1 cost benefit evm at dot presented to: joint industry – government ndia pmsc session presented...
TRANSCRIPT
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Cost
Benefit
EVM at DOT
Presented to:Joint Industry – Government NDIA PMSC session
Presented by:H. Giovanni CarnaroliAssociate CIO, IT Policy OversightU.S. Department of Transportation
May 21, 2009
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DOT EVM Policy and Guidelines
- Performance Measurement Baseline - Integrated Baseline Reviews- Reporting (Project-IRB-DOT-OMB)- Issue Resolution- Surveillance
Visibility
“Early Warning System”
Objective: Use a full spectrum of project controls to improve project execution and provide managers the insight they need to make informed decisions.
Plan – Monitor - AnalyzeReport - Control
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EVM is used throughout the Investment Management Process
Performance Management
Program Management
Portfolio Management
Prioritize investments according to standard criteria
Gather consistent data on all
investments
Monitor investments to ensure
portfolio performance is on track
Set goals, priorities, and performance measures for the
portfolio
Strategic Planning
SO OperationsBudget
Formulation
Goals
Priorities
VisionPriorities
Modernization Blueprint
Costs, Benefits and Risks
Progress Reports
Performance Measures
Performance Reports
Proposed Capital Budget
Enterprise Architecture
Business Case Analysis
Priorities
Goals
Modernization Blueprint inspired Pro-forma Business Cases
TRM StandardsSRM Services
PRM line of sight
Business and IT Architectural Analytics
ApplicationInventory
FundedPrograms
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2
3
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System Engineering
Approve the investments that
provide the best mix for the portfolio
Criteria
Capital BudgetFormulation
ProposedOps Budgets 4
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Operations Management
Performance Reports
BudgetDecisions
FundedOperational
Assets
“How-to”
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Tailoring EVM to Meet Your Needs
DME life-cycle acquisition costs ANSI/EIA-748
Tier I = > $20 Million 32 GuidelinesTier II = > $8 Million and < $20 Million 26 GuidelinesTier III < $8 Million 21 Guidelines
• Consolidated Investment apply these thresholds to each child-investment (not the consolidated investment level)
• Also consider size, complexity, priority, level of risk, life cycle phase, and contract type
• We will be monitoring the approach and make corrections depending on how it is working
• Pending legislation requiring EVM quarterly reporting to OMB; FAA has been implementing EVM at the program level and DOT is well postured to implement the legislation when it passes
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ANSI/EIA 748 Requirements by Tier
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Tier I Tier II Tier III
Schedule Work
Schedule Milestones
Time Phased Budgeting
Define/Budget Significant Cost Elements
Define/Budget Work and Planning Packages
Verify Work Packages Sum to Control Account
Define/Budget Level of Effort Activities
Define/Budget Overhead Budget
Define/Budget Management Reserves
Define/Budget Target Costs Goals
Define Work Breakdown Structure (WBS)
Define Organizational Breakdown Structure (OBS)
Integrate Subsystems
Define Overhead Controls
Integrate WBS and OBS
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ANSI/EIA 748 Requirements by Tier (continued)
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Tier I Tier II Tier III
Record Direct Costs
Summarize direct Costs into WBS
Summarize direct Costs into OBS
Record Indirect Costs
Identify unit, equivalent, or lost costs
Material Accounting
Incorporate and record scope changes
Budget Reconciliation
Control Retroactive Changes
Budget Revisions Controls
Document Performance Measurement Baseline Changes
Periodic Cost Account Reporting
Determine Variances
Identify Budgeted and Applied Indirect Costs
Summarize Variances
Implement Managerial Action Plans
EAC and VAC Revision
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Health of the Investment/Program Management Review
Project Management
Acquisition Management
Performance Management
Security/ Privacy
Enterprise Architecture
Alternative Analysis and
Risk Management
Program 1
Program 2
Program 3
Program 4
Program 5
G G
G
G
G
G G
G
G
G G
G
G
G
G
G
GG
Y
Y Y Y
Y
YR
Y Y Y
YY
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Questions & Answers