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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
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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
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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
• Submit to NDIA PMSC Chair – September 30
Working Version 1 preparation for release
• Release on NDIA Web site – October 2005