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CPM Webinar 5 September 2012 Earned Value Management Guidelines Tony Finefield Finefield Consulting [email protected] 714-642-8795 1 Overview • Conference Presentation Description • Webinar Approach – Creating the Plan – Evaluating the Estimated Costs – Effect of Changes – Summary • Questions Conference Presentation Description • CPM 100C and 100D presented at the CPM Spring Conference and the IPM Conference • 2 Sessions of 1.25 hours each • Covers all 32 Guidelines individually • Examples of implementation results covered • Based on: – ANSI/EIA 748-B – NDIA Intent Guide – Personal Experience Webinar Approach • Creating the Plan: a discussion of the Organization and Planning, Scheduling and Budgeting Sections of the Guidelines. • Evaluating the Estimated Costs: a discussion of the Accounting Considerations and the Analysis and Management Reports Sections. • Effect of Changes: reviewing the guidelines for Revisions and Data Management CPM Webinar 5 September 2012 Creating the Plan Creating the Plan 3 SUBSYSTEM INTEGRATION 1 WBS 5 RAM 2 OBS 6 SKED 9 WB/A 7 EVT 10 WP/ PP 4 IM 14 UB 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE Budget Set overhead by elements budgets. ofthe cost. Create Reconcile work the and CBB planning to project packages target. within control Overhead Management. Define Plan Integrate appropriate all Management Scope, authorized Schedule effort work; Reserve. as LOE. & normally, Resources. use a the WBS. progress measurement techniques. Sum WP the and project PP budgets organization. the CA total. WBS/OBS toto create management controlaccount. points. Identify Schedule Undistributed with subsidiary network processes. Budgets. logic. Establish the PMB/CBB. Boxes are color-coded by guideline section. ORGANIZATION PLNG., SKED. & BUDGT ACCOUNTING ANALYSIS & EAC REVISIONS INDIRECT CPM Webinar 5 September 2012 Estimating the Costs Estimating the Costs 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 14 UB 1 WBS 11 CA SUM 10 WP/ PP 14 MR 8 PMB Charge # structure supports both summarizations 5 RAM 2 OBS 7 EVT 15 CBB THE PLAN: PM $$$ Implement Calculate SVapproved and CV Monthly. corrective actions. Record Summarize Direct Direct Costs. Costs Costs for Material. by element. Analyze Create/modify indirect significant estimates cost variances performance. atWBS completion forintersections. analysis asand needed. action. OBS element. Identify unit/lot information costs, recurring/non-recurring. for management. If required. Record/allocate Summarization based Indirect on Costs. RAM 13 16 D/C 21 MTL D/C 4 IM 17 WBS SUM IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 23 VA ANL PLNG., SKED. & BUDGT 26 MGT ACT 27 EAC REALITY: REAL $$$ 24 IND ANL 20 UNIT/LOT COSTS ORGANIZATION 25 ANL SUM ACCOUNTING ANALYSIS & EAC REVISIONS INDIRECT CPM Webinar 5 September 2012 Effects of Changes Incorporating Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 28 Contract Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Incorporating Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 28 Internal Replanning 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Reconciliation of Budgets 3 SUBSYSTEM INTEGRATION 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 6 SKED 9 WB/A 7 EVT 10 WP/ PP 4 IM 17 WBS SUM 29 Budget Reconciliation 14 UB 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Controlling Retroactive Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 30 Retroactive Data Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Controlling the CBB Value 31 Control Unauthorized Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Update Baseline Documentation 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 32 Document PMB Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$ Summary ANSI/EIA Standard 748 Earned Value Management Systems (latest version): • Contains the 32 Guidelines which form the framework of an EV based management control system – – – – – Establishes maximum flexibility for EVMS Implementation Defines minimal restrictions for baseline control Focuses on minimal implementation requirements Is recognized as an industry “best practice” The 32 guidelines are recognized by U.S. Government and its Agencies/organizations as the standard for EVM – Is the guiding document for the EVM Guidelines Intent Guide prepared by NDIA • Provides minimal implementation guidance – NDIA Intent Guide contains expanded implementation guidance – Other NDIA Guides provide insight into surveillance, IBRs, System Acceptance Processes and Scheduling. 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