Earned Value Management Guidelines Tony Finefield Finefield Consulting [email protected]...

Earned Value Management Guidelines

Tony FinefieldFinefield Consulting

[email protected]

CPM Webinar5 September 2012

1

mailto:[email protected]

Overview

• Conference Presentation Description• Webinar Approach

– Creating the Plan– Evaluating the Estimated Costs– Effect of Changes– Summary

• Questions

Conference Presentation Description

• CPM 100C and 100D presented at the CPM Spring Conference and the IPM Conference

• 2 Sessions of 1.25 hours each• Covers all 32 Guidelines individually• Examples of implementation results covered• Based on:

– ANSI/EIA 748-B– NDIA Intent Guide– Personal Experience

Webinar Approach

• Creating the Plan: a discussion of the Organization and Planning, Scheduling and Budgeting Sections of the Guidelines.

• Evaluating the Estimated Costs: a discussion of the Accounting Considerations and the Analysis and Management Reports Sections.

• Effect of Changes: reviewing the guidelines for Revisions and Data Management

Creating the Plan


3 SUBSYSTEM INTEGRATION

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

Creating the Plan

Boxes are color-coded by guideline section.

Define all authorized work; normally, use a WBS.Define the project organization.Integrate the WBS/OBS to create management control points.Integrate subsidiary processes.Schedule with network logic.Budget by elements of cost.Create work and planning packages within the control account.Plan appropriate effort as LOE.Set progress measurement techniques.Sum WP and PP budgets to the CA total.Identify Undistributed Budgets.Set overhead budgets.Establish the PMB/CBB.Identify Management Reserve.Reconcile the CBB to the project target.Identify Overhead Management.

ORGANIZATION PLNG., SKED. & BUDGT ACCOUNTING ANALYSIS & EAC INDIRECTREVISIONS

Integrate Scope, Schedule & Resources.

Estimating the Costs



15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

Estimating the Costs

Record Direct Costs.Record Direct Costs for Material.Summarize Direct Costs by WBS element.Summarize Direct Costs by OBS element.Record/allocate Indirect Costs.Calculate SV and CV Monthly.Identify significant variances for analysis and action.Summarize information for management.Implement approved corrective actions.Analyze indirect cost performance.Create/modify estimates at completion as needed.Identify unit/lot costs, recurring/non-recurring. If required.

ORGANIZATION PLNG., SKED. & BUDGT ACCOUNTING ANALYSIS & EAC INDIRECTREVISIONS

Summarization based on RAM intersections.

Charge # structure supports both summarizations

Effects of Changes



27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

28 Contract Changes

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

Incorporating Changes


27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

28 Internal

Replanning

Incorporating Changes


15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM

7EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

THE PLAN:PM $$$

REALITY:REAL $$$

20UNIT/LOT COSTS

29 Budget

Reconciliation

Reconciliation of Budgets


27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

30 Retroactive

Data Changes

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

Controlling Retroactive Changes


27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

31 Control

Unauthorized Changes

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

Controlling the CBB Value


27EAC

26MGT ACT

25ANL SUM

23VA

ANL

22VAs CAL

24IND ANL

19IND

COST17WBS SUM

18OBS SUM

16D/C

21MTL D/C

REALITY:REAL $$$

20UNIT/LOT COSTS

15CBB

8PMB

4IM

5RAM

2OBS

1WBS

11CA

SUM7

EVT

12LOE

10WP/PP

9WB/A

6SKED 14

MR14UB

13IB

THE PLAN:PM $$$

32 Document PMB

Changes

Update Baseline Documentation

Summary

ANSI/EIA Standard 748 Earned Value Management Systems (latest version):

• Contains the 32 Guidelines which form the framework of an EV based management control system

– Establishes maximum flexibility for EVMS Implementation– Defines minimal restrictions for baseline control– Focuses on minimal implementation requirements– Is recognized as an industry “best practice”– The 32 guidelines are recognized by U.S. Government and its

Agencies/organizations as the standard for EVM– Is the guiding document for the EVM Guidelines Intent Guide prepared by

NDIA

• Provides minimal implementation guidance– NDIA Intent Guide contains expanded implementation guidance– Other NDIA Guides provide insight into surveillance, IBRs, System Acceptance

Processes and Scheduling.

Next Steps

Claim your PDU for this session:• PDU activity number is 090512• Provider: REP3646

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"Setting the Baseline“• October 29-31, 2012 * Bethesda North Marriott Hotel & Conference Center *• Call 800.228.9290 or 301.822.9200 and ask for IPM Conference Rate • Earn 18 PDUs at the conference• Don't miss great keynote speakers.

Earned Value Management Guidelines Tony Finefield Finefield Consulting [email protected]...

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