Blues Chapter

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Earned Value Management System (EVMS)

Ron Fradenburg

Blues Chapter President

19 March 2013

For more information visit:www.incose.org/educationcareers/certification/© 2008 International Council on Systems Engineering

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Agenda

• EVMS History• INCOSE Perspective• DAU Gold Card

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EVMS History• After WWII Contract Performance Measurement (CPM)

– Technology Advanced at a Tremendous Rate – Industries Produced Very Complex and Highly Technical

Weapon Systems for Our Country's Defense – Government Need To Monitor And Track Defense

Contractors Performance Increased• 1958 First Formal Contract Performance Measurement

(Monitoring) Tool - Program Evaluation Review Technique (PERT) for USN Polaris Program

• Next Added Cost Information to Arrive at PERT COST.• 1966 Air Force used Cost/Schedule Planning Control

Specifications (C/SPCS or C-Specs)• 1967 DoD instituted Cost/Schedule Control Systems Criteria

(C/SCSC) Contract Performance Measurement Standard.3

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EVMS History 2

• Weapon Systems Contracted to Defense Industry• Government Asks for Bids (RFP)• Technology Often State of the Art• Proposed Designs Cost $B and Take Years to Complete• Selected Programs are Baselined (APB, PMB)• Flexibility in Performance, Cost, and Schedule with Continual

Tradeoffs Demands Effective (CPM)• DOD Mandated Control Systems Guidelines - EVMS• Over 340 Major Programs 1940-1992

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EVMS History 3

• Needed Improved Performance in Cost-Type Contracts• Both Government and Contractors Had Reservations

– Deficiencies in Analyzing Performance Data – Variance Thresholds too Restrictive – Ask for Wrong Information– Training and Implementation Non-Standard – Not Supported by Top Management– Review Teams not Well Trained

• Extensive Training Available• Wealth of Reference Material

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EVMS History 4

• C – Spec Five Groups (35 Criteria) 1966

1) Organization

2) Planning and Budgeting

3) Accounting

4) Analysis

5) Revisions and Access to Data

• Today DCMA uses 32 Guidelines and Five Groups

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DCMA Compliance Review

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•DCMA Designates 16 Core / Foundation Guidelines•Non Compliance with any Core Guideline will Fail Contractor’s EVMCompliance Review**DCMA Presentation to NDIA PMSC, Aug. 2010

Organization G/L Ingalls Audit1 Define autorized work 12 Identify Prgram Organization Structure 23 Company integration of EVMS subsystems with WBS and OBS 34 Identify organization/function for overhead 45 Identify WBS and OBS, create control accounts 5

Plannning, Scheduling & Budgeting6 Sequential scheduling of work 67 Identify interim measures of progress, i.e., milestones, products, etc. 78 Establish time-phased budgets 89 Identify significant cost elements within authorized budgets 9

10 Identify discrete work packages 1011 All work package budgets and planning packages sum to control account 1112 Identify and control LOE busgets 1213 Establish overhead budgets by organization element 1314 Identify management reserve and undistributed budget 1415 Reconcile program target cost goal with sum of all internal budgets 15

Accounting Considerations16 Record direct costs from accounting system 1617 Summarize direct costs into WBS without allocation 1718 Summarize direct costs into OBS without allocation 1819 Record indirect costs 1920 Identify unit costs, equivalent unit costs or lot costs 20

21 Accurate material accumulation by control account; EV measurement at right time; full accounting of material

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Analysis and Management Reports22 Control Account monthly summary, Identification CV and SV 2223 Explain significant variances 2324 Identify and explain indirect cost variances 2425 Summarize data elements and variances thru WBS/OBS for management 2526 Implement management actions as a result of EVM analysis 2627 Revise EAC based on performance data; calculate VAC 27

Revisions and Data Management28 Incorporate authorized changes in timely manner 2829 Reconcile budgets with prior budgets 2930 Control retroactive changes 3031 Prevent all but authorized budget changes 3132 Document changes to the PMB 32

Gui

delin

es

Based on ANSI/EIA 748B EVMS Management Systems June 2007

Reference: NDIA Planning and Scheduling Excellence Guide (PASEG) 18 May 2010

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Agenda

• EVMS History• INCOSE Perspective• DAU Gold Card

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Systems Engineering Program Management

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Systems Engineering ●Needs and Opportunity

Analysis

SystemsImplementation

Project/ Systems Management

●Operational ConceptDevelopment

●System Scoping andRequirements Development

●Architecture Definition

●Tradeoff Analysis,Modeling and Simulation

●Production Planningand Analysis

●System Integration

●Technical and Business Risk Analysis

●Production LinePreparation

●Production/ Construction

●Production Control

●Testing

●Lifecycle Planning and Estimating

●Change AnalysisManagement, CM

●QA, V&V, ContinuousProcess Improvement

●Staffing, Organizing, Directing

●Cost, Schedule, Performance, and RiskMonitoring and Control (EVMS)

●Operations Planning and Preparation (Deployment)●Operations Management

●Business Case Analysis

●Systems Engineering Management

●Supply Chain Management

●Systems ImplementationManagement

Developed for BKCASEwith Changes

●Records & Reporting

●Work Breakdown Structure

●Technical Baseline

●Program Baseline

●Program Metrics

●Integrated Master Schedule

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Program Management Challenges

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Agenda

• EVMS History• INCOSE Perspective• DAU Gold Card

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DAU Gold Card

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