# Presentation: 488591

## Earned Value Management Application, Guidance, and Education

- Neil F. Albert
- President/CEO
- MCR, LLC
- nalbert@mcri.com

- 2010 Corporate Ridge
- Suite 350
- McLean, VA 22102
- 703.506.4600
- www.mcri.com

## EVM in the Acquisition Life Cycle

**Notes:**
At least four major functional areas make up the effort to develop and support EVM in the acquisition life cycle process.  They are Systems Engineering, Cost Analysis, Earned Value Management and Program Management. The Acquisition life cycle has three basic phases – Pre-Systems Acquisition Planning, Systems Acquisition, and Systems Sustainment.  The first two phases have a set of functional requirements to ultimately deliver a product into the System Sustainment phase using an EVM project management system. 
The Pre-Acquisition efforts start with an Operational/Functional Concept.  Once identified an Analysis of Alternatives (AOA) is developed to determine the best approach and technology to be used to accomplish this concept.  Typically a Life Cycle Cost Estimate is developed for each alternative addressing cost, schedule, technical and risk issues.  The result of the AOA will be the best solution to meet the Operational/Functional need. The alternative selected will define a set of system requirements which will aid in the development of a Work Breakdown Structure (WBS), a risk assessment on the development of the system, and an acquisition concept.  It is at this point, management will determine if the system will be developed and delivered. If approved, the system moves into the Systems Acquisition phase with an approved acquisition plan as a result of the Requirements Definition. The next step is to develop an accurate understanding of the cost, schedule, technical and risk aspects of the program in the form of the acquisition cost estimate.  The estimate helps management understand the probability of success and the implication of risk in the program. The estimate is developed based on Systems Engineering, Program Management, and Cost Analysis support as well as others in the program. The resultant estimate is ultimately converted into a Performance Measurement Baseline (PMB) with cost, schedule, technical, and risk assessments.  This initiates the cost, technical, schedule and risk monitoring process using EVM techniques. The PMB is validated through an Integrated Baseline Review (IBR). The program baseline and systems used to support the project management process is then monitored and maintained through a thorough surveillance program.  Finally the system is completed, delivered and maintained within the System Sustainment phase. 

## ANSI/EIA-748 Earned Value Management Systems

- Contains guidelines for establishing and applying an integrated management system for cost, schedule, and technical performance
- Contains 32 guidelines, grouped into five major categories:
- Organization
- Planning, Scheduling, and Budgeting
- Accounting Considerations
- Analysis and Management Reports
- Revisions and Data Maintenance
- NDIA Intent Guide for Earned Value Management Systems
- Provides additional insight into the 32 guidelines
- Describes the typical attributes and objective evidence that support compliance with a given guideline

**MCR**

**Notes:**
Due to variations in organizations, products, and working relationships, it is impossible to prescribe a universal system for cost and schedule control.  Therefore, the guidelines in ANSI/EIA-748 do not describe a system.  Instead, they state the qualities and operational considerations of an integrated management system without mandating detailed system characteristics.  In designing and implementing an Earned Value Management System (EVMS), the primary objective of the government or contractor should be effective management and control.  The government and contractor organizations have flexibility under this guideline approach to develop an EVMS most suited to their management needs. 

The guidelines do not address all the needs for day-to-day or week-to-week internal control, such as status reports, reviews, and communications.  These internal controls are characteristics of good management and should be used with EVM to provide insight and the information necessary to make informed decisions.  

NDIA ANSI/EIA: The National Security Industrial Association, in conjunction with the Aerospace Industries Association, the Electronic Industries Association, the Shipbuilding Council of America, and the American Shipbuilding Association.

## ANSI/EIA – 748 EVMS Application

## National Defense Industrial Association (NDIA)

- Program Management Systems Committee (http://www.ndia.org)
- EVM ANSI/EIA-748 Subject Matter Experts
- Developed Guides as documented in OMB A-11, Part 7
_**ANSI/EIA 748 Intent Guide**_ – maintains the explanations as to the purpose and attributes expected for ANSI/EIA 748 compliance
_**Application Guide**_ - describes for all organizations implementing the ANSI/EIA-748, the importance of planning the EVM application through all phases of the acquisition life cycle
_**System Acceptance Guide**_ – evaluates whether the EVMS is capable of meeting the intent of ANSI/EIA-748 and obtain EVMS compliance recognition that will meet current and future requirements for an approved EVMS
_**Integrated Baseline Review Guide**_ - identifies the IBR Process and integrates the IBR with risk management within the framework of the IBR Process
_**Surveillance Guide**_ -  defines a standard industry surveillance approach to effective surveillance, encourages efficiencies through the use of a uniform process, and gives consistent guidance for companies implementing the ANSI/EIA 748 EVMS guidelines
- Joint Government/Industry EVM Working Groups – focusing on Industry input to the revised DoD and OMB EVM Policy and related requirements, including interpretation and guidance

## Integrated Program Management Document Framework

**Application Guide**

***Evaluating:***
**Contracting**
**Systems Engineering**
**Risk Management**

## NDIA Guidance

| Acquisition Life Cycle | Acceptance Authority or Customer | EVM System Owner or Supplier |
| --- | --- | --- |
| Pre-Systems Acquisition Approval or Award  | Recognize:
Application Guide
System Acceptance Guide | Document and Assessment:
Application Guide
Intent Guide |
| Systems Acquisition Approval or Award | Accept:
Intent Guide & Surveillance Guide
IBR Review:
IBR Guide
Surveillance:
Surveillance Guide | Implement:
Intent Guide & Surveillance Guide
IBR Review:
IBR Guide
Execution and Surveillance:
Surveillance Guide |

## Project Management Institute – College of Performance Management(PMI-CPM)

- Internationally recognized forum for Earned Value Management and project planning and control, standards, research, and education
**(www.pmi-cpm.org)**
**Objectives**
- Promote Earned Value Management and Project Planning and Control
- Recognition and use of earned value management and other project planning and control techniques as integrating processes for project management
- Disseminate Information
- Provide opportunities for the exchange of ideas, information, solutions and applications
- Improve Community of Practice
- Encourage and enable the advancement of theory and application through research, standards, and education
- Professional Growth
- Provide membership with growth opportunities through leadership, education, networking, professional certification, and other benefits of a professional association

## Project Management Institute – College of Performance Management(PMI-CPM)

- Two conferences annually
- Spring: Annual CPM Conference “EVM  World”
- Fall: Integrated Program Management International Conference (Co-Sponsor w/SCEA and NDIA)
- Training Seminars
- Special Topics
- Education Program (EVM Certificate)
- Certification
- Endorse AACEI – Earned Value Professional (EVP)

## Project Management Institute – College of Performance Management(PMI-CPM)

- Measurable News
- PMI-CPM Forum
- Electronic Library
- EVM Practice Standard
- Research
- Scholarships

## EVM Federal - Community of Interest (EVM CoEye)

- Founded in 2005 by volunteers in the PMI-CPM and Civilian Agency Leads (_[www.fedevm.org](http://www.fedevm.org/)__) _
- Provide information on EVM to workers in the civilian agencies of government.
- EVM-based project management now a mandatory requirement of the US government
- CoEye supports more than 400 people on its distribution list, consisting of public servants and contractors from more than 60 government offices
- Complements formal government organizations by creating a network of well-informed people
- Helps agencies change the focus of their mission-oriented acquisition systems to EVM-based project management systems
- Meets monthly at sponsoring agency location
- Discusses issues in OMB guidance for EVM, including policy, implementation and validation

## Other Related Educational Opportunities

- Project Management Institute
- www.pmi.org
- Society of Cost Estimating and Analysis
- www.sceaonline.org
- Defense Acquisition University
- https://acc.dau.mil/evm
- Federal Acquisition Institute
- http://www.fai.gov/resource/educate.asp

## Questions?