COURSE # MRO-251
EARNED VALUE MANAGEMENT –
PRINCIPLES, PROCESSES & EVOLVING FEDERAL ACQUISITION REFORMS
… Earned Value Management (EVM) data will be reliable and accurate only if the right base measures of technical performance are selected and progress is objectively assessed…
The paramount importance and value of the Project Management function (PM) is indisputable; sophisticated tools and processes in use today, such as Earned Value Management (EVM), are capable of integrating a project’s cost, schedule and technical performance, thus optimizing the entire cycle. Even so, it is not uncommon for an organization to comply with the ANSI/EIA Standard 748, EVM System (EVMS), yet fail to control the project due to poorly selected base measures of technical performance and/or lack of objectivity in progress assessment. Performance- Based Earned Value (PBEV) adds a dimension of ‘realism’ to EVM by integrating Systems Engineering (SE), Project Management Standards and CMMI®; specific practices.
This class describes and compares both current and evolving state-of-the-art processes. It demonstrates management benefits stemming from augmentation of EVMS guidelines with the PBEV guide for measuring technical performance and managing risk, and provides a compelling framework for process improvement and acquisition reform.
Application and benefits:
You will benefit by enhancing your understanding of the:
- Concepts, terms, techniques, and metrics of EVM
- EVMS contractual requirements and guidelines
- Current legislative and DOD EVM reform objectives
- Effective variance analysis and estimating techniques
- Key elements of SE, project management standards and CMMI®
- Application of PBEV in the integration of technical performance progress with schedule and cost performance
- Practical examples, templates, case studies, and tips
Who should attend:
Realize it or not, we are all managers – impacting a project’ s time, cost and compliance. This class presents unified program management concepts and progress measures invaluable to Engineers who will become familiar with the use of EVM for achieving project cost, schedule, and technical objectives; Business management and project support staff who will expand their understanding of the latest developments in the field as well as how to incorporate the technical baseline and SE onto PMB. Acquisition management personnel (government or prime contractors) will be presented techniques and controls to ensure that EV contract performance reports and estimates at completion are based on valid measures of technical progress, and that Integrated Baseline Reviews (IBR) and other technical reviews are effective and comprehensive.
- Fundamentals of EVM as required by federal contracts (EVMS)
- Plan the Work
- Development of a Work Breakdown Structure (WBS) based on contractual requirements
- Development of a resource-loaded Integrated Master Schedule (IMS) to support the Integrated Master Plan (IMP)
- Establishment of Management Reserve (MR) to identify and control risk
- Development of a PMB, including control accounts, work packages, and planning packages
- Earned value techniques
- Execute the Plan
- Accounting considerations
- Performance reports
- Measure the work
- Status physical progress
- Derive EV
- Analyze variances
- Identify significant variances
- Determine root causes
- Determine impacts on schedule and cost
- Discuss corrective action plans
- Estimate at Completion (EAC)
- Implement corrective actions
- Baseline revisions and control
- Special topics
- Subcontract management and integration
- Risk and opportunity management
- Software development measures and issues
- Overtarget baselines
- Conducting insightful IBRs
- Government surveillance
- Introduce principles and guidelines of Performance-Based Earned Value® (PBEV) as an enhancement to fundamental EVM
- Key SE processes and work products that should be integrated into the PMB
- Technical and product baselines
- Product metrics for performance-based progress measurement
- Entry and exit criteria of technical reviews.
- PBEV principles and guidelines
- Best practices and practical examples will include
- Tools for requirements management and traceability as a basis of EV
- Specify the best base measures for EV
- Monitor technical performance with meaningful variance analysis
- Plan and measure rework
- Recommendations for improving EVM and acquisition management processes
- Contract management best practices from CMMI, Air Force, NASA
- Closing the Quality Gap in the EVMS Standard
- Using standards and models as framework for corporate process improvement
Performance-Based Earned Value® by Paul Solomon and Ralph Young
About the Instructor
Paul Solomon is President of the consulting firm Performance-Based Earned Value® and co-author of the book with the same title, published by IEEE Computer Society/Wiley. He is internationally recognized as an innovator, teacher, and consultant on Earned Value Management (EVM). He has published many articles on EVM, systems engineering, software engineering, and risk management.
He led the use of EVM on Northrop Grumman Corporation's programs including the B-2 Bomber, Global Hawk, and F-35 Joint Strike Fighter. He is a co-author of the EVMS standard and recipient of the DOD David Packard Excellence in Acquisition Award. He was a Visiting Scientist at the Software Engineering Institute.
Paul holds BA and MBA degrees from Dartmouth College.
Course: MRO-251 Duration: 2 Days FEE: $1,299 CEUs: 1.44
Please direct any additional inquiries regarding our courses to Zygmond Turski, Program Director, by e-mail, FAX: (240) 371-4488 or TELEPHONE: (301) 871-9608.
Call toll free 1-800-683-7267 from anywhere in the Continental U.S. or CANADA.
Last modified June 9, 2010.