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BACKUP CHARTS ANSI- 748 EVM PROCESS ELEMENTS. ESSENTIAL ELEMENTS OF EVM Origin (Industry Std – ANSI ESI 748) Organization Planning and Budgeting Accounting Analysis and Management Reports Revisions and Data Maintenance. ESSENTIAL ELEMENTS OF EVM.

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Backup charts ansi 748 evm process elements


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin (Industry Std – ANSI ESI 748)

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

ESSENTIAL ELEMENTS OF EVM

  • EARNED VALUE MANAGEMENT INFORMATION GUIDE AND INDUSTRY STANDARD ANSI-ESI 748

  • 32 CRITERIA

  • Organization (5)

    • Work (WBS)

    • Program Organization (Staff)

  • Planning & Budgeting (10)

    • Assign the work

    • Schedule the work

    • Apply resources (time phased baseline)

    • Establish Management Reserves


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • EVMIG/ANSI ESI 748 CRITERIA Cont.

  • Accounting (6)

    • Accumulate cost (direct and overhead) of work and materials

  • Analysis and Management Reports (6)

    • Measure accomplishments (value earned)

    • Compare earned value to actual costs

    • Analyze variances, implement corrective actions

    • Develop revised estimates at completion

  • Revisions and Data Maintenance (5)

    • Incorporate changes in a timely manner

    • Control and document baseline changes


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS – ORGANIZATION

  • Define the authorized work – Work Breakdown Structure (WBS)

  • The WBS is a product oriented breakdown of the hardware and software to be provided to the customer/agency by the company/program and its major subcontractors

  • The WBS forms the basis for planning, scheduling, and assessing progress on contract effort

  • Define the organization – Organization Breakdown Structure (OBS)

  • The program organization structure reflects those departments and individuals responsible for the program’s technical, cost and schedule performance

  • Responsibility must be clearly defined


Backup charts ansi 748 evm process elements

Work Packages

Planning

Packages

EVM ELEMENTS - ORGANIZATION

WBS + OBS = RAM Responsibility Assignment Matrix

WBS

Program/Project

ABC Software Upgrade - B

Training - C

123 Module / Upgrade

BB

456 Module / Upgrade

BC

Other Org.

Code, Integrate

And Test

BBA

O

B

S

Code Devel’ment

BBAA

Directorate

IA

Design

Software Arch

Design

Cost

Account

Module Interface

Design

Cost

Account

Software Eng

Integration

and Test

Cost

Account


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS – PLANNING & BUDGETING

  • SCHEDULE

  • Defines what must be done to complete the project on time

  • Provides a basis for:

    • Project definition

    • Communication

    • Work progress

    • Forecast for project completion


Backup charts ansi 748 evm process elements

EVM ELEMENTS - PLANNING & BUDGETING

  • Develop Schedules

Major Milestones

Master Schedule

W

B

S

Intermediate Milestones

Intermediate Schedule

W

B

S

Detail

Detail Schedule

W

B

S

Key milestones are identified and time phased at successively lower levels


Backup charts ansi 748 evm process elements

EVM ELEMENTS - PLANNING & BUDGETING

Total Project Allocated Budget

(Authorized + Unauthorized)

Authorized / Performance Measurement

Baseline (PMB)

Unauthorized

Cost Accounts

Undist’d

Budget (UB)

CA Budgets

Summary

Planning

Budgets

Discrete

WPs

LOE

WPs

Appor

WPs

Pln WPs

(Futures)


Backup charts ansi 748 evm process elements

Develop and Baseline Detailed Project Plan

High Level WBS

Develop/Baseline Detailed

MS-Project Master Schedule

Detailed Project Plan

Concept of Operations/

And or Statement of Work

Detailed BOEs

  • BOEs and Plans are reviewed internally and

  • with customer in an iterative process

  • to drive consensus.

  • Subjected to PM and EV PMO review prior

  • to final baseline agreement.


Backup charts ansi 748 evm process elements

EVM ELEMENTS - PLANNING & BUDGETING

BUDGET BASELINE

The assignment of budgets to scheduled segments of work produces a time-phased plan against which actual performance can be measured

Good planning demands thoroughness and discipline at the outset with continuing discipline required in the maintenance and operation of the plan


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - PLANNING & BUDGETING

    BUDGET BASELINE

  • Essential items necessary for proper planning:

    • Program schedules

    • CWBS and CWBS Dictionary

    • Statement of work (ESOW, MESOW, etc.)

    • Work authorization

  • If any of the above items are missing or incorrect,

  • you will have industrial size problems!


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - PLANNING & BUDGETING

  • TYPE OF WORK

  • DISCRETE

    • Has a measurable output or accomplishment which can be scheduled in advance

  • APPORTIONED EFFORT

    • Planned and measured in direct proportion to one or more discrete work packages

  • LEVEL OF EFFORT

    • Defines a support activity without measurable output

  • PLANNING PACKAGES

    • Known work in the future not yet planned in detail


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - PLANNING & BUDGETING

  • EARNED VALUE METHODOLOGY

  • DISCRETE is preferred, “IF the effort can be objectively measured”. Types of discrete effort include milestone, standard hour content, units completed, managers assessment, and materials receipt

  • APPORTIONED is usually preferred for many quality or commodity functions which directly relate the other tasks

  • LEVEL OF EFFORT (LOE) should be used sparingly, primarily for support-type functions

  • PLANNING PACKAGES are used for future work that budget has been accounted for, but not fully planned out. This work typically is outside of the current performance periods and guidelines are established to determine when efforts must be converted to one of the other types of cost accounts above


Backup charts ansi 748 evm process elements

EVM Methodologies

  • Milestone - Objective, measurable deliverablesestablished (1 or more per

  • month) for each subtask, and a budget Earned value of the budgeted amount

  • is claimed only when a milestone is completed estimated for each milestone.

  • Percentage Complete - The amount of subjectively estimated progress on each

  • subtask is claimed as a percent of the total task or work package.

  • Milestone plus Percentage Complete - Combination of Milestone and Percentage

  • Complete methods (for tasks that lack milestones). Same as milestone method

  • except the percentage complete is estimated for tasks that lack any milestones.

  • Percentage Start / Percentage Complete – Percentage values are claimed when

  • deliverable tasks begin and end. The budget percentage is claimed for every subtask

  • in the month it starts ant the rest in the month work is completed at

  • 25/75, 50/50 percentages)

  • Units Complete - Values that are claimed for each unit completed

  • Level of Effort (LOE) - No defined deliverables; value claimed equals budget


Backup charts ansi 748 evm process elements

Determine Proper Tracking Levels

  • Detailed program plan contains 5th/6th level details

  • Tracking performed at 2nd/3rd levels


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - PLANNING & BUDGETING

  • COST ACCOUNT

  • Summation of work packages and planning packages

  • Represents the intersection of the lowest level of the organizational breakdown structure (Cost Account Manager) with the WBS

  • Is the level where cost and schedule variances are analyzed


Backup charts ansi 748 evm process elements

Cost Account:

Functional Responsibility

Variance Analysis

IPT Cost Account:

Multi-functional Responsibility

Variance Analysis

EVM ELEMENTS – PLANNING & BUDGETING

COST ACCOUNT VS IPT COST ACCOUNT


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS & PLANNING & BUDGETING

  • WORK PACKAGE

  • Subdivision of a cost account used in planning, controlling, and measuring contract cost and schedule performance

  • Lowest budgeted element where work is to be performed

  • Describes the work to be accomplished by a specific performing organization (i.e., manufacturing)

  • Should be reasonably short in duration, however no time limit is imposed as long as the duration and scope is appropriate for effective management

  • Collection point for earned value and actual costs


Backup charts ansi 748 evm process elements

  • EVM PLANNING & BUDGETING ELEMENTS

  • PLANNING PACKAGE

  • DEFINITION – Future effort not fully defined or detail scheduled

    • Sub-Division of a cost account

    • General scope of work

    • Assignable to a single organization

    • May be firm planned incrementally

    • Firm planning must occur prior to scheduled start of effort:

      • Goal = 6 months; no later than 1 month

    • Budget must accompany scope


Backup charts ansi 748 evm process elements

Establishing the Baseline is an Iterative Process

Define The Work

1

Contract Budget Base

MR

Schedule The Work

2

$

Performance Measurement Baseline

Allocate Budgets

3

100

40

60

15

25

Time

30

30


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ACCOUNTING

  • Direct costs should be charged in a manner consistent with budgets

  • Network activity numbers are authorized at the lowest level of the WBS and are summed up to successively higher levels to the project level

  • Timely correction of errors


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - REVISIONS

  • BASELINE CHANGES

  • Customer/Agency directed changes

  • Allocation of Undistributed Budget

  • Replanning

    • Internal

    • Single point adjustment

  • Over Target Baseline (OTB)


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS – REVISIONS

  • BASELINE CHANGES

  • Are documented by schedule/budget baseline revision (S/BBR)

  • Reviewed and approved by Cost & Schedule Program Managers and Program Managers

    • Budget and scope must go together

  • CCB and BER’s provide audit trail and system discipline


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - REVISIONS

  • MANAGEMENT RESERVE

  • Established by Program Manager for contingencies

    • Overhead rate adjustments

    • “Unknown unknowns” – unanticipated or unplanned, but within scope of the project

  • Used for scope changes only (not for performance issues)

  • Cannot commit more MR than is in MR (No negative MR)

    • Budgeted MR versus EAC MR


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - REVISIONS

  • REPLANNING

  • Internal:

    • To maintain a baseline which represents work being performed

    • Maintain integrity of EV data

    • Limited to future work

    • Requires approval when it affects a major portion of remaining work scope

      • Agency / Project EV requirements – customer

      • Internal EV requirements – EVM PMO Focal Point


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS – REVISION

  • REPLANNING

  • Single Point Adjustment:

  • To maintain a baseline which represents work being performed

  • Maintain integrity of EV data

  • Changes to open work packages that affect cumulative BCWS or BCWP and/or affect current period BCWS or BCWP

  • Requires approval

    • Contractual EV requirements – Customer

    • Internal EV requirements – EV Focal Point

  • Selective replans to open work packages not materially affecting performance measurement – Agency or EV Focal Point approval is not required


Backup charts ansi 748 evm process elements

  • ESSENTIAL ELEMENTS OF EVM

  • Origin

  • Organization

  • Planning and Budgeting

  • Accounting

  • Analysis and Management Reports

  • Revisions and Data Maintenance


Backup charts ansi 748 evm process elements

EARNED VALUE TERMS

ACWP = Actual cost of work performed (Basically costs extracted from work in process)

BCWP = Budgeted cost of work performed (Earned Value)

BCWR = Budgeted cost of work remaining

BCWS = Budgeted cost of work scheduled (Budget spread to time)

BAC = Budget at completion (Total budget for a given task)

CPI = Cost performance index

CVAR = Cost variance (BCWP-ACWP)

EAC = Estimate at completion

IEAC = Independent estimate at completion

SPI = Schedule performance index

SVAR = Schedule variance (BCWP-BCWS)

TCPI = To complete performance index


Backup charts ansi 748 evm process elements

EVM ELEMENTS - ANALYSIS

  • Monthly Status and Forecast

    • Status

    • Estimate to Completion

    • Variance analysis

  • Performance metrics

  • Estimate at completion


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • MONTHLY STATUS & FORECAST

  • Assess progress against the plan

  • Compare work performed (BCWP) to work scheduled (BCWS) and actual cost of work performed (ACWP)

  • Evaluate estimate to complete (ETC)

    • Determine work remaining

    • Estimate resources and time required to accomplish remaining work

    • Revise ETC if necessary

  • Note: EAC changes are documented, then approved by Project Manager

  • Compare total budget (BAC) to estimate at completion (EAC)


Backup charts ansi 748 evm process elements

EVM ELEMENTS - ANALYSIS

MONTHLY STATUS & FORECAST

Variance Analysis

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

BCWP – BCWS = SVAR

BCWP – ACWP = CVAR

BAC – EAC = VAC


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • VARIANCE ANALYSIS REPORTING

  • Cause:

    • Discuss cost and schedule variances separately

    • Clearly identify problem/s

    • Emphasize the quantative, not the qualitative

    • Address significant – not all problems


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • VARIANCE ANALYSIS REPORTING

  • Impact:

    • Describe specific cost, schedule and technical impacts to project

    • Address schedule impact (master and detail)

    • Describe effect on other cost accounts or WBS elements


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • VARIANCE ANALYSIS REPORTING

  • Corrective Action:

    • Describe specific actions being taken to alleviate or minimize the impact of the problem

    • Include estimate of “get well” dates if known

    • If no corrective action is possible, explain why


Backup charts ansi 748 evm process elements

EVM ELEMENTS - ANALYSIS

MONTHLY STATUS & FORECAST

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

What is our status, our schedule efficiency, our cost efficiency?

Where are we headed?

Is the EAC realistic?


Backup charts ansi 748 evm process elements

CV

EV

SV

BCWS

X 100 = CV %

X 100 = SV %

(100)

700

100

600

X 100 = (14.3%)

X 100 = 16.7%

EVM ELEMENTS - ANALYSIS

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

Schedule Variance (SV)

Cost Variance (CV)

EV – BCWS = SV

700 – 600 = 100

EV – ACWP = CV

700 – 800 = (100)

Schedule Variance %

Cost Variance %


Backup charts ansi 748 evm process elements

VAC

BAC

(150)

1000

X 100 = VAC

X 100 = (15%)

EVM ELEMENTS - ANALYSIS

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

Percent Complete

Percent Spent

ACWP

EAC

800

1150

ACWP

BAC

BCWP

BAC

700

1000

X 100 = % Complete

EAC:

X 100 = % Spent

X 100 = 69.6 %

X 100 = 70%

800

1000

BAC:

X 100 = X 100 = 80%

Variance at Completion

Variance at Completion %

BAC – EAC = VAC

1000 – 1150 = (150)


Backup charts ansi 748 evm process elements

ACWP

BCWP

800

700

= CPIp (spend rate)

= 1.14

EVM ELEMENTS - ANALYSIS

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

Schedule Performance Index

Cost Performance Index

BCWP

BCWS

700

600

BCWP

ACWP

700

800

= SPI

= CPIe (efficiency)

= 1.17

= .875

(Greater than 1.0 is positive schedule/cost performance)


Backup charts ansi 748 evm process elements

BCWP

BCWS

700

600

SPI =

=

= 1.17

Schedule Performance Index (CPI)

Compares the value of the work completed against how much work was planned to be completed

SPI > 1 = Ahead of Schedule

SPI < 1= Behind Schedule


Backup charts ansi 748 evm process elements

Cost Performance Index (CPI)

Earned Value

700

CPI =

=

= 0.875

Actual Cost

800

Prior to time now, for every $1.00 I spent, I only accomplished $0.87 worth of work.

CPI > 1 = Cost Under-run

CPI < 1= Cost Over-Run


Backup charts ansi 748 evm process elements

EAC:

BAC – BCWP

EAC – ACWP

BCWR

ETC

1000 - 700

1150 - 800

EVM ELEMENTS - ANALYSIS

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

To complete Performance Index (TCPI)

BAC:

BAC – BCWP

BAC – ACWP

BCWR

BAC - ACWP

1000 - 700

1000 - 800

= TCPIBAC

= TCPIEAC

= TCPIEAC

= TCPIBAC

300

350

300

200

=

= 1.5

=

= .86

Measures efficiency required to meet EAC

Measures efficiency required to meet BAC


Backup charts ansi 748 evm process elements

$%

SV = 100 16.7 SPI = 1.17

CV = (100) (14.3) CPIe = .875

VAC = (150) (15) CPIp = 1.14

% Complete = 70.0

% Spent EAC = 69.6

% Spent BAC = 80.0

EVM ELEMENTS - ANALYSIS

Performance Metrics

BCWSBCWPACWPSVARCVARBACEACVAC

600 700 800 100 (100) 1000 1150 (150)

TCPIEAC:.86

TCPI BAC:1.50

What is our status: Ahead of schedule, overrunning

Where are we headed: Complete early, overrun budget

Is the EAC realistic: ?


Backup charts ansi 748 evm process elements

EVM ELEMENTS - ANALYSIS

ESTIMATE AT COMPLETION (EAC)

An EAC represents the expected final costs of a

cost account, WBS, or program

By Formula

EAC = ACWP + ETC


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • EAC FREQUENCY

  • Quarterly updates at the work package level

  • “Grassroots” updates usually twice a year or when directed by the program manager

  • EAC’s must be justified and approved by the Project Manager


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • CONSIDER EVERYTHING YOU KNOW:

  • Performance to date

  • Remaining work (complexity)

  • Contract schedules

  • Funding constraints


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS - ANALYSIS

  • “CURRENT UPDATE or QUARTERLY” EAC

  • Considers primarily open work packages

  • Planning packages and unopened firm packages need not be considered

  • Reflects selected technical issues

  • Expected to be accomplished quarterly


Backup charts ansi 748 evm process elements

  • EVM ELEMENTS – ANALYSIS

  • “GRASSROOTS” EAC

  • Considers all in-process work

  • Also evaluates work not yet started

  • Evaluation begins at the lowest level of the WBS

  • Final adjustments by the Program Manager


Backup charts ansi 748 evm process elements

  • Use of the EAC by the Project Manager / Organizations

    • Manpower forecasting

    • Overhead / Commodity Services forecast

    • Cash Expenditure profiles / analysis

    • Budget execution forecasting and early warning

      Worst thing that can happen, is to run out of money

      and only find out about it after it is all gone


  • Backup charts ansi 748 evm process elements

    • EVM ELEMENTS - ANALYSIS

    • VALIDATING THE EAC FORECAST

    • Use logic

    • Complexity of the “TO GO” work

    • Schedule remaining

    • Independent EAC analysis


    Backup charts ansi 748 evm process elements

    • EVM ELEMENTS - ANALYSIS

    • INDEPENDENT ESTIMATE AT COMPLETION

    • IEAC = ACWP + PF (BAC – BCWP)

    • Where “PF” = Performance Factor

    • Performance factor is subjective

    • There are many formulas which establish performance factors


    Backup charts ansi 748 evm process elements

    • EVM ELEMENTS - ANALYSIS

    • IEAC FORMULAS

    • ASSUMPTIONS

    • Both of the above IEAC’s assume that current performance will continue throughout the life of the program

    BAC – MR / CPI = IEAC

    Budget at completion less management reserve

    divided by the cumulative cost performance index

    (BAC – BCWP) / CPI + ACWP = IEAC

    Budget at completion less earned budget divided by the cumulative

    cost performance index and added to actual costs incurred to date


    Backup charts ansi 748 evm process elements

    • EVM ELEMENTS - ANALYSIS

    • IEAC FORMULAS

    • ASSUMPTIONS

    • First IEAC assumes program is at least 25% complete and weighs cost and schedule equally

    • Second IEAC used when most recent performance is representative of TO GO performance

    (BAC – BCWP) / (CPI X SPI) + ACWP = IEAC

    Remaining budget divided by the product of the cumulative

    CPI and SPI and added to the actual costs incurred to date

    BAC – MR / [CPI-1 + CPI-2 + CPI-3) / 3] = IEAC

    Budget at completion less management reserve divided

    by a three-month average of the monthly CPI’s


    Backup charts ansi 748 evm process elements

    • EVM ELEMENTS - ANALYSIS

    • IEAC FORMULAS

    • ASSUMPTIONS

    • First IEAC assumes program is at least 25% complete

    • Second IEAC gives more accurate forecasts during the final 25% of the program

    [(BAC – BCWP) / (.2 X SPI + .8 X CPI)] + ACWP = IEAC

    Remaining budget divided by the sum of the CPI and SPI

    weighted 4:1 and added to actual costs incurred to date

    (BAC – BCWP) / [(CPI-1 + CPI-2 …. + CPI - 12) / 12} + ACWP = IEAC

    Remaining budget divided by a twelve month average of

    the monthly CPI’s and added to actual costs incurred to date


    Backup charts ansi 748 evm process elements

    EVM ELEMENTS - ANALYSIS

    IEAC

    BCWSBCWPACWPSVARCVARBACEACVAC

    600 700 800 100 (100) 1000 1150 (150)

    • BAC – MR / CPI = IEAC (BAC – BCWP) / CPI + ACWP = IEAC

    • 1000/.875 = 1143 300/.875 + 800 = 343 + 800 = 1143

    • [(BAC – BCWP) / (CPI X SPI)] + ACWP = IEAC

    • [300/(.875 X 1.17)] + 800 = (300/1.02) + 800 = 294 + 800 = 1094

    • [(BAC – BCWP) / (.2 X SPI + .8 X CPI)] + ACWP = IEAC

    • [ 300/(.2 X 1.17 + .8 X .875)] + 800 =

    • [300 / (.234+.7)] + 800 = 300/.934 + 800 = 321 + 800 = 1121


    Backup charts ansi 748 evm process elements

    EVM ELEMENTS – ANALYSIS

    WINSIGHT

    A software tool for analyzing performance measurement data


    Backup charts ansi 748 evm process elements

    • Program Management Responsibility

    • Responsible for program cost, schedule and technical performance

    • Ensure that performance is objectively measured and reported

    • Ensure that subordinate managers understand and utilize cost and schedule data to manage their program effort


    Backup charts ansi 748 evm process elements

    • TO SUMMARIZE

    • Earned value accounting offers a numerical representation of program cost and schedule status

    • Earned value accounting is becoming a “Way of Life”

      • OMB Direction

      • Agency Requirements

    • If used properly, earned value provides a management tool which, when used with program schedules can facilitate Cost/Schedule control at any level of a program


    Backup charts ansi 748 evm process elements

    • Tailored Earned Value Management Standard Procedure

    • “EV techniques may vary in application, depending on the type, nature, risk and size of contract. Levels of application will be developed to minimize additional workload to provide management with the necessary cost and schedule information with which to make sound business decisions.”

    • Essential elements required for all levels of application:

      • Plan work scope, schedule and cost objectives to completion

      • Integrate program work scope, schedule, and cost objectives into a baseline plan against which accomplishments can be measured

      • Measure work accomplished and cost of work accomplished

      • Analyze significant variances

      • Project schedule and cost variances based on performance to date and predictive measures

      • Provide data for decision making and implementation of management actions