NDIA Earned Value Management Application Guide

1. NDIA Earned Value Management Application Guide Status Report August 16-17, 2005 Wayne Abba Walt Berkey David Muzio David Treacy NDIA EVM Application Guide 8-16-05

2. Objectives Prepare an EVMS Application Guide for use by Federal Agencies and Industry. Address “how used” for the NDIA PMS Committee documents (e.g. ANSI/EIA 748, Intent Guide, Surveillance Guide, IBR Guide, etc.). Provide a process for both government and industry so a review documenting ANSI Guideline compliance could be accepted without another review. Limit the page count to a range of 15 to 20 pages excluding appendices Appendices provide an executive summary of existing and relevant NDIA EVM documents; not a reprint

3. Application Guide Table of Contents • Introduction • Acquisition Process & Earned Value Management • EVM Application • Planning for EVM • Contracting for EVM • Developing the Program Budget and Baseline • Performance Management & Measurement • Measuring Progress & Management Analysis • Communication • Change Management • Appendices – NDIA Documents Executive Summaries

4. Introduction • Users will gain insight into • Planning for a program • Application of EVM • Organization that facilitates EVM • NDIA resources and guidance • Supports OMB”s objectives for application of EVM • Intended for government and industry communities • NDIA review for revisions every two years

5. Acquisition Process & Earned Value Management • Typical Acquisition Life Cycle (next slide) • PM, SE. CE, Risk, Procurement disciplines essential to integrating EVM processes • Earned Value Management • EV -- EVM -- EVMS • Asset Investment Life Cycle • - Performance management approach established by the nature of the work not the contract type • - EVM effective for discrete work • Definitions – ANSI/EIA 748 Section 2.6

6. Typical Acquisition Life Cycle Pre-Systems Acquisition Planning

7. EVM Application • Planning for EVM • Organizing, Risk-Based Application, Scalability • Contracting for EVM • Contract Types, Incentives, EVMS Compliance (next slide) • Developing Program Budget and Baseline • (following slide)

8. Acquisition Life Cycle Customer Supplier Pre-Systems Acquisition Recognize: Application Guide System Acceptance Guide Document and Assessment: Application Guide Intent Guide Systems Acquisition Accept: Intent Guide IBR Review: IBR Guide Surveillance: Surveillance Guide Implement: Intent Guide IBR Review: IBR Guide Execution and Surveillance: Surveillance Guide EVMS Compliance Framework

10. Performance Management and Measurement • Measuring Performance Progress • Variances are vital for managing complex projects • Management Analysis • Program team must implement actions to achieve program technical, schedule and cost objectives • Program Progress Communication • Program and Project Management • Senior Leadership • Change Management • - Ensure PMB accurately represents authorized work • - PMB Replan and PMB Reprogram

13. Appendices • EVM Application Framework (next slide) • Appendix A: ANSI/EIA 748 • Appendix B: EVMS Intent Guide • Appendix C: EVMS Systems Acceptance Guide • Appendix D: EVMS Surveillance Guide • Appendix E: Program Managers’ Guide to the Integrated Baseline Review Process

15. Path Forward • Objectives and scope – complete • Inputs drafted by contributors – June 15 • Compile inputs into draft – Aug 12 (July 30) • NDIA PM Systems Committee comments – August Mtg. • Committee comments – September 15 • Email inputs to David Treacy • Dtreacy@mcri.com • Submit to NDIA PMSC Chair – September 30 • Working Version 1 preparation for release • Release on NDIA Web site – October 2005