1. September 2016
EVM 202—Lesson 8 Integrated Product Team (IPT) Analysis and Performance Case

2. STEP 3 FORMULATE A PLAN OF ACTION

3. Formulate a Plan of Action
Why: Need a way forward for issues uncovered during the three-step Integrated Analysis Model
What: Create action plans and recommendations for all issues and report them in a format that supports leadership review and action
How:
Create action plans
Generate Integrated Product Team (IPT) Reports

4. Create Action Plans
Why: To document the results of the integrated program analysis in a format for leadership and oversight reporting
What: Collect the key analysis decisions resulting from the three-step Integrated Analysis Model and report them in a format that supports leadership review and action
How: Effective EVM provides early insight for PM actions:
Update total program budget if necessary based on PAC
Ask IPTs for technical scope and/or schedule requirements trade-off opportunities
Ensure aggressive risk mitigation activities and attention to problem-solving
Reduce overall scope
Obtain additional funding

5. Generate Integrated Product Team (IPT) Reports
Why: To document the results of the integrated program analysis in a format for leadership and oversight reporting
What: Collect the key analysis decisions resulting from the three-step Integrated Analysis Model and report them in a format that supports leadership review and action
How:
Collect, summarize, and report contract issues
Collect, summarize, and report APB issues and program metrics
Collect, summarize, and report EVM program cost and schedule issues
Collect, summarize, and report program financial issues

6. IPT Reports—Contract Issues
Step 1.2 P0000 Status
Confirm that the PMB reflects all contract modifications
Step 1.3 Specification Issues
Identify any contract specification issues that current TPMs forecast will not be achieved
Identify proposed technical solutions
Step 1.4 Contract Delivery Issues
Identify any contractual deliveries that the current network schedule forecasts will not be met
Identify proposed schedule solutions
Steps 1.4 and 1.5 Contract Schedule and Cost Issues
Identify any schedule and cost drivers that may be impacting the contract (overtime to correct unfavorable SVs)
Identify proposed solutions
Step 3 Contractor Finance Issues
Identify any cash flow, obligation, expenditure, and termination liability issues that may exist on the contract
Identify proposed solutions for these issues

7. IPT Reports—APB Issues and Program Metrics
Step 1.3 Performance KPPs
Identify performance KPPs where their associated TPM forecasts indicate they will achieve less than the required threshold and proposed technical solutions
Step 1.4 Schedule Parameters
Identify any schedule parameters that the current network schedule forecasts a completion date after the required ABP threshold date and proposed schedule solutions
Step 3 Cost Parameters
Identify any cost overrun estimates that exceed current APB-approved funding levels and proposed solutions
Program Metrics
Step 1.1—EVMS Compliance and Integrated Baseline Development
Step 1.4—Baseline Execution Index
Step 1.2—Contract Modifications and Baseline Revisions
Step 2—SPIcum, CPIcum, and CPIcum vs. TCPI

8. IPT Reports—Earned Value Management Status
Step 1.2—Confirm the PMB is current and reflects all contract modifications
Identify inconsistent MR and UB issues
Explain baseline adjustments and OTBs
Step 1.4—Identify the top (3–5) schedule drivers using all available data (network schedule, technical drivers, and EVM schedule metrics)
Step 1.5—Identify the top (3–5) cost drivers using all available data (network schedule, technical drivers, EVM schedule and cost metrics)
Step 2—Determine at completion cost
Provide an EAC range of costs consistent with observed and forecast risks and EVM performance indexes
Provide a most likely PAC
When warranted (mature contracts) provide a risked-based EAC

9. IPT Reports—Financial Status
Step 3—Confirm that PPBE R&P Forms provide adequate resources to efficiently complete the program
Step 3—Report current budget obligations and expenditures and identify budget issues and proposed solutions

10. Step 3—Formulate a Plan of Action Summary
In Step 3: Formulate a Plan of Action, the EVM analyst and the IPTs use the information gleaned from the other two steps to recommend an action plan for the PM to:
Meet schedule delivery dates
Stay within budget
Meet technical performance requirements
Effective EVM provides early insight for PM actions, such as:
Update total program budget, if necessary, based on PAC
Ask IPTs for technical scope and/or schedule requirements trade-off opportunities
Ensure aggressive risk mitigation activities and attention to problem-solving
Reduce overall scope
Obtain additional funding