Transcript of R simpson elee
- 1. Global Business ServicesPublic SectorEVMS Self-Evaluationand
Certification NASA Program Management Challenge 2012 Evolve and
Excel February 22-23, 2012 2012 IBM Corporation
- 2. Global Business ServicesPublic SectorPresenters Randy
Simpson, PMP IBM GBS Public Sector NASA Account Lead/EVMS SME
Michael Lee, PMP IBM GBS Public Sector EVMS PMO Leader Both are
members of the IBM Public Sector Earned Value Management Systems
Program Management Office (EVMS PMO)2 2012 IBM Corporation
- 3. Global Business ServicesPublic SectorObjectives To provide a
perspective of the EVMS Certification challenge To identify the
areas of focus necessary to position an organization for a
successful run at certification3 2012 IBM Corporation
- 4. Global Business ServicesPublic SectorGovernment
Accountability Initiatives Government Performance Results Act
(GPRA-1993) Federal Acquisition Streamlining Act (FASA-1994)
Clinger Cohen (ITMRA-1996) Sarbanes Oxley Act (2002) OMBs Circular
A-11 (2002) Interim Defense Acquisition Guidebook (2002) NPD 9501.3
Earned Value Performance Management FAR 34.201, 2, 3 & FAR
52.234-2, 3, 4 EVMS (July 2006) ANSI/EIA-748A-1998 EVMS (May 1998)
NDIA PMSC EVMS Intent Guide (Nov 2006)4 2012 IBM Corporation
- 5. Global Business ServicesPublic SectorEarned Value Management
(EVM) Overview Rigorous, distributed program management methodology
and system Integrates Scope Schedule Resource Underlying foundation
Program Manager has limited span of control Responsibility must be
distributed Consistent methodology needed to aggregate performance
measures on large programs Isolate performance to individual work
package Facilitates direct strike on elements of program needing
course correction5 2012 IBM Corporation
- 6. Global Business ServicesPublic Sector EVMS in a Nutshell EAC
BAC Projection of Cost BCWS Variance at Completionm Target Schedule
Projection of Schedule Delay at Completion ETCC O S T Current
Schedule To-Date FCST Schedule Variance To-Date Cost Variance ACWP
BCWS Budgeted Cost of Work Scheduled BCWP Budgeted Cost of Work
Performed (Earned Value) ACWP Actual Cost of Work Performed FCST
Forecast of Remaining Work BAC Budget at Completion ETC Estimate to
Complete BCWP EAC Estimate at Completion Data Date T I M E 6 2012
IBM Corporation
- 7. Global Business ServicesPublic Sector FIVE BASIC PERFORMANCE
DATA QUESTIONS & ANSWERS QUESTION ANSWER ACRONYM* How much work
should Budgeted Cost for BCWS be done? Work Scheduled How much work
is done? Budgeted Cost for BCWP Work Performed How much did the is
done Actual Cost of ACWP work cost? Work Performed What was the
total job Budget at Completion BAC supposed to cost? What do we now
expect the Estimate at Completion EAC total job to cost?* PMI has
adopted some new terminology & acronyms for these elements (but
the theory is unchanged) 7 2012 IBM Corporation
- 8. Global Business ServicesPublic SectorPerspective of EVMS
Certification is not focused; it isCertification comprehensive
Stakeholders IBR Focus (Process is limited) Process Baseline
Development Status & Forecasting Focus of most discussions on
EVMS Tools Metrics & Reports Management Corrective Action 8
2012 IBM Corporation
- 9. Global Business ServicesPublic SectorTenets of EVMS
Certification Tenet 1 Stakeholders Documented EVMS system meets all
32 of the ANSI 748 guidelines Process Tenet 2 Project(s) are
executing the Baseline Development documented system Tenet 3 Status
& Forecasting Project Managers, Functional Managers and Control
Account Metrics & Reports Managers are using the system to
manage the program Management Tenet 4 The EVMS is sustainable and
an Corrective Action adequate surveillance plan is in place9 2012
IBM Corporation
- 10. Global Business ServicesPublic SectorEVMS Guidelines,
Systems & Process Groups EVMS Process Managerial Wor k Change
Indirect Rate Material Subcontract Groups (EVMIG) Organizing
Scheduling Accounting Mgm t Analysis Authorization Incorporation
Management Management BaselineEVMS Processes Commonly Estimates At
Variance Schedule Schedule Change Data Indirect Rate Subcontract
Organizing Work Auth Status & Budgeting Accumulation &
Material Control Management (Grey Implemented Complete Analysis
Devt Update (Internal & Reporting Man agement Badge &
Traditional) External ) Self-Evaluation Manager ial Baseline
Management Accounting Outsour cing Organizational Structure
Executive D ashboard & Schedule , Cost & Integration
Management CAS Compliant Accounting Tools & Sys tems Portfolio
Management Certified Procurement Tools System System Tools 22.
Monthly 8. Time - phased 8. Time- phased 28. Incor porate 28. In
corpor ate 16. Actual 4. Orgs EVMS Budget Baseline Budg et Baseline
Authorized Author ized Costs Recorded Responsible 21. Cost 1. WBS
Reports Changes Changes Consistent w/ For Accumulatio n & Contr
ibu ting 9. . Elementof 9 Element of 29. Reconcile 29. Reconcile
Budgets Overhe ads Assignment to Element Only; 23. Variance Cost Br
eakdown Cost Br eakdown 6. Sequence Current Bud get Cur rent Budget
CAs ; Appro priate Subcontractors 17. Summarize 13. Overhe ad
Analysis 10. Wor kk & Plan & To Pr io r bbudgets To Prior
udgets Cost Per for mance & Subcontr acts 10. Wor & Plan--
Inter- Costs into WBS; Budgets & 25 . Roll- up ning Packages
nin g Packages depe ndencies 30.30. Retr oactive Retr oactive No
Allocation Allocation Measure ment; must also be Changes Full Accou
ntability compliant with Var ia nces & 11. CA 11. CA 19. Recor
d 2. OBS 18. Summarize For Mater ial the stand ards Report
Reconcilia tion Reconciliation 31. Pre vent 31. Prevent Indir ect
Costs Costs into OBS ; Purchased on to the degree 26. Implement
Unauthorized Unauthorized For Project Project that they apply
Guidelines & 12 . LOE Time 12. LOE Time text No Allocation
Managerial Changes Changes Allocation Supporting Phase d Budgets
Phased Budgets Processes Action 3 2. Document 32. Document 20. Un
it or Lot 24. Manage 3 . Bu sin ess 14. Mgmt 14. Mgmt 27 . Revised
Changes Costs, if And Report On Pr ocess Reserve && UB
Reserve UB Material Estimates at 7. Products, applicable Overhe ads
Integr ation Con tro l Complete (EAC) 15. Prog ram 15. Pr ogram
Milestones & Per for mance Contracts Policies Reco nciliation
Reconciliation Measures & Procedures Estimating Contracts
Pricing & Accounting Indirect Rate Subcontract 5. RAM
Estimating Policies & Mgmt Policies & Pr icing & Policy
& Risk & Proced ures Pr ocedur es Estimating Procedures Cor
rective Id entification , Pro curement Action Development Policie s
& Scope & Impact & PM/EVMS Management Methodology Tr
acking Procedur es Policy Requirements Definition o f Chan ges
Qualified Project , Qualified Schedulers , Estimators, Cost
Qualified Enterprise Qualified Procurement People Functional and
Control Analysts, EV Analysts & C ontract Financial Analysts
and Specialists and Subcontract Account Managers Administrators
Management Accountants Administrators Leadership Executive
Sponsorship & Subscription10 2012 IBM Corporation
- 11. Global Business ServicesPublic SectorSo why Certify? EVMS
certification candidate is mandated by the customer pursuant to RFP
and contract clause imposition (e.g. DFAR 252.234-7000/1) NOTICE OF
EARNED VALUE MANAGEMENT SYSTEM (MAR 1998) (a) The offeror shall
provide documentation that the cognizant Administrative Contracting
Officer (ACO) has recognized that the proposed earned value
management system (EVMS) complies with the EVMS criteria of DoD
5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs (MDAPs) and Major Automated Information System (MAIS)
Acquisition Programs, or that the proposed cost/schedule control
system has been accepted by the Department of Defense. (b) If the
offeror proposes to use a system that does not meet the
requirements of paragraph (a) of this provision, the offeror shall
submit a comprehensive plan for compliance with the EVMS criteria.
Certified EVMS as a competitive advantage11 2012 IBM
Corporation
- 12. Global Business ServicesPublic SectorMethodologies for
Certification Government Agency Certification (~>95%) DoD
(DCMA), NASA, DOE, Security Agencies Other Agencies developing
capability but this will likely be measured in years, not months
Most follow DCMA protocol Self Evaluation with Government
Participation (~ If discrepancies can be resolved in relatively
short time > Follow-up review should be scheduled to continue
Certification process Documentation Process Group Executive
Summaries Guide Evaluations (primary and supporting) Corrective
Action Request (CAR) Log and disposition Continuous Improvement
Opportunities (CIO)33 2012 IBM Corporation
- 34. Global Business ServicesPublic SectorProcess to
Certification Program Team & Deliver CARs to Self Evalutation
Out Self Eval Team Project Team Develops Project Program Brief
Meeting(s) to Corrective Action Plan(s) Team Discuss CARS
Disapproves Additional Action(s) Reqd Project Team Self-Eval Team
Self-Eval Team Approves Executes Assures Closure Reviews Corrective
Corrective Action Corrective Action Action Plan(s) Plan(s) Requests
Action(s) Closed Self-Eval Team Validation Director Provides
Validation Executive Agent All Discrepancies provides Director
Final EVMS Grants EVMS Closed Recommendation to DoD Certification
Report & Certification Executive Agent Reccomendation34 2012
IBM Corporation
- 35. Global Business ServicesPublic SectorFinal Report Executive
Summary CAR Log CIO Log Management Sub-Team Baseline Management
Sub-Team Accounting Sub-Team Outsourcing Sub-Team Process Group
Process Group Process Group Process Group Process Group Process
Group Process Group Process Group Process Group Summary Summary
Summary Summary Summary Summary Summary Summary Summary P 22.
Monthly 8. Time - phased 8. Time- phased P 28. Incorporate 28.
Incorporate 16. Actual 4. Orgs Support forms for Authorized
Authorized Costs Recorded 21. Cost 2,9,10,12,16,22,23 P EVMS P
Budget Baseline Budget Baseline P Responsible Changes Changes
Consistent w/ & 27 1. WBS Reports For P Accumulation & 23.
Variance P 9. Element of 9. Element of 29. Reconcile 29. Reconcile
P Budgets P Overheads Assignment to CARs Analysis Cost Breakdown
Cost Breakdown 6. Sequence Current Budget 17. Summarize Current
Budget CAs ; Appropriate P & To Prior budgets Costs into WBS;
To Prior budgets 13. Overhead 10. Work & Plan- 10. Work &
Plan - Cost Performance P Inter- P No Allocation Budgets &
Pning Packages ning Packages P Measurement; CIOs 25. Roll- up
dependencies 30.30. Retroactive Retroactive Allocation P Variances
& Changes Full Accountability P 11. CA 11. CA 19. Record 2. OBS
P Report 18. Summarize For Material Reconciliation Reconciliation
31. Prevent P Costs into OBS; 31. Prevent Indirect Costs Purchased
on Unauthorized Unauthorized No Allocation For Project 26.
Implement P 12. LOE Time 12. LOE Time Project Process Group P P P
Managerial Changes Changes Allocation P Forms P Phased Budgets
Phased Budgets P P Action 32. Document 32. Document 20. Unit or Lot
24. Manage Support forms for 3. Business P 14. Mgmt 14. Mgmt 27.
Revised Changes Costs, if And Report On 9,10,12,22, 23 &
Process Reserve && UB Reserve UB Integration Estimates at
Complete (EAC) 7. Products, applicable P Overheads 27 P P 15.
Program 15. Program Milestones & CARs CARs Reconciliation
Reconciliation Performance CARs CARs P CARs Measures CIOs CIOs
Support form for 22 5. RAM CIOs CIOs CIOs P CARs Support form for
23 Support forms for 9,10,22,26 & 27 CIOs CARs CARs CIOs CIOs
EVMS Process Managerial Work Change Indirect Rate Material
Subcontract Organizing Scheduling Accounting Mgmt Groups Analysis
Authorization Incorporation Management Management Narratives Forms
P Primary Guideline Compliance Disposition Form35 2012 IBM
Corporation
- 36. Global Business ServicesPublic SectorCertification Conduct
Review Identify/ correct discrepancies Prepare Final Report Submit
Final Report to Certifying Agency Agency Review (4-6 weeks) Letter
of Certification issued36 2012 IBM Corporation
- 37. Global Business ServicesPublic SectorSummary EVMS
Self-Evaluation is a valuable and viable method to achieve
certification A great training ground for contractor personnel
Takes some of the burden off government agencies May enable a
contractor to significantly accelerate certification because agency
scheduling is not an issue Builds contractor resource pool for
surveillance and other contract implementations Communication and
positioning is the key Agencies have to be willing to allow a
self-evaluation with their participation Some agencies have not
permitted this methodology Should communicate and coordinate with
your customer and CFA to explore if this could be an option Having
a credible team of EVMS folks to lead this helps an awful lot And
lastly, it isnt free there is a cost for self-evaluation but its
benefits far exceed this cost must look at it as an investment in
your EVMS capability because that is what it is37 2012 IBM
Corporation
- 38. Global Business ServicesPublic SectorAppendix 2012 IBM
Corporation
- 39. Contract Price Earned Value Management Gold Card NCC TAB
CBB Profit / Fees AUW OTB OVERRUN EAC TAB PMB Management Management
Reserve Reserve BAC PMB Undistributed Control Summary Level Budget
Accounts Planning Packages Schedule Variance Work Packages Planning
Packages Cost $ Variance TERMINOLOGY ACWP NCC Negotiated Contract
Cost Contract price less profit / fee(s) AUW Authorized Unpriced
Work Work contractually approved, but not yet negotiated /
definitized BCWS CBB Contract Budget Base Sum of NCC and AUW OTB
Over Target Baseline Sum of CBB and recognized overrun BCWP TAB
Total Allocated Budget Sum of all budgets for work on contract =
NCC, CBB, or OTB BAC Budget At Completion Total budget for total
contract thru any given level PMB Performance Measurement Baseline
Contract time-phased budget plan time Time Completion MR Management
Reserve Budget withheld by Ktr PM for unknowns / risk management
Now Date UB Undistributed Budget Broadly defined activities not yet
distributed to CAs CA Control Account Lowest CWBS element assigned
to a single focal point to plan & control scope / schedule /
budgetVARIANCES Favorable is Positive, Unfavorable is Negative WP
Work Package Near-term, detail-planned activities within a CA PP
Planning Package Far-term CA activities not yet defined into
WPsCost Variance CV = BCWP ACWP CV % = (CV / BCWP) *100 BCWS
Budgeted Cost for Work Scheduled Value of work planned to be
accomplished = PLANNED VALUE BCWP Budgeted Cost for Work Performed
Value of work accomplished = EARNED VALUESchedule Variance SV =
BCWP BCWS SV % = (SV / BCWS) * 100 ACWP Actual Cost of Work
Performed Cost of work accomplished = ACTUAL COSTVariance at
Completion VACOVERALL STATUS = BAC EAC EAC Estimate At Completion
Estimate of total cost for total contract thru any given level; may
be generated by Ktr, PMO, DCMA, etc. = EACKtr / PMO / DCMA%
Schedule = (BCWSCUM / BAC) * 100 LRE Latest Revised Estimate Ktrs
EAC or EACKtr SLPP Summary Level Planning Package Far-term
activities not yet defined into CAs% Complete = (BCWPCUM / BAC) *
100 TCPI To Complete Performance Index Efficiency needed from time
now to achieve an EACDoD TRIPWIRE = (ACWPCUM / BAC) >
100Unfavorable is < 1.0% Spent METRICS Favorable is * 1.0, EVM
POLICY: DoDI 5000.2, Table E3.T2 . EVMS in accordance with
ANSI/EIA-748 is required for cost or incentiveCost Efficiency CPI =
BCWP / ACWP contracts, subcontracts, intra-government work
agreements, & other agreements valued > $20M (Then-Yr $).
EVMSSchedule Efficiency SPI = BCWP / BCWS contracts > $50M (TY
$) require that the EVM system be formally validated by the
cognizant contracting officer. Additional Guidance in Defense
Acquisition Guidebook and the Earned Value Management
Implementation Guide (EVMIG). EVMS isBASELINE EXECUTION INDEX (BEI)
(Schedule Metric) discouraged on Firm-Fixed Price, Level of Effort,
& Time & Material efforts regardless of cost.BEI = # of
Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled
for Completion EVM CONTRACTING REQUIREMENTS:CRITICAL PATH LENGTH
INDEX (CPLI) (Schedule Metric) Non-DoD FAR Clauses Solicitation
52.234-2 (Pre-Award IBR) or 52.234-3 (Post Award IBR)CPLI =
(Critical PathBaseline Duration + Float Duration) / Critical
PathBaseline Duration Solicitation & Contract 52.234-4TO
COMPLETE PERFORMANCE INDEX (TCPI) # DoD( $20M) DFAR Clauses -
252.242-7001 for solicitations and 252.242-7002 for solicitations
& contractsTCPIEAC = Work Remaining / Cost Remaining = (BAC
BCWPCUM) / (EAC ACWPCUM) Contract Performance Report DI-MGMT-81466A
* 5 Formats (WBS, Organization, Baseline, Staffing &
Explanation) Integrated Master Schedule DI-MGMT-81650 * (Mandatory
for DoD EVMS contracts)ESTIMATE AT COMPLETION # Integrated Baseline
Review (IBR) - Mandatory for all EVMS contractsEAC = Actuals to
Date + [(Remaining Work) / (Efficiency Factor)] * See the EVMIG for
CPR and IMS tailoring guidance.EACCPI = ACWPCUM + [(BAC BCWPCUM) /
CPICUM ] = BAC / CPICUM EVM Home Page = https://acc.dau.mil/evm
eMail Address: EVM.dau@dau.milEACComposite = ACWPCUM + [(BAC
BCWPCUM) / (CPICUM * SPICUM)] DAU POC: (703) 805-5259 (DSN 655)
Revised December 2006# To Determine a Contract Level TCPI or EAC;
You May Replace BAC with TAB To Determine the TCPI BAC,LRE Replace
EAC with either BAC or LRE
- 40. Global Business ServicesPublic SectorTo perform quality
project management & financial analyses... CAN NOT DO THIS
(Integrated EVM, Measurement & Forecasting & Forecasting)..
Economic, Risk & Opportunity WITHOUT THIS Analysis (Minimum
Essential Baseline Status Collection Requirements) Change &
Reporting Mgmt Admin Baseline Development &
Authorization/Resource Planning Procedures/Methods Estimating
System Project Accounting System Critical Mass (Personnel) in
Planning, Project Accounting & Estimating Functions Senior
Management Buy-In, Support & Subscription must build from the
bottom40 2012 IBM Corporation
- 41. Global Business ServicesPublic Sector Documentation
Requirements EIA-748 Guidelines Organization Planning, Scheduling
& Budgeting Accounting Analysis & Mgmt Reports
Revisions/Data Maint Twenty Seven (27) Twenty Three (23) Twenty
Eight (28) Twenty Four (24) Twenty Nine (29) Twenty One (21) Twenty
Two (22) Twenty Five (25) Twenty Six (26) Seventeen (17) Thirty One
(31) Thirty Two (32) Fourteen (14) Nineteen (19) Eighteen (18)
Thirteen (13) Sixteen (16) Twenty (20) Twelve (12) Eleven (11)
Fifteen (15) Thirty (30) Seven (7) Three (3) Eight (8) Ten (10)
Four (4) Nine (9) One (1) Two (2) Five (5) Six (6) Item
Description1 Accounting Manual 1 1 12 Accounting System Data 1 13
Action Item Lists Authorization Docuements for Retroactive4 1
Budget Adjustments5 BCWS Supporting Documentation 16 Bill of
Materials 17 Budget Logs 1 18 Budget Records (Including MR &
UB) 1 19 Budget Revision Records 110 Change Authorization Documents
111 Change Control Procedure 1 112 Change Control Records 113
Charge Number Structure 114 Contract Change Documentation 115
Contract Data Requirments 116 Contract Work Breakdown Structure 1 1
1 117 Contractors Accounting Manual 118 Contractual Instruments 119
Control Account Plans 1 1 1 1 1 120 CWBS Dictionary 1 121 DCAA
Audit Reports 122 DCAAM 7640.1 123 Desktop Procedures 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 124 Disclosure
Statements (CAS, etc.) 1 1 125 EAC Procedure 126 EAC Supporting
Documentation 127 External Reports (CPR, CFSR) 1 1 1 1 1 1 1 41
2012 IBM Corporation
- 42. Global Business ServicesPublic Sector Documentation
Requirements Organization Planning, Scheduling & Budgeting
EIA-748 Guidelines Accounting Analysis & Mgmt Reports
Revisions/Data Maint Twenty Seven (27) Twenty Three (23) Twenty
Eight (28) Twenty Four (24) Twenty Nine (29) Twenty One (21) Twenty
Two (22) Twenty Five (25) Twenty Six (26) Seventeen (17) Thirty One
(31) Thirty Two (32) Fourteen (14) Nineteen (19) Eighteen (18)
Thirteen (13) Sixteen (16) Twenty (20) Twelve (12) Eleven (11)
Fifteen (15) Thirty (30) Seven (7) Three (3) Eight (8) Ten (10)
Four (4) Nine (9) One (1) Five (5) Two (2) Six (6) Item
Description28 FAR 31.203 129 GAAP 130 Intermediate Level Management
Results 131 Internal BCWS Reports 132 Internal Data Reports 1
Internal Factory Standards Planning33 1 Docuements34 Internal
Material Performance Data 1 135 Internal Performance Reports 1 1 1
1 1 1 1 1 1 1 136 Internal Time-Phased Baseline Documents 137
Journal Vouchers 138 Manager Interview Results 1 1 1 1 1 1 1 139
Manufacturing Breakdown Structure (if appl.) 140 Manufacturing Cost
Account Plans (if appl.) 141 Material Manager Interviews 142
Material Trace 143 Material Variance Analysis Docuementation 1 1
144 Organization Charts (All, including Subs) 1 1 1 1 1 1 145
Overhead Budgeting Policies & Procedures 1 1 1 146 Prime to
Subcontractor Reconcilitation 1 147 Program Schedules 1 1 1 148
Program Status Review Documents 149 Rate Table for EAC Valuation
150 Schedule Trace 1 1 151 Schedule Variance Analysis Documents 152
Statement of Work 153 Subcontract Control Account Plans 1 1 154
Subcontract Manager Interviews 1 42 2012 IBM Corporation
- 43. Global Business ServicesPublic Sector Documentation
Requirements Organization Planning, Scheduling & Budgeting
Accounting Analysis & Mgmt Reports Revisions/Data Maint