NDIA Earned Value Management
Application Guide
Status Report
August 16-17, 2005
Wayne Abba
Walt Berkey
David Muzio
David Treacy
NDIA EVM Application Guide 8-16-05
1
Objectives
Prepare an EVMS Application Guide for use by Federal
Agencies and Industry.
Address “how used” for the NDIA PMS Committee
documents (e.g. ANSI/EIA 748, Intent Guide, Surveillance
Guide, IBR Guide, etc.).
Provide a process for both government and industry so a
review documenting ANSI Guideline compliance could be
accepted without another review.
Limit the page count to a range of 15 to 20 pages
excluding appendices
Appendices provide an executive summary of existing
and relevant NDIA EVM documents; not a reprint
2
Application Guide Table of Contents
• Introduction
• Acquisition Process & Earned Value Management
• EVM Application
Planning for EVM
Contracting for EVM
Developing the Program Budget and Baseline
• Performance Management & Measurement
Measuring Progress & Management Analysis
Communication
Change Management
• Appendices – NDIA Documents Executive Summaries
3
Introduction
• Users will gain insight into
Planning for a program
Application of EVM
Organization that facilitates EVM
NDIA resources and guidance
• Supports OMB”s objectives for application of EVM
• Intended for government and industry communities
• NDIA review for revisions every two years
4
Acquisition Process & Earned Value Management
• Typical Acquisition Life Cycle (next slide)
PM, SE. CE, Risk, Procurement disciplines essential to
integrating EVM processes
• Earned Value Management
EV -- EVM -- EVMS
• Asset Investment Life Cycle
- Performance management approach established by
the nature of the work not the contract type
- EVM effective for discrete work
• Definitions – ANSI/EIA 748 Section 2.6
5
Typical Acquisition Life Cycle
Initial
Analysis/ Investment
Conceptual Analysis
Pre-Systems Acquisition
Planning
Final
Investment
Analysis
Solution
Implementation
Systems Acquisition
In-Service
Management
Sustainment
6
EVM Application
• Planning for EVM
Organizing, Risk-Based Application, Scalability
• Contracting for EVM
Contract Types, Incentives, EVMS Compliance
(next slide)
• Developing Program Budget and Baseline
(following slide)
7
EVMS Compliance Framework
Acquisition Life
Cycle
Customer
Supplier
Pre-Systems
Acquisition
Recognize:
Application Guide
System Acceptance
Guide
Document and
Assessment:
Application Guide
Intent Guide
Systems Acquisition
Accept:
Intent Guide
Implement:
Intent Guide
IBR Review:
IBR Review:
IBR Guide
IBR Guide
Surveillance:
Surveillance Guide
Execution and
Surveillance:
Surveillance Guide
8
Program Risk-Adjusted Budget and EVM
PRB
Program Cost and Schedule Management Reserve
PB
Project/Contract(s) Cost and Schedule Management Reserve
BAC
C
o
s
t
PMB
Time
C
B
A
9
Performance Management and
Measurement
• Measuring Performance Progress
Variances are vital for managing complex projects
• Management Analysis
Program team must implement actions to achieve
program technical, schedule and cost objectives
• Program Progress Communication
Program and Project Management
Senior Leadership
• Change Management
- Ensure PMB accurately represents authorized work
- PMB Replan and PMB Reprogram
10
Program Risk-Adjusted Budget plus EVM
PMB Change Management – PMB Replan
PRB
Program Cost and Schedule Management Reserve
EAC
ETC
PB
Project/Contract(s) Cost & Schedule Management Reserve
BAC
PMB
C
o
s
t
Actual
Time Now
EV
Time
C
B
A
11
Program Risk-Adjusted Budget and EVM
PMB Change Management – PMB Reprogram
PRB
Program Cost and Schedule Management Reserve
EAC
ETC
PB
Project/Contract(s) Cost & Schedule Management Reserve
BAC
PMB
C
o
s
t
Actual
Time Now
EV
Time
C
B
A
12
Appendices
• EVM Application Framework (next slide)
• Appendix A: ANSI/EIA 748
• Appendix B: EVMS Intent Guide
• Appendix C: EVMS Systems Acceptance Guide
• Appendix D: EVMS Surveillance Guide
• Appendix E: Program Managers’ Guide to the Integrated
Baseline Review Process
13
EVM Application Framework
Pre-Systems
Acquisition
Systems Acquisition
EVM Application:
ANSI/EIA 748
Compliant EVMS
EVMS
Organization or
Supplier
processes
integrated with
EVM capability
Sustainment
EVM Application:
ANSI/EIA 748
Scalable EVMS
Contract or Project
EVMS
Implementation
EVMS Surveillance
14
Path Forward
 Objectives and scope – complete
 Inputs drafted by contributors – June 15
 Compile inputs into draft – Aug 12 (July 30)
• NDIA PM Systems Committee comments – August Mtg.
• Committee comments – September 15
Email inputs to David Treacy
Dtreacy@mcri.com
• Submit to NDIA PMSC Chair – September 30
Working Version 1 preparation for release
• Release on NDIA Web site – October 2005
15