ANSI/EIA - 748 - A - 1998
EIA STANDARD
Earned Value Management Systems
Potential Changes Discussion
August 15, 2006
NDIA Program Management Systems Committee
Walt Berkey, Work Team Lead
Telephone 301.897.6262; Email walt.berkey@lmco.com
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NDIA ANSI-EIA-748 Revision Aug06
PMSC Revisions
Date
7/31/06
Revisions
Work Team recommendations for 13 identified topics
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AGENDA
TOPIC IDENTIFICATION
RCOMMENDED REVISONS
PATH TO COMPLETION
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TOPIC IDENTIFICATION - PROBLEM(S)
ANSI/EIA-748 Sections Changed
Topic
Problem Addressed
1. C/SCSC: Contents & 5.2
EVMS terminology
2. C/SSR: 3.3.3
Policy eliminated C/SSR
3. Summary Level Planning Package:
Contents, 2.6, 3.5.9 & 3.5.12
Terminology used inconsistently
4. System Documentation: 4
FAR Case; PMSC Intent & Application
Guide compatibility
5. System Evaluation: 5.1
FAR Case; PMSC Acceptance Guide
compatibility
6. System Surveillance: 5.3
PMSC Surveillance Guide
compatibility
7. Project vs Program & Contract vs
Investment usage: Introduction & 2.6
OMB terminology & WBS Handbook
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TOPIC IDENTIFICATION - PROBLEM(S)
ANSI/EIA-748 Sections Changed
Topic
Problem Addressed
8. Performance measurement
flowdown: Contents & 3.3.3
EVM application by inference rather
than direct language
9. User friendly terms (ACWP,
BCWP, BCWS, etc): 2.6
Terminology used inconsistently
10. Risk(s): 3.4 & 3.5.1 & 3.9.2
Integration with EVM
11. Actual Costs/Estimated Cost: 3.6 Clarify use in EVM
& 3.6.1
12. Contractor & Company Term
Usage: All sections
Ensure Organization view is
included
13. Material Receipt & Payment;
Clarify when EV is recorded
Performance Based Payments: 2.3 &
3.6.1
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PMSC Work Team Members
Walt Berkey – Past Chair, Lead
Jim Gasbarro – Past Chair
Joe Houser – Past Chair
John Pakis – Past Chair
Pete Wynne – Past Chair
Debbie Tomsic - OSD
Steve Krivkopich - OSD
Dave Muzio – Federal Agency, OMB
Keith Krazert – Federal Agency, FAA
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PMSC Work Team Ground rules
Sections to be revised by GEIA: Cover Page, Notice, and Foreword
EVMS Guidelines (section 2) – NO REVISIONS
Clarification revisions applied to sections 1, 3, 4 & 5
Revisions are to be word replacement, deletion or insertion to existing
content; not added sentences or paragraphs. New material should append to
existing content.
Establish a standing 1 hour teleconference starting May 25 at 11 AM Eastern
time. Subject of the scheduled calls:
May 25 – Discuss first draft of suggested word revisions
June 8 - Review second draft; incorporated into ANSI/EIA 748 document
June 15 – Review and finalize topic areas 1, 2 and 3
June 22 – Review and finalize topic areas 4, 5, and 6
June 29 – Review and finalize topic areas 7, 9, and 12
July 6 – Review and finalize topic areas 8 & 11 and 10 & 13
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PATH TO COMPLETION
 PMSC Kickoff (January 31-February 1, 2006)
 PMSC inputs (March 31, 2006)
 PMSC Reaffirm focus areas (May 3, 2006)
 GEIA Project Notification (MAY 26, 2006)
 ANSI/EIA 748 revisions drafted (July 31, 2006)
 PMSC/Stakeholder Distribution (August 5, 2006)
PMSC review & baseline (August 15 & 16, 2006)
Non-PMSC Stakeholder interaction (AUG – SEP 2006)
ANSI/EIA 748 revisions finalized (October 20, 2006)
PMSC Final Baseline (NOV 2006)
GEIA SSTC review (JAN 2007)
GEIA member ballot (FEB 2007)
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ANSI Review by industry Members (MAY 2007)
PMSC Work Team Ambassadors
Responsible for stakeholder interactions
July – November 2006
Mike Martin – Tommy Watts, NASA
Wayne Abba – International Interfaces, IPMC
Keith Krazert – Federal Agencies
- Federal Government EVM Community of Interest
– OMB, Capital Programming Working Group
Debbie Tomsic – DoD EVM Working Group
- Fall Conference
- GEIA
- Intel Agencies
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ANSI/EIA-748-A-1998
Recommended Changes
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Cover Page
Revisions will be made by GEIA – No PMSC action
PINS: Project Initiation Notification System Form dated
May 26, 2006 was processed by GEIA to ANSI on May
26, 2006
Project Intent: Revise current standard to updated terms
Designation: EIA-748-B
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NOTICE
Revisions will be made by GEIA – No PMSC action
Will include a Document Improvement Proposal
(current)
“If in the review or use of this document, a potential change is
made evident for safety, health or technical reasons, please fill in
the appropriate information below an mail or FAX to:
Electronic Industries Alliance
Technology Strategy & Standards Department-Publications Office
2500 Wilson Blvd.
Arlington, VA 22201
FAX: (703) 907-7501”
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CONTENTS
Revisions will reflect changes made to the sections of the ANSI/EIA-748 by
NDIA PMSC
Currently revised to reflect potential changes in the July 31, 2006 work team
baseline.
Key Changes:
3.3.3 EVM Flow Down (was Subcontract Management) - Topic #8 EVM
application by inference; not direct language
5.2 Prior System Acceptance (was Prior C/SCSC Acceptance) – Topic #1 EVMS
terminology
Discussion Item: Standard indicates contractor (organization) to do something
not consistent with customer direction. Example:
“Certain customers may include a requirement to provide a system description
document. If an organization does not maintain this type of document, a brief
general description with a road map to the internal documents that are used is
acceptable.”
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Foreword
Recommended changes:
Word “organization, organizations, organization’s” replaces the words
company, companies, company’s – Topic #12 Ensure ‘organization’ is
included
No other changes were recommended
Changes Legend:
word = current wording
word = recommended wording
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1. INTRODUCTION
Recommended changes:
Word “organization, organizations, organization’s” replaces the words
company, companies, company’s – Topic #12 Ensure ‘organization’ is included
The intent is to provide management information using the organization’s
existing resources and a scaled EVMS application that achieves the program
requirements and is compliant with the EVMS principles. EVMS scalability is
viewed as spectrum employing the principles of EVMS as fundamental to all
programs and the EVMS guidelines (Section 2) as applicable to large complex
and/or high risk programs allowing any program regardless of size and
complexity to realize the benefits of earned value management. A program is
a group of related projects supporting a mission that are managed in a
coordinated way to obtain benefits not obtained from managing them
individually. As the management principles are the same to achieve
success the two terms, program and project, are used interchangeably in
this standard. – Topic #7 Project vs Program
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2.1thru 2.5 EVMS GUIDELINES
Recommended changes:
Topic #12 changed these existing terms:
company & company’s to organization & organization’s in Guidelines 2.1 c) and
2.1 d)
Government contracts to certain contracts in Guideline 2.2 c)
Unmeasurable to not measurable in Guideline 2.2 g)
Deleted ‘of the company’ in Guideline 2.2 h)
Deleted ‘contractor’s’ in Guideline 2.3 c)
contract with effort in Guideline 2.3 d)
Topic #11 Actual Cost/Estimated Cost resulted in a change to Guideline 2.3 f) 2)
“Cost recording during the same period that earned value is recorded and at
the point in time most suitable for the category of material involved, but no earlier
than the time of actual receipt of material.”
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2.6 Common Terminology
Recommended changes:
Topic #3 Summary Level Planning Package: higher level accounts (e.g. summary
level planning packages) add in the PMB definition
Topic #9 BCWS, BCWP & ACWP: added ACWP to Actual Cost; BCWP to
Earned Value; and BCWS into Planned Value
Topic #7 Project vs Program:
Capital Programming Guide Glossary contains
Integrated Project Team (IPT) – not included or added to ANSI
Program Risk-Adjusted Budget (PRB) – not added to ANSI
Project – see next chart
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2.6 Common Terminology
Recommended for PROGRAM and PROJECT in ANSI:
PROGRAM – A project; A collection of related projects and the
infrastructure that supports them, including objectives, methods, activities,
plans, and success measures (Source: CMMI). A program may include
related work outside the scope of related projects. As the management
principles are the same to achieve successs the two terms, program and
project, are used interchangeably
PROJECT – A managed set of interrelated resources that deliver one or more
products to a customer or end user. This set of resources has a definite
beginning and end and typically operates according to a plan. Such a plan is
frequently documented and specifies the product to be delivered or
implemented, the resources and funds used, the work to be done, and a
schedule for doing the work (Source: CMMI). As the management principles
are the same to achieve success the two terms, program and project, are used
interchangeably
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2.6 Common Terminology
Recommended changes for PROJECT in ANSI:
PROJECT – A managed set of interrelated resources that deliver one or more
products to a customer or end user. This set of resources has a definite
beginning and end and typically operates according to a plan. Such a plan is
frequently documented and specifies the product to be delivered or
implemented, the resources and funds used, the work to be done, and a
schedule for doing the work (Source: CMMI). As the management principles
are the same to achieve success the two terms, program and project, are used
interchangeably
Capital Programming Guide:
Project – ANSI/PMI04-D1 Defines a project as a temporary (generally several
years) endeavor undertaken to create a unique product or service, and a program
as a group of projects managed in a coordinated way to obtain benefits not
obtained from managing them individually. As the management principals are the
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same to achieve success that the two terms are used interchangeably
3. EVMS PROCESS DISCUSSION
Organization replaces company – Topic #12 include organization
3.3.3 – Topic #2 C/SSR and #8 Performance Measurement flow down
3.5.9 & 3.5.12 – Topic #3 Summary Level Planning Package
3.4 & 3.5.1& 3.9.2 – Topic #10 Risks (Schedule, Budget & EAC)
3.6 & 3.6.1 – Topic #11 Actual Costs/Estimated Costs
3.6.2 – Flow Down Costs (new)
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3.3.3 EVM Flow Down
Topic #2 C/SSR and Topic #8 Performance Measurement flow down
An organization will apply its own established process to ensure flow down of
earned value management to interorganizations and subcontracted work.
Major or critical organizations with flow down work should be required to
comply either with the provisions of this standard or other appropriate requirements.
Reporting requirements should be consistent with program risk, size, complexity,
and other factors including contract clauses and provisions. Major or critical
organizations performing fixed price flow down work should have minimum
cost reporting obligations, but should be required to provide schedule and technical
plans and progress reports as needed by the prime organization for overall program
management. Subcontracts and inter organization agreements should not
restrict an organization from applying its EVMS to internally managed effort.
Flow down work earned value management data can be integrated with prime
organization data for total program performance analysis and reporting.
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3.4 Program Schedule – Topic #10 Risks
The program schedule and budget are an integrated time-oriented plan for accomplishment
of work scope requirements on a program. Schedule planning and control, budget planning
and control, work scope definition, and program risk handling are necessary prerequisites
for basic and effective program management control. The scheduling process begins during
original program definition and overall schedule plans are typically established during the
preplanning for a program. The time-phased budgeting process occurs subsequent to the
schedule planning phase with budgets being time-phased consistent with the scheduled
program work scope. The integrated schedule and budget plans should take into
account schedule and cost risk mitigations. These plans are sometimes referred to as
risk adjusted schedule and budget.
Supporting plans, including detail schedules and budgets, are subsequently developed,
maintained and statused as necessary during the performance phase of the program. The
continuing planning process must support integration of the risk adjusted cost and
schedule objectives of the program to provide for resource planning, performance
measurement and other program management requirements.
Network schedules, schedule risk assessment, and critical path analysis are proven
scheduling techniques that are preferred for some purposes. While these methods are quite
capable, the application of basic earned value management techniques does not require the
use of any particular scheduling methods. The selection of scheduling techniques and the
levels at which they are applied depend on the affected organization and its program
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management needs.
3.5.1 Program Budget
Topic #10 Risks (Schedule, Budget & EAC)
The program budget is maintained as a working management tool for the life of the program,
which reflects remaining program cost risks. The initial program budget is normally tied
directly to the initial program cost estimates, the negotiated contract cost, or internal
management goals. Management reserve may be withheld before the budget is distributed to
lower accounts. The budget will change as changes are authorized and incorporated or as
internal replanning actions are taken. Rate changes and economic price adjustments may
also be made as appropriate. The program budget, at any level and for any organization or
task, will only contain budget for specific authorized work.
If a customer authorizes additional work and the value of the added work is still to be
negotiated, the organization may increase the program budget as needed for the newly
authorized work. The budget applied may be adjusted when the authorized change is
finalized.
For management reasons, an organization may elect to establish a program budget that
exceeds the program target cost. If customer performance reporting is required on the
program, the customer must be consulted prior to implementation of the changes.
must was will: changed to reflect guideline 2.2 c) last line
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3.9.2 Estimates at Completion Content
Topic #10 Risks (Schedule, Budget & EAC)
The EAC should be the most likely estimate of the total costs for all authorized
program efforts, taking into account remaining program risks and
opportunities, and should be time-phased in accordance with the expected
completion dates on program schedules. The basis for the EAC and the reasons for
changes from the last estimate should be identified.
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4. SYSTEM DOCUMENTATION
Topic #4 System Documentation
EVMS documentation should be established in the standard form or forms used
by the affected organization for systems documentation and communication of
policies and procedures. This EVMS standard does not require or suggest an
organization should create a descriptive document that is outside of normal
requirements or restrict an organization’s ability to effectively implement
desired system changes. At the same time, it is duly noted that it is good
business practice to provide adequate policies and procedures where the subject
processes are expected to be implemented and applied effectively enterprise
wide. An organization may use materials from this standard, in whole or part
including the guidance, definitions and discussions, in their system
documentation consistent with permission obtained by the organization
through GEIA.
Certain customers may include a requirement to provide a system description
document. If an organization does not maintain this type of document, a brief
general description with a road map to the internal documents that are used is
acceptable.
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5. SYSTEM EVALUATION
Organization replaces company – Topic #12 include organization
5.1 – Evaluation Process - Topic #5 System Evaluation
The evaluation process for customer requirements provides for documented
corporate assurance that the organization program management system meets
the full intentions of the guidelines presented in this EVMS industry
standard. The organization is responsible for the evaluation of its system.
The process includes self-evaluation of the system, documentation of
conformity with this standard, and notification of any significant system
changes. Once done, the self-evaluation may be cited on additional efforts or
contracts as appropriate.
5.2 – Prior System Acceptance - Topic #1 C/SCSC
When an organization has an appropriate prior system acceptance, the
organization may elect to provide that acceptance documentation in lieu
of providing an EVMS compliance plan in proposals requiring EVMS
compliance with this standard.
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WE HAVE A BASELINE!
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Back Up Information
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PMSC Work Team Assignments
Topic
Assigned to
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PMSC Work Team Assignments
Topic
1. C/SCSC
2. C/SSR
3. Summary Level Planning
Package
4. System Documentation
5. System Evaluation
6. System Surveillance
7. Project vs Program vs
Contract vs Investment usage
Assigned to
Steve Krivkopich
Debbie Tomsic
John Pakis
Walt Berkey
Pete Wynne
Pete Wynne
Dave Muzio
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PMSC Work Team Assignments
Topic
Assigned to
8. Performance measurement
flowdown
Jim Gasbarro
9. User friendly terms
(ACWP, BCWP, BCWS, etc)
10. Risk(s)
Keith Kratzert
11. Actual Costs/Estimated
Cost
12. Contractor & Company
Term Usage
Jim Gasbarro
13. Material Receipt &
Payment; Performance Based
Payments
Joe Houser
Joe Houser
Keith Kratzert
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