Transcript Slide 1

Strength through Industry & Technology
Program Management Systems Committee
Current Initiatives in Earned Value
Management
Procurement Division
Educational Seminar
31 March 2008
Sarasota, Florida
Strength through Industry & Technology
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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Strength through Industry & Technology
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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Strength through Industry & Technology
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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Strength through Industry & Technology
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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Strength through Industry & Technology
PMSC Initiatives
• Encourage joint industry/government training:
– Scheduling
– EVM
– Surveillance
- Contracting for EVM
- IBR
- Acceptance
• Engage the Program Management community in
pursuit of our objectives:
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DoD
- Intelligence agencies
OMB
- Civilian agencies
GAO
- DAU and FAI
Professional Associations
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Strength through Industry & Technology
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.
Strength through Industry & Technology
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Mike Joyce (Chair) – Lockheed
Martin
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Steve Goo – Boeing
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John Chino – Northrop Grumman
Dr. Jim Finley (Principal Govt
Participant) –Deputy Under
Secretary of Defense (Acquisition
& Technology)
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Skip Burns – Raytheon
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Ron Hornish – Rockwell Collins
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Mike Blake – Textron
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Susan Dong – BAE Systems
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Bennett Croswell – Pratt & Whitney
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Bill Altman – Battelle (for Steve
Kelly)
Dave Ahern – OUSD A&T
Director, Portfolio Systems
Acquisition
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Vice Adm David Architzel – Navy
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LGen Donald Hoffman – AF
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Neil Albert – NDIA PMSC
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MGen Steve Reeves - Army
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Pete Wynne – NDIA PMSC
Strength through Industry & Technology
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 noncompliant 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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Strength through Industry & Technology
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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Strength through Industry & Technology
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 Management
Resources: Fixed, Project Manager - One charge number, LOE
Work Package 2: Project Control
Resources: Fixed; Scheduler, Financial Analyst, EV Specialist, Data Entry
Clerk - One charge number, LOE
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Strength through Industry & Technology
Program Management Office
Project
Management
Project Support
Office
Project
Management
Scheduling
Finance
“Common Approach”
Strength through Industry & Technology
Program Management Office
Project
Management
Project Support Office
Training
Admin Mgt
Technical
Direction / Mgt
Planning/
Statusing/
Analyzing/
Reporting
Operations
Support
Baseline
Support
EVMS
Improvements
Monthly
Processing
PMB Creation
Tool & Utility
Development
Verification
&Validation
PMB
Modification
Research &
Informal Train
CAM /User
Support
Training Course
Development
“New Approach”
Conferences
& Seminars
In-house
Company
Mandated
Strength through Industry & Technology
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
Strength through Industry & Technology
Should Costs by Role per CAP
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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
Strength through Industry & Technology
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
Strength through Industry & Technology
• QUESTIONS?
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