EVMlOl Funda m entals of Earned Value Manag nt Modul3 W e l … · 2016. 11. 21. · EVMlOl Funda m entals of Earned Value Manag nt lesson 3.0 - Modul e Introduction RESOURCES I PRINT

EVMlOl Fundam entals of Earned Value Managem ent

lesson 3.0 - Modul e Introduction RESOURCES I PRINT 1 HELP

Module 3 W el come - Developing the PMB and Risk Assessment

S64.8M Management Reserve (S1.6M)

S64.8M= LAR Negotiated Contract Cost

$in M

Contract Start • • •

Time Contract End

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EVMlOl Fundamentals of Earned Value Management l esson 3.0- Module Introduction RESOURCES I PRINT 1 HELP

Module 3 Welcome - Developing the PMB and Ri sk Assessment

Management Reserve ($1.6M) $64.8M ,.-- $64.8M= lAR

l ong De s crip t ion

Program manager and Kate, the intern, display . Integrated produc t team, or IPT, icon display s. Questions display: What are Government and contrac tor responsibilities? How c an I support effec tive Government-contrac t or communic ation? How do Work Breakdown Struc tures support EVM? Chart displays representing the performance measurement baseline, or PMB, for the LAR contrac t over time, from contrac t start to contrac t end . The contrac t value is 64.8 million dollars, with a t wo million dollar management reserve. T ext display s: Performance Measurement Baseline ( PMB) integrates cost, sc hedule, and technic al objec tiv es. Work t o be accomplished is represented in dollars . Tasks are time phased from contrac t start t o contrac t end . Key concerns display . What is the purpose of the PMB? What are its key components? How is the PMB created? How is the PMB assessed ? What ac tivities are required t o plan and conduc t an Integrated Baseline Review ( IBR)?

C<>n tract Start Time Contra ct End

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Closed Captioning

[Program Manager] So, Kate, by now you’ve met the members of the team and we’ve discussed how you

can support effective communication between the Government and the contractor. You’ve also seen how a Work Breakdown Structure, or WBS, supports Earned Value Management, or EVM. Now let’s turn to the

EVM data itself—and we’ll start with the development of the performance measurement baseline, or PMB. Recall that the PMB is a time-phased budget plan for accomplishing work.

It reflects the comprehensive scope of all contract work in the contract’s Statement of Work, or SOW, and

the agreed-upon contract cost as distributed across the contract's period of performance. As work progresses, contract performance is measured against this baseline.

This is a fundamental concept for EVM.

[Kate] Jennifer, I do have a few questions that I hope we will discuss. I want to know more about the

purpose of the PMB, along with its key components, but I’m also wondering—where does the PMB actually

come from? What activities are involved in its creation? And I am curious—if the PMB is so important, is there any kind of review process to make sure it’s accurate and realistic?

[Program Manager] Great questions, Kate! We’ll definitely cover them. In fact, your last question brings

up a further point—the PMB developed by the contractor is reviewed for realism and if it contains the complete scope of work. This happens during the Integrated Baseline Review, or IBR, so we should also

discuss what activities go into preparing for and conducting an IBR.

[Narrator] Welcome to Module 3, Developing the PMB and Risk Assessment.


lesson 3.0 - Module Introduction RESOURCES I PRINT 1 HELP

EVM Process and Developing the PMB

You have identified the roles, responsibilities, and management structures for your program, and know how to communicate with program team members.

Now you need to establish the performance measurement baseline {PMB) with which to assess performance throughout the program.

Define Organize to

EVM Execute

Requirements Contract

Select eacfl s t ep for a brief summary. .!2

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Now you need to establish the performance measurement baseline ( PMB) with which to assess

performance t ~------------------------. Define EV M Requirements

• What are the cost, schedule, and performance parameters?

Define Organize to -,__

EVM Execute I li2Jl Develop PMB

3

1

Requirements --- Contract

- Analyze Performance & Take Corrective Action

Select each step for a brief su<n<nary. ~

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EVM Pr ocess and Developing the PMB

You have identified the roles, responsibilities, and management structures for your program, and know how to communicate wi th ro ram team members .

Organiz e t o Ex e cute ContractNow you need sess performance t

• What are the contractual EVM requirements?

• Are appropriate sy stems and structures in place?

EIA- 748 Guidelines 1-5 : Organization

Define Organize to -,__


3

1




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EVM Process a

You have iden how to commu

Now you need performance t

d.J)~velnnion.):btiU!Ml"-------------------, De v e lop t he PMB

, and know

• What needs to be done?

• When must it be done? sess

• How much will it cost?

• What are the risks?

ElA- 748 Guidelines 6 -15: Planning, Scheduling & Budgeting

Define Organize to

EVM Execute



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EVM Processa~~--~~--~--~----------------------------------------,

Measure &. Document Performance You have iden , and know how to commu • How much of the planned work is accomplished to date?

• How much did that work cost?Now you need sess performance t • What variances exist between budgeted, earned, and actual

costs?

EIA-748 Guidelines 16 -21 : Accounting Considerations EIA-748 Guidelines 22-27: Analysis and Management Reports

Define Organize to

EVM Execute



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Youhave idenw-------------------------------------------------~----------~. and know how to commu Analyze Performance Itt Tak e Co rrective Action

Now you need • Is the work on schedule? sess performance t

• Are the costs on budget?

• Given the analysis, what action is needed?

ElA- 748 Guidelines 22-27: Analysis and Management Reports

Define Organize to

EVM Execute



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You have identified the roles, responsibilities, and management structures for your program, and know how to communicate with program team members .

Now y ou need t-__._.._._.____ ______________~~P-__.__.~~~~--~----~._ sess

performance t Rev ise PMB

• Giv en the analy sis, does any thing need to be revised in the PMB?

EIA- 748 Guidelines 28- 32 : Revisions and Data Maintenance

Define Organize t o -,__


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1








Now you need to establish the performance measurement baseline ( PMB) with which to assess performance throughout the program .

l o ng De scriptio n

Six step EVM process . 1. Define EVM Requirements, 2 . Organize to Execute Contract, 3 . Develop PMB, 4. Measure and Document Performance, 5. Analyze Performance and T ake Corrective Action, and 6. Revise PMB. Step 3 is highlighted.





Module Overview

This module, Dev eloping the PMB and Risk Assessment, contains three lessons that introduce the PMB.

Lesson

l esson 1: I ntroduction to the Performance Measurement Baseline

l esson 2: PMB Key Phases

l esson 3: Developing the PMB and Risk Assessment

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Terminal Learning Objective ·- "' ..... Explain key points about the PMB in Earned Value Management ( EVM)

Describe three key phases in developing the PMB

Given Department of Defense ( DoD) policy and guidance documents, recognize key points about the Integrated Baseline Review ( I BR) process

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lesson 3.0 · Module Introduction RESOURCES 1 PRINT 1 HELP

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EVMlOl Funda m entals of Earned Value Manag nt Modul3 W e l … · 2016. 11. 21. · EVMlOl Funda m entals of Earned Value Manag nt lesson 3.0 - Modul e Introduction RESOURCES I PRINT