FRAs Earned Value Management System Overview Richard Marcum

FRA’s Earned Value Management System Overview Richard Marcum, FNAL Project Controls Manager EVMS Surveillance Review 7 March, 2016

Outline • FNAL Since Last EVMS Surveillance – – – Brief Review of Last EVMS Surveillance FRA EVMS Document Updates CAM, PM, and PCS EVMS Training FNAL EVMS Corrective Actions EVMS Standardized Documents/Logs • Continuity of FNAL EVMS Processes • FNAL EVMS Culture 2 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Last Review EVMS Surveillance Review • Reviewed (2) Projects – US-CMS Detector Upgrade – Mu 2 e – Both Early Stages • CMS Project received CD- 2 ESAAB 1 month previous to review • Mu 2 e Expected CD-2 three months after review • Compliant but not Perfect – (2) Corrective Action Requests (CAR) – (8) Continuous Improvement Opportunities* (CIO)* – (1) CIO 3 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Last EVMS Surveillance – CAR & Status Documents Two Documents Found on OPSS Surveillance Review Web Page 4 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

FRA EVMS Documents (Compliant) • EVMS Documents – – – – – • • • FRA Earned Value Management System Description 12. PM-001 Project WBS, OBS, RAM 12. PM-002 Control Accounts, Work Packages, Planning Packages 12. PM-003 Work Authorization 12. PM-004 Project Scheduling 12. PM-005 Cost Estimating 12. PM-006 Monthly Status Reporting 12. PM-007 Change Control 12. PM-008 EVMS Surveillance & Maintenance http: //www. fnal. gov/directorate/OPMO/Pol. Proc/home. htm Provided Link for Reviewers from Review Home page Ownership – Office of Project Support Services (OPSS) - responsible for implementing and maintaining the FRA Earned Value Management System, including maintaining the interfaces with existing Fermilab business and management systems 5 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Documents - Policies and Procedure Updates • 12. PM-001 WBS, OBS, RAM • 12. PM-002 Control Accounts, Work Packages, and Planning Packages • 12. PM-003 Work Authorization • 12. PM-004 Project Scheduling • 12. PM-006 Monthly Status Reporting • 12. PM-007 Change Control Summary of Changes • Updated for Consistency with Previous Year Updates – EVMS Description – Other Procedures (12. PM-002, 003, 007) • Updated Other Inconsistencies between Procedures – Removed redundant direction found in Other Procedures – Referenced rather than reiterate • 6 Updated Examples and Tables Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Documents – Desktop Instruction • Added/Updated Desktop Instructions (DTI) – – Baseline Change Request Milestone Scheduling EVM Processes Using Flow Diagrams and Visuals – Archived Outdated DTIs – Not official Auditable System – See Procedures • OPSS Further Guidance – PM, CAM, and PCS – Promote Consistent Adherence 7 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Project Management and EVMS Training Target Key Project Personnel • • • Project Manager (PM) Sub/Deputy Project Managers Control Account Manager (CAM) Project Control Specialist (PCS) Field Financial Officers (FFO) Types of Training • • • 8 Project Management Introduction to EVMS Annual EVMS Refresher Focused EVMS Training Modules One on One Mentoring Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Training Statistics Since Last Review Number of Training Classes • 22 Projects Receiving Training • Mu 2 e • Muon g-2 • LBNF/DUNE • SLI-IERC • SLI-UUP • US-CMS Detector Upgrade • US-CMS HL-LHC Upgrade 9 Richard Marcum | FRA’s Earned Value Management System Overview Number of Participants • 229 2/16/2022

Collaboration, Coordination, and Training Meetings • PMG • POG • Coordination Meeting (PCS) – Monthly – All Projects • Cost & Schedule Meeting (PCS & FFO) – Monthly – All Projects • Other Meetings, Training, or Mentoring as needed 10 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Surveillance – Two CARs 1) Traceability -The information provided to the reviewers lacked key elements to allow for a cradle–to-grave traceability to confirm that Baseline Change Requests were implemented in accordance with the EVMS Systems Description. (GL-28 -29 -31) – Established Documentation Standards with all reports showing BCR number 2) Properly identify and track MR, UB and Contingency Tracking for MR, UB, and Contingency for CMS Project not in compliance with EVMS Change Control Procedure (GL 14 -15) – – 11 Ensure Projects Track MR, UB, and Contingency Standardized Change Log Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

Several CARs and CIOs Address Standardization FNAL’s Approach to Standardization • Verify Requirements • Weigh Cost / Benefit of Alternatives – Tool Capabilities – Time Impacts – Impact on existing Project Processes • Establish Standards / Template to Meet Requirements – – Set Minimum Requirements Allow Tailoring New Projects will Use Templates Existing Projects • Weigh Impact including Effort, Time, & Cost • Ensure Minimum Requirements are Met 12 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Project Standardization Results • Provided Templates (e. g. Risk Register, PEP, WAD, etc. ) • Changes in Procedure Examples • Incorporated into Training • New Projects - Provide and Train • Existing Projects either – Adopt – Verify Compliance to Minimum Requirements • Allow Tailoring (Consult OPSS) – Project Needs – Comfortable with Tool – Increased Focus / Visibility 13 Richard Marcum | FRA’s Earned Value Management System Overview Unique Needs One Size Doesn’t Fit All 2/16/2022

Examples Standardized Yet Different Visual Differences Versus Tool Differences Access 14 Versus Richard Marcum | FRA’s Earned Value Management System Overview MS Word 2/16/2022

EVMS Surveillance – 8 CIO*s (5 Continue to: ) 1) Continue to improve the variance analyses to remove quality variability. (GL-23) – Provided Training to increase CAM Awareness – Quality Checks by CAM, PM and PCS 2) Continue to examine the use of LOE tasks to ensure that they are being appropriately used. (GL-12) – Provided Training to increase CAM Awareness – PM, CAM, & PCS Validate LOE Use & Schedule Quality 15 Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

Guidance Regarding LOE Activities • Keep LOE to Minimum (Guidance less than 15 -19%) – Control Account Cost – Project Cost • Don’t mix LOE and Discrete Work – Separate CTCs – Separate Reports • Ensure Work is Truly LOE i. e. You Can’t Measure Progress – Not dependent on work Performed • Cost incurred regardless of work • EV not Measurable 16 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Surveillance – 8 CIO*s (5 Continue to: ) 3) Continue to refine the calculation of Estimate at Completion (EAC) to be standardized across the projects and better reflect CAM/PM assessments. (GL-27). – – 17 Established & Reinforced Standards Provided Training to CAMs OPSS Verifies Project’s Methodology is Appropriate Methodology May Change during Project Phase/Life Cycle Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

FRA EVMS Process – ETC/EAC Basics • At least Annually, the PM will request Bottom Up EAC – Perform Bottoms-up Estimate for the Remaining Work – Establish EAC Target – Much like BAC – There after: Ensure Present EAC = Last agreed Annual or Interim EAC • Mu 2 e is in process of Annual EAC • Muon g-2 received CD-2 in September (Annual not yet required) • Monthly CAMs Analyze Impacts to the ETC – – Forecast Schedule Changes through P 6 Status Process Identify Changes is Resources Inform PM of Issues Receive Preliminary Direction from PM including • Look for Corrective Actions or Mitigation Alternatives • If Appropriate, May Submit Changes (BCR) for Approval 18 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Mu 2 e Calculates ETC using P 6 (Manual EAC) P 6 Updates with Forecast Dates & Resource Remaining Units 19 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

Muon g-2 uses Cobra Calculated PF=1 EAC Use Calculation to Validate CAMs Assumptions • P 6 Schedule Status Update provides Forecast Dates • CAM Assesses and Analyzes Future Work (ETC): • Understands that PF=1 Does not Adjust for past Performance Variations • If the Remaining Baseline Resource Assumptions are still Applicable then PF=1 will Produce Appropriate EAC by • • Spreading Remaining Budget over Forecast Period of Performance Adding Escalation/Burdens according to Forecast Period of Performance • If Baseline Resource Assumptions are no longer Correct then • • Adjustments of Future Work must be Accounted for via BCR or CAM/PCS Applies Manual Forecast Adjustments • CAM ensures EAC realistically Reflects Analysis 20 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Surveillance – 8 CIO*s (5 Continue to: ) 4) Continue CAM training to include Accruals and Indirect Costs. (GL-16) – OPSS incorporated Accrual and Indirect Cost Training in Suite – Accrual Process is Stressed and aided by PCS and FFO 5) Continue to Ensure that No Retroactive Changes to the BCRs. (GL-30) – Standardized Reports Verify no Retroactive Changes – Stress to CAM, PM and PCS NEVER Change History – Provided Training to PCS, PMs and CAMs 21 Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

EVMS Surveillance – 8 CIO*s (Last 3 [6 -8] Correct) 6) The Corrective Action Logs, that reflect variance analyses, needs to be Standardized so they can be tracked by the PMs and provide a single source of issues for Fermilab Management. (criteria, process, and timely updates) (GL-26) – Established Standard Variance Corrective Action Log – Projects Use CA Log 7) Make a recommendation to the FPD on Fermilab PARS II reporting and obtain FPD direction. (GL-25) – Had Discussions with FPDs and Set Expectations – PARS II reporting done Monthly – Format 3 is Not Required by projects FPDs 22 Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

EVMS Surveillance – 8 CIO*s (Last 3 [6 -8] Correct) 8) Review and validate the accuracy of the Schedule Logic. Perform schedule clean-up (include integrity checks) on a regular basis. – PCS performs monthly Logic, Coding, LOE, and Other Checks – Validate and Correct issues with CAM via BCRs – Use of FUSE (Analysis - next slides) CAMs should be trained to Better Understand how their Subprojects roll up into the master project schedule and which high level project milestones they impact. (GL-6) – Provided Training to CAMs – PCS Validate with CAMs the Schedule internal and external logic (Pred/Succ) relationships of CA and Sub-Files (Sub. Projects) 23 Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

Schedule and Acumen FUSE Reports Muon g-2 FUSE Summary Muon g-2 FUSE Detail Fuse Schedule Index Muon g-2 FUSE DCMA Summary Muon g-2 FUSE DCMA Detail 24 Richard Marcum | FRA’s Earned Value Management System Overview Fuse Logic Index 2/16/2022

FNAL Schedule Practices – Acumen FUSE Issues Constraints & Leads/Lags Includes (4) Leads High Float Fuse Schedule Index • Activities with no logical tie other than End of Project • Activities where Project wants Collaborators to perform serves ASAP to ensure delivery by needed date. • Obligation Activities are at start of procurement • FY Milestones • At odds with No Open Ends & Merged Hot Spots • • Activities with no logical tie other than End of Project CD gates - work cannot start until funds are available Outage work – Work cannot start until outage BCR Milestones Activities without Resources • Allow and Encourage SVT Fuse Logic Index 25 Richard Marcum | FRA’s Earned Value Management System Overview – Replace lags – Level Resources • Non-DOE Collaboration Provided Services or Material 2/16/2022

FNAL Schedule Practices – Adjusted Acumen FUSE Report SS Relationships • Old P 3 Tool Required all Start Milestone to have SS relationship. Some still adhere to this rule • Often Work follows Concurrent Path. Muon g-2 FUSE Summary From 76 – Either SS with Concurrent – or FS with predecessor which creates Hot Spot – Examples: • • Obligation Tasks Rebase line S=P=A High Durations • Many are LOE activities Muon g-2 FUSE Detail – We use a PMT coding for LOE not Activity Type • Type of work provided such as Non-DOE costed resources which are supplying materials or services with no EV • SVTs with no resources or EV • Low Dollar M&S (less than 10 K) Muon g-2 FUSE DCMA Summary Past Errors/Issues • We do not change history • Have opportunity to correct future issues. Muon g-2 FUSE DCMA Detail 26 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022 From 37

Automated tools or Rules are not Absolute Answer SS Relationships Muon g-2 FUSE Summary • Old P 3 Tool Required all Start Milestone to have SS relationship. Some still adhere to this rule • Often Work follows concurrent Path. Either SS with Concurrent or FS with predecessor which creates Hot Spot – Obligation Tasks – Rebase line S=P=A High Durations Muon g-2 FUSE Detail Muon g-2 FUSE DCMA Summary • Many are LOE activities – We use a PMT coding for LOE not Activity Type • Type of work provided such as Non-DOE costed resources which are supplying materials or services with no EV • SVTs with no resources or EV • Low Dollar M&S (less than 10 K) Past Errors/Issues • We do not change history • Have opportunity to correct future issues. Muon g-2 FUSE DCMA Detail 27 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

EVMS Surveillance – 1 CIO 1) The number of Cost and Schedule reports supporting the BCRs Varied across the projects. A Fermilab Change Control Process/Procedure needs to be Standardized for consistent implementation across the projects. (GL-32) – Established BCR DTI – Provided Training to PCS 28 Rich Marcum | Project Cost and Schedule Coordination Meeting 2/16/20224

Other FRA EVMS Processes Labs or Projects may have Differing Characteristics, but all FNAL Follow the Certified EVMS Practices • Result of Project Complexity – Funding Sources – Collaborative Efforts • Result of Customer Needs EVMS – NSF Requirements – SLI Requirements Cost Processer (S-P-A Integrator) Accounting • Result of FNAL – Tools – Processes 29 Richard Marcum | FRA’s Earned Value Management System Overview Schedule Procurement Lab Specific Tools 2/16/2022

FRA EVMS Process –Analysis & Management Reporting Also Calculates EAC & Forecast dates Rates including indirect adders and escalation are provided by FNAL Budget Office and entered into Cobra Rate Tables Primavera P 6 Accounting/ Finance Tool FNAL Uses Accounting Tool & Timing 30 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022

FNAL Utilized Contingency, MR & UB • Contingency Established – Estimate Uncertainty – Statistical Evaluation of Risks (PRA) – Controlled By DOE • Management Reserve (MR) – Allowed by DOE field Office – Limit as Defined by PEP – Reduced by BCRs • Undistributed Budget (UB) – Reduces Available MR – Field Changes – BCRs follow 31 Richard Marcum | FRA’s Earned Value Management System Overview Control & Transparency 2/16/2022

EVMS is Part of FNAL Culture and is Widely Accepted • 413 Projects - post CD-2 – – Mu 2 e Muon g-2 US-CMS Phase-I Upgrade SLI-UUP • 413 Projects - pre CD-2 – US-CMS HL-LHC Upgrade(Pre CD-0) – LBNF/DUNE Utilize EVMS Variance Indicators (CD-1) – SLI-IERC(CD-0) Participated In Directors Review Participate In PMG/POG Pre CD-2 US-CMS Detector Upgrade • FNAL Programs / projects Use EVMS Variance Ind – Muon Campus Participate In PMG/POG – SBN Participated In Directors Review 32 Richard Marcum | FRA’s Earned Value Management System Overview LBNF 2/16/2022

Summary • Since Last EVMS Surveillance – FRA EVMS Has Maintained Compliance – FNAL has Corrected Deficiencies found in last Surveillance – FNAL has Robust EVMS Training/Mentoring Program • FNAL EVMS Exhibits – Compliant & Tailored EVMS Processes – Ernest Intent to Utilize Best Practices • FNAL has Developed and Demonstrates Solid EVMS Culture with: – EVMS Being Supported and Practiced – Continual Collaboration between OPSS and Projects – Wide Acceptance of EVMS and Other Management Principles 33 Richard Marcum | FRA’s Earned Value Management System Overview 2/16/2022