Transcript Weekly Earned Value Methodology

14th Annual IPM Conference
Weekly Earned Value
F-35 Approach
Suzanne West – Lockheed Martin
Jim Hoshstrasser – Northrop Grumman
Mike Brooks – BAE SYSTEMS
18 November 2002
Tysons Corner, Virginia
Introduction
• Weekly EV Has Provided Value Through the Early
Mitigation of Cost, Schedule, and Technical Risk
Result
Higher Probability of
Achieving Program Plans
2
Agenda
• Weekly EVM as a Value Added Mgmt. Tool
• F-35 Team – Weekly EV Approach
• Lessons Learned
Weekly
Earned
Value
3
Weekly EVMS as a
Value Added
Management Tool
WEV – Value Added Management Tool
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Proactive Measurement of
Achievement of Detailed Plans
2
Sustained Focus on Key Program
Events (IMP/IMS) and Risks
3
Weekly Management Review Ensures
Corrective Action at the Earliest Possible
Time
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What is Weekly Earned Value?
Is Not
• A Financial Report
• A weekly CPR
• Closing the Books on a
Weekly Basis
• A Weekly Status of Total
Contract $ Cost
• A Requirement for More
Detailed Schedules
(e.g., Weekly Milestones)
Is
• A Program Management Tool
• Weekly Measurement of Direct
Labor EVM in Hours – No
Surprises
• A “Quick Look” at Labor
Variances, Indices and Trends
• Integrated With the Overall EVMS
Processes and Data
• A Continuous Engagement of
Program and IPT Leaders in EVMS
Coordination Among Teammates & Suppliers Essential
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Weekly Performance Assessment Improves
Program Management Insight
Monthly
Problem
Point
1
Month 1
2
3
Month 2
4
5
6
7
Month 3
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9
10
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12
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Data Reflects Problem
Problem Researched
Cause Identified
Monthly Performance
Assessment Cycles
Corrective Action
Implemented
Data Validates Problem
Corrected
Earliest Visibility
Weekly
Data Reflects Problem
Issue Researched
Cause Identified
Corrective Action
Implemented
Weekly Performance
Assessment Cycles
Data Validates Problem
Corrected
Weekly Assessment Shortens the Cycle for Problem Identification,
Corrective Action, Problem Resolution, and Validation
Do You Already Have the Tools
Available to Implement Weekly EV?
• Do You Do Job Order Costing?
• Do You Have Manufacturing Standards?
• Do You Have Systems Which Provide Hourly, Daily,
•
•
Weekly Information – Including Labor?
Do You Status BTPs Daily, Weekly Already?
If you Already Have these Tools / Processes, the Only
Changes to Existing Processes for Weekly EV are:
– IPTs/CSIs Assess Progress Against Milestones,
CPI/SPI Variances that have Penetrated Thresholds,
and Required Corrective Action/Explanations Weekly
-- Develop Interfaces for Cost/Schedule Systems
Weekly EVMS Implementation Cost
•
Non-Recurring Cost:
– Development of Interface(s) to Weekly Database
– Initial EVMS/Weekly Hands-on Training
•
Recurring Cost:
– Periodic Training
– CSI Resource(s)?
– Time Spent on Weekly Performance Assessment
•
Up-Front Planning Requires Minimal Additional Costs
– Floor Systems and Accounting Systems Already
Provide Most of the Required Information
– IPTs / Business Management Personnel Already Having
Weekly Reviews of Data
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Weekly EVMS Requirements/Constraints
• Requires Upper Management Commitment &
Leadership
• Training for IPTs and CSIs (Cost/Schedule
Integrators)
• Appropriate Up Front Planning and Occasional
Re-planning
• Disciplines Team Leaders to Make Weekly
Assessment of Earned Value
• Requires Strong Business Management Support
to Integrate Data
Our WEV Approach Adopted Best Practices
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F-35 JSF
Weekly EV Approach
F-35 EVMS Approach
• True “Partnering” Relationship with Teammates
• Enable Real Time Cost/Schedule Data to the Entire
Teams and Customer
– Include Major Critical Suppliers
• Manage as True IPTs – Irrespective of Company’s
– “JSF First”
– “Best Athlete” Manages Team
– “Disney Friendly, FEDEX Fast”
• Risk Reduction Approach
We Are Committed to Managing the JSF SDD
Contract Using Weekly Earned Value Including
Major Critical Suppliers
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Global Communication
• Use Time Zones as an Advantage
– Establish Process That Utilizes Extended Working Day
– Manage Meeting Times / Appropriate Involvement
• Utilize e-mail / Net Meetings / Telecons / File Transfer
Wherever Possible
06:00
12:00
18:00
00:00
CST
BAE SYSTEMS
LM Aero (Ft Worth)
NGC
Data Review
Data Exchange
Meetings
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System Development and Demonstration
(SDD) Organization
LM F-35 Executive Leadership Team
Partner Leadership
Key Program Interface
LM F-35 Program Manager
Tom Burbage
 Northrop Grumman
Peter Shaw
 BAE SYSTEMS
Martin Taylor
 Government/LM Propulsion IPT
Fran Ketter
 Government/LM International IPT
Mike Cosentino
 New Initiatives
Paul Leamer
Deputy F-35 Program Manager
Henry Levine
Program Integration
Clay Porterfield
Tier 1
Tier 2
Business
Management
Craig Happel
Deputy
Mark Connelly
Contracts
Gary Lowe
Autonomic
Logistics
Luke Gill
Air Vehicle
John Fuller
SEIT
Terry Harrell
PC
Phil Riney
SEIT
PC
Don Searles Anne Bradley
Program Controls
Georgia Hughey
Requirements Mgmt
Tom Partridge
AV Integration
Paul Park
Trade
Studies/Estimates
Phil Stumph
EVMS/Finance
Suzanne West
Data Management
Graham Rutherford
Tier 3
(A) Acting
(PC) Program
Controls
• Special Projects
Floyd Whitehouse
• Manufacturing
GB Bailey
• IFPC
Fran Ketter
AV Verification
Mark Lambeth
Specialty Eng
Guy Gordon
AV Sys Mgmt
Tom Partridge
AV SCM
Guy Grosgebauer
Airframe IPT
Martin McLaughlin (NG)
SEIT Larry Mestad
PC Catherine Griffin
Vehicle Systems IPT
Frank Kirkland
SEIT Jerry Laster
PC Peter Bernstein
AS Integration
Matt Maxwell
SE Management
Phil Kruger
AS Analysis
Dean Hayes
Subcontract Mgmt
Loyd Gray
Business Approach
Working Group
Peter Walker (LMIS)(A)
Support
System
Lee Johnson
SEIT Sara Gutierrez
Training
System
JoAnne Puglisi (LMIS)
• Reliability, Maintainability,
Safety and Supportability
Greg Brown
• Affordability and Continuous
Improvement
Mike Fortson
Deputy and
PC
SEIT
Donnie Ward
Dave Butcher
SE Operations
Gary Garza
Sys Suppt Analysis
Scott Cobert
Mission System IPT
Dave Larsen
SEIT Karen Carrington
PC Elizabeth Link
Systems
Engineering
Jim Engelland
SEIT Stan Urbanek
AL Information
Systems
Kevin LeBeau
SEIT Wally Lafferty
AS Management
John Paquet
AS Specialty Eng
Greg Brown
AS Life-Cycle Plan
Eric Redding
Engineering Integration
John Browning
Special Projects
Floyd Whitehouse
SEIT Gary Kolling
Afford and Cont Impr
Mike Fortson
SW Mgmt and Collab Envr
Lloyd Huff
Jana Moody
Mike Yokell
• Interoperability
John Gruetzmacher
Deputy
/SEIT
Tom Phillips
Jeff Brandon
• Lethality and Survivability
Dean Hayes
• Subcontract Management
Art Price
Resource
Management
Stan Phillips
ITF– Fort Worth
John Korstian
Integrators
Engineering
Jim Engelland
PC
TBD
Security
Jana Moody
Infrastructure
Integration and
F-35 Onboarding
David Bittenbinder
Business Dev
Jim Schaefer
Strategy Integration
Rowena Eberhardt
Customer Support
Don Searles
ITF – Pax River
Tom Phillips (A)
Program Support
Gary Howard
ITF – EAFB
Tom Phillips (A)
Program Self
Assessment
Tim Halterman
Aerostructures Mfg
G. B. Bailey
Material Mgmt
Art Price
Organizational
Effectiveness
TBD
Air System Verification
Perry Whitten
Subcontract Management
Art Price
International Projects
Steve Fouga
Pilot Integ Flight Ops
TBD
Manufacturing
G.B. Bailey
Key Emphasis Specialists
• Program Security
• Mission Planning
• Ship Suitability
Integrated
Test Force
Paul Metz
Business Mgmt
Craig Happel
P&OS
David Kohler
Communications
John Smith
IS&T
Lory Arghavan
Bus. Ventures
Larry McQuien
Legal
Steve Jeroslow
• International Projects
Steve Fouga
• Software Management
Lloyd Huff
• Improvements and Derivatives
Dave Jeffreys
Wizards
• Programmatic Planning
Paul Leamer
• Air Vehicle Integration
Kent Clark
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F-35 Cost & Schedule Summary
• Approx. $17B PMB
• Period of Performance: FY01 – FY12
• 214 Level 5 WBS Legs
• 10,000 Control Accounts
• 25 IMP Events/ 1,500 IMS,
– 30,000 Activities (Detailed Planning thru 3/03)
– Critical Item Network (2,500 Activities)
• CSIs – 185 for All Teammates
– 1 CSI per 30 Tech. Staff
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SDD Earned Value Management
Tool Architecture
Suppliers
Variety
LMIS
Cobra
P&W
SAP
GE
PCMS
NGC
MPM
BAE
CV
LM Aero
CV
E
x
c
e
l
Integrated
Management
Framework
(IMF)
C
o
s
t
winsight
T
e
m
p
l
a
t
e
Total program
Cost Schedule
Database (CSDB)
Variety
Suppliers
MSP
LMIS
MSP
P&W
MSP
GE
MSP
NGC
PV
BAE
Gateway
PV / MSP
LM Aero
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Weekly EVMS Cycle Flow
Status Schedule
Monday
IPTs Analyze Performance & Address Conflicts
Enter Earned Value into Cost/Schedule System
Complete EV Load, Verify BCWP
Tuesday
Budget/EAC/Revisions as Required
Input Weekly Labor into Cost System
Finalize Cost/Schedule for Weekly Review
Load Data into Cost/Schedule Tool (wInsight)
Wednesday
IPT Reviews & Analyzes Performance
Develops Variance Explanations as Required
Thursday thru
Thurs week
Management Review
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Integrated Management Framework (IMF)
The Integrated Management Framework will provide Program Management
with A Single Web-Based Portal for Program Data, Status, and Metrics
•Linkages Between
Related Data
•Customers
Risk Mgmt.
•Workflow
•Configuration
Management
,
TPM
•Suppliers
EVMS
IMP/IMS
•Program
Managers
•Traceability
•Access
Controls
•Partners
SOW
Product Data
WBS
•IPT
Leaders
Requirements
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IMP/IMS Integration With Detail Schedules
Our Weekly Status Flowed From the IPT Detail Schedules to
The IMS Creates Our Program Critical Path Network and Provides
Management the Visibility to Resolve Potential Impacts
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Critical Item Network Exists
CI Network
• Provides
~2500 Activities
Critical Items
Linkages
Between Selected
Set of Detail
Activities Across
IPTs
• Resides in CSDB
in Project View
Management Visibility
Critical Path Status
Critical
Path
Activities
Detail Schedule for
WBS 1122
• Statused From Detail
Schedules Weekly
• Analysis Performed
Weekly
• Extracted
Periodically for
“What If” Scenarios
Analysis
• Currently 25,600
Activities (Over
150,000 at End
of SDD)
Total
Number
Of Act.
IMP Event Status
Detail Schedules
• Resources
Detail Schedule for
Identified
WBS 2230
• EVMS Basis (PMB)
Detail Schedule for
• Maintained by IPT
WBS 5510
under Config Mgmt
Process
• Detail Parts/
Components
Statused in MRP
Weekly Status Flows From IPT Detail Schedules to Critical Item
Network Providing Management Visibility To Resolve Potential
Impacts
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Roles & Responsibilities
IPT Lead
• Full Responsibility, Authority,
•
•
•
•
& Accountability (RAA)
Coordination of Detailed
Schedules & Budget
Use Weekly EVMS as a Mgmt.
Tool vs. a Reporting Tool
Lead Weekly EVMS Project
Review
Present Consolidated Weekly
Data to Program Management
Cost/Sched. Integrator (CSI)
• Business Management
•
•
•
•
•
Personnel Assigned to Assist
in Support of Weekly EVMS
Fully Understand
Performance Indices
Status Project Schedules
Assist in EAC Assessment
Consolidate Site Inputs for
Project Manager
Facilitate Weekly Project
Manager Reviews
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Program Manager’s Role
• Understands Program Scope/Content
• Ensures Clear RAA Exists for All Tasks – IPT Structure
• Ensures Program Plans are Executable and Satisfy
Requirements
Implements EVM At All Levels of the Team Structure
•
• Provides a Structured Framework for Performance
•
Status (Weekly Deck Reviews)
Analyzes EV Data Every Week, Corrective Action Plans
– Checks for Poor Performance & Degrading Trends
• Owns Total Program Cost, Schedule & Technical
Achievement
– Controls Management Reserve (MR)
– Manages Baseline Change Control
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Lessons Learned
Lessons Learned
• Take Time to Plan - Involve ALL Stakeholders
– Customers / DCMA / Companies / Suppliers
• Team Leaders Have Responsibility, Accountability,
and Authority (RAA) for Cost, Schedule,Technical,
and Quality
Requires Continuous Management Reinforcement
•
• Requires Shared Single Source Database
• Trained IPT/ Business Management to Support
Program Wide Management Tool vs. Reporting Tool
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Lessons Learned
• Classroom Training Works - Coaching Delivers
• Start EV Tools at Estimating Phase - Develop into
•
Baseline
Continual Reinforcement / Discipline
– Assumptions can Cause Confusion
• Weekly Communication Build Trust - Intangible
Benefits
– Don’t Underestimate Non-Verbal Communication
• IPTs Require Different Approaches to Planning
• Recruit Professionals - Migrate Knowledge
• Manage Data Volume - Key Reports (Manage what
Matters)
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Lessons Learned
• Assist Customer Understanding (Help Educate the
Customer)
• Sharing Relationship / Develop Partnership with Tool
CPR
Set Providers
• Don’t Re-Invent The Wheel - Adapt Best Practices,
Existing Skills, Process, Tools
• Consolidate / Share Training Costs - Look at Skills
Across All Teammate
• Harmonize Training with Tasks
• Consider Long Term Company Strategies
– IT Infrastructure / Tool Set Deployment
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Weekly Deck Charts
Examples
Systems Engineering
Weekly Earned Value as of 01 Sep 2002
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‘Filters’ Control Rows, ‘Views’ Control Columns
Quick view of summary performance.
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View Charts and Reports in Dollars, Hours, Eq.
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“Indicates that the
effort is on schedule.”
“Means that effort is
costing less that expected.”
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Concluding Remarks
• Weekly EV will Increase the Probability of Meeting
Your Customer, Program, and Financial Objectives
• The Biggest Challenge is Changing the Management
Culture from Monthly REPORTING to Weekly
MANAGEMENT
• Weekly EV Does Not Cost – It Pays!
Adm. Steven L. Enewold: After only 10 months into
the program… “we shortstopped two big execution
issues with Weekly EVM…” 9/13/02
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Conclusion
• Weekly EV Has Provided Value Through the Early
Mitigation of Cost, Schedule, and Technical Risk
Result
Higher Probability of
Achieving Program Plans
33
Questions?
Good Earned Value for Your Pound!
• 1998 Toyota MR2 GT-TBar (Right Hand Drive)
• 38K Miles…22K Kilometers
• Leather, CD, FSH, TAX
• Immaculate Inside and Out
• £9,000
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