Proposed changes to ANSI 748 Standard, EVMS, to Close the EVMS Quality Gap or to remove non-value added effort, Jan. 9, 2012

EVMS

Section

Is:

Should be:

(Changes in red)

Rationale/

Source

Benchmarking Against GAO Cost Estimating and Assessment Guide (GAO)

Business Case/Benefits

Intro:

1. Introduction

The principles of an EVMS are:

·                         Integrate program work scope, schedule, and cost objectives into a performance measurement baseline plan against which accomplishments may be measured.  Control changes to the baseline.

1. Introduction

The principles of an EVMS are:

Integrate program product scope, work scope, schedule, and cost objectives into a performance measurement baseline plan against which accomplishments may be measured.  Control changes to the baseline

Add principle for Product Scope/

PMI Project

Management

Body of Knowledge

(PMBOK),

Section 5

Technical Baseline:Page 58, Technical Baseline Elements include:

• Detailed technical system and performance characteristics

• Key functional requirements and performance characteristics
• Key performance parameters 

Note: technical baseline = product scope

Measure progress towards achieving the product/technical baseline and lower-level derived requirements.

Prevent overstated EV and CPI based on measuring only quantity of work completed.

Achieve consistency with DOD Guides and GAO.

Guide-line 2.1a

Define the authorized work.

Define the authorized work necessary to produce the product scope of the program…The product scope includes the features and functions that characterize a product, service, or result.

Add concept of Product Scope/

PMI Project

Management

Body of Knowledge

PMBOK Section 5

Measure progress towards achieving the product/technical baseline and lower-level derived requirements.

Prevent overstated EV and CPI based on measuring only quantity of work completed.

Achieve consistency with DoD guides and GAO.

Guide-line 2.1e

Provide for integration of the program WBS and the program organizational structure in a manner that permits cost and schedule performance measurement by elements of either or both structures as needed.

1.    Only need information by technical or product baseline .

Guide-line 2.2b

Identify

 physical products

 milestones

 technical performance  goals

 or

 other indicators

 that will be used to measure progress.

Identify technical performance measures and

 physical products

 milestones

or

 other indicators

 that will be used to measure progress.

Technical performance measurement (TPM) is mandatory, not optional.

PMBOK,

Section 11.2.6.4

TPMs:

Page 225, Determine an Objective Measure for EV

Measures used to report progress in achieving milestones should be integrated with TPMs.

Page 251, Contract Performance Reports

Management should use the EVM data captured by the CPR data to integrate cost and schedule performance data with TPMs.

Same as above.

Per PMBOK, TPM compares technical accomplishments during project execution to the project management Plan’s schedule of technical achievement. It requires definition of objective quantifiable measures of technical performance which can be used to compare actual results against targets.

Guide-line 2.2g

Identify and control level of effort activity (LOE) by time-phased budgets established for this purpose.  Only that effort which is unmeasurable or for which measurement is impractical may be classified as LOE.

1.    Programs waste money by classifying non-technical activities as discrete only to meet an arbitrary discrete threshold.  Example, recurring reports such as IMS or CPR.

2.If the activity is measurable but there is there is no impact of a schedule variance on the definition of requirements or the development of technical work products, then there,  is no management need EV status of

      that activity.

3. Increase focus on selecting the most important technical work packages and base measures of EV.  

Guide-line 2.4d

Guide-line 2.5c

Control retroactive changes to records pertaining to work performed that would change previously reported amounts for actual costs, earned value, or budgets. Adjustments should be made only for correction of errors, routine accounting adjustments, effects of customer or management directed changes, or to improve the baseline integrity and accuracy of performance measurement data.

Control retroactive changes to records pertaining to work performed that would change previously reported amounts for actual costs, or budgets. Adjustments should be made only for correction of errors, routine accounting adjustments, effects of customer or management directed changes, or to improve the baseline integrity and accuracy of performance measurement data.

Note: “earned value” was deleted

Often, work that had been reported as complete is returned for rework to meet technical or quality requirements or to conform to organizational processes. In other cases, the cumulative percentage of work completed may decrease because of an increase in the number of tasks or group of tasks, such as drawings, code, or iterations (denominator).

These types of changes do not need to be controlled because they always result in current, more accurate reporting of cumulative schedule progress and better knowledge of the amount of work remaining.

Negative earned value is recorded in the current period to report accurate cumulative earned value.

Consistent with Defense Acquisition Guidebook (DAG) 4.3.2.4.2.3

Eliminate wording that is perceived to discourage retroactive, negative adjustments to EV.

Program may ignore magnitude and impact of rework and growth in number of tasks or work products that is used as denominator for % complete.

Enables reporting of real schedule progress and amount of remaining work.

Eliminates implicit approval to "hold % complete" and overstate true EV and CPI.

If previously reported EV is overstated, based on today’s cumulative progress, there is no need to get non-value added and time-consuming approvals.

Examples:

a.   Number of iterations, drawings etc. increased (denominator for % complete).

    b. Completed      drawings    returned for rework; no separate work package  for rework.

3.1

The SOW communicates the work scope requirements

The SOW communicates the product scope and work scope of the program.

Consistent with Guideline 2.1a.

Measure progress towards achieving the product or technical baseline.

Eliminate overstated EV and CPI based on only quantity of work completed.

3.8

EV is a direct measurement of the quantity of work accomplished.

The quality and technical content of work performed is controlled by other processes.

EV is a direct measurement of the quantity of work accomplished.

and the technical or quality performance.

PMBOK Sections 5, 10.5.1.1,

8.3.5.4, 11.6.2.4

Link EV to achieved vs. planned technical performance instead of just the quantity of work performed.

Measurement of technical performance as a base measure of EV should be contractually required, not waived or optional.