performance measurement baseline (pmb) development and analysis acquisition insight days april 2009...
TRANSCRIPT
Performance Measurement Baseline (PMB) Development and Analysis
Performance Measurement Baseline (PMB) Development and Analysis
Acquisition Insight Days
April 2009
Professor Kim Meyer
EVMS 2
DAU EVMS POCDAU EVMS POC
• Ms Kim Meyer• Office Phone: (937) 781-1040• Email: [email protected]
PMB DEVELOPMENT
EVMS 4
PMB Development – Budget Allocation --PMB Development – Budget Allocation --
ContractPrice
Fee/Profit
NegotiatedContract Cost (NCC)
Auth/Undef.Work Changes
(AUW)
ContractBudget Base
(CBB)
PerformanceMeasurementBaseline (PMB)
Management Reserve (MR)
Undistributed Budget (UB)
(Total of all authorized work both negotiated and unnegotiated)
Also called the Total Allocated Budget (TAB)
(Also called Budget at Completion)
(Held by contractor PM for in-scope unknowns )
(Labor, material,ODC, subcontract)
(Temporary holding Place for work not yet distributed toControl Accts)
Control Accts: Work & Planning Packages
Summary LevelPlanningPackageWBS Level
EVMS 5
Work Breakdown StructureWork Breakdown Structure
WBSWBS
ScheduleSchedule
RiskRisk
TechnicalTechnicalPerformance Performance
$$$$Cost Cost
The Key to Integration
EVMS 6
Performance Measurement Baseline Development Steps
Performance Measurement Baseline Development Steps
WHEN?
Program Schedules / NetworkIntegrated Master Schedule (IMS)
Control Account /Work package Plans
HOW MUCH?
Work / Budget AuthorizationControl Account Plan
Budget Authorization ReportsEarned Value Methods
Valid Estimate at Completion
WHAT?
CWBS / DictionarySOW / IMP/ SPECs
WHO?
Responsibility Assignment Matrix(RAM)
Subcontractor Management
DEFINE THE WORK
SCHEDULE WORK
ALLOCATE RESOURCES100
4060
1525
3030
$
CONTRACT BUDGET BASEMGMT RESERVE
PER
FOR
MA
NC
E M
EASU
RM
ENT
BA
SELI
NE
TIME
TIME-PHASED BUDGET PLAN AGAINST WHICH CONTRACT PERFORMANCE IS MEASURED
BU
DG
ET
B
AS
EL
INE
SC
HE
DU
LE
B
AS
EL
INE
TE
CH
NIC
AL
B
AS
EL
INE
Performance Measurement Baseline (PMB)
Development – The Plan
Integrated Planning Is a 3-step Process
PMB Development StepsPMB Development Steps
EVMS 8
CONTROLACCOUN
T
CONTROLACCOUN
T
CONTROLACCOUN
T
CONTROLACCOUN
T
Work/Planning Packages
Work Breakdown Structure (MIL-HDBK-881)
Level 1 FIRE CONTROL
RADAR TRAINING
RECEIVER SYSTEM ANTENNA
RECEIVER PHASE SHIFTER
RECEIVER CASE POWER SUPPLY APPLICATION S/W
Level 2
Level 3
Level 4
COMPANY
TEST
ENG
MFG
DESIGN
MECHANICALDESIGN
Electrical DESIGN
DRAFTING/CHECKING
OrganizationalStructure
• Lowest Level Of CWBS• Control Account Manager (CAM) - Responsibility Assignment (Scope/ Schedule/Budget) CAM (GCAM) counterpart• Cost Collection (Actuals)• Variance Analysis (SV; CV; VAC)• Each CAM should have a Governmentcounterpart
Control Accounts
Control AccountsA Key Management Control Point
Control AccountsA Key Management Control Point
EVMS 9
• All earned value is accomplished at the control account • BCWS is established • BCWP is determined • ACWP is collected • Variances are assessed • Estimates are revised • Workaround plans are devised
• In IPT organization structures, the control account may be tied to an IMP Significant Accomplishment or Accomplishment Criteria.
• ANSI Definition - A management control point at which budgets
(resource plans) and actual costs are accumulated and compared to earned value for management purposes. A control account is a natural management point for planning and control since it represents the work assigned to one responsible organizational element on one program work breakdown structure element.
The Control Account (PMB Step 1)The Control Account (PMB Step 1)
EVMS 10
• Acquisition Strategy and Request for Proposal Documents • Program Work Breakdown Structure
& WBS Dictionary • Contract Line Items • Contract Specifications • Statement of Work / Statement of
Objectives
• Contract Documents • Contract Work Breakdown Structure
& Dictionary • Contract Statement of Work • Specification Tree • Integrated Master Plan
Fire Control
Program Work Breakdown Structure
Identifying the Work ScopePMB Step 1
Identifying the Work ScopePMB Step 1
EVMS 11
• Discrete or Measurable • specific end product or result • preferred category of work because objective
• Apportioned effort • dependent on other work, discrete tasks • measured as a factor, e.g., 10% of discrete task
• Level of Effort (LOE) • NO MORE THAN 20% of budget as LOE• has no specific product • measured by the passage of time, so…• No Schedule Variances are ever reported
Classifying the WorkClassifying the Work
EVMS 12
Baseline Development -- Scheduling (PMB Step 2)--Baseline Development
-- Scheduling (PMB Step 2)--
• Schedule Characteristics– Complete
• Allocated Time For All WBS Elements– Formal
• Everyone Uses Same Schedule (Configuration Control)
– Traceable• Vertical (Master, Intermediate, Detail)• Horizontal (Between Tasks)
– Sequence of Tasks, Interdependencies (network) identified
– Critical Path clearly identified– Current!!! Requires Periodic Updates
EVMS 13
10 201 Time
MASTER SCHEDULE
DETAIL LEVEL SCHEDULE
INTERMEDIATE LEVEL SCHEDULE
- Single Top Program Level Schedule - Schedules IMP Program Elements - Schedules Program and Contract Milestones - Horizontally Integrated – Depicts task relationships
among IMP Program Elements and Milestones
- Subordinate to Master Schedule scheduling a single or a limited number of Program Elements
- Schedules Associated EVMS Control Accounts - Schedules IMP Significant Accomplishment Milestones - Horizontally Integrated – Depicts task relationships
among control accounts & significant accomplishments - Vertically Integrated – All schedule elements completed
in time allocated to associated program level element
ITEM 11 12 13 14 15 16 17
CONTROL ACCT 14
CONTROL ACCT 15
CONTROL ACCT 16
CONTROL ACCT 17
CONTROL ACCT 18
CONTROL ACCT 19
- Control Account Schedule - Schedules IMP Accomplishment Criteria Milestones - Horizontally Integrated – Depicts task relationships
among Work Packages & Accomplishment Criteria - Vertically Integrated – All detailed schedule work
packages completed in time allocated to control account
Vertical Integration
12 13
Horizontal Integration
Vertical Integration
Horizontal Integration
Control Acct 16
Horizontal Integration
24
Schedule IntegrationSchedule Integration
EVMS 14
Baseline Development -- Resources (PMB Step 3)--Baseline Development
-- Resources (PMB Step 3)--
• Resource Characteristics– Complete
• Allocated Resources For All WBS Elements
• Resources aren’t over or under-allocated– Formal
• Amounts are formally authorized• Resources cover labor, material, and
subcontracted efforts• EV Methods are applicable to type of effort
– Funding is adequate– Current!!! Requires Periodic Updates
EVMS 15
EVM MethodsEVM Methods
EVMS 16
PMB Development – Earned Value Methods --
PMB Development – Earned Value Methods --
• Purpose: Match Timing Of Actual Costs with Work Completion
• 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,
Reliability Growth Curve
• Work Categories and Earned Value Methods• Discrete• Apportioned• Level of Effort
EVMS 17
• Correlates the BCWS and BCWP EV Variables • Selected Earned Value Techniques
• Discrete Measures • 0 - 100
• Percent Start / Percent Finished
• Percent Complete
• Weighted Milestones
• Weighted Milestones with Percent Complete
• Units Completed
• Equivalent Units
• Apportioned Effort • Level of Effort (LOE)
Earned Value TechniquesEarned Value Techniques
EVMS 18
BCWP CALCULATIONMETHOD LENGTH
3000 / 100 % 1 Mth
15 1550 / 50 % 2-3 Mths
35%% Complete Varies
5 15 10Variant
Milestone3 or More Mths
5%WP3 5%WP3Apportioned
EffortVaries
10 10 10Level of Effort Varies
Earned Value TechniquesEarned Value Techniques
EVMS 19
• Objective Technique tied to discrete completion task
• No BCWS or BCWP tied to start milestone • All BCWS and BCWP tied to finish milestone • Very Conservative - always understates
performance • Should be limited to work packages that start
and finish in a single accounting period
0/100 Earned Value Technique0/100 Earned Value Technique
EVMS 20
Percent Start / Percent Finish EV Technique (50/50) (25/75) (80/20)
• Objective technique tied to start and finish milestones • BCWS & BCWP Start Percent tied to work package
start milestone • BCWS & BCWP Finish Percent tied to work package
finish milestone • Overstates performance in first half of period of
performance; understates performance in last half of period of performance
• Should be limited to work packages that start and finish within two consecutive accounting periods
Percent Start/Percent FinishEV Technique (50/50) (25/75)(80/20)
Percent Start/Percent FinishEV Technique (50/50) (25/75)(80/20)
EVMS 21
• Subjective technique not preferred for Government EVMS contracts
• CAM estimates % of work scheduled to be completed at the beginning of the accounting period for the BCWS variable
• CAM estimates percentage of work completed at the end of the accounting period for the BCWP variable
• For example, if the manager estimates 60% of the cable has been installed based on total footage, then 60% of the BCWS is recorded as BCWP.
• Technique is as good or bad as the estimator
Percent Complete EV TechniquePercent Complete EV Technique
EVMS 22
• Preferred Objective Technique • Appropriate for longer term discrete tasks • At least one measurable milestone should be
scheduled in each reporting period • Budgets allocated according to resource
requirements needed to achieve milestones • BCWS tied to milestone schedule • BCWP tied to milestone completion • Most desirable EV Technique
Weighted Milestone EV TechniqueWeighted Milestone EV Technique
EVMS 23
• General or supportive activities associated with a discrete effort
• Not to be used with LOE or other Apportioned Effort accounts
• BCWS based on a percent of the discrete effort’s budget and schedule
• BCWP dependent on (or related to) the performance of discrete effort
• Apportioned effort is more desirable then Level of Effort but less desirable then discrete EV techniques
May June July Total
Production Control Account BCWS
Quality Assurance Control Account BCWS
Production Control Account BCWP
Quality Assurance Control Account BCWP
200 500 100 800
Quality assurance control account apportioned @ 10% of production control account
15 25 40 80
20 50 10 80
150 250 400 800
Apportioned Effort EV TechniqueApportioned Effort EV Technique
EVMS 24
• Subjective least desirable EV technique • Appropriate only for general or supportive activities • BCWS determined by spreading budget over the scheduled period of
performance • BCWP earned based on passage of time • BCWP always equals BCWS • No maximum acceptable amount of LOE • LOE should be kept to a minimum and its use justify
Task 1
Task 2
Task 3
BAC BCWS BCWP
30
25 25 25
60
30
Program Control - Control Account Plan
60
60
75
195Time Now
30
0
50
80
30
0
50
80
Level of Effort EV TechniqueLevel of Effort EV Technique
PMB Analysis: EV Charts
EVMS 26
PMB Analysis PMB Analysis •Why – To determine that the PMB is current and that the contractor is “using earned value to manage” and not “managing the earned value data”.
•What – Assess the CPR baseline data to ensure that contract modifications are incorporated, that the PMB is update to address cost and schedule variances and that PMB adjustments have not invalidated earned value metrics.
•How • CPR Format Three Review Identify PMB Changes• CPR Format Five Review Contractor explains PMB changes• wInsight Level 1: EAC Chart & Six Period Summary• wInsight UB: EAC Chart & Six Period Summary• wInsight PMB: EAC Chart & Six Period Summary• wInsight MR: EAC Chart & Six Period Summary• Single Point Adjustments and Over-Target Baselines• Has the PMB been maintained and does it accurately reflect program and
contract status?
Similar analysis can be done with programs other than wInsight
EVMS 27
Format 3 ReviewFormat 3 Review• CPR’s can be printed from wInsight administrator
1.Format 3 Box 5 Contract Data – IMPORTANT• Lists all negotiated & authorized contract mods• List the value of Over Target Baselines• Lists contractor’s estimated completion date • Should correlate with Contract POOOO Status
2. Format 3 Box 6 Performance Data (15), & (16)• (15) Undistributed Budget (should be zero)• (16) Shifts in Total Budget – can only come from OTB, MR or new work
3. Format 3 Box 7 – Management Reserve
2
3
1
EVMS 28
Format 5 ReviewFormat 5 Review• CPR reports can be printed from wInsight administrator • Format 5 – CPR DID Requires PM to Address:
• Contractor’s EAC• Undistributed Budget• Management Reserve Changes• Baseline Changes• Staffing Level Changes• Formal Reprogramming (over Target Baselines)• Authorization & Reason for Change• Schedule• Over Target Schedule
EVMS 29
63.0
64.0
65.0
66.0
67.0
68.0
69.0
70.0
71.0
72.0
73.0SEP
FY2004OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Increda, Corp DAAH01-03-C-0076 CPIF SDDElement: 1 Name: LAREstimates at Completion
Do
llars in
M
illion
s
BAC 64.7864.7864.7864.7164.7164.7164.7164.7164.7164.7164.71LRE 64.6764.4464.4464.4464.4564.4564.4563.2963.2963.2963.29CUMCPI 70.9270.6070.7371.8371.9970.6670.5670.0066.9267.9069.53
Level 1EAC ChartLevel 1EAC Chart
BAC is CBB 64.71Because it includes MR
(wInsight: BAC is actually CBB)
1. Has the Contract Budget Base Changed?
2. wInsight, Contract Level EAC Chart will tell you.
3. WBS Level 1 > Double Click Program Level, Select Charts, EAC. Make sure that you are at Program Level (Status Bar must read highest program level)
4. Unique to wInsight, BAC is CBB because it includes MR. wInsight assumes MR will be consumed. EAC calculations use CBB instead of BAC.
5. At contract level small changes not obvious.
DEC No Mods May New Mod
5
5 5
4
EVMS 30
63.0
64.0
65.0
66.0
67.0
68.0
69.0
70.0
71.0SEP
FY2004OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Increda, Corp DAAH01-03-C-0076 CPIF SDDElement: [PMB] Name: PERF MEASURE BLEstimates at Completion
Dolla
rs in
M
illions
BAC 63.0563.1363.1663.2463.2563.2563.2663.4463.4563.3063.29LRE 64.6764.4464.4464.4464.4564.4564.4563.2963.2963.2963.29CUMCPI 69.0368.8068.9670.2070.3769.0768.9868.6365.6266.4268.00
PMB EAC ChartPMB EAC Chart
DEC No Mods May New Mod
BAC is PMB 63.44Excludes MR
Contract Mod appears not to be reflected in BAC
1. Review the Performance Measurement Baseline (PMB)
2. From SORT WINDOW, Scroll to the bottom of the SORT WINDOW, Double Click on PERF MEASURE BL. (Check Status Bar.) Now all charts/reports will be for PMB. Select Charts, EAC
3. In this chart “BAC” represents the current PMB.
4. If a contractor is using EVM to manage, we expect the PMB line to change month to month. (Rolling Wave, Contract Modifications, MR)
5. May contract mod does not appear to be reflected in the PMB. Where’s the money?
3
5
EVMS 31
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00SEP
FY2004OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Increda, Corp DAAH01-03-C-0076 CPIF SDDElement: [MR] Name: MGT RESERVEEstimates at Completion
Dolla
rs in
M
illions
BAC 1.7231.6501.6201.4671.4571.4601.4501.2721.2571.4081.422LRE 0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000CUMCPI 1.8861.7981.7691.6281.6211.5941.5811.3761.3001.4781.528
LAR MR EAC ChartLAR MR EAC Chart
DEC No Mods May New Mod
Contract Mod appears to be in MR?
1. wInsight, MR EAC Chart shows the movement of money in and out of MR.
2. From SORT WINDOW, Scroll to the bottom of the SORT WINDOW until you see MGT RESERVE. Double Click on MGT RESERVE (Management Reserve - MR). (Check Status Bar.) Select Chart, Select EAC.
3. In this chart “BAC” represents the remaining MR.
4. If a contractor is using EVM to manage, we expect the MR line to change month to month. (Subcontracts, Negotiations, Rolling Wave, Unknown – Unknowns)
5. Is the May contract mod in MR?
5
3
4
EVMS 32
Level 1 Six Period SummaryLevel 1 Six Period Summary
Small Contract Mods More Obvious in Six Period Summary
EVMS 33
63.0
64.0
65.0
66.0
67.0
68.0
69.0
70.0
71.0
72.0
73.0SEP
FY2005OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
Increda, Corp DAAH01-03-C-0076 CPIF SDDElement: [PMB] Name: PERF MEASURE BLEstimates at Completion
Dolla
rs in
M
illions
BAC 70.0170.0169.6365.1964.9965.2465.3663.3063.3363.1463.1863.11LRE 70.1069.6369.6366.4366.4366.5766.5566.1064.7264.7064.6764.67CUMCPI 71.0370.5869.6370.5670.6871.7271.7669.1169.6068.8468.4069.05
PMB Over Target Baseline EAC ChartPMB Over Target Baseline EAC Chart
This Depicts an Over-Target Baseline
$4.44M OTB
1. Review the Performance Measurement Baseline (PMB)
2. From SORT WINDOW, Scroll to the bottom of the SORT WINDOW Double Click on PERF MEASURE BL. (Check Status Bar.) Now all charts/reports will be for PMB. Select Charts, EAC
3. In this chart “BAC” represents the current PMB.
4. In June 2005, an Over Target Baseline is established. BCWP and BCWS are set equal to ACWP. $4.44M is added to the PMB to complete the work. Zeroing the variances results in LRE, BAC and CPI cum convergence.
5. If an OTB exists, EV metrics must be evaluated in the context of the OTB—no trend data, variances set back to zero. Will they really improve or continue performance prior to OTB?
4
3
EVMS Training and References
EVMS 35
DAU Acquisition Community Connection
DAU Acquisition Community Connection
https://acc.dau.mil/evm
EVMS 36
EVMS Training—DAU Continuous Learning Modules
EVMS Training—DAU Continuous Learning Modules
https://learn.dau.mil/html/clc/Clc1.jsp?cl=
EVMS 37
EVMS Tailored TrainingEVMS Tailored Training
• DAU can provide targeted training • Tailored to specific organization needs• Part of our Consulting/Performance Support efforts
• Potential Topics• Integrated Baseline Review Workshop• Program Startup Workshop• EVMS Basics/Intermediate• Scheduling Basics/Intermediate• Source Selection
• For More Info, Contact: Professor Kim Meyer • 937-781-1040, [email protected]
EVMS 38
• BACKUPS
EVMS 39
PMB Development Steps
Step 1. Define the Work Scope• Identify the scope of work • Plan the work at the control
account / work package level
Step 2. Schedule the Work • Arrange the work packages in order
• Schedule work packages
Step 3. Allocate Budgets to Schedule
100 40
50
• Classify the work and select an EV technique
• Budget the work packages • Spread the budget over time • Calculate cumulative BCWS
PMB Development StepsPMB Development Steps
EVMS 40
•OrganizationDefine contractual effort & assign responsibility for work
•Planning and BudgetingPlan, schedule, budget, and authorize the work
•AccountingAccumulate costs of work, labor, and material
•AnalysisCompare planned/ accomplished /actuals and analyze variances
•RevisionsIncorporate changes and develop estimate of final cost
PMB StructurePMB Structure
EVMS 41
Earned Value Terms
NCC
TAB
AUW
CBB
OTB
Element Description Meaning
Budget for all Contractual
Work
Contract Negotiated Cost
Estimated Costs for contract
modifications being negotiated
Contract Target Cost
Managerial contract cost recovery plan
The Total Allocated Budget is the sum of all budgets allocated to the performance of the contractual effort. The amount shown will include all management reserves, authorized unpriced work, over-target baselines and undistributed budgets. A Negotiated Contract Cost is the cumulative cost (excluding fee or profit) for the original contract and all negotiated contract changes which have occurred since the beginning of the contract . This is equal to the total allocated budget when there is no AUW or OTBs.
Authorized unpriced work is the estimated cost (excluding fee or profit) for contract changes that have been approved by the government but they are still negotiated.
A Contract Budget Base is the sum of the negotiated contract cost and the authorized unpriced work budgets. It equals the total allocated budget when there is no OTB.
An Over Target Baseline is the sum of the contract budget baseline and any additional budgets that exceed the contractual cost objectives for the contract. The total allocated budget is equal to the over target baseline.
EV TermsEV Terms
EVMS 42
SLPP
PMB
CA
UB
MR
Time phased budget baseline
High level holding account
EVMS management account
Unplanned Work
Risk Management
Budget
The Performance Measurement Baseline is the sum of all summary level planning packages, control accounts and undistributed budgets. It does not include management reserve.
Summary level planning package is a high level holding account for budget that is identified to specific work scope elements and is time-phased for interim resource planning. It will eventually be allocated to control accounts.
The Control Account is the earned value mgt control point at which budgets and actual costs are accumulated. Control account budgets include the budgets for work packages (near term) and planning packages (far term).
Undistributed Budget is associated with broadly defined work scope or contract changes that have not been assigned to a control account or SLPP. Undistributed Budgets are not time-phased for resource planning purposes.
Management Reserve is an amount of the total budget withheld for management control purposes rather than being designate for the accomplishment of a specific task or a set of tasks. Management Reserve is not included in the performance measurement baseline.
EV TermsEV Terms
EVMS 43
WP
PP
Element Description Meaning
Less detailed control account
plans
Detailed Plans
Planning Packages are the far term control account activities not yet defined into detailed work packages
Work Packages are the near-term, detailed planned activities within a control account. Usually covers planning for a 6-month rolling wave period, or until the next major program milestone.
RW High level holding account
Rolling wave is the term
UB Unplanned Work
Undistributed Budget is associated with broadly defined work scope or contract changes that have not been assigned to a control account or summary level planning package. Undistributed Budgets are not time-phased for resource planning purposes.
EV TermsEV Terms
EVMS 44
• Part subjective & part objective technique similar to weighted milestones but with fewer intermediate milestones
• Less desirable then weighted milestones for longer period tasks
• BCWS based on scheduled milestones plus CAM’s estimated completion percentage for next milestone
• BCWP based on completed milestones plus CAM’s estimated actual percent completed for next milestone
• A milestone at least every other reporting period recommended
• Technique is as good or bad as the estimator
Weighted Milestone with Percent Complete EV Technique
Weighted Milestone with Percent Complete EV Technique
EVMS 45
Criteria Added Task
Relationships
Added Task Durations
Critical Path
Progress
Significant Accomplishments
Event
Integrated Master Schedule (IMS)
Baseline Schedule
EVMS 46
200
160
100
100
120
BAC BCWS BCWP
680
200
160
100
0
0
460
0
160
0
0
0
160
Scheduled Milestone Started or Finished Milestone
Task 1
Task 2
Task 3
Task 4
Task 5
Time Now
0/100 Earned Value Technique0/100 Earned Value Technique
EVMS 47
200
160
100
100
120
BAC BCWS BCWP
680
200
160
50
50
0
460
100
160
50
50
0
360
Scheduled Milestone Started or Finished Milestone
Task 1
Task 2
Task 3
Task 4
Task 5
Time Now
Percent Start/Percent Finish (50/50)
Percent Start/Percent Finish (50/50)
EVMS 48
Task 1
Task 2
Task 3
Task 4
Task 5
200
160
100
100
120
Time Now
BAC BCWS BCWP
680
90%
80%
60%
40%
20%
Est % Planned
Est % Completed
180
128
60
40
24
432
95%
80%
50%
50%
0%
190
128
50
50
0
418
Scheduled Milestone Started or Finished Milestone
Percent Complete EV TechniquePercent Complete EV Technique
EVMS 49
200
160
100
100
120
170
BAC BCWS BCWP
680
160
75
75
60
570
120
25
75
0
390
Scheduled Milestone Completed Milestone
Task 1
Task 2
Task 3
Task 4
Task 5Time Now
50 120 30
40 80 40
25 25 25 25
60 60
25 50 25
200+
Weighted Milestone EV TechniqueWeighted Milestone EV Technique
EVMS 50
200
160
100
100
120
200
160
75
62.5
BAC BCWS BCWP
680
60
557.5
155
136
40
62.5
36
429.5
100%
100%
66%
50%
50%
Est % Planned
Est % Completed
70%
80%
20%
50%
30%
Scheduled Milestone Completed Milestone
Task 1
Task 2
Task 3
Task 4
Task 5
40 120
25
120
75
Time Now
25 75+ (.66 X 75) =
50 150+(.7 X 150) =
Weighted Milestone with Percent Complete EV Technique
Weighted Milestone with Percent Complete EV Technique
EVMS 51
• Simple Objective Technique • Appropriate for continuous flow processes • BCWS based on units planned • BCWP based on units produced
Month Jan Feb Mar Apr Total
1,500 Ft
BCWS @ $100 / Ft
Actual Production
BCWP @ $100 / Ft
2,000 Ft 2,200 Ft 1,000 Ft 6,700 Ft Planned Production
Hydraulic Tubing Manufacturing Control Account
$200,000 $220,000 $100,000 $670,000
1,000 Ft 2,000 Ft 2,000 Ft 1,700 Ft 6,700 Ft
$200,000 $200,000 $170,000 $670,000 $100,000
$150,000
Units Completed EV TechniqueUnits Completed EV Technique
EVMS 52
PMB Development – Material/Subcontract Earned Value --
PMB Development – Material/Subcontract Earned Value --
• Usually Significant Portion Of Contract Effort• Material
• EV: Taken No Earlier Than ReceiptDefine
Order (Open Commitment On CFSR) Receipt Payment
To InventoryUsage
• Match EV To Payment Period• Or Use Estimated Actuals To Avoid Cost Variance
• Ensure Accurate Planning, Cost Accumulation, Price And Usage Variance (IBR Process)
• Subcontract • Single Lump Sum Payment (FFP)• Milestone Payments (FFP)• Progress Payments (FFP, FPI)• CPR Or Other Reports (Cost Reimbursement)
EVMS 53
ACC Included ReferencesACC Included References
EVMIG
Intent Guide
https://acc.dau.mil/evm•DoD Policy•OMB Recommended References
EVMS 54
EVMS Training—ACC EVMS CoPEVMS Training—ACC EVMS CoP