1. Earned Value Management Guidelines Tony Finefield Finefield Consulting tonyevm@earthlink.net 714-642-8795 CPM Webinar 5 September 2012 1

2. Overview Conference Presentation Description Webinar Approach – Creating the Plan – Evaluating the Estimated Costs – Effect of Changes – Summary Questions

3. 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

4. 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

5. Creating the Plan CPM Webinar 5 September 2012

6. 3 SUBSYSTEM INTEGRATION 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ Creating the Plan Boxes are color-coded by guideline section. Define all authorized work; normally, use a WBS. Define the project organization. Integrate the WBS/OBS to create management control points. Integrate subsidiary processes. Schedule with network logic. Budget by elements of cost. Create work and planning packages within the control account. Plan appropriate effort as LOE. Set progress measurement techniques. Sum WP and PP budgets to the CA total. Identify Undistributed Budgets. Set overhead budgets. Establish the PMB/CBB. Identify Management Reserve. Reconcile the CBB to the project target. Identify Overhead Management. ORGANIZATIONPLNG., SKED. & BUDGTACCOUNTINGANALYSIS & EACINDIRECT REVISIONS Integrate Scope, Schedule & Resources.

7. Estimating the Costs CPM Webinar 5 September 2012

8. 3 SUBSYSTEM INTEGRATION 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS Estimating the Costs Record Direct Costs.Record Direct Costs for Material.Summarize Direct Costs by WBS element.Summarize Direct Costs by OBS element.Record/allocate Indirect Costs.Calculate SV and CV Monthly.Identify significant variances for analysis and action.Summarize information for management.Implement approved corrective actions.Analyze indirect cost performance.Create/modify estimates at completion as needed.Identify unit/lot costs, recurring/non-recurring. If required. ORGANIZATIONPLNG., SKED. & BUDGTACCOUNTINGANALYSIS & EACINDIRECT REVISIONS Summarization based on RAM intersections.Charge # structure supports both summarizations

9. Effects of Changes CPM Webinar 5 September 2012

10. 3 SUBSYSTEM INTEGRATION 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS 28 Contract Changes 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ Incorporating Changes

11. 3 SUBSYSTEM INTEGRATION 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ 28 Internal Replanning Incorporating Changes

12. 3 SUBSYSTEM INTEGRATION 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C THE PLAN: PM $$$ REALITY: REAL $$$ 20 UNIT/LOT COSTS 29 Budget Reconciliation Reconciliation of Budgets

13. 3 SUBSYSTEM INTEGRATION 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS 30 Retroactive Data Changes 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ Controlling Retroactive Changes

14. 3 SUBSYSTEM INTEGRATION 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS 31 Control Unauthorized Changes 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ Controlling the CBB Value

15. 3 SUBSYSTEM INTEGRATION 27 EAC 26 MGT ACT 25 ANL SUM 23 VA ANL 22 VAs CAL 24 IND ANL 19 IND COST 17 WBS SUM 18 OBS SUM 16 D/C 21 MTL D/C REALITY: REAL $$$ 20 UNIT/LOT COSTS 15 CBB 8 PMB 4 IM 5 RAM 2 OBS 1 WBS 11 CA SUM 7 EVT 12 LOE 10 WP/ PP 9 WB/A 6 SKED 14 MR 14 UB 13 IB THE PLAN: PM $$$ 32 Document PMB Changes Update Baseline Documentation

16. 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.

17. Next Steps Claim your PDU for this session: PDU activity number is 090512 Provider: REP3646 Register for the Integrated Program Management Conference: Registration open for IPM Conference and Conference Hotel IPM ConferenceConference Hotel The premier conference on Earned Value Management (EVM) "Setting the Baseline“ October 29-31, 2012 * Bethesda North Marriott Hotel & Conference Center * Call 800.228.9290 or 301.822.9200 and ask for IPM Conference Rate Earn 18 PDUs at the conference Don't miss great keynote speakers.