refine the documentation of process descriptions, standards, and procedures for the
application of EVM to include the following requirements:
• Base measures of technical progress are derived from the key requirements that are
identified during requirements development as having a strong influence on cost,
schedule, functionality, risk, or performance.
• Base measures of technical progress for earned value are precise and quantifiable.
• Operational definitions are specified for the measures and are stated in precise and
unambiguous terms.
3.3 Process and Product Quality Assurance
Broaden the documentation of process descriptions, standards, and procedures associated
with EVM to cover the process areas identified in sections 1 and 2 as primarily related to
EVM. This documentation will establish the basis for objectively evaluating adherence of
these EVM-related processes to applicable process descriptions, standards, and procedures.

CMU/SEI-2002-TN-01614
Refine documentation of process descriptions, standards, and procedures for the application
of EVM to specify that the completion of a work package may include meeting technical
performance or quality criteria as well as the quantity of work accomplished, when
appropriate.
3.4 Requirements Development
of EVM to identify key requirements that have a strong influence on cost, schedule,
functionality, risk, or performance and will be used to track technical progress.
3.5 Risk Management
of EVM so that they appropriately integrate with or incorporate the practices of the Risk
Management and Project Monitoring and Control process areas.
For example, these refinements to the documentation for applying EVM might address the
following:
• Revising the estimate at completion if the likelihood and cost impact of the risk
evaluation exceeds defined thresholds.
• Revising the project plan, including the schedule and budget, to incorporate the risk
mitigation plan.

CMU/SEI-2002-TN-016 15
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Technical performance measures characterize performance attributes of products or product
components. For organizations that use TPM, some CMMI references are not sufficient to
ensure that measures are specified to address TPM objectives.
Within the systems engineering environment for product development, a technical
performance measure is a base measure. Earned value is a derived measure. The effectiveness
with which earned value can address the measurement objectives of a project depends on the
effectiveness and objectivity of its base measures, including technical performance measures.
There are subpractices regarding technical performance measurement (TPM) in the
Requirements Development process area. For example, Specific Practice 3.3, Analyze
Requirements includes the subpractice, “Identify TPMs that will be tracked during the
development effort.” However, there are no corresponding examples in the Project Planning
or Project Monitoring and Control process areas to plan and monitor technical performance
measures.
Technical performance measures are attributes of products or product components, and
therefore, are attributes of work products. However, in both the Project Planning and Project
Monitoring and Control process areas, the examples of the attributes of work products
include size and complexity, but not technical performance measures. For organizations that
use TPM, including organizations that must comply with U.S. Government contractual
requirements for performance-based management systems, such as EVMS, the cited CMMI
references are not sufficient to ensure that measures are specified to address TPM objectives.
Thus, these would need to be implemented by organizations that have adopted CMMI and
plan to use TPM. For organizations that plan to use TPM, examples of typical work products
used in the project plan are a planned value profile, a tolerance band, and technical
milestones for TPM evaluation. An example of the attributes of the work products that are
monitored is TPM achievement to date.
An organization using TPM should consider addressing the examples cited above, in addition
to those included in CMMI specific practices, as part of its framework for process
improvement. If its documented process descriptions, standards, and procedures for the
application of EVM and TPM within the process areas cited above do not achieve the intent
of the associated goals, then the organization may need to identify and implement additional
process improvements to achieve the related CMMI specific goals.

CMU/SEI-2002-TN-01616
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The tables in section 2 map the CMMI model specific practices to EVMS guidelines. These
tables are designed to aid appraisers determining whether an organization’s process
descriptions, standards, and procedures meet the full intention of EVMS guidelines and
CMMI specific practices.
An objective of CMMI is to reduce the cost of establishing and maintaining process
improvement efforts across an enterprise using multiple disciplines to produce products or
services. Advice for reducing these costs has been provided by the SEI and authorized
appraisers as follows:
Regarding the costs of conducting appraisals, the appraised organization should provide
sufficient evidence to the appraisal team to enable the team to quickly verify and validate the
specific practices rather than to take the additional time to discover and collect evidence for
the targeted practices [Phillips 02]. The concept is to shift as much work as possible away
from the “on-site” portion of the appraisal and to complete it beforehand. The pre-work
should include mapping the organization’s processes to CMMI. The better data your appraisal
team starts with, the less time it will take the team to complete [Minnich 02].
The CMMI project has produced one method to meet the need for a rigorous appraisal tool
for benchmarking, the Standard CMMI
Appraisal Method for Process Improvement
(SCAMPISM
), Version 1.1: Method Definition Document [SEI 01]. Per the SCAMPI Method
Definition Document, if an organization has in place assets, mechanisms, and objective
evidence that substantiate its implementation of model practices, it is in the organization’s
best interest to share that knowledge to ensure that the appraisal team obtains a complete and
accurate understanding of the organization’s implementation of model practices. Many
organizations capture this understanding through assets such as traceability and mapping
tables from the model to their organization processes and project instantiations.
Implementation of the model within the organization may be further reinforced through
additional mechanisms, such as documentation, verification, and oversight activities (e.g.,
internal appraisals, audits, reviews, and status reports).
The SCAMPI method provides for the collection of data from the following sources:
SM
SCAMPI is a service mark of Carnegie Mellon University.

CMU/SEI-2002-TN-016 17
• Instruments – Written information related to the organizational unit’s implementation of
CMMI model practices. This can include assets such as an organizational mapping of
CMMI model practices to its corresponding processes as well as questionnaire responses.
• Documents – Artifacts reflecting the implementation of one or more model practices.
These typically include organizational policies, procedures, and implementation-level
artifacts.
• Interviews – Focused discussions with organization members regarding CMMI practice
implementations.
The tables in this technical note map the CMMI model specific practices to the EVMS
guidelines or other EVMS sections, where they exist, and also include the CMMI model
specific practices that have no corresponding guidance in the EVMS. Model users should
understand the additional information that is provided in Section 3 of the EVMS, EVMS
Process Discussion. The process discussion is an aid in understanding and applying EVM
methods. If an organization’s process descriptions, standards, and procedures meet the full
intention of the corresponding EVM standard guidelines and if the same artifacts also map to
the CMMI model practices, then the complete mappings are instruments that provide
objective evidence that substantiate the organization’s implementation of model practices.
Also, if the organization has additional mechanisms such as oversight activities (e.g., internal
appraisals, audits, reviews, and status reports), then documentation of the oversight activities
may provide further evidence of the implementation of the targeted practices within the
organization. Examples of oversight activities regarding EVM include the following:
• internal appraisals or surveillance of the management system to ensure continued
compliance with EVMS guidelines
• audits conducted by external organizations, such as the customer or government agencies
If assets such as these, or indicators of the existence of the assets, are made available to the
appraisal team, the appraisal team must verify whether the objective evidence provided is
adequate for substantiation of practice implementation and achievement of specific goals.

CMU/SEI-2002-TN-01618
6XPPDU
No single source of guidance to date has reconciled the implementation of EVM with CMMI.
This technical note has identified practices within CMMI that are not included in EVMS but,
if added to an organization’s processes, will strengthen adherence to EVM principles.
Additionally, the tables included herein can be used to develop instruments that will provide
evidence to the appraisal team that will enable the team to quickly verify and validate specific
practices based upon effective implementation of EVMS.
Finally, additional information has been included in this technical note to aid those
using CMMI for process improvement.

CMU/SEI-2002-TN-016 19
5HIHUHQFHV
ANSI 02 American National Standards Institute/Electronic Industries Alliance.
Earned Value Management Systems (ANSI/EIA-748-A-1998, reaffirmed
August 28, 2002). Washington, D.C.: American National Standards Institute,
2002.
http://global.ihs.com
DoD 02a Department of Defense. DoD Regulation 5000.2: Mandatory Procedures for
Major Defense Acquisition Programs and Major Automated Information
Systems. Washington, D.C.: Department of Defense, 2002.
http://www.acq.osd.mil/ap/index.html
DoD 02b Department of Defense. DoD Directive 5000.1: The Defense Acquisition
System. Washington, D.C.: Department of Defense, 2000.
http://www.acq.osd.mil/ap/index.html
EIA 98 Electronic Industries Alliance. Systems Engineering Capability Model
(EIA/IS-731). Washington, D.C.: Electronic Industries Alliance, 1998.
http://geia.org/sstc/G47/731dwnld.htm.
Minnich 02 Minnich, Ilene. “CMMI Appraisal Methodologies: Choosing What is Right
for You.” CrossTalk: The Journal of Defense Software Engineering 15, 2
(February 2002): 7-8.
http://www.stsc.hill.af.mil/crosstalk/2002/feb/minnich.asp
OMB 02 White House Office of Management and Budget (OMB) Circular A-11, Part
7, June 2002 and Supplement to Part 7, Capital Programming Guide:
Planning, Budgeting, and Acquisition of Capital Assets, July 1997 (Guide).
http://www.whitehouse.gov/omb/circulars/a11/cpgtoc.html
Phillips 02 Phillips, Mike. “CMMI Version 1.1: What Has Changed?” CrossTalk: The
Journal of Defense Software Engineering 15, 2 (February 2002): 4-6.
http://www.stsc.hill.af.mil/crosstalk/2002/feb/phillips.asp
PMI 00 American National Standards Institute/Project Management Institute. A
Guide to the Project Management Body of Knowledge (PMBOK
Guide),

CMU/SEI-2002-TN-01620
2000 Edition (ANSI/PMI 99-001-2000). Newton Square, PA: American
National Standards Institute, 2000.
http://www.psmsc.com
SEI 01 CMMI Product Development Team. SCAMPI V1.1, Standard CMMI
Assessment Method for Process Improvement: Method Definition Document
(CMU/SEI-2001-HB-001). Pittsburgh, PA: Software Engineering Institute,
Carnegie Mellon University, December 2001.
http://www.sei.cmu.edu/publications/documents/00.reports/00tr009.html.
Solomon 01 Solomon, Paul. “Practical Software Measurement, Performance-Based
Earned Value.” CrossTalk: The Journal of Defense Software Engineering 14,
9 (September 2001): 25-29.
http://www.stsc.hill.af.mil/crosstalk/2001/sep/solomon.asp
Solomon 02 Solomon, Paul. “Going From Performance-Based Earned Value to the
CMMI.” CrossTalk: The Journal of Defense Software Engineering 15, 9
(September 2002): 30.
http://www.stsc.hill.af.mil/crosstalk/2002/sep/solomon.asp
Staley 02 Staley, Mary Jo; Oberndorf, Patricia; and Sledge, Carol A. Using EVMS with
COTS-Based Systems (CMU/SEI-2002-TR-022). Pittsburgh, PA: Software
Engineering Institute, Carnegie Mellon University, June 2002.
http://www.sei.cmu.edu/publications/documents/02.reports/02tr022.html

CMU/SEI-2002-TN-016 21
$SSHQGL[
This appendix contains other useful information and references.
Glossary Sources
The following sources were used for the glossary terms provided in this section. The terms
extracted from each source are listed after the name of the source:
Table 4: Glossary Sources
Glossary Source Terms Extracted
EIA 98 technical performance measurement, technical performance
parameter
EIA 02 actual cost, control account, cost variance, earned value, estimate at
completion, level of effort, resource plan, schedule variance
PMI 00 cost performance index, earned value management, effort, planned
value, resource-limited schedule, schedule performance index
Glossary Definitions
The following terms and definitions are provided to aid you in applying CMMI as well as
EVM to your process improvement program.
actual cost: The costs actually incurred and recorded in accomplishing the work
control account: A management control point at which budgets (resource plans) and actual
costs are accumulated and compared to earned value. A control account is a natural
management point for planning and control since it represents the work assigned to one
responsible organizational element on one project work breakdown structure. It is where the
project cost, schedule, and work scope are integrated, planned, and managed.
cost variance: A measure for the cost performance on a project. It is the difference between
the earned value and actual cost.
cost performance index (CPI): The cost efficiency ratio of earned value to actual cost. CPI
equals earned value divided by actual cost.
earned value (EV): The value of completed work in terms of the budget assigned to that
work.

CMU/SEI-2002-TN-01622
estimate at completion: The current, most likely estimated total cost for authorized work. It
equals actual cost plus the most likely, estimated costs to completion.
planned value: See “resource plan.”
resource plan: The time-phased budget that is the schedule for the planned expenditure of
project resources for accomplishment of work scope. The resource plan is also called
“planned value. “
resource-limited schedule: A project schedule with start and finish dates that reflect
expected resource availability. The final project schedule should always be resource limited.
schedule performance index (SPI): The schedule efficiency ratio of earned value
accomplished against the resource plan. SPI = EV divided by the PV.
schedule variance (SV): A metric for the schedule performance. It equals earned value
minus the time-phased budget.
technical performance measurement (TPM): The technique of predicting the future value
of key technical parameters of the end system based on current assessments of systems that
make up that end system.
Notes:
1. TPM involves the continuing verification of the degree of anticipated and actual
achievement for technical parameters. TPM confirms progress and identifies
variances that might jeopardize meeting an end system requirement. Assessed values
falling outside established tolerances indicate a need for evaluation and corrective
action.
2. The key characteristics of TPM are as follows:
a. Achievement-to-Date is the present achieved value of the technical parameter
based on estimates or actual measurement.
b. Current Estimate is the value of the technical parameter predicted to be achieved
by the end of the technical effort with remaining resources (including schedule
and budget).
c. Technical Milestone is a point where TPM evaluation is accomplished or
reported.
d. Planned Value Profile is the time-phased achievement projected for the technical
parameter from the beginning of the development or as replanned as a result of a
corrective projection.
e. Tolerance Band is an envelope containing the Planned Value Profile and
indicating the allowed variation and projected estimation error.
f. Objective is the goal or desired value at the end of the technical effort.
g. Threshold is the limiting acceptable value that, if not met, would jeopardize the
program.

CMU/SEI-2002-TN-016 23
h. Variation is the difference between the Planned Value and the Achievement-to-
Date value.
technical performance parameter (TPP): a selected subset of the system’s performance
parameters used as the technical measures tracked in TPM.
TPPs can be any of the following:
• specification requirements
• performance parameters such as measures of effectiveness and other key decision
metrics used to guide and control progressive development
• design to cost requirements or goals
Recommended Sources
The following are recommended sources of information concerning base measures for earned
value:
• A source of information for information needs and objectives and for specifying
measures to address earned value measurement objectives, based on [PSM 01], is the
CrossTalk article Practical Software Measurement, Performance-Based Earned
Value [Solomon 01].
• A source of information for specifying measures to address earned value measurement
objectives, based on technical performance, requirements management, and typical work
products in CMMI, is the CrossTalk article Going from Performance-Based Earned Value
to the CMMI [Solomon 02].

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