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Earned Value Executive Overview. George Stubbs, CBT Workshop. About George Stubbs the Presenter. Over 45 years Program Management Experience. 5 Years United States Air Force. 6 Years Raytheon. 8 Years Boeing. 7 Years Martin Marietta. 9 Years Independent Consultant.

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earned value executive overview

Earned Value Executive Overview

George Stubbs, CBT Workshop

about george stubbs the presenter
About George Stubbs the Presenter
  • Over 45 years Program Management Experience.
    • 5 Years United States Air Force.
    • 6 Years Raytheon.
    • 8 Years Boeing.
    • 7 Years Martin Marietta.
    • 9 Years Independent Consultant.
    • 12 Years Senior Partner The CBT Workshop
  • The CBT Workshop.
    • A leading supplier for affordable skilled Earned Value Management System (EVMS) resources specializing in EVMS services, training, and tools support.

The CBT Workshop www.cbtworkshop.com

earned value executive overview3
Earned Value Executive Overview
  • Why Earned Value.
  • Earned Value Concept.
  • Earned Value Example.
  • What Makes up an Earned Value System.
  • Earned Value Software.
  • Earned Value Documentation.
  • Who is the Key to Earned Value Success.
  • Earned Value Training.
  • Major Earned Value Events.
  • The Integrated Baseline Review (IBR).
  • Validation/Certification.
  • The Earned Value Gap Analysis.
  • Some Bad Earned Value Events.

The CBT Workshop www.cbtworkshop.com

why earned value
Why Earned Value
  • DOD Contractual Requirement.
    • Earned Value Management System (EVMS) in compliance with guidelines in ANSI/EIA-748 is required on all cost or incentive contracts equal to or greater than $20M.
    • A formally validated and accepted EVMS is required for cost or incentive contracts equal to or greater than $50M.
    • EVM may be imposed on contracts less than $20M as a risk-based decision of the program manager.
  • Other Government Department and Agencies are requiring EV.
  • Some Contractors consider it best practice.

The CBT Workshop www.cbtworkshop.com

the earned value concept
The Earned Value Concept
  • Break work into measurable segments.
    • Segments are called work packages (WP).
    • Assign a cost per segment/WP.
    • Assign a duration per segment/WP.
  • Develop a measure of performance.
    • Collect actual costs (from accounting).
    • Collect performance (measure completion or progress).
    • Status schedule.
  • Determine Earned Value.
    • Compare actual costs verses actual performance.

The CBT Workshop www.cbtworkshop.com

earned value example
Earned Value Example
  • Build 12 miles of road for $12M in 12 Months
  • What if:
    • 1 mile in 1 month for $1M.
      • On schedule, on cost and will finish on target if progress continues.
    • 1 mile in 2 months for $2M.
      • One month behind schedule, $1 over cost and will finish in 24 month at a cost of $24m if progress continues.
    • 1.5 miles in 1 month for $1.25M.
      • .5 month ahead of schedule, $.25M cost under run and will finish in 8 (12/1.5) months for at total cost of $10M (1.25X8) if progress continues.

The CBT Workshop www.cbtworkshop.com

what makes up earned value systems
What makes up Earned Value Systems
  • Software.
    • Accounting System.
    • Scheduling System.
    • Earned Value Engine.
    • Analysis tools(optional).
  • Documentation.
    • System Description Document.
    • Procedures (desktops).
    • Directives.
  • Training.
    • General EVMS.
    • CAM Specific.
    • Executive EV Overview.
    • Software tools.

The CBT Workshop www.cbtworkshop.com

earned value software
Earned Value Software
  • Accounting System.
    • Cost Point, In house developed, SAP.
    • Cost collection at the WP level, totals at the program level.
  • Scheduling System.
    • MS Project, Open Plan, Primavera.
  • Earned Value Engine.
    • Cobra, MPM, DekkerTrakker, Primavera Cost Manager, EcoSys, Artemis Costview.
  • Analysis tools(optional).
    • wInsight, Steel Ray, Acumen Fuse, Risk Plus, PM Compass, Active Risk Manager,

The CBT Workshop www.cbtworkshop.com

earned value documentation
Earned Value Documentation
  • System Description Document (SDD).
    • Describes how the contractor intends on complying with ANSI EIA 748-B.
    • Details how each of the 32 criteria will be addressed.
  • Procedures (desktops).
    • Explains in detail how company personnel will apply the companies SDD to specific EVM processes.
  • Directives.
    • Corporate/Company/Program direction that implements EVM or portions of EVM.

The CBT Workshop www.cbtworkshop.com

the cam is the key to earned value success
The CAM is the Key to Earned Value Success
  • The Control Account Manager (CAM)will make or break a EV program.
  • The CAM sets, controls, and reports all performance criteria.
  • Is the daily face the customers team interacts with.
  • Are always interviewed by the customer for IBRs and Validations.
  • Knowledgeable CAMs can offset marginal EV systems.
  • Poor CAMs will cause a great EV system to fail.
  • The better the CAMs are, the better your EV system will perform.
earned value training
Earned Value Training
  • General EVMS.
    • Basic EVMS training to all personnel on the EV program.
  • CAM Specific.
    • Detailed training to all Control Account Managers on how to perform EV.
  • Schedulers and Finance Analysts.
    • Detailed training on what the customer expects in their reports and on analysis tools used to review the submitted data.
  • Executive EV Overview.
    • EV overview training for all company executives in the EV program reporting chain and should include all supporting departments.
  • Software.
    • Hands on software and EV training of all personnel using the EVMS tool sets.

The CBT Workshop www.cbtworkshop.com

major earned value events
Major Earned Value Events
  • Periodic Reporting.
    • Contract Performance Report (CPR)(monthly).
    • Schedule Reporting (monthly).
    • Other customer required (usually monthly).
    • Contract Funds Status Report (CFSR)(usually quarterly).
  • Milestones.
    • Integrated Baseline Review (IBR) (90 to 120 days after contract award).
    • Validation/Certification (after IBR and when required by customer).
  • Other.
    • Earned Value Gap Analysis.

The CBT Workshop www.cbtworkshop.com

integrated baseline review ibr
Integrated Baseline Review (IBR)
  • A formal review conducted by the customer.
  • At the contractors site.
  • Within 6 months of contract award.
  • Verifies the technical and cost content of the Performance Measurement Baseline (PMB).
  • Confirm the program baseline.
  • Review actual work performed.
  • Review the latest Revised Estimate to Complete (ETC).
  • Identification of Any Risks or Concerns.
  • Review the Earned Value Management System (EVMS).

The CBT Workshop www.cbtworkshop.com

what is a evms validation certification
What is a EVMS Validation/Certification?
  • Also called Compliance review.
  • Required for all companies with more than $50 M in EVMS contracts.
  • Detailed review of all EVMS related items.
  • Similar to a IBR.
  • Concentrates on the CAMs and processes.
  • Results in a “Compliant” EVMS.
  • Single Validation required for each business entity.
  • Review and verify prior CARs, DRs and other EV actions.
what does not passing mean
What Does Not Passing Mean?

Potential of extra withholding on payments that could be as much as 10% additional.

Disadvantage in bidding future EVM contracts.

Potential for additional oversight on existing EVM contracts.

Brings in question the Companies ability to control and manage multi million dollar Programs.

earned value gap analysis
Earned Value Gap Analysis
  • A review of a contractor’s internal policies and procedures to gage their compliance with all 32 guidelines called out in by ANSI/EIA-748.
  • Answers the following four key questions:
    • How does the existing management processes comply with ANSI/EIA-748?
    • Are there policies and procedures in place and are personnel following the processes?
    • Do the supporting program management systems provide the data required to support ANSI/EIA-748?
    • If any of the above does not support ANSI/EIA-748, what must be done to bring them into compliance?
  • All Gaps must be resolved before the contractor will have a compliant EVMS.
some bad earned value events
Some Bad Earned Value Events
  • A-12
    • Based on the contractor’s Earned Value analysis that showed ‘catastrophic’ cost and schedule problems on this complex, multi-billion $ fixed price incentive contract, the then Sec. of Defense Dick Cheney withdrew his support for the program. Program litigation continues today.
  • Bell Helicopter
    • Previous estimates for the System Development Demonstration portion of the ARH program had grown from $210 million to over $300 million.
    • The Army filed a Nunn-McCurdy cost and schedule breach on July 9, 2008, when new cost estimates showed a 40% cost increase above initial estimates.
    • The cancelation was the result of excessive costs of the program which had increased over 70 percent with an estimated per-unit cost of US$14.5 million, up from US$8.5 million.
    • The Navy pulled Bell’s certification affecting its standing in the Cobra/Huey program. The company was eventually recertified, but only after great effort and expense.
  • Lockheed F-35
    • The Pentagon has suspended its certification of Lockheed's Earned Value Management System.
    • The company’s system was deficient in 19 of 32 areas.

The CBT Workshop www.cbtworkshop.com

evm works
EVM Works

When Management embraces it.

When the Program uses it to manage.

When all Program levels understands how it works.

When CAMs are rewarded for their additional work.

Being a CAM is a “Stepping Stone” to becoming a Program Manager.

evm does not work
EVM does not work

When Management pays lip service to it.

When the Program fights it.

When Management focuses on metrics not performance.

When program levels do not understand how it works and what it does.

When Performance or Actuals are tailored to fit desired metrics.

When CAMs are not rewarded for their additional effort.

When Management makes EVMS related decisions without feed back from program.

what is an earned value validation and how is it accomplished

What is an Earned Value Validation and How is it Accomplished ?

George Stubbs, CBT Workshop

earned value validation
Earned Value Validation
  • What is a EV Validation.
  • How is a Validation Done.
  • Review Objectives.
  • How is Validation Review Accomplished.
  • What Not Passing Means.
  • EVM Horror Stories.
  • Review Team Actions.
  • What the Contractor Needs.
  • Actions Required.
  • Artifacts Required.
  • When EV Works And When is Does Not.
what is a ev validation
What Is A EV Validation?
  • Required for all companies with a EVMS DOD cost plus contract over $50M .
  • Validation is achieved by conducting a formal review of the processes defined and used by the contractor to comply with the EVMS guidelines in ANSI/EIA-748.
  • It determines that the contractor is using the system as one of its primary program management processes.
  • That the contractor has properly implemented the system on the contract.
  • That the contractor is using the data from its system in reports to the government.
  • Single Validation required for each company.
  • Results in a ‘Compliant” EVMS.
  • An EVMS Compliance review is the same as a Validation review.
how is a validation done
How is a Validation Done?
  • A formal recognition of certification by an independent party that a company’s EVMS meets the guidelines in ANSI/EIA-748.
  • A formal Government review conducted at a contractor’s facility to assess the contractor’s proposed EVMS compliance with ANSI/EIA-748.
  • A recurring process by an independent party, normally DCMA, assessing the continuing compliance of the company’s EVMS with ANSI/EIA-748 and the company’s written system documentation.
review objectives
Review Objectives
  • Evaluate management system capabilities against ANSI/EIA-748.
  • Assess the description of the management system to determine if it adequately describes the management processes demonstrated during the review.
  • Evaluate the application of the management system on the contract being reviewed.
how is validation review accomplished
How is Validation Review Accomplished?
  • The VR begins as soon as practicable following the implementation of the EVMS and an IBR review.
  • The review consists of system documentation reviews, data traces, and interviews with contractor personnel.
  • The contractor’s EVMS is assessed against each guideline contained in ANSI/EIA-748.
  • The review should be organized to follow the system approach taken by the contractor, i.e., orientation by ANSI/EIA-748 grouping or a process approach.
what not passing means
What Not Passing Means
  • Potential of extra withholding on payments that could be as much as 10% additional.
  • Disadvantage in bidding future EVM contracts.
  • Potential for additional oversight on existing EVM contracts.
  • Brings in question the Companies ability to control and manage multi million dollar Programs.
evm horror stories lockheed martin aero
EVM Horror Stories Lockheed Martin Aero
  • The 2007 DCMA EVMS compliance review found that LM-Aero is not following, nor consistently applying, EVMS during the execution of DoD Programs.
  • The findings of the review indicate that, the government is not obtaining useful program performance data to anticipate and mitigate program risks.
  • Key EVMS processes and procedures are below standard and do not provide the definition and discipline to properly plan and control complex programs.
  • Documented findings indicate that the Control Account Managers (CAM) can not satisfactorily demonstrate that they understand and use documented EVM processes, procedures and tools to manage their work.
lm aero results
LM-Aero Results
  • For all new contracts include a contract clause for withholding up to 5-10 percent from supplier payments for failure to adequately implement and maintain a validated EVM System.
  • For existing contracts, add a provision within the program award fee plan to establish similar incentives.
  • Lockheed Martin should review each LM-Aero location to ensure that the LM-Aero EVMS is properly implemented and that LM-Aero Fort Worth, TX findings are not systemic through out the LM-Aero division.
evm horror stories bell arh program
EVM Horror Stories Bell ARH Program
  • Lost EVMS compliance.
  • Payments on all CPFF reduced from 80% to 70%.
  • Company was under pressure to get compliant.
  • New EVMS program (ARH) awarded .
  • Mgmt suppressed schedule slips.
  • Prototypes were delivered behinds schedule.
  • Design changes impacted costs.
  • Mgmt suppressed cost impacts.
  • CEO fired .
  • Program canceled.
  • Recently completed positive DCMA audit.
review team actions
Review Team Actions
  • Review the documentation that establishes and records changes to the baseline plan for the contract.
  • Review of the reporting of cost and schedule performance against the baseline plan, along with appropriate analyses of problems and projection of future costs.
  • A trace is conducted to summarize the cost/schedule performance data from the lowest level of formal reporting (normally the control account level) to the external performance measurement report.
  • Interviews with a selected sample of CAMs, functional and other work teams, and PMs to verify that the contractor's EVMS is fully implemented and being used in the management of the contract.
  • An exit briefing covering the team's findings.
what the contractor needs
What the Contractor Needs
  • The contractor should have a current, approved written system description available.
  • Applicable desktop procedures need to be available at the contractor’s operating levels as necessary to demonstrate a consistent approach.
  • The contractor should make documents used in the contractor’s EVMS available to the team.
  • The documentation needs to be current and accurate.
  • The contractor demonstrates to the team how the EVMS is structured and used in actual operation.
actions required
Actions Required
  • Develop a overview briefing by to familiarize the review team with the proposed EVMS.
    • The overview should identify any changes which have occurred since the most recent Progress Assistance Visit.
  • Have available the documentation that establishes and records changes to the baseline plan for the contract.
    • This includes work authorizations, schedules, budgets, resource plans, and change records including management reserve and undistributed budget records.
  • Develop CAM notebooks
    • Insure that all notebook data is current and that the CAM is familiar with how to find all data.
actions required cont
Actions Required (cont)
  • Develop a trace (storyboard) to summarize the cost/schedule performance data from the lowest level of formal reporting (normally the control account level) to the external performance measurement report.
    • The purpose of this activity is to verify the adequacy of the control aspects of the system and the accuracy of the resulting management information.
  • Train and perform mock interviews with CAMs, functional and other work teams, and PMs to insure that they understand the contractor's EVMS and that it is fully implemented and being used in the management of the contract.
artifacts required
Artifacts Required
  • The System Description.
  • Desktop Procedures.
  • CAM Notebook.
  • Storyboards and supporting documentation.
  • Prior IBR action items and their completion documentation.
  • Other past customer reviews as applicable.
the system description
The System Description
  • The EVM System Description provides a description of the system and the contractor’s comprehensive plan for meeting the guidelines in ANSI/EIA 748-A.
  • The document provides an understanding of each activity required to meet the EVMS standard.
  • The document should briefly, but comprehensively, present the contractor’s approach and schedule of internal activities to demonstrate that the system and processes meet the guidelines in the standard.
  • The description should include the contractor’s plan for implementation of, and activities leading up to, compliance/validation review by the Customer.
  • The document should also have a compliance matrix that shows the System Description reviewer where each section complies with ANSI/EIA-748.
desktop procedures
Desktop Procedures
  • Every EV process should have a documented procedure.
  • Gives everyone a proven EV process to follow.
  • Insures compliance with the requirement of the guidelines in ANSI/EIA-748.
  • Gives the review team a road map to follow in the application of the specific EV process.
typical procedures
Typical Procedures
  • Project Startup
  • Organizational Breakdown Structure
  • Work breakdown Structure and Dictionary
  • Project Authorization Document
  • Budget Authorization Document
  • Work Authorization Document
  • Contract Brief
  • Responsibility Assignment Matrix
  • Opening Charge Numbers
  • Baselining Schedules
  • Statusing Schedules
  • Schedule Tool Integration
  • New or Change IMS
  • Time Phased Budget
  • Program Logs
  • Management Reserve
  • IMP-IMS Generation
  • Training
  • Desktop Metrics
  • Manager Review
  • Accumulate Actuals
  • WBS Maintenance
  • CA Monthly Checklist
  • Customer Reporting
  • Internal Reporting
  • Reading Reports
  • CPR Data Validation
  • Accumulate Budgets
  • Accumulate Status
  • Retroactive Adjustments
  • Estimate at Completion
  • Variance Thresholds
  • Variance Analysis Reporting
  • Corrective Action Log
  • Baseline Change Request
  • Baseline Change Request Log
  • Standards and Conventions
  • Metric Surveillance Report
  • Monthly Production Calendar
  • CAM Notebook Guide
the cam notebook
The CAM Notebook
  • The Control Account Manager (CAM) notebook is the key document for assisting the CAM in the integration and management of the control account.
  • The CAM notebook enables “single thread” analysis of the technical scope, integrated master schedule (IMS), resource loading profile, earned value (EV) performance data, and subcontractor costs.
  • An accurate, current, and complete CAM Notebook is critical to the successful management of the contracted work.
  • The review of the CAM Notebook and identification of the resulting risks are key parts of the IBR process to verify and validate the technical, cost and schedule baselines.
cam notebook contents
CAM Notebook Contents
  • Organization Documentation.
  • Integrated Master Plan (IMS).
  • Statement of Work (SOW).
  • Work Breakdown Structure (WBS) and WBS Dictionary.
  • Work Authorization Document (WAD).
  • Control Account Plan (CAP).
  • Basis of Estimate and other cost baseline supporting information (BOE).
  • Integrated Master Schedule (IMP).
  • Earned Value Performance Report (CPR).
  • Subcontractor and Material Documentation.
  • Risk and Opportunity Management Documents.
storyboards
Storyboards
  • Storyboards are a map of the EV process being reviewed.
  • They show monthly processes.
  • They detail the EV paperwork process from bid submittal through contract award and on to close out.
  • They give the viewer a step by step flow of the data used in the EVMS.
  • They should tie to the System Description and the desktop procedures.
  • Actual program documents should be used.
mock cam interview
Mock CAM Interview
  • Provide CAM with Typical Questions Asked by Reviewers.
  • Have CAM Develop Briefing Covering Most Common Questions Asked.
  • Review All Contents of the CAM Notebook.
  • Have CAM Brief the Mock Reviewer.
  • Have the Reviewer Ask Some Questions Not Covered by the CAM’s Briefing.
  • Performed by someone not known to the CAM.

The CBT Workshop www.cbtworkshop.com

evm works43
EVM Works
  • When Management embraces it.
  • When the Program uses it to manage.
  • When all Program levels understands how it works.
  • When CAMs are rewarded for their additional work.
evm does not work44
EVM Does Not Work
  • When Management pays lip service to it.
  • When the Program fights it.
  • When Management focuses on metrics not performance.
  • When program levels do not understand how it works and what it does.
  • When Performance or Actuals are tailored to fit desired metrics.
  • When CAMs are not rewarded for their additional effort.
  • When Management makes EVMS related decisions without feed back from program.
know your weaknesses and prepare
Know Your Weaknesses and Prepare
  • Use the last IBR results to your advantage.
  • Be ready to explain the plan to complete any open IBR issues.
  • Fix any known issues.
  • Have a “Program” answer for all known weaknesses.
  • Just because your CAMs did not get written up does not mean that they are compliant.
  • If possible have a independent review of the EVMS prior to the Validation.
customer interface
Customer Interface
  • Ask your customer for clarification when in doubt.
  • Make your customer part of the solution not part of the problem.
  • Be very detailed when asking for guidance.
  • Ask for the appropriate citations when the results are to be flowed down to subcontractors.
earned value and the control account manager
Earned Value and the Control Account Manager
  • Why Be a CAM?
  • What is a Control Account Manager (CAM)?
  • The Control Account (CA).
  • What are a CAMs Responsibilities?
  • CAMs Activities and the Control Account.
  • The CAM and Control Account Performance.
  • CAM’s Monthly Requirements.
  • CAM Software Tools.
  • The CAM Notebook.
  • CAM Training.
  • What Makes a CAM Successful.
  • How to Undermine the CAM
why be a cam
Why Be a CAM?
  • First step into Management.
  • Opportunity to learn all aspects of project management.
  • Responsible for technical, schedule and cost performance.
  • Part of a progression of increasing responsibility.
  • CAMs become Program/Business Managers.
  • Program/Business Managers become Executives.
what is a control account manager cam
What is a Control Account Manager (CAM)?
  • The CAM plays a critical role in an Earned Value Management System.
  • Responsible for the planning, coordination and achievement of all work within a Control Account.
  • Provides a single authority for all scope, technical and cost issues for the Control Account.
  • Accountable to the Program Manager for Control Account Performance.
  • Authorized by and accountable to the PM for resources to complete cost, schedule and technical objectives.
  • Participates in Program Reviews, Integrated Baseline Reviews (IBRs), Validations and other project or management reviews.
  • Preparing for these reviews is a critical piece of the CAM’s role.
the control account ca
The Control Account (CA)
  • Virtually all aspects of the contractor's management control system come together at the CA level.
  • Is a management control point at which budgets (resource plans) and actual costs are accumulated and compared to earned value for management control purposes.
  • A control account is a natural management point for planning and control since it represents the work assigned to one responsible organizational element for a single program WBS element.
  • Performance is planned, measured, recorded, and controlled at the CA level.
establish the pmb
Establish the PMB

Contract Price

Total Allocated Budget (TAB)

Fee / Profit / Margin

Over Target Baseline (OTB) (if applicable)

Contract Budget

Base (CBB)

Negotiated

Contract Cost

(NCC)

Authorized

Unpriced Work

(AUW)

EV Starts Here

Performance Measurement Baseline (PMB)

Management Reserve (MR)

Distributed Budget (DB)

Undistributed Budget (UB)

The CAM Starts Here

Control Accounts

Summary Level Planning Packages

Planning Packages

Work Packages

Discrete Work

Apportioned Work

Level of Effort Work

The CBT Workshop www.cbtworkshop.com

what are a cams responsibilities
What are a CAMs Responsibilities?
  • Must be given full responsibility for managing the cost, schedule and technical performance of the Control Account.
  • Supports all customer meetings and data requests pertaining to the Control Account.
  • Has authority to review and approve all work assignments, documents and commitments involving the Control Account.
  • Authorized by and accountable to the PM for resources to complete cost, schedule and technical objectives.
cam responsibilities cont
CAM Responsibilities (cont)
  • Review and approve all resources charged to the Control Account and assure their accuracy.
  • Prepare Control Account variance analyses.
  • Develop, implement and manage corrective actions, as appropriate.
  • Prepare Estimates to Completion for remaining Control Account work scope.
  • Provide forecast dates for accomplishing activities and milestones in the Control Account Schedule.
cam responsibilities cont55
CAM Responsibilities (cont)
  • Prepare Estimates to Completion for remaining Control Account work scope.
  • Provide forecast dates for accomplishing activities and milestones in the Control Account Schedule.
  • Inform management of significant problems concerning Control Account performance.
  • Lead or participate in Make / Buy decisions.
cams activities and the control account
CAMs Activities and the Control Account
  • Approve the Control Account Authorization documents.
  • Co-approve the Make / Buy Plan for material used to perform the Control Account scope of work.
  • Approve Control Account Budget Change Notices and Requests.
  • Authorize and coordinate work performed by functional departments on Work Directives within the Control Account.
  • Determine the work schedule and prioritize work within each Work Directives issued for the Control Account.
  • Approve hours charged to the Work Directives supporting the Control Account.
  • Identify potential technical, schedule and cost risks and enter them into the FCS Risk Management Process.
the cam and control account performance
The CAM and Control Account Performance
  • Complete the Control Account scope of work within the schedule period and resources authorized.
  • Complete the Control Account scope of work.
  • Achieve the technical performance goals for the defined scope of work.
  • Achieve the technical quality.
  • Assure the reported Earned Value performance is based on qualified back-up data.
  • Mitigate all technical, schedule and cost risks associated with the Control Account.
cam s monthly requirements
CAM’s Monthly Requirements
  • Updating Schedule Status Convert Planning Packages to Work.
  • Revise Planning, Prepare CAPs, BCRs and WADs.
  • Review & Approve BCRs & WADs.
  • Enter CAP Planning Changes.
  • Forecast Milestone Status.
  • Mid-Month Schedule Forecast Update.
cam s monthly requirements59
CAM’s Monthly Requirements
  • Update Schedule Status.
  • Complete Schedule.
  • Review & Correct Weekly Charges.
  • Review/Submit Changes to CAM Reports.
  • Review Preliminary Variance Analysis/PVA.
  • Prepare Variance Analysis Reports.
  • Review/Update/Approve PVA.
  • Review & Approve VARs.
cam software tools
CAM Software Tools
  • Earned Value
    • Deltek Cobra.
    • Oracle Primavera Cost Manager.
    • Deltek MPM.
    • Artemis Costview.
    • SAFRAN.
    • DekkerTrakker.
    • EcoSys.
  • Scheduling.
    • Microsoft Project.
    • Microsoft Project Server.
    • Oracle Primavera Project Manager.
    • Deltek OpenPlan.
    • Artemis Projectview.
  • Analysis and Review
    • forProject.
    • Deltek Risk Plus.
    • Deltek Active Risk Manager.
    • Deltek PM Compass.
    • Steel Ray.
    • Acumen.
    • Deltek wInsight.
    • IMS StopLight.
the cam notebook61
The CAM Notebook
  • The Control Account Manager (CAM) notebook is the key document for assisting the CAM in the integration and management of the control account.
  • The CAM notebook enables “single thread” analysis of the technical scope, integrated master schedule (IMS), resource loading profile, earned value (EV) performance data, and subcontractor costs.
  • An accurate, current, and complete CAM Notebook is critical to the successful management of the contracted work.
  • The review of the CAM Notebook and identification of the resulting risks are key parts of the IBR process to verify and validate the technical, cost and schedule baselines
why is cam notebook important
Why is CAM Notebook Important?
  • Gives a clear picture of whether the control account’s technical scope, schedule , risk and resources are integrated, play together and make sense.
  • When understood by the government action officer (AO) and the CAM, brings both parties to a clear mutual understanding of all aspects of the task.
  • Ensures a foundation of information for continuity if the CAM or AO is reassigned or not available for some reason.
  • Documents what is going on and documents that all aspects of the task are being considered and harmonized and managed.
what is in a cam notebook
What is in a CAM Notebook?
  • Organization Documentation.
  • Integrated Master Plan.
  • Statement of Work (SOW).
  • Work Breakdown Structure (WBS) and WBS Dictionary.
  • Work Authorization Document.
  • Control Account Plan.
  • Basis of Estimate and other cost baseline supporting information.
  • Integrated Master Schedule.
  • Latest Earned Value Performance Report.
  • Subcontractor and Material Documentation.
  • Risk and Opportunity Management Documents.
  • Others as needed.
types of cam notebooks
Types of CAM Notebooks
  • Hard Copy.
    • Difficult to keep current.
    • Bulky.
    • Requires continual maintenance to keep current.
    • Manpower requirement are high.
  • S0ft Copy (virtual CAM notebook).
    • One time set up.
    • Data is maintained through the companies internet.
    • CAM data resides on the CAM desktop.
    • Currency is maintained by a single responsible individual for each item.
    • All CAM related data is at the CAM’s fingertips.
cam training
CAM Training
  • Detailed s/w training for any software applications the CAM is going to be a hands on user.
  • Introductory training for any software applications that is not hands on.
  • EVMS basic through advanced.
  • Training in all reporting and analysis requirements that affect the CAM.
  • Integrated Baseline Review.
  • Mock CAM interview.
  • Validation Review (if required).
what makes a cam successful
What Makes a CAM Successful
  • When CAMs are rewarded for their additional work.
  • Being a CAM is a “Stepping Stone” to becoming a Program Manager.
  • When Management supports them.
  • When the Program rely on them to manage their area of responsibility.
how to undermine the cam
How to Undermine the CAM

When Management pays lip service to earned value.

When the Program fights earned value.

When Management focuses on metrics not performance.

When program levels do not understand how EV works and what it does.

When Performance or Actuals are tailored to fit desired metrics.

When CAMs are not rewarded for their additional effort.

When Management makes EVMS related decisions without feed back from the CAMs.

earned value and the integrated baseline review

Earned Value and the Integrated Baseline Review

George Stubbs, CBT Workshop

The CBT Workshop www.cbtworkshop.com

earned value and the ibr
Earned Value and the IBR
  • What is an IBR.
  • What is its Purpose.
  • How to Prepare for an IBR.
  • Establish the Performance Measurement Baseline (PMB).
  • Development of the Integrated Master Schedule (IMS).
  • What Documentation is required.
  • Risk Identification and Mitigation.
  • The Work Breakdown Structure (WBS).
  • The Control Account Managers (CAM) Notebook.
  • Review Team Composition.
  • IBR Training.
  • The Mock CAM Interview.
  • The IBR Process.
  • The Benefits of the IBR.
  • IBR Results.
  • IBR Related Information.
  • Helpful Links.
what is an ibr
What Is an IBR?
  • A formal review conducted by the customer.
  • The first formal review after contract award.
  • At the contractors site.
  • Within 6 months of contract award.
  • Usually after two to three reporting cycles.
  • Verifies the technical and cost content of the Performance Measurement Baseline (PMB).

The CBT Workshop www.cbtworkshop.com

what is the purpose of an ibr
What Is the Purpose of an IBR?
  • Confirm the program baseline.
    • Work defined.
    • Work scheduled.
    • Work budgeted.
  • Review actual work performed.
    • Review the last CPR and IMS.
    • Measured correctly.
    • Consistently.
    • With objected metrics.

The CBT Workshop www.cbtworkshop.com

what is the purpose of an ibr cont d
What Is the Purpose of an IBR? (cont’d)
  • Review the latest estimate to complete (ETC).
    • Is it correct.
    • ETC processes established.
    • ETC threshold defined.
  • Identification of any risks or concerns.
    • Include any mitigation required.
  • Review the Earned Value Management System (EVMS).
    • Customer understands the EVMS.
    • Contractor is using the EVMS properly.
  • It is not a EV Validation!

The CBT Workshop www.cbtworkshop.com

ibr preparation
IBR Preparation
  • Establish the PMB.
  • Develop the Integrated Master Schedule (IMS).
  • Develop required documentation.
  • Risk identification and mitigation.
  • Work Breakdown Structure (WBS).
  • Develop Control Account Manager (CAM) notebook.
  • Review team composition.
  • IBR Training.
  • Develop CAM briefing charts.
  • Perform mock CAM interviews.

The CBT Workshop www.cbtworkshop.com

establish the pmb74
Establish the PMB

Contract Price

Total Allocated Budget (TAB)

Fee / Profit / Margin

Over Target Baseline (OTB) (if applicable)

Contract Budget

Base (CBB)

Negotiated

Contract Cost

(NCC)

Authorized

Unpriced Work

(AUW)

EV Starts Here

Performance Measurement Baseline (PMB)

Management Reserve (MR)

Distributed Budget (DB)

Undistributed Budget (UB)

Control Accounts

Summary Level Planning Packages

Planning Packages

Work Packages

Discrete Work

Apportioned Work

Level of Effort Work

The CBT Workshop www.cbtworkshop.com

develop the integrated master schedule ims
Develop the Integrated Master Schedule (IMS)
  • Integrated Master Plan (IMP).
    • High level program plan with program deliverables.
    • Part of the contract.
  • Master Schedule (IMS).
    • Shows how the IMP is accomplished.
    • Reported monthly with the CPR.
  • Allows for the development of the program critical path.
    • The longest duration tasks through the program.
  • EVMS is only as good as the IMS.
  • Becomes the lynchpin of the EVMS.
  • Most IBR corrective actions are IMS related.

The CBT Workshop www.cbtworkshop.com

ibr documentation
IBR Documentation
  • Statement of Work (SOW).
  • Integrated Master Schedule (IMS).
  • Control Account Plans (CAPs).
  • Work Authorization Documents (WADs).
  • Baseline Change Requests (BCRs).
  • Relevant Program Directives.
  • Responsibility Assignment Matrix (RAM).
  • Organizational Breakdown Structure (OBS).
  • Negotiated Contract.

The CBT Workshop www.cbtworkshop.com

ibr documentation cont
IBR Documentation (cont)
  • System Description.
  • Desktop Procedures.
  • Desktop Metrics.
  • Contract Work Breakdown Structure (CWBS).
  • WBS Dictionary.
  • SOW/WBS Cross Reference Matrix.
  • CAM Specific Items.
  • Any teammates/subcontracts documents that support the IMS and CPR.
  • Last IMS and CPR submitted and any other supporting documents.

The CBT Workshop www.cbtworkshop.com

risk identification and mitigation
Risk Identification and Mitigation
  • Technical.
    • Can you perform?
  • Schedule.
    • Can you deliver on time?
  • Cost.
    • Are you within the PMB?
  • Resource.
    • Do you have the skills required and are they available?
  • Management Processes.
    • Are your process and procedures up to date?
  • Risk Mitigating Actions.
    • What actions are you taking to reduce risk?

The CBT Workshop www.cbtworkshop.com

work breakdown structure wbs
Work Breakdown Structure (WBS)
  • A hieratical rollup of work to perform the contract.
  • Mil Standard 881 is a ready reference.
  • WBS Dictionary is direct result.
  • Develop a SOW/WBS cross reference matrix.

The CBT Workshop www.cbtworkshop.com

wbs example
WBS Example

Aircraft

Integration

Testing

Flight Test

Airframe

Avionics

Wing

Radar

Static Test

Engines

Radios

Fuselage

GPS

Tail section

control account manager cam notebook
Control Account Manager (CAM) Notebook
  • Where the CAM fits within the program organization .
  • Who reports to the CAM.
  • The SOW the CAM is responsible for.
  • SOW/WBS Matrix.
  • WBS Dictionary.
  • Schedules to include the IMS and any lower level schedules used by the CAM.
  • Responsibility Assignment Matrix (RAM) with hours and dollars.

The CBT Workshop www.cbtworkshop.com

control account manager cam notebook cont d
Control Account Manager (CAM) Notebook (cont’d)
  • Breakdown of hours and dollars by Element of Cost (EOC) for total program.
  • Breakdown of hours and dollars by CAM by EOC for each WBS.
  • Control Account Plans (CAPs).
  • Work Authorization Documents (WADs).
  • Baseline Change Requests (BCRs).
  • Any desktop metrics used to take performance.
  • Other references and working documents.
  • Virtual CAM notebook preferred.

The CBT Workshop www.cbtworkshop.com

team composition
Team Composition
  • Team Lead (Primary).
  • CAMs (Primary).
  • Program Manager (Primary).
  • PP&C Mgr/Business Mgr/Finance Mgr (Primary).
  • Schedulers (Secondary).
  • Cost Analysis (Secondary).
  • Subcontract Management (Secondary).
  • Technical Management (Secondary).
  • Subcontract Personnel (As Needed).
  • Others (As Needed).

The CBT Workshop www.cbtworkshop.com

training
Training
  • Training is essential to ensure that the IBR team can identify and adequately assess the project risk.
  • The PMs should conduct joint training .
  • The training should ensure the team can mutually understand the cost, schedule, technical, and management processes used on the project.
  • The essential elements of training include the following:
    • PMs’ Expectations
    • Management Processes
    • Project Management Aspects

The CBT Workshop www.cbtworkshop.com

mock cam interview85
Mock CAM Interview
  • Provide CAM with typical questions asked by reviewers.
  • Have CAM develop briefing covering most common questions asked.
  • Review all contents of the CAM notebook.
  • Have CAM brief the mock reviewer.
  • Have the reviewer ask some questions not covered by the CAM’s briefing.
  • Performed by someone not known to the CAM.

The CBT Workshop www.cbtworkshop.com

ibr process
IBR Process
  • Customer selects CAMs /issues/ for IBR discussions.
  • Agenda provided prior to team arrival.
  • In brief on first day.
  • Government/Contractor Teams Meet for 2-4 Days.
  • Team reviews all aspects of contractors plans to complete contract.
  • Out brief results with list of action items.
  • Contractor coordinates with the customer to work off all action items.
  • Contractor provides substantiation of completed action items.

The CBT Workshop www.cbtworkshop.com

what are its benefits
What Are Its Benefits?
  • Understand program risks.
  • Understand the PMB.
  • Exercises the Earned Value Management(EVM) process.
  • Tests the CAM EVM knowledge.

The CBT Workshop www.cbtworkshop.com

ibr results
IBR Results
  • Documented list of concerns and risk items for Program Managers actions.
  • Mutual understanding of concerns and risk items.
  • Better understanding of the contractors management control system.

The CBT Workshop www.cbtworkshop.com

ibr related information
IBR Related Information
  • List of questions with answers that are most likely to be asked at an IBR.
    • http://www.cbtworkshop.com/Downloads.cfm
  • List of helpful links to websites that may be helpful in preparing for an IBR.
    • http://www.cbtworkshop.com/Links.cfm

The CBT Workshop www.cbtworkshop.com

ibr related links
IBR Related Links
  • List IBR Related Data
  • http://www.cbtworkshop.com/Downloads.cfm
  • Defense Acquisition Guidebook For the IBR (Main Page)
  • https://acc.dau.mil/CommunityBrowser.aspx?id=28943
  • The Program Managers Guide to the Integrated Baseline Review Process
  • www.acq.osd.mil/pm/currentpolicy/IBR_Guide_April_2003.doc
  • IBR Sample Out Brief
  • http://evm.nasa.gov/docs/Handbooks/IBR%20Mar%2007/Appendix_H_Outbrief_Samples.ppt
  • Integrated Baseline Review (IBR) Toolkit
  • http://acquisition.navy.mil/content/download/4819/21633/file/CEVM%20IBR%20Toolkit%20Final20080319.pdf
  • A guide for implementing project performance measurement baselines
  • http://www.defence.gov.au/dmo/esd/evm/IBR_HANDBOOK_V2.4_0.pdf
  • IBR Team Handbook
  • www.acq.osd.mil/pm/ibrmats/safaq_ibr_hdbk.doc

The CBT Workshop www.cbtworkshop.com

ibr related links cont d
IBR Related Links (cont’d)
  • IBR Team Handbook
  • http://evm.nasa.gov/docs/Handbooks/IBR%20Mar%2007/Appendix_F_Team_Handbook.doc
  • Program Managers guide to the IBR
  • www.ndia.org/Advocacy/Resources/Documents/Content/NavigationMenu/Advocacy/Resources/PDFs30/program_managers_guide.pdf
  • Center for Earned Value Management (CEVM) IBR Toolkit
  • https://acquisition.navy.mil/content/download/4819/21633/file/cevm%20ibr%20toolkit%20final20080319.pdf
  • EVM Glossary
  • https://acquisition.navy.mil/rda/home/acquisition_one_source/cevm/evm_glossary
  • The IBR: Your Insurance Policy for a Sound Baseline
  • http://pmchallenge.gsfc.nasa.gov/docs/2009/presentations/Fleming.Jon.pdf
  • SMC IBR Handbook
  • http://www.srs.gov/general/EFCOG/03OtherAgencies/SMCIBRHandbook.pdf

The CBT Workshop www.cbtworkshop.com

conclusion
Conclusion
  • There is no pass/fail for an IBR.
  • Should not be adversarial.
  • Establishes a single program baseline between the contractor and the customer.

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evms application thresholds and what they mean

EVMS Application Thresholds and What They Mean

George Stubbs, CBT Workshop

The CBT Workshop www.cbtworkshop.com

evms application thresholds and what they mean94
EVMS Application Thresholds and What They Mean
  • Evolution of EV Requirements.
  • OMB Circular A-11 Section 300.
  • Key Changes in EV Requirements.
  • EV Application Thresholds.
  • Contract Greater Than $50M Validated EVMS Required.
  • Between $20M and $50M EVMS Required.
  • Less than $20M EVMS Optional.
  • EVMS Validation.
  • ANSI/EIA-748 Compliant System.
  • Tailored EVMS.
  • Government Agency EVMS Requirements.
  • References and Websites.

The CBT Workshop www.cbtworkshop.com

evolution of ev requirements
Evolution of EV Requirements
  • Developed and applied by the DoD beginning in 1967.
  • Converted to an industry standard in 1997.
    • ANSI/EIA-748.
    • Required to be applied by DoD5000.
  • Requirement expanded to other US Government agencies by the Office of Management and Budget in 2002.

The CBT Workshop www.cbtworkshop.com

evolution of ev requirements96
Evolution of EV Requirements
  • Both private and public sectors recognize the positive impact that Earned Value Management has on predicting project performance.
  • Revisions to the DoD Earned Value Management Policy in 2005 lowered the cost threshold for cost or incentive contracts.
  • Other directives that have increased the focus on EVM are the Office of Budget and Management (OMB) Circular A-11 (Part 7, Section 300), the Sarbanes-Oxley Act, and the President’s Management Agenda Government-wide Initiative Number 5.
omb circular a 11 section 300
OMB Circular A-11 Section 300
  • Issued by the Office of Management & Budget in June 2002.
  • Establishes policy for management of Federal capital assets.
  • Requires use of EVMS for capital asset management.
  • Agencies must use a management system based on ANSI/EIA-748

The CBT Workshop www.cbtworkshop.com

key changes in ev requirements
Key Changes in EV Requirements
  • OSD's EVM initiative resulted in several policy changes.
  • The revised policy requires that all EVM applications comply with the Industry Standard.
  • It also mandates new EVM application thresholds.
  • The separate thresholds for Research, Development, Test, and Evaluation (RDT&E) and Procurement were eliminated.
  • The lower threshold was raised from $6.3 million [the former Cost/Schedule Status Report (C/SSR) threshold] to $20 million.
  • The upper threshold was lowered from $73 million and $315 million (the former RDT&E and Procurement thresholds) to $50 million.

The CBT Workshop www.cbtworkshop.com

key changes in ev requirements99
Key Changes in EV Requirements
  • Revising and renaming the Contract Performance Report (CPR) previously titled Cost Performance Report.
  • Expanding the application of the Integrated Master Schedule (IMS) and integrating the IMS with the CPR.
  • Clarifying the requirement for Integrated Baseline Reviews (IBRs).
  • The C/SSR was eliminated.

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ev application thresholds
EV Application Thresholds
  • Thresholds determined by each agency.
  • Typical thresholds (DoD for example):
    • > $50 Million EVMS implementation & process must be validated.
    • $20-50 Million EVMS required.
    • <$20 Million EVMS may be tailored.
  • Most agencies have published thresholds.

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contract greater than 50m validated evms required
Contract Greater Than $50M Validated EVMS Required
  • Must use ANSI/EIA-748 compliant and validated management system.
  • CPR (all formats) is required.
  • Integrated Master Schedule is required.
  • Schedule Risk Assessment (SRA) is required
  • IBR required.
between 20m and 50m evms required
Between $20M and $50M EVMS Required
  • Required
    • Must use ANSI/EIA-748 compliant management system. 
    • No validation.
    • CPR Formats 1 and 5 are required.
    • Integrated Master Schedule is required.
    • IBR required
  • Optional
    • CPR Formats 2, 3, and 4 are optional.
    • Schedule Risk Assessment is optional.

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less than 20m evms optional
Less than $20M EVMS Optional
  • Optional at customer discretion.
    • ANSI/EIA-748 compliance is discretionary and should be based on risk.
    • CPR Formats 1 and 5 are recommended.
    • Integrated Master Schedule is optional.
  • Customer may tailor requirements
  • IBR required.

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evms validation
EVMS Validation
  • Contractors must be validated when a contract is issued with an EVMS requirement > $50 M.
  • A validation ensures that the EVMS meets the requirements of ANSI/EIA-748.
  • Validation is also required when the ANSI/EIA-748 requirements are passed to a subcontractor.

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evms validations cont
EVMS Validations (cont)
  • Most validations are conducted by the government.
  • The DCMA leads validations for the DoD.
  • Subcontractors are validated by either the prime contractor or the government.
  • Self and peer validations are also conducted.
  • Independent validations allowed.

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evms validations cont106
EVMS Validations (cont)
  • The EVMS is tested:
    • Does the EV system design meet the 32 criteria.
    • Is EV system being used in practice.
    • Is the system documented adequately for repeatability.
  • Typically, a letter of acceptance is issued.

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ansi eia 748 compliant system
ANSI/EIA-748 Compliant System
  • Meet the 32 guidelines.
  • Must have a System Description Document (SDD).
  • Requires IMP and IMS.
  • The policies and procedures support the SDD for hands on applications.
  • The cost collection system, scheduling system and EV tool interface seamlessly with each other.
  • The CAMs are using the EVMS properly.

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tailored evms
Tailored EVMS
  • EVMS at Program Managers discretion.
  • Cost benefit analysis needed.
  • High risk (cost or schedule) items only.
  • If any EVMS is required then an IBR is required.

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integrated baseline review ibr109
Integrated Baseline Review (IBR)
  • A formal review conducted by the customer.
  • At the contractors site.
  • Within 6 months of contract award.
  • Verifies the technical and cost content of the Performance Measurement Baseline (PMB).
  • Confirm the program baseline.
  • Review actual work performed.
  • Review the latest Revised Estimate to Complete (ETC).
  • Identification of Any Risks or Concerns.
  • Review the Earned Value Management System (EVMS).

The CBT Workshop www.cbtworkshop.com

integrated baseline review actions
Integrated Baseline Review Actions
  • Corrective actions.
    • Inconsistent baseline elements.
    • Unacceptable risk levels.
    • Not using validated EV processes.
  • Corrective action plans required.
  • Is NOT a pass or fail event.

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evms required by
EVMS Required by
  • Department of Defense (DoD)
  • Department of Transportation (DoT)
  • Federal Aviation Agency (FAA)
  • Department of Energy (DoE)
  • National Aeronautics and Space Agency (NASA)
  • Department of Homeland Security (HS)
  • Department of Health and Human Services (DHHS)
  • Center for Medicare & Medicaid
  • Department of Agriculture
  • Department of Commerce
  • Department of Education
  • Department of Housing and Urban Development (HUD)
  • Department of Interior
  • Department of Justice
  • Department of Labor
  • Department of State
  • Department of Treasury
  • Department of Veterans Affairs (VA)

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government agency requirements
Government Agency Requirements

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government agency requirements cont
Government Agency Requirements (cont)

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government agency requirements cont114
Government Agency Requirements (cont)

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references and websites
References and Websites
  • DoD EVM Policy and Guidance - acc.dau.mil
  • OMB Circular A-11 – www.whitehouse.gov/omb/
  • Earned Value Implementation Guide – guidebook.dcma.mil/79/EVMIG.doc
  • National Defense Industrial Association – www.ndia.org
  • Revision to DoD Earned Value Management Policy, March 7, 2005
  • IBR Handbook - www.acq.osd.mil/pm/currentpolicy/IBR_Guide_April_2003.doc

The CBT Workshop www.cbtworkshop.com

example of earned value in action

Example of Earned Value in Action

George Stubbs, CBT Workshop

evms example
EVMS Example
  • Road Building Example.
  • What are the Programs Actions.
  • Work Breakdown Structure (WBS).
  • Integrated Master Plan (IMP).
  • Integrated Master Schedule (IMS).
  • Performance Measurement Baseline (PMB).
  • Control Account (CA).
  • Responsibility Assignment Matrix (RAM).
  • Organizational Breakdown Structure (OBS).
  • Control Account Manager (CAM).
  • Establishing Budgets.
  • Opening Charge Numbers.
  • Taking Performance.
  • First submittals.
  • Data Submittal.
  • The IBR.
road building example
Road Building Example
  • Your company just won a cost plus contract to build 12 miles of road.
  • Period of performance is 12 months.
  • Your winning bid was for $14M.
  • The customer has specified that have to perform EV in accordance with ANSI EIA 748.
  • Your first Cost Performance Report (CPR) is due 60 days post award.
  • An Integrated Baseline Review (IBR) is scheduled 120 days post award.

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what are the program s ev actions
What Are The Program’s EV Actions
  • Assign a PM.
  • Develop a WBS.
  • Establish a PMB.
  • Establish budgets.
  • Establish a IMP and IMS.
  • Define the Control Accounts.
  • Develop the RAM.
  • Develop an OBS.
  • Assign CAMs.
  • Open charge numbers.
  • Take Performance.
  • Submit CPR and IMS on time.
  • Start planning for the IBR.

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assign a program manager pm
Assign a Program Manager (PM)
  • Responsible for managing the project.
  • Responsible for accomplishing the project objectives within the constraints of the project.
  • Collects metrics data: baseline, actual cost values, schedule, work in progress, and execution completed.
  • Responsible to the project stakeholders for delivering a project’s objectives within scope, schedule, cost, while concentrating on quality.
  • John Jones is the assigned Program Manager

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work breakdown structure wbs121
Work Breakdown Structure (WBS)
  • A WBS is a tool used to define and group a project's discrete work elements in a way that helps organize and define the total work scope of the project.
  • The WBS is developed by starting with the end objective and successively subdividing it into manageable components in terms of size, duration, and responsibility which include all steps necessary to achieve the objective.
  • A hieratical rollup of work to perform the contract.
  • Mil Standard 881 is a ready reference.

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12 miles of road wbs example
12 Miles of Road WBS Example

1.0

12 Miles of Road

1.1

Program Office

1.2

Road Prep

1.3

Surfacing

1.4

Final Finish

1.1.1

Earned Value

1.2.1

Surveying

1.3.1

Install Forms

1.4.1

Remove Forms

1.2.2

Grading

1.3.2

Install Rebar

1.4.2

Back Fill

1.1.2

Program Management

1.2.2.3

Earth Removal

1.3.3

Pour Concrete

1.4.3

Striping

1.2.2.4

Surface Prep

1.3.4

Smoothing

1.4.4

Install Signs

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imp and ims
IMP and IMS
  • The IMP is a top-down planning tool.
    • Becomes part of the contract and is legally binding.
  • The IMS is a bottoms up execution tool for the plans in the IMP.
    • Becomes a monthly deliverable along with the EVMS reports.
integrated master plan imp
Integrated Master Plan (IMP)
  • The IMP is an event-based plan consisting of a hierarchy of program events.
  • Each event being supported by specific accomplishments
  • Each accomplishment associated with specific criteria to be satisfied for its completion.
  • The three elements of the IMP.
    • Event - a program assessment point that occurs at the culmination of significant program activities.
    • Accomplishment - is the desired result(s) prior to or at completion of an Event that indicates a level of the program's progress.
    • Criteria - provides a definitive evidence that a specific Accomplishment has been completed.
  • The IMP is normally part of the contract and is contractually

binding.

establish the imp
Establish the IMP
  • Deliver 12 Miles of Road
    • Surfacing the road (Event)
      • Surveying (Accomplishment)
        • Complete Survey (Criteria)
      • Grading (Accomplishment)
        • Complete Grading (Criteria)
      • Earth removal (Accomplishment)
        • Complete Surface Prep (Criteria)
      • Surfacing (Accomplishment)
        • Complete Install Forms (Criteria)
        • Complete Install rebar (Criteria)
        • Complete Smoothing (Criteria)
        • Complete Remove Forms (Criteria)
      • Apply Road surface (Accomplishment)
        • Complete Pour Concrete (Criteria)
    • Finish (Event)
      • Striping (Accomplishment)
        • Complete Striping (Criteria)
      • Install signs (Accomplishment)
        • Complete Sign Installation (Criteria)
establish a ims
Establish a IMS
  • The IMS is a time-based schedule containing the networked, detailed tasks necessary to ensure successful program/contract execution.
  • The IMS is traceable to the integrated master plan, the contract work breakdown structure, and the statement of work.
  • The IMS is used to verify attainability of contract objectives, to evaluate progress toward meeting program objectives, and to integrate the program schedule activities with all related components

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ims example
IMS Example

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performance measurement baseline pmb
Performance Measurement Baseline (PMB)
  • Is a time-phased budget plan for accomplishing work, against which contract performance is measured.
  • It includes the budgets assigned to scheduled control accounts and the applicable indirect budgets.
  • For future effort, not planned to the control account level, the PMB also includes budgets assigned to higher level Contractor Work Breakdown Structure (CWBS) elements, and to undistributed budgets.

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performance measurement baseline pmb129
Performance Measurement Baseline (PMB)
  • Is fundamental to earned value management.
  • Includes the undistributed budget, all summary level planning package budgets, and all control account budgets.
  • It establishes the contract level timed phased baseline against which contract level earned value metrics are computed.
  • It establishes the scope, schedule, and budget targets for the program.

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the pmb
The PMB

Contract Price

Total Allocated Budget (TAB)

Fee / Profit / Margin

  • This is where EV starts

Over Target Baseline (OTB) (if applicable)

Contract Budget

Base (CBB)

Negotiated

Contract Cost

(NCC)

Authorized

Unpriced Work

(AUW)

Performance Measurement Baseline (PMB)

Management Reserve (MR)

Distributed Budget (DB)

Undistributed Budget (UB)

Control Accounts

Summary Level Planning Packages

Planning Packages

Work Packages

Discrete Work

Apportioned Work

Level of Effort Work

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develop the pmb
Develop the PMB
  • Contract Price $14.0M
  • Less Fee/Profit $1.27M
  • Negotiated Contract Cost $12.73M
  • Less Management Reserve $0.73M
  • Performance Measurement Baseline $12.0M
12 miles of road wbs example with budget
12 Miles of Road WBS Example With Budget

1.0

12 Miles of Road

$12,000,000

1.1

Program Office

$1,800,000

1.2

Road Prep

$3,600,000

1.3

Surfacing

$5,400,000

1.4

Final Finish

$1,200,00

1.1.1

Earned Value

$600,000

1.2.1

Surveying

$600,000

1.3.1

Install Forms

$600,000

1.4.1

Remove Forms

$300,000

1.2.2

Grading

$1,200,000

1.3.2

Install Rebar

$1,200,000

1.4.2

Back Fill

$300,000

1.1.2

Program Management

$1,200,000

1.2.2.3

Earth Removal

$1,200,000

1.3.3

Pour Concrete

$3,000,000

1.4.3

Striping

$300,000

1.2.2.4

Surface Prep

$600,000

1.3.4

Smoothing

$600,000

1.4.4

Install Signs

$300,000

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control accounts ca
Control Accounts (CA)
  • A CA is a management control point at which budgets and actual costs are accumulated and compared to earned value for management control purposes.
  • A CA is a natural management point for planning and control since it represents the work assigned to one responsible organizational element for a single program Work Breakdown Structure (WBS) element.
12 miles of road control accounts
12 Miles of Road Control Accounts

1.0

12 Miles of Road

$12,000,000

1.1

Program Office

$1,800,000

1.2

Road Prep

$3,600,000

1.3

Surfacing

$5,400,000

1.4

Final Finish

$1,200,00

1.1.1

Earned Value

$600,000

1.2.1

Surveying

$600,000

1.3.1

Install Forms

$600,000

1.4.1

Remove Forms

$300,000

1.2.2

Grading

$1,200,000

1.3.2

Install Rebar

$1,200,000

1.4.2

Back Fill

$300,000

1.1.2

Program Management

$1,200,000

1.2.2.3

Earth Removal

$1,200,000

1.3.3

Pour Concrete

$3,000,000

1.4.3

Striping

$300,000

1.2.2.4

Surface Prep

$600,000

1.3.4

Smoothing

$600,000

1.4.4

Install Signs

$300,000

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develop a ram
Develop a RAM
  • The Responsibility Assignment Matrix (RAM) is developed by integrating the Organization Breakdown Structure (OBS) with the Contract Work Breakdown Structure (CWBS).
  • This matrix displays the CWBS on one axis and the OBS on the second axis.
  • By inserting the budgets defined for each Task Plan into the designated location of the RAM the "Dollarized" RAM is created.

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develop a organizational breakdown structure obs
Develop a Organizational Breakdown Structure (OBS)
  • The organizational breakdown structure should be established at the onset of the activity to help in the purposes of organization.
  • This is an organization chart describes the hierarchical nature of the organization, what departments exist, and who reports to whom.

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obs example
OBS Example

Acme

Construction

President

VP of Program Management

VP of Finance

VP of Engineering

VP of Procurement

Field Engineering

Bert Black

Subcontract Manager

Jake Blake

12 Mile Program Manager

John Jones

Program Planning and Control

Kevin Kennedy

Site Finish

Adam Smith

Ty Owens

Sid Bud

Vito’s Concrete Co.

Site Prep

Joe White

Jon Grey

Tim Owens

assign the control account managers cams
Assign the Control Account Managers (CAMs)
  • The CAM plays a critical role in an Earned Value Management System.
  • The CAM is responsible for the planning, coordination and achievement of all work within a Control Account (CA).
  • The CAM provides a single authority for all scope, technical and cost issues for the CA.

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open charge numbers
Open Charge Numbers
  • New programs biggest first mistake is opening charge numbers before the PMB and CAs are set up.
  • Charge Numbers must align with the CAs.
  • Actuals collected must be at the same level as budgets.
  • Actual should never have to be allocated for EV reporting purposes or for billing.

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submit ims and cpr on time
Submit IMS and CPR on time
  • IMS usually due 30 to 60 days after contract award.
  • The Cost Performance Report (CPR) is usually due the third or fourth month after contract award.
  • The CPR due date is stated in specific days after the start of the month to give the contractor time to prepare the report.
    • 20th day of the month following the report date.
      • September CPR is due the 20th of October.
      • If the 20th is a weekend or holiday it usually is due the following work day.
      • Read the contract to make sure or ask for clarification.
  • If the IMS is the first submittal all subsequent submittals should be on the same date as the CPR.
    • You don’t want to submit the IMS before you have completed the CPR.

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what is an ibr148
What Is an IBR?
  • A formal review conducted by the customer.
  • The first formal review after contract award.
  • At the contractors site.
  • Within 6 months of contract award.
  • Usually after two to three reporting cycles.
  • Verifies the technical and cost content of the Performance Measurement Baseline (PMB).

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what is the purpose of an ibr149
What Is the Purpose of an IBR?
  • Confirm the program baseline.
    • Work defined.
    • Work scheduled.
    • Work budgeted.
  • Review actual work performed.
    • Review the last CPR and IMS.
    • Measured correctly.
    • Consistently.
    • With objected metrics.

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what is the purpose of an ibr cont d150
What Is the Purpose of an IBR? (cont’d)
  • Review the latest estimate to complete (ETC).
    • Is it correct.
    • ETC processes established.
    • ETC threshold defined.
  • Identification of any risks or concerns.
    • Include any mitigation required.
  • Review the Earned Value Management System (EVMS).
    • Customer understands the EVMS.
    • Contractor is using the EVMS properly.
  • It is not a EV Validation!

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ibr preparation151
IBR Preparation
  • Establish the PMB.
  • Develop the Integrated Master Schedule (IMS).
  • Develop required documentation.
  • Risk identification and mitigation.
  • Work Breakdown Structure (WBS).
  • Develop Control Account Manager (CAM) notebook.
  • Review team composition.
  • IBR Training.
  • Develop CAM briefing charts.
  • Perform mock CAM interviews.

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contact information
Contact Information
  • www.cbtworkshop.com
  • gstubbs@cbtworkshop.com
  • 1-303-877-7201 Mobile
  • 1-888-644-5613

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slide153
Q&A

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