1 basics of earned value management national contract management association colorado springs...
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BASICS OFEARNED VALUE MANAGEMENT
National Contract Management Association
Colorado Springs ColoradoJune 19, 2008
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Earned Value Management (EVM) Training Objectives
•Understand basic concepts– What EVM is and basic terms
•How to evaluate performance– What does it all mean?
•How to manage using Earned Value– Now that we know what it is and what it
means, what do we do with it?
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Earned Value Management Systems measure progress
Progress = Movement Forward
to measure progress,there must be a standardagainst which the forwardmovement may be
compared
EVMS establishes a baselineto measure progress
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EVM can provide answers to the following questions:
• How much have we spent?• How much did we get for our money?• How much more will be have to spend to complete
the tasks we wanted to accomplish?• How much longer will it take?• How efficiently is the work being done?• What has happened? (Why are we off
schedule/cost?)• What is happening? (What are the impacts?)• What is going to happen? (What are we doing to fix
it?)
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Why use Earned Value Management Systems?
“The Bottom Line”
• EVM can focus program management attention on critical issues and risks during the “project” life cycle
• How are you doing, and how do you know how you are doing?– Early problem identification
• Completion Estimates– How far along are you? (64%, 50%, >40%)– What is your productivity/efficiency?– Work remaining
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Earned Value ManagementIs Not:
• Guarantee of profit• Restricted to projects for the
production of a products – EVM can be used in service contracts
• Solution for a poorly written statement of work
• Magic Bullet
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Five Basic Elements
BCWS Budgeted Cost of Work Scheduled
BCWP Budgeted Cost of Work Performed
ACWP Actual Cost of Work Performed
BAC Budget at Completion
EAC Estimate at Completion
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5 Basic Performance Data Questions & Answers
QUESTION ANSWER ACRONYM
How much work should Budgeted Cost for BCWSbe done? Work Scheduled
How much work is done? Budgeted Cost for BCWPWork Performed
How much did the is done Actual Cost of ACWPwork cost? Work Performed
What was the total job Budget at Completion BAC supposed to cost?
What do we now expect the Estimate at Completion EACtotal job to cost?
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What do we measure progress against? and Why?
• Performance measurement baseline– Budget that is spread over . . .– Time, to accomplish the scope of – Work, against which progress can be
measured
• Earned Value is key concept– how much progress did I make against my
original plan?– expressed in dollars or hours– Why? – early warning $
time
baseline
earned value
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Why do we needEarly Warning?
Small course corrections are easier when made
early…
… If you wait until you reach the Iceberg, its too
late!!!
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Terms and Definitions associated with EVM:
• It starts with the Work Breakdown Structure (WBS) – Based on the WBS a total budget is
assigned – Work packages are developed and priced – A process to measure the results of those
work packages is put into place– Work packages are tracked for both the
dollars and time spent• The result of this effort is developing a
Budget at completion (BAC)
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Work Breakdown Structure
1.0 Project –New Marketing Campaign
for Dog Food
1.1 Printed Media
1.2 Electronic Media
1.3 Radio
1.3.1LocalSpots
1.3.2Regional
Spots
1.1.2Newspaper
inserts
1.1.1 Magazines
1.2.2TV
1.2.1Website
First Level
Second Level
Third Level
Systematic approach to ensuring all program work is recognized and defined into a viable work plan – should include labor and materials for complete picture
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Organizational Breakdown Structure
New Marketing Campaign for Dog Food -
assign to the Western Division
Chuck’sDesignTeam
Regional Media
Support
CentralizedNationalSupport
Stan In
Accounting
RayBudget
Juan for Customer interface
Sally For messageAnd theme
Josh Audio
John forComputerGraphics
Identifies the functions and/or people that will do the work
Beverly in
National Accounts
Admin AsstChen
Tanya Print
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Responsibility MatrixAssigns WBS work to OBS labor
design
graphics
accounting
1.1.1 1.1.2 1.2.1
Admin Asst
audio
budget
1.1 1.2OBS WBS
- - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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CONTRACT BUDGETBASE
CONTRACT BUDGETBASE
CONTRACTPRICE
CONTRACTBUDGET BASE
PROFITS ANDFEES
MANAGEMENTRESERVE
PERFORMANCEMEASUREMENT
BASELINE
WITHHELDFOR
UNKNOWNS
UNDISTRIBUTED
BUDGET
DISTRIBUTED(control accountS)
WITHHELD FORKNOWN EFFORT
AUTHORIZED,UNPRICED
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ORGANIZATIONORGANIZATION
BUDGET LEDGER
MASTER SCHEDULE
GENERAL WORKAUTHORIZATION
CONTRACT
Control AccountWBS # ______________ ORG # ______________
TASK DESCRIPTION________________________
SCHEDULE _______________________________
TOTAL BUDGET ________________
WORK PACKAGE
WP # ________ ORG # _________
DESCRIPTION ______________________________________________
SCHEDULE _________________
BUDGET ___________________
WBS ELEMENT
ORGANIZATION
WORK AUTHORIZATION
SCHEDULE
BUDGET
COST ACCUMULATION
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The Control AccountA Key Management Control Point
The Control AccountA Key Management Control Point
Specific functional responsibility
Specific WBS responsibility
Work planning and assignment
Performance measurement
Cost collection
Variance analysis
Corrective action
Basis of data summarization
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CONTRACT BUDGETBASE
CONTRACT BUDGETBASE
CONTRACTPRICE
CONTRACTBUDGET BASE
PROFITS ANDFEES
MANAGEMENTRESERVE
PERFORMANCEMEASUREMENT
BASELINE
WITHHELDFOR
UNKNOWNS
UNDISTRIBUTED
BUDGET
DISTRIBUTED(control accountS)
WITHHELD FORKNOWN EFFORT
AUTHORIZED,UNPRICED
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PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
UNDISTRIBUTED BUDGET (UB)
Budget applicable to contract effort which has not yet been identified to CWBS elements at or below the lowest level of reporting to the Government.
KEY: Only used for the effort associated with the contractual change.
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PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
MANAGEMENT RESERVE (MR) An amount of the total allocated budget withheld for
management control purposes rather than designated for the accomplishment of a specific task or set of tasks.
KEY: There is no scope of work associated with management reserve budget.
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1. DEFINE THE WORK
PLANNING AND BUDGETINGESTABLISH THE BASELINE - AN ITERATIVE, 3-STEP PROCESS
PLANNING AND BUDGETINGESTABLISH THE BASELINE - AN ITERATIVE, 3-STEP PROCESS
100
4060
1525
3030
2. SCHEDULE THE WORK
3. ALLOCATE BUDGETS
$
CONTRACT BUDGET BASE
TIME
MR
PM B
ASELIN
E
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Work Budgeted and Earned
• The value of the budgeted work is called: Budgeted Cost of Work Scheduled (BCWS)
• The value of work earned is called: Budgeted Cost of Work Performed (BCWP) – BCWP is also called Earned Value
(EV)
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5 Basic Performance Data Questions & Answers
QUESTION ANSWER ACRONYM
How much work should Budgeted Cost for BCWSbe done? Work Scheduled
How much work is done? Budgeted Cost for BCWPWork Performed
How much did the is done Actual Cost of ACWPwork cost? Work Performed
What was the total job Budget at Completion BAC supposed to cost?
What do we now expect the Estimate at Completion EACtotal job to cost?
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Budgeted Cost of Work Scheduled(BCWS)
Total Budget = $5,000to be spent over 5 monthsI plan to lay 1 sectionof track each month at anestimated cost of $1,000.BCWS each month = $1,000Total BCWS = $5,000
Month 1BCWS = $1,000
Month 4BCWS = $1,000
Month 3BCWS = $1,000
Month 5BCWS = $1,000
Month 2BCWS = $1,000
sum of all BCWS = performance baselinesum of all BCWS = performance baseline
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5 Basic Performance Data Questions & Answers
QUESTION ANSWER ACRONYM
How much work should Budgeted Cost for BCWSbe done? Work Scheduled
How much work is done? Budgeted Cost for BCWPWork Performed
How much did the is done Actual Cost of ACWPwork cost? Work Performed
What was the total job Budget at Completion BAC supposed to cost?
What do we now expect the Estimate at Completion EACtotal job to cost?
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Budgeted Cost of Work Performed(BCWP)
aka. Earned Value
We’re at the end of February, Track 1 is complete and track 2 is ½ done.
BCWS = $1,000
Track 1
Track 2
BCWS = $1,00050% done
Value of work performed = $1,500
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Schedule Variance
BC WS
BC WP
of the work I scheduled to have done,how much did I budget for it to cost?
of the work I actually performed,how much did I budget for it to cost?
SCHEDULE VARIANCE is the difference between work scheduled and work performed (expressed in terms of budget dollars)
formula: SV $ = BCWP - BCWS
SCHEDULE VARIANCE is the difference between work scheduled and work performed (expressed in terms of budget dollars)
formula: SV $ = BCWP - BCWS
BU
DG
ET
BA
SE
D
example: SV = BCWP - BCWS = $1,500 - $2,000 SV= -$500 (negative = behind schedule)
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Schedule Variance
$
BCWS“the baseline”
BCWP“earned value”
TIME
5,000
sv
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5 Basic Performance Data Questions & Answers
QUESTION ANSWER ACRONYM
How much work should Budgeted Cost for BCWSbe done? Work Scheduled
How much work is done? Budgeted Cost for BCWPWork Performed
How much did the is done Actual Cost of ACWPwork cost? Work Performed
What was the total job Budget at Completion BAC supposed to cost?
What do we now expect the Estimate at Completion EACtotal job to cost?
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Actual Cost of Work Performed (ACWP)
• Value is earned as the work is completed and gauged against the schedule proposed for the work
• When all work is completed it will have earned its full budgeted value but the actual cost of that work may be different that the amount budgeted… this is referred to as Actual Cost of Work Performed (ACWP)
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ACTUAL COST FOR WORK PERFORMED (ACWP)
The costs actually incurred and recorded in accomplishing the work performed (BCWP) within a given time period
• Labor
• Material (Subcontractor/vendor)
• Other, computer costs, etc.
• Indirect Costs
PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
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Actual Cost of Work Performed(ACWP)
Track 1 Cost = $1,500!
Track 2 Cost = $750 cost to date
Total Cost to Date = $2,250
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Cost Variance
BC WP
AC WP
of the work I actually performed,how much did I budget for it to cost?
of the work I actually performed,how much did it actually cost?
COST VARIANCE is the difference between budgeted costand actual cost
formula: CV $ = BCWP - ACWP
COST VARIANCE is the difference between budgeted costand actual cost
formula: CV $ = BCWP - ACWP
PE
RF
OR
MA
NC
E B
AS
ED
example: CV = BCWP - ACWP = $1,500 - $2,250 CV= -$750 (negative = cost overrun)
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Cost Variance
$
TIME
BCWP“earned value”
ACWP“actual cost”
5,000
cv
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Variance Summary
• The difference between the BCWP and the ACWP is called a cost variance
• The difference between the BCWP and BCWS is called schedule variance and is provided in terms of dollars
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5 Basic Performance Data Questions & Answers
QUESTION ANSWER ACRONYM
How much work should Budgeted Cost for BCWSbe done? Work Scheduled
How much work is done? Budgeted Cost for BCWPWork Performed
How much did the is done Actual Cost of ACWPwork cost? Work Performed
What was the total job Budget at Completion BAC supposed to cost?
What do we now expect the Estimate at Completion EACtotal job to cost?
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Budget at Completion (BAC)
$
time
BAC
sum of all BCWS =
$
$
$$
$
$
$
• when all work has been phased, cumulative BCWS = BAC• when all work has been phased, cumulative BCWS = BAC
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Estimate at Completion(EAC)
Just a few little glitches…. We should be able to do the complete job….ack…
let’s see, for about $7,000
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Variance at Completion (VAC)
B AC what the total job is supposed
to cost
E AC what the total job is expected
to cost
VARIANCE AT COMPLETION is the difference between what the total job is supposed to cost and what the total job is now expected to cost.
FORMULA: VAC = BAC - EAC
VARIANCE AT COMPLETION is the difference between what the total job is supposed to cost and what the total job is now expected to cost.
FORMULA: VAC = BAC - EAC
Example: VAC = $5,000 - $7,000VAC = - $2,000 (negative = overrun)
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Earned Value Management (EVM) Training Objectives
•Understand basic concepts– What EVM is and basic terms
•How to evaluate performance– What does it all mean?
•How to manage using Earned Value– Now that we know what it is and what it
means, what do we do with it?
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Formulas• Cost variance
BCWP – ACWP
• Schedule variance BCWP – BCWS
• Cost variance in percentage BCWP – ACWP x 100
BCWP
• Schedule variance in percent
BCWP – BCWS x 100 BCWS
Negative variance = cost overrun or behind schedule
Positive variance = cost underrun or ahead of schedule
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Trend Analysis
Cost Performance Index (CPI) measure of cost efficiency
CPI = Value of Work Completed (BCWP)
Cost of Work Completed (ACWP)
Schedule Performance Index (SPI) measure of schedule efficiency
SPI = Value of Work Completed (BCWP) Value of Work Planned (BCWS)
Closer to “1” the better
Less than 1 = overrun (CPI); behind schedule (SPI)
Greater than 1 = underrun (CPI); ahead of schedule (SPI)
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• DO I THINK THE CONTRACTOR WILL COME IN ON BUDGET?
COST PERFORMANCE INDEX:
CPI = cost efficiency for work performed to date(The value of work accomplished for each dollar spent)
SCHEDULE PERFORMANCE INDEX: SPI = schedule efficiency with which work has been accomplished(The rate at which work is being accomplished)
Performance Efficiencies
WORK= ACCOMPLISHED
ACTUALS
WORK= ACCOMPLISHED
WORKSCHEDULED
WORK BCWP ACCOMPLISHED $1500= BCWS = WORK = $2000 = .75 SCHEDULED
WORK BCWP ACCOMPLISHED $1500= ACWP = ACTUAL = $2250 = .67
COST
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EXERCISES
• Attendees – Go to your Exercise Packet
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EVM Exercise
BAC = 500BCWS = 300BCWP = 320ACWP = 330
• What is the cost variance?• What is the Schedule variance? • What is the Cost Performance Index?• What is the Schedule Performance Index?• How would you describe this project?
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Solution
BAC = 500
BCWS = 300BCWP = 320ACWP = 330
• What is the cost variance? • BCWP – ACWP = -10
• What is the Schedule variance? • BCWP – BCWS = +20
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Solution
BAC = 500
BCWS = 300BCWP = 320ACWP = 330
• What is the Cost Performance Index?BCWP/ACWP = .97
• What is the Schedule Performance Index?
BCWP/BCWS = 1.07
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Solution
Cost Variance = -10
Schedule Variance = + 20
CPI = .97SPI = 1.07
• How would you describe this project?
Over budget, ahead of schedule
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The table that follows presents key information for several elements of the
contract WBS
Example Of Performance Analysis By WBS Element.
What can it tell us?
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Cost Performance Report Work Breakdown Structure
Budget Baseline
Cumulative Cost To Date (in $000) Cost At Completion (in $000)
$1.5 mil Budgeted Cost Actual Cost
Variance
WBSElement
Work Scheduled
Work Performed Schedule Cost Budgete
dEstimate
dVariance
1.1 250 250 260 0 (10) 250 260 (10)
1.2 90 85 84 (5) 1 100 100 0
1.3 130 150 155 20 (5) 330 340 (10)
1.4 200 200 185 0 15 250 235 15
1.5 300 310 320 10 (10) 400 415 (15)
1.6 120 120 140 0 (20) 120 140 (20)
Subtotal 1,090 1,115 1,144 1,450 1,490 (40)
Mgt. Reserve 50 50
Total 1,090 1,115 1,144 1,500 1,490 10
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Graphical Depictions of EVM
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PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
TIME
$
BUDGET
BCWS
ContractComplete
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TIME
$
BUDGET
BCWP
CVBCW
S
ACWP
PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
ContractComplete
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BCWP Allows Isolation of
Schedule and Cost Variances
schedule variance = BCWP - BCWS = negative numbercost variance = BCWP - ACWP = negative number
behind schedule,over cost
behind schedule,over cost
BCWS
BCWP
ACWP
TIME
5,000
svcv
$
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Budget at Complete (BAC), Estimate at Complete (EAC)
and Variance at Complete (VAC)
$
TIME
PM B
ASELINE
BAC = Sum of BCWS
(Planned cost of all work)
BAC = $5,000
EAC(kr)* = ACWP plus estimated to complete (ETC)
(Actual cost to date plus expected cost to finish all
work)
EAC = $7,000
BAC
EAC
ETC
VAC = BAC-EAC
VAC = $5,000-$7,000
VAC = -$2,000
VAC
Schedule
Delay
* EAC(kr) = Contractor EAC
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PERFORMANCE MEASUREMENTDATA ELEMENTS
PERFORMANCE MEASUREMENTDATA ELEMENTS
TIME
$
BUDGET
BCWP
CVBCW
S
ACWP
ESTIMATE
VAC
ContractComplete
SV
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Trend Analysis Using Performance Indexes
Per
form
ance
Per
form
ance
Per
form
ance
Time
Time
Time
1.0
1.0
1.0
CPI
CPI
CPI
SPI
SPI
SPI
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Trend Analysis Using Performance Indexes
Per
form
ance
Per
form
ance
Per
form
ance
Time
Time
Time
1.0
1.0
1.0
CPI
CPI
SPI
CPI
SPI
SPI
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Earned Value Management
Trend AnalysisP
erfo
rman
ceP
erfo
rman
ce
Per
form
ance
Time
Time
Time
1.0
1.0
1.0
CPI
CPI
SPI
CPI
SPI
SPI
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Sample combined numerical and graphical
display
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Earned Value Management (EVM) Training Objectives
•Understand basic concepts– What EVM is and basic terms
•How to evaluate performance– What does it all mean?
•How to manage using Earned Value– Now that we know what it is and what it
means, what do we do with it?
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• Earned Value techniques– Discrete
• physical, tangible end product
– Apportioned• discrete, dependent on another discrete work package• example: quality assurance• planned as historical estimating factor (e.g., 7%)
– Level of Effort• no tangible end product• basis of measurement: time• when clock starts ticking, you automatically accumulate earned value• no schedule variance• example: management personnel
• Should be a quantitative and discrete way to measure the work
• May tie in with success criteria or technical measure• e.g., successful completion of a specific test, QP’s
Ways of Earning Value
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Contractor Reports
• Cost Performance Report (CPR)
– Format 1: cost and schedule progress by WBS (specified reporting level usually at level 3)
– Format 2: cost and schedule progress by
organization
– Format 3: changes to performance measurement
baseline
– Format 4: manpower forecast
– Format 5: variance analysis
current and cum
datacurrent and cum
data
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Block # 1. Contractor Information - Tells you name and address of contractor 2. Contract Information - Tells name, number, type and Share ratio of contract 3. Program Information- Name and Phase of program 4. Report Period - Beginning and end dates of the report data 5. Contract Data - Includes quantities, prices, fee’s, profit, and ceilings 6. Estimated cost - Estimated cost at completion and variance 7. Contractor Representative - Name, Title, Signature, and Date signed 8. Broken in to sections a through g and in 4 groups of data
- Current period - BCWP, BCWS, ACWP, Cost and Schedule Variances- Cumulative to date - BCWP, BCWS, ACWP, Cost and Schedule
Variances- Reprogramming Adjustments - Cost Variances and Budget- At Completion - Budgeted, Estimated, and Variance
8a WBS cost data 8b Cost of money 8c General and administrative cost 8d Undistributed money 8e Subtotal (Total without Management Reserve) 8f Management Reserve 8g Total 9a Variance adjustments (Cumulative to Date) 9b Total Contract Variance (Cumulative to Date and At Completion)
Format 1 Block Descriptions
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Format 2: Organizational Categories
• Used when contractor organizational structure does not mirror the WBS structure
• Provides CPR data in an organizational format
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Format 3: Baseline
• Used to track changes to the performance baseline and future authorized work– Identifies all changes to authorized work
during the reporting period– Identifies distribution of any
undistributed budget during the reporting period
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Format 4: Staffing
• Provides planned staffing – Current Period– Cumulative to the end of Current Period– Staffing forecast's to end of authorized work– At Completion
• Broken down into organizational categories
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Format 5: Explanation and Problem Analysis
• Also called Variance Analysis Report (VAR)
• Provides explanations, impact, and corrective actions of WBS that exceed thresholds
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• Format 5 variance analysis should address:– separate discussion of CV, SV (current and cum) and
VAC– clear description of reason for variance– quantity variances (e.g., price vs. usage)– be specific, not general– corrective action– technical, schedule, and cost impacts– impact to estimate at completion
Variance Explanations
A big hammer for a big variance!
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71EVM Home Page = https://acc.dau.mil/evm eMail Address: [email protected]
DAU POC: (703) 805-5259 (DSN 655)Revised April 2008
TERMINOLOGYNCC Negotiated Contract Cost Contract price less profit / fee(s)AUW Authorized Unpriced Work Work contractually approved, but not yet negotiated / definitizedCBB Contract Budget Base Sum of NCC and AUWOTB Over Target Baseline Sum of CBB and recognized overrun TAB Total Allocated Budget Sum of all budgets for work on contract = NCC, CBB, or OTB BAC Budget At Completion Total budget for total contract thru any given levelPMB Performance Measurement Baseline Contract time-phased budget planMR Management Reserve Budget withheld by Ktr PM for unknowns / risk managementUB Undistributed Budget Broadly defined activities not yet distributed to CAs CA Control Account Lowest CWBS element assigned to a single focal point to plan & control
scope / schedule / budgetWP Work Package Near-term, detail-planned activities within a CA PP Planning Package Far-term CA activities not yet defined into WPsBCWS Budgeted Cost for Work Scheduled Value of work planned to be accomplished = PLANNED VALUEBCWP Budgeted Cost for Work Performed Value of work accomplished = EARNED VALUEACWP Actual Cost of Work Performed Cost of work accomplished = ACTUAL COSTEAC Estimate At Completion Estimate of total cost for total contract thru any given level;
may be generated by Ktr, PMO, DCMA, etc. = EACKtr / PMO / DCMA
LRE Latest Revised Estimate Ktr’s EAC or EACKtr
SLPP Summary Level Planning Package Far-term activities not yet defined into CAs TCPI To Complete Performance Index Efficiency needed from ‘time now’ to achieve an EAC
EVM POLICY: DoDI 5000.2, Table E3.T2 . EVMS in accordance with ANSI/EIA-748 is required for cost or incentive contracts, subcontracts, intra-government work agreements, & other agreements valued > $20M (Then-Yr $). EVMS contracts > $50M (TY $) require that the EVM system be formally validated by the cognizant contracting officer. Additional Guidance in Defense Acquisition Guidebook and the Earned Value Management Implementation Guide (EVMIG). EVMS is discouraged on Firm-Fixed Price, Level of Effort, & Time & Material efforts regardless of cost.
EVM CONTRACTING REQUIREMENTS: Non-DoD FAR Clauses – Solicitation – 52.234-2 (Pre-Award IBR) or 52.234-3 (Post Award IBR) – Solicitation & Contract – 52.234-4 DoD( ≥ $20M) DFAR Clauses - 252.234-7001 for solicitations and 252.234-7002 for solicitations & contracts Contract Performance Report – DI-MGMT-81466A * 5 Formats (WBS, Organization, Baseline, Staffing & Explanation) Integrated Master Schedule – DI-MGMT-81650 * (Mandatory for DoD EVMS contracts) Integrated Baseline Review (IBR) - Mandatory for all EVMS contracts
* See the EVMIG for CPR and IMS tailoring guidance.
Management Reserve
Work Packages Planning Packages
OVERRUN AUW
Control Accounts
NCC
UndistributedBudget
OTB CBB
TAB Profit / Fees
PMB
Summary Level Planning Packages
Contract Price
DoD TRIPWIRE METRICS Favorable is > 1.0, Unfavorable is < 1.0
Cost Efficiency CPI = BCWP / ACWPSchedule Efficiency SPI = BCWP / BCWS
VARIANCES Favorable is Positive, Unfavorable is Negative
Cost Variance CV = BCWP – ACWP CV % = (CV / BCWP) *100
Schedule Variance SV = BCWP – BCWS SV % = (SV / BCWS) * 100
Variance at Completion VAC = BAC – EACOVERALL STATUS
% Schedule = (BCWSCUM / BAC) * 100
% Complete = (BCWPCUM / BAC) * 100
% Spent = (ACWPCUM / BAC) * 100
BASELINE EXECUTION INDEX (BEI) (Schedule Metric)BEI = # of Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled for Completion
CPLI = (Critical Path Duration + Float Duration (to baseline finish)) / Critical Path DurationCRITICAL PATH LENGTH INDEX (CPLI) (Schedule Metric)
TO COMPLETE PERFORMANCE INDEX (TCPI) # §TCPIEAC = Work Remaining / Cost Remaining = (BAC – BCWPCUM) / (EAC – ACWPCUM)
ESTIMATE AT COMPLETION #
EAC = Actuals to Date + [(Remaining Work) / (Efficiency Factor)]EACCPI = ACWPCUM + [(BAC – BCWPCUM) / CPICUM ] = BAC / CPICUM
EACComposite = ACWPCUM + [(BAC – BCWPCUM) / (CPICUM * SPICUM)]
# To Determine a Contract Level TCPI or EAC; You May Replace BAC with TAB§ To Determine the TCPI BAC or LRE Replace EAC with either BAC or LRE
Earned Value Management‘‘Gold Card’Gold Card’
Management Reserve
Cost Variance
Schedule Variance
ACWP
BCWP
BCWS
$
EAC
TimeNow
Completion Date
PMB
TAB
BAC
time