Blues Chapter
Earned Value Management
System (EVMS)
Ron Fradenburg
Blues Chapter President
19 March 2013
For more information visit:
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www.incose.org/educationcareers/certification/
© 2008 International Council on Systems Engineering
CSEP
Agenda
Blues Chapter
• EVMS History
• INCOSE Perspective
• DAU Gold Card
CSEP
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EVMS History
Blues Chapter
• 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.
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EVMS History 2
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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
Blues Chapter
• 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
Blues Chapter
• 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
Organization
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Define autorized work
Identify Prgram Organization Structure
Company integration of EVMS subsystems with WBS and OBS
Identify organization/function for overhead
Identify WBS and OBS, create control accounts
G/L
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Guidelines
Plannning, Scheduling & Budgeting
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Sequential scheduling of work
Identify interim measures of progress, i.e., milestones, products, etc.
Establish time-phased budgets
Identify significant cost elements within authorized budgets
Identify discrete work packages
All work package budgets and planning packages sum to control account
Identify and control LOE busgets
Establish overhead budgets by organization element
Identify management reserve and undistributed budget
Reconcile program target cost goal with sum of all internal budgets
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Accounting Considerations
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Record direct costs from accounting system
Summarize direct costs into WBS without allocation
Summarize direct costs into OBS without allocation
Record indirect costs
Identify unit costs, equivalent unit costs or lot costs
Accurate material accumulation by control account; EV measurement at right
time; full accounting of material
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Blues Chapter
•DCMA Designates 16 Core /
Foundation Guidelines
•Non Compliance with any Core
Guideline will Fail Contractor’s EVM
Compliance Review*
*DCMA Presentation to NDIA PMSC, Aug. 2010
Ingalls Audit
Based on ANSI/EIA 748B EVMS Management
Systems June 2007
Reference: NDIA Planning and Scheduling
Excellence Guide (PASEG) 18 May 2010
Analysis and Management Reports
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Control Account monthly summary, Identification CV and SV
Explain significant variances
Identify and explain indirect cost variances
Summarize data elements and variances thru WBS/OBS for management
Implement management actions as a result of EVM analysis
Revise EAC based on performance data; calculate VAC
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Revisions and Data Management
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Incorporate authorized changes in timely manner
Reconcile budgets with prior budgets
Control retroactive changes
Prevent all but authorized budget changes
Document changes to the PMB
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CSEP
Agenda
Blues Chapter
• EVMS History
• INCOSE Perspective
• DAU Gold Card
CSEP
8
Systems Engineering Program
Management
Systems
Engineering
Systems
Implementation
●Needs and Opportunity
Analysis
●Operational Concept
Development
●System Scoping and
Requirements Development
Blues Chapter
●Production
Planning
and Analysis
●Production Line
Preparation
●Production/ Construction
●Lifecycle Planning
and Estimating
●System Integration
●Business
●Tradeoff Analysis,
●QA, V&V, Continuous
●Production Control
Case
Modeling and
Process Improvement
Analysis
Simulation
●Change Analysis ●Supply Chain
●Technical Baseline Management, CM
Management
●Records &
●Technical and
Reporting
Business Risk Analysis
●Systems
●Testing
●Systems Engineering
Implementation
Management
Management
●Work Breakdown Structure
●Program Metrics
●Architecture Definition
Developed for BKCASE
with Changes
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●Staffing, Organizing, Directing
●Program Baseline ●Integrated Master Schedule
●Cost, Schedule, Performance, and Risk
Monitoring and Control (EVMS)
●Operations Planning and
Preparation (Deployment)
●Operations Management
CSEP
Project/ Systems Management
Program Management Challenges
Blues Chapter
CSEP
Agenda
Blues Chapter
• EVMS History
• INCOSE Perspective
• DAU Gold Card
CSEP
11
DAU Gold Card
Blues Chapter
CSEP
12