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Strength through Industry & Technology
Program Management Systems Committee
Procurement Division Educational Seminar
31 March 2008Sarasota, Florida
Current Initiatives in Earned Value Management
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The State of EVM• Needs improvement • More training needed in the civilian
agencies• More aggressive DCMA has identified
problems • We acknowledge that we are a part of the
problem• It’s time to partner with our stakeholders
and identify new solutions
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PMSC Opportunities• Increase commonality and consistency of EVM implementation across
industry and government • Proactive and timely resolution of contractual EVMS implementation and
oversight issues– Incorrect/Conflicting EV Contract Requirements– FAR Clauses Cited– DFAR Clauses Omitted– H-Clauses and SOW That Direct System Violations
• Share industry and government best practices and lessons learned• Review and discuss industry/government EVM policy and guidance• Improve EVM skill set (people, processes and tools)• Work with educational institutions to develop EVM course curricula
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More Aggressive DCMA• Executive Agent for Earned Value Management Systems
– Responsible for Determining Initial and Ongoing EVMS Compliance for All DoD Suppliers (including Subs)
• DCMA Re-energizing EVM within Pentagon– Recent Review Results Have Heightened Interest
• Instituted Standard Review Methodology using new Standard Surveillance Operating Manual (SSOM)– Did not coordinate with industry before issuance– Issuing Contract Action Reports where they had not before
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What DCMA Has Seen In Plant• Systemic EVMS Weaknesses
– Across Programs, Suppliers and Buying Commands• CAM Knowledge Problems• Span of Control Issues• Inadequate Schedules• Data Integration and Integrity Problems• Undisciplined Work Authorization and Change Control
Processes• Poor Variance Analyses• No Formal Corrective Action Processes• Inadequate Estimate at Completion Procedures
• EVM Used to Report Data, Not as a Management Tool
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PMSC Initiatives• Encourage joint industry/government training:
– Scheduling - Contracting for EVM– EVM - IBR– Surveillance - Acceptance
• Engage the Program Management community in pursuit of our objectives:– DoD - Intelligence agencies– OMB - Civilian agencies – GAO - DAU and FAI– Professional Associations
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Industrial Committee for Program Management • PMSC set up meeting with Dr. Finley
– Concern over lack of DoD participation in the PMSC by his direct staff relevant to EVM (i.e., System Engineering, Contracts, etc.) Other disciplines need to be at the table for more PM representation not just the EVM
– Open up the communication lines to offer better integration of activities
• Result of meeting – establishment of ICPM to improve Program Management of DoD programs– Provide a continuing forum for government-industry discussions and
exchange of views related to program and acquisition management activities.
– Discuss OSD and DoD Component policies that affect relationships with suppliers.
– Discuss emerging issues in government and industry that affect the readiness and capabilities of U.S. defense system producers.
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• Mike Joyce (Chair) – Lockheed
Martin
• Dr. Jim Finley (Principal Govt
Participant) –Deputy Under
Secretary of Defense (Acquisition
& Technology)
• Dave Ahern – OUSD A&T
Director, Portfolio Systems
Acquisition
• Vice Adm David Architzel – Navy
• LGen Donald Hoffman – AF
• MGen Steve Reeves - Army
• Steve Goo – Boeing
• John Chino – Northrop Grumman
• Skip Burns – Raytheon
• Ron Hornish – Rockwell Collins
• Mike Blake – Textron
• Susan Dong – BAE Systems
• Bennett Croswell – Pratt & Whitney
• Bill Altman – Battelle (for Steve
Kelly)
• Neil Albert – NDIA PMSC
• Pete Wynne – NDIA PMSC
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Contracts Subcommittee• In addition to including FAR or DFARS EVMS clauses on contracts,
contracting officers frequently include other provisions that often require suppliers to modify or depart from their standard, validated EVM Systems .
The use of a single EVMS by all program participants to manage large programs involving major subcontractors is viewed as non-compliant to the DFARS EVMS clause by DCMA.
– This approach also referred to as badgeless, virtual, or gray badge.
– Characterized by adoption of a single validated system to manage the effort (typically the prime’s EVMS), use of a common tool set, integrated schedules and performance reporting
• DCMA’s stated policy is to issue Corrective Action Request (s) against the contractor for following contract direction
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Contracts Subcommittee There is a widespread EVM knowledge gap among the contracting
communities
Evidence that EVM and Contracting experts are not collaborating, via IPTs, on the contractual application and use of EVMS during acquisition planning
Evidence of this is as follows:
Incorrect flow down and/or omission of EVM contractual requirements.
Improper contract direction forcing the contractor or subcontractor to violate their approved system.
Over application of EVM requirements
Improper use of Management Reserve (MR)
Integrated Baseline Review (IBR) timing
NDIA PMSC should establish an Industry / Government team to generate a briefing and communication/training package which can be delivered to all federal agencies and contractor organizations.
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Service Contracts Subcommittee•Charter for Subcommittee: Develop and recommend policy, process guidance, and/or training to support the implementation of EVMS on services type work. • EVM and PBSA are compatible and should be used together.
Both use a WBS to develop the requirements, cost and schedule and must have a defined method of measuring performance.
• Common Approach•Control Account for PMO
Work Package 1: Project ManagementResources: Fixed, Project Manager - One charge number, LOEWork Package 2: Project ControlResources: Fixed; Scheduler, Financial Analyst, EV Specialist, Data Entry Clerk - One charge number, LOE
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Program Management Office
Project Management
Scheduling
Finance
Project Support Office
Project Management
“Common Approach”
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Admin Mgt
Technical Direction / Mgt
Planning/ Statusing/ Analyzing/ Reporting
Monthly Processing
Verification &Validation
Training
CAM /User Support
Program Management Office
Project Management
OperationsSupport
Baseline Support
Project Support Office
EVMS Improvements
PMB Creation
PMB Modification
Tool & Utility Development
Research & Informal Train
Training Course Development
Conferences & Seminars
In-house
Company Mandated
“New Approach”
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PM Basis of Estimate (BOE)• Administrative Management
– Based on percentage times the number of FTEs (5-8%) or
• Technical Direction / Management– Based on percentage of technical work (7-12%)
• Planning, Statusing, Analyzing, Reporting– Based on Should Costs, Business Processes, #
of CAPs, Risk, Scope Stability, EVM Maturity, etc
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Should Costs by Role per CAP• Status input preparation: 60 min• Performance metrics data entry: 10 min• Status Review: 30 min• Data entry adjustments: 5 min• Preliminary report generation: 10 min • VAR analysis investigation & doc: 30 min• VAR Analysis Review & Validation: 15 min
• Report preparation & reconciliation: 10 min
*
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Scheduling Subcommittee• Recognition that issues with the IMS are
broad and numerous• Planning:
– What are the essential building blocks needed and how are they acquired
– How is an IMS built
• Execution:• How is a schedule updated and status
presented
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• QUESTIONS?
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