1

NDIA Earned Value Management Application Guide

Status Report

August 16-17, 2005

Wayne Abba

Walt Berkey

David Muzio

David Treacy

NDIA EVM Application Guide 8-16-05

2

ObjectivesPrepare an EVMS Application Guide for use by Federal Agencies and Industry.

Address “how used” for the NDIA PMS Committee documents (e.g. ANSI/EIA 748, Intent Guide, Surveillance Guide, IBR Guide, etc.).

Provide a process for both government and industry so a review documenting ANSI Guideline compliance could be accepted without another review.

Limit the page count to a range of 15 to 20 pages excluding appendices

Appendices provide an executive summary of existing and relevant NDIA EVM documents; not a reprint

3

Application Guide Table of Contents• Introduction

• Acquisition Process & Earned Value Management

• EVM Application

Planning for EVM

Contracting for EVM

Developing the Program Budget and Baseline

• Performance Management & Measurement

Measuring Progress & Management Analysis

Communication

Change Management

• Appendices – NDIA Documents Executive Summaries

4

Introduction• Users will gain insight into

Planning for a program

Application of EVM

Organization that facilitates EVM

NDIA resources and guidance

• Supports OMB”s objectives for application of EVM

• Intended for government and industry communities

• NDIA review for revisions every two years

5

Acquisition Process & Earned Value Management

• Typical Acquisition Life Cycle (next slide)

PM, SE. CE, Risk, Procurement disciplines essential to integrating EVM processes

• Earned Value Management

EV -- EVM -- EVMS

• Asset Investment Life Cycle

- Performance management approach established by the nature of the work not the contract type

- EVM effective for discrete work

• Definitions – ANSI/EIA 748 Section 2.6

6

Solution

Implementation

Systems Acquisition Sustainment

Analysis/ Conceptual

In-Service Management

Initial Investment

Analysis

Final Investment

Analysis

Typical Acquisition Life Cycle

Pre-Systems Acquisition Pre-Systems Acquisition PlanningPlanning

7

EVM Application

• Planning for EVM

Organizing, Risk-Based Application, Scalability

• Contracting for EVM

Contract Types, Incentives, EVMS Compliance (next slide)

• Developing Program Budget and Baseline

(following slide)

8

Acquisition Life Cycle

Customer Supplier

Pre-Systems Acquisition

Recognize:Application GuideSystem Acceptance Guide

Document and Assessment:Application GuideIntent Guide

Systems Acquisition Accept:Intent Guide

IBR Review:

IBR Guide

Surveillance:Surveillance Guide

Implement:Intent Guide

IBR Review:

IBR Guide

Execution and Surveillance:Surveillance Guide

EVMS Compliance Framework

9

Time

C o s t

Program Risk-Adjusted Budget and EVM

BAC

C B A

PB

Project/Contract(s) Cost and Schedule Management Reserve

Program Cost and Schedule Management Reserve

PMB

PRB

10

Performance Management and Measurement • Measuring Performance Progress

Variances are vital for managing complex projects

• Management Analysis

Program team must implement actions to achieve program technical, schedule and cost objectives

• Program Progress Communication

Program and Project Management

Senior Leadership

• Change Management

- Ensure PMB accurately represents authorized work

- PMB Replan and PMB Reprogram

11

PRB

Time

Cost

Program Risk-Adjusted Budget plus EVMPMB Change Management – PMB Replan

BAC

C B A

PBProject/Contract(s) Cost & Schedule Management Reserve

Program Cost and Schedule Management Reserve

PMB

Time Now

EAC

Actual

EV

ETC

12

PRB

Time

Cost

Program Risk-Adjusted Budget and EVMPMB Change Management – PMB Reprogram

BAC

C B A

PBProject/Contract(s) Cost & Schedule Management Reserve

Program Cost and Schedule Management Reserve

PMB

Time Now

EAC

Actual

EV

ETC

13

Appendices

• EVM Application Framework (next slide)

• Appendix A: ANSI/EIA 748

• Appendix B: EVMS Intent Guide

• Appendix C: EVMS Systems Acceptance Guide

• Appendix D: EVMS Surveillance Guide

• Appendix E: Program Managers’ Guide to the Integrated Baseline Review Process

14

EVM Application Framework

Pre-Systems Acquisition

Systems Acquisition

EVM Application: ANSI/EIA 748

Compliant EVMS

Sustainment

EVM Application: ANSI/EIA 748 Scalable EVMS

EVMS

Organization or Supplier processes integrated with EVM capability

Contract or Project

EVMS EVMS Surveillance Implementation

15

Path Forward

Objectives and scope – complete

Inputs drafted by contributors – June 15

Compile inputs into draft – Aug 12 (July 30)

• NDIA PM Systems Committee comments – August Mtg.

• Committee comments – September 15

Email inputs to David Treacy

Dtreacy@mcri.com

• Submit to NDIA PMSC Chair – September 30

Working Version 1 preparation for release

• Release on NDIA Web site – October 2005