CPM Webinar 5 September 2012 Earned Value Management
CPM Webinar 5 September 2012 Earned Value Management Guidelines Tony Finefield Consulting tonyevm@earthlink. net 714 -642 -8795 1
Overview • Conference Presentation Description • Webinar Approach – Creating the Plan – Evaluating the Estimated Costs – Effect of Changes – Summary • Questions
Conference Presentation Description • CPM 100 C and 100 D 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
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
CPM Webinar 5 September 2012 Creating the Plan
Creating the Plan 3 SUBSYSTEM INTEGRATION 1 WBS 5 RAM 2 OBS 6 SKED 9 WB/A 7 EVT 10 WP/ PP 4 IM 14 UB 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE Budget by elements of cost. Set overhead budgets. Reconcile the CBB to the project target. Create work and planning packages within control Overhead Management. Integrate Scope, Schedule & Resources. Management Reserve. Plan appropriate effort as LOE. Define all authorized work; normally, use athe WBS. progress measurement techniques. the project organization. Sum WP and PP budgets the CA total. the WBS/OBS toto create management controlaccount. points. Identify Undistributed Budgets. subsidiary processes. Schedule with network logic. Establish the PMB/CBB. Boxes are color-coded by guideline section. ORGANIZATION PLNG. , SKED. & BUDGT ACCOUNTING ANALYSIS & EAC REVISIONS INDIRECT
CPM Webinar 5 September 2012 Estimating the Costs
Estimating the Costs 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 14 UB 1 WBS 11 CA SUM 10 WP/ PP 14 MR 8 15 CBB PMB Charge # structure supports both summarizations 5 RAM 2 OBS 7 EVT THE PLAN: PM $$$ Calculate SVapproved and CV Monthly. Implement corrective actions. Record Direct Costs. Summarize Direct Costs for Material. by element. significant variances for analysis action. Create/modify Analyze indirect estimates cost performance. at. WBS completion asand needed. OBS element. information for management. Identify unit/lot costs, recurring/non-recurring. If required. Summarization based on RAM intersections. Record/allocate Indirect Costs. 13 16 D/C 21 MTL D/C 4 IM 17 WBS SUM IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 23 VA ANL PLNG. , SKED. & BUDGT 26 MGT ACT 27 EAC REALITY: REAL $$$ 24 IND ANL 20 UNIT/LOT COSTS ORGANIZATION 25 ANL SUM ACCOUNTING ANALYSIS & EAC REVISIONS INDIRECT
CPM Webinar 5 September 2012 Effects of Changes
Incorporating Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 28 Contract Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
Incorporating Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 28 Internal Replanning 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
Reconciliation of Budgets 3 SUBSYSTEM INTEGRATION 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 6 SKED 9 WB/A 7 EVT 10 WP/ PP 4 IM 17 WBS SUM 29 Budget Reconciliation 14 UB 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
Controlling Retroactive Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 30 Retroactive Data Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
Controlling the CBB Value 31 Control Unauthorized Changes 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
Update Baseline Documentation 3 SUBSYSTEM INTEGRATION 6 SKED 9 WB/A 7 EVT 10 WP/ PP 14 UB 1 WBS 5 RAM 2 OBS 16 D/C 21 MTL D/C 4 IM 17 WBS SUM 32 Document PMB Changes 11 CA SUM 14 MR 8 PMB 15 CBB THE PLAN: PM $$$ 13 IB 12 LOE 19 IND COST 22 VAs CAL 18 OBS SUM 20 UNIT/LOT COSTS 23 VA ANL 25 ANL SUM 26 MGT ACT 24 IND ANL 27 EAC REALITY: REAL $$$
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.
Next Steps Claim your PDU for this session: • • PDU activity number is 090512 Provider: REP 3646 Register for the Integrated Program Management Conference: • Registration open for IPM Conference and Conference 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.
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