big iron evm ata proposal budget constraint $ & hrs high level work requirement project manager...

Big Iron EVM

EVM Implementation at AEDCInitial Success Met Failure

David PeelerISPA/SCEA

June 2007

Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com

Overview

• Implementation• Planning• Reviews• Baselines• Process Flows• Initial Success(es)• Ultimate Failure


EVM Implementation at AEDC

• Proposed in FY04-15 contract bid• Our challenge….

– Implement EVM on all jobs “enterprise-wide”– Integrate varied tracking/reporting methods

for Enterprise Reporting• Our response…

– Designed and implemented an EVMS– Thru lot of hard work met a major deliverable– Made EVM performance a KPI for Award Fee


EVM Implementation Tasks for FY04Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com

EVMS• Process(es)

– Project Planning & Documentation– Monthly Project Statusing– Baseline Configuration Management

• Tool– Excel EVMS– Matrix One software system

• People– Performance Measurement/Project Control

organization– Project control officer (PCO) role– Emphasizing role of project manager


DetailedPlanningProposal

IntegratedBaseline

Review (IBR)

EVMS Tool

Performance Measurement

Baseline

Verify & Approval

Cost orWorkloadProposal

Requirements

Authority to Proceed

ContractBaseline

ExecuteWork

Collect Metrics

MonthlyStatus

Review

Process Changes

CorrectiveActions

Replan or Cost Proposal

VarianceAssessment

Red FlagReview

EVM Process Overview

Batch Negotiated


Detailed Planning• Preplanning

– Must understand requirements…the work to be done– Must communicate initiatives and constraints

• Planning– Must tie quantified requirements to budget via BOE– Must implement/reflect initiatives– Must address EV techniques to be used– Plans must be executable with acceptable risks– Document

• Reconciliation– Process to resolve project-level conflicts where

requirements and budget don’t match

• Management involvement in all phases


No

ATA Proposal

Budget Constraint

$ & Hrs

High Level Work

Requirement

Project Manager

Proposed Detailed Project Plan

Project Risks Acceptable?

Complete

Load in PSF

WBS Risks Acceptable

Department Risks

Acceptable?

Client Risks Acceptable?

Initiatives

No NoNo

ATA High Level Planning Process

Detailed Planning


Detailed Planning

Description 19-S

ep

26-S

ep

3-Oct

10-O

ct

17-O

ct

24-O

ct

31-O

ct

7-Nov

14-N

ov

21-N

ov

28-N

ov

5-Dec

12-D

ec

19-D

ec

26-D

ec

2-Ja

n

9-Ja

n

16-Jan

23-Jan

I Preplanning Phase1 Develop and document Ops Concept2 Brief OGM and Staff3 Identify and validate projects list4 Assign PCO5 Assign PM6 Develop Enterprise Guidance7 EVM Training8 Cascade Initiatives to PMs9 EVMS Tool Development

10 EVMS Tool Testing

II Detailed Planning Phase11 Project WBS Validations / Approvals12 Changes in PSF13 Detailed Planning14 Hold IBRs15 Process into EVMS tool

III Reconciliation Phase16 Migrate data to PSF17 Analysis WBS Reports18 Direct changes to field19 Replan Projects20 Hold IBRs21 Update change log22 Process into EVMS tool23 Changes in PSF24 Reconcile

IV Fact Finding Phase25 Documentation Generation26 AF Fact Finding27 Revisions & Acceptance

V Monthly Status Process Phase28 Distrbution of Plans29 Status Reviews30 Red Flag Reviews31 WBS Report Generation32 AF Presentation


Plan ValidationIntegrated Baseline Review (IBR)

• Independent validation of the plan before it becomes the baseline in the accounting system

• Formal (structured) review process • Formal approval process

“Don’t let garbage into your system”


Detailed Planning Status

478523

433481

0

577

0 0

577

0

100

200

300

400

500

600

# of

Pro

ject

s

PPR IBR Migrate toDC1

Reconciled Total # ofProjects

As of Dec 31, 2004 As of Jan 20, 2004


• When you assess your CPI in terms of hours, how do the authorized resources for remaining work compare with

• Is your estimate to complete (ETC) in your EVMS consistent with this?

CPI*Resources Planned

*Budgeted Resources for remaining work

Do You Have Enough People?Planned in Right Place?


14

Monthly Status Reviews• Determine earned value for work performed• Estimate the quantity of remaining work• Estimate the effort to complete the

remaining work• Document the current schedule• Update the staffing and spending forecast• Identify any work in the baseline that will not

be accomplished in the current FY“Mechanism for validating Manager’s

BCWPs and EACs”


15

Monthly Red Flag Reviews

• Understand and document the Cause of the variance(s)

• Determine the Impact of the variance(s)• Develop and document a Corrective

Action plan (if necessary)

“Facilitates Management by Exception”


16

Baseline Management

• Uses of Different Baselines• Categories of Changes• Baselines and PeopleSoft Financials• Triggers That Initiate Change• Detailed Flows


Baselines• Performance Measurement Baseline (PMB)

– Earned Value calculated against PMB– Variance Documentation (Schedule, Cost)– Basis for Project Management Reviews (PMR)– Business rules for managing change follow EIA Standard 748-

A and ACS Policy (TBD)

• Contract Baseline (CB)– Basis for Financial Status Review– Business rules for managing change are consistent with

standard accounting practices

• Operating Plan (OPLAN)– Current working plan for completing remaining work– Basis for EAC– Resides in EVMS Tool

“Requirement to reconcile PMB and CB”


Baseline Change Categories• PMB Categories

– Revisions (Administrative Errors)– Requirements Change (Scope)– Replans (Internal Rescheduling)– No Cost Change (WBS or BPAC)

• CB Categories– Revisions– Requirements Change– Funding Only Change (Squaring the

Corners)


Official PeopleSoft Baselines

• PMB– Draft Cost Estimate (DC2) – Cost Estimate (CE)

• CB– Draft Workload Estimate (DW2)– Workload Estimate (WL)

“Can Use PeopleSoft to Track Spending”


Example Process Flows

• Cost Proposal• Internal Replan• Funding Only Change


Request for Proposal

AF COContractsProgram Control

Project Control

Project Manager

Detailed Planning

Document Validate

Notification

Prepare Proposal Input

Update Performance Measurement Baseline

PMB

Final Proposal


AF Negotiation

(Batch)Update Contract

Baseline CBNotification

Change PMB

Change CB

Baseline Triggers

Price Resources

Notification




Field PCO

Project Manager

Detailed Planning

Complete Electronic

Forms (new projects) or

mark up EVMS Tool

(existing projects

Create new or modify

Narrative Plan

Validate & Approve Changes

(IBR)

Generate Draft PMB

Validate Draft PMB

Establish Deadlines

Log Requirement

Log Requirement

Schedule Planning Review

Validate & Finalize Proposal

DocumentationSign-off

Review & Validate

PMB Changes

Validate & Copy to DW2, Rate & Report

Validate &

Submit to AF


NotificationPost DC2 to CEReconcile, Update Baseline Log

AF Negotiation

(Batch)Post DW2 into WL

Print & Deliver Status VersionMark up for Status

Reviews

Load DC2 Rate DC2

Update Baseline Log

Update Cost Proposal

Log

Copy CE to DC2 by Project

Reconcile DC2, Log in EVMS tool

Notification

Copy DW2 to CE for Pool

Cost Projects

Pending Modification to PMB Pending Modification to CB

Change PMB in EVMS Tool

Change CB

Baseline Triggers

Supplemental

Agreement

EVM Admin

Lead PCO

Review Validate

Validate Electronic

Narrative Plan & Tool

Changes

Update MATRIX

Apply PMB ChangesReconcile

Modify Switch Files &

Reports as Necessary

Update Analysis files & Reports as

Necessary

Obtain H/C Signatures,

Post to Share

File H/C


Internal Replan

• Modifies schedule or work requirements without changing resource requirements at the project level


AF POC Approval


Project Control

Project Manager

Detailed Planning

Document Validate


Update Performance Measurement Baseline

PMB

Final Proposal

PMB Configuration

Manager Approval

Change PMB

Baseline Triggers

Price Resources

Notification

Request for Replan Approval


CB (Funding Only) Change

• Modifies budget for completed work• Typically used for removing excess funds

from a project (squaring the corners)




Project Control

Project Manager

Notification Validate Notification


Final Proposal

AF Negotiation

(Batch)

Update Contract Baseline CB

Notification

Change CB

Baseline Triggers

Price Resources


Fund/Program Code Change

• Changes BPAC, WBS, AFPOC, Project Manager, etc. etc

• No change to $, Hours, or Schedules




Project Control

Project Manager

Establish Deadlines

Log RequirementLog Requirement

Apply PMB Changes in EVMS Tool (Pool

Projects)

Edit WL, Validate & Report Validate &

Submit to AFAuthority to

Proceed

Reconcile, Update Baseline Log

AF Batch Negotiation

Update Baseline Log & EVMS

Tool

Update Baseline Log

Update Cost Proposal Log

Notification

Edit CE

Change CB

Baseline Triggers

Supplemental Agreement

Notification

Notification

Change PMB in EVMS Tool

Edit, Validate & Post

Narrative Plan


Initial Success(es)

• Wing CC very energized (Old Acq hand)– Allowed me to write EVM into the RFP– Let me brief concept at Industry Days

• Initial steps to implement went well• Initial EVMS info intuitively accurate• Accuracy was both good and bad

• Gov’t Managers disliked EVM


Ultimate Failure

• New Wing Commander (no Acq experience)– EVM “doesn’t scratch my itch”– Operational savior of acq site

• Not interested in details of T&E• Gov’t Managers talked him out of EVM

– Better to let managers manage the “proven” way• Deleted EVM requirement in the contract• CC dis-allowed EVM talk in his presence


Summary

• Application of EVM to “Big Iron” facility– Approx 1,000 annual projects– Large task

• Deconflicting lots of stuff– Engineers and their toys vis-à-vis money– Personnel double/triple allocated

• Everybody wants the experienced folks– Schedule

• Actionable information takes…Management action/involvement


big iron evm ata proposal budget constraint $ & hrs high level work requirement project manager...

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