This lesson introduces the Work Breakdown Struc ture ( WBS) and its role in Earned Value

Transcription

1 This lesson introduces the Work Breakdown Struc ture ( WBS) and its role in Earned Value Management (EVM). The terminal learning objective for this lesson Work is to describe the integrated management framework used in implementing EVM. Breakdown Structure lar Vehicle Primary Systems Vehicle Eng nccring r ,r Power Package Frame Armament Drive Train Engine Power Transport ~ I Page1of20 I ~ Back

2 This lesson introduces the Work Breakdown Structure ( WBS) and its role in Earned Value Management ( EVM). The terminal learning is to describe the in framework used in im~l l ern: l ong Desc ri ption Work Breakdown Struc ture. LAR vehicle is level 1. Primary vehicle and systems engineering are level 2. Frame, power package drive train, and armament are level 3. Engine and power transport are level 4. Combustion and ignition are level 5. Engine is highlighted. Power Package Frame Annament om.e Train Power Transport Combustion Ignition... I Poge 1of10 I... Back

3 In this lesson, you will: Given contract scenario documents ( Program Work Breakdown Structure (PWBS), Contract Work Breakdown Structure ( CWBS), Statement of Work (SOW) excerpt), recognize the use of the Work Breakdown Structure (WBS ) as a management framework describing the scope of work in a contract Given scenario documents (Integrated Program Management Report (IPMR) Format 1 and Format 6, risk register, technical performance measures), recognize the integrated program management information that is reported by WBS Given contract risk management and EVM data and Department of Defense ( DoD) guidance, select WBS elements for EVM reporting below WBS level 3... I PogeloflO I... Back a 1

4 The Work Breakdown Structure The WBS is a critical tool in ensuring all portions of the program are covered. It is defined as "a productoriented family tree composed of hardware, software, services, data, and facilities." The Government program manager ( PM ) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes. There are two fundamental and interrelated WBS structures: Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc ture CCWBSl. The WBS facilitates effective planning and assignment of management and technical responsibilities. It also provides a common thread for tracking of technical efforts, risks, and Earned Value Management System ( EVMS ) data including EVM data and Integrated Master Schedule ( IMS) data. This commonali ty facilitates integrated program assessment of cost, schedule, technical performance, and associated risks. "'iillllllll I Page 3 of 20 I... Back liiiii )

5 The Work Br eakdown Structur e The WBS is a critical tool in ensuring all portions of the program are covered. I t is defined as "a product oriented family tree composed of hardware, software, services, data, and facilities." The Government program manager ( PM ) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes. There are two fundamental and interrelated WBS structures: Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program, including the System ( EVMS) data including EVM da facilitates integrated program assessm Contract WBS and " other Government" elements ( for example, program office operations, manpower, Government furnished equipment ( GFE ), and Government testing). I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions. The PWBS is used by the Government program manager ( PM ) and contractor to develop a Contract Work Breakdown Structure ( CWBS ). Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 881. "'iillllllll I Page 3 of 20 I... Back liiiii )

6 EVMlOl Funda me ntals of Earned Value Management l esson 2.1 Integrated Management Framework - The W BS The Wo rk Brea kdow n Structure The WBS is a critical tool in ensuring all portions of the program are covered. It is defined as a productoriented family tree composed of hardware, software, services, data, a nd fa cilities. The Government program manager {PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes. There are two fundamental and int errelated WBS structures: Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS). T he Contract Work Breakdown structure {CW BS) nd technical responsibilities. It also d Earned Value Managemen t s ys A complete WBS for a contrac t. I t includes the DoD-approved e {IMS) data. This commonality facil program WBS extended to the agreed contract reporting level erformance, and associated risks. and any discre tionary extensions to lower levels for reporting or other purposes. It includes all the elemen ts for the products (hardware, software, data, or services) that are the responsibility of the contractor. This comprehensive WBS forms the framework for the contractor's management control system. ~ I Pope3of20 I ~ Bac k 1 ii J

7 Lesson 2. 1 Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP I dentifying Scope As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project, the Government Program Work Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a Breakdown Structure top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL- STD Vehicle The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881. Top-level system specifications, c ontract line items, and the Statement of Work (SOW) completed the workdefining elements of the RFP. Frame The con tractor uses all the work- de fining elements in the RFP to develop the CWBS. Engjne Primary Vehicle Power Packa&e Drive Tram Povter Transport Systems Engmeering Combustion Ignition we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM. ~ I Page4of20 I ~ Back

8 lesson 2. 1 Integrated Manageme nt Framework- The WBS Identifying Scope As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance {LAR) vehicle project, the Government Program Management Office {PMO ) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881). Request fo r Pro posals ( RFP) A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. LAK Vehicle T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881. Top-level sys tem specifications, c ontract line items, and the Statement of Work ( SOW) completed the workdefining elements of the RFP. The contractor uses all the work-de fining elements in the RFP to develop the CWBS. Frame Engine Primary Systems Vehicle Engineering Power Package Drive Train Power Transport Combustion Ignition We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM.... I Page4of20 I... Back

9 Identifying Scope As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project, the Government Program Management Office (PMO ) provided a preliminary contract work breakdown structure derived from a top-level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881). The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD Top- level system specifications, contract line items, and the Statement o f Work ( SOW) completed the workdefining elements of the RFP. The contractor uses all the work- defining elements in the RFP to develop the CWBS. Military standard 881 ( Mil-STD-881) Addresses mandatory procedures for those programs subject to DoD Instruction I t also provides guidance to industry in extending contract work breakdown structures. This standard is approved for use by all Departments and Agencies of the Department of Defense. Frame Engine Power Package Drive Train Povter Transport ' Annament Combustion Ignition We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM.... I Page4of 20 I... Back

10 Identifying Scope As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project, the Government Program Management Office ( PMO ) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 ). The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD Top-level system specifications, contract line items, and the Statement o f Work ( SOW) completed the workdefining elements of the RFP. The contractor uses all the work- defining elements in the RFP to develop the CWBS. WBS dictionary As part of developing a Program WBS, the program manager will also develop a WBS dictionary. The dictionary lists and defines the WBS elements. Although initially prepared by the Government program manager, the contractor expands the dictionary as the Contract WBS is developed. The WBS dictionary will be developed starting with the generic definitions in this Standard, and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP ) requirements. The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it. It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents. The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the program's life.... I Page4of 20 I... Back

11 Lesson 2.1 Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP I dentifying Scope As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project, the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL- STD stclt ement of Woric (SOW) The portion of a contract that es tablishes and de fines all nonspecification requirements for contractors' efforts either directly or with the use of speci fic cited documents. The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881. Top-level system specifications, c ontract line items, and the Statement of Work (SOW) completed the workdefining elements of the RFP. The con tractor uses all the work- de fining elements in the RFP to develop the CWBS. Frame Engjne Primary Systems Vehicle Engmeering Power Packa&e Drive Tram Povter Transport Combustion Ignition we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM. ~ I Page4of20 I ~ Back

12 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP Identifying Scope As p art of the Regyest for Proposals { RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project, the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a level product-oriented PWBS based on The RFP included an l ong Description the generic de finitions in Reprised Work Breakdown Struc ture. LAR vehicle is level system specifications, 1. Primary vehicle and sys tems engineering are level 2. Frame, power package drive train, and armament are level 3. Engine and power transport are level 4. Combustion and ignition are level 5. Engine is highlighted. T he contractor uses all tt\1!!"'1'..,.~!1'!!'1'11'1111'1'!1'"1!'1'1~~1'!!'"...;, :::=-r:~~:---f-- in the RFP to develop the ewes. Power Engine Transport Systems Engmeering Combustion We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM.... I P oge 4 of10 I... Back

13 EVMlOl Fundam entals of Earned Value Managem ent Lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP The Contract Work Breakdown Structure The technical proposal the contractor presented to the Government source selection committee provided the Work company's unique approach to the program, including their CWBS. The contractor's technical proposal was accepted Breakdown Structure by the Government as a favored solution. The contractor used its CWBS when estima ting the project duration, resources, and the overall cost for their proposal. This is the contractor's starting point. lar Vehicle Primary Systems Vehicle En&meering Frame Power Package Drive Train Engine Power Transport Combustion Ignition... I P oge Sof10 I... Back

14 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP The Contract Work Breakdow n Structure The technical proposal the contractor presented to the Government source selection committee provided the Work company's unique approach to the program, including their CWBS. The contractor's technical proposal was accepted Breakdown Structure by the Government as a favored solution. The contractor used its cr------~~ duration, resources, and l ong Description This is the contractor's s Reprised Work Breakdown Structure. LAR vehicle is level 1. Primary vehicle and systems engineering are level 2. Frame, power package drive train, and armament are level 3. Engine and power transport are level 4. Combustion and ignition are level 5. Engine is highlighted. lar Vehicle Systems En&meering 1---r Armament Combustion Ignition... I P oge Sof10 I... Back

15 EVMlOl Fundam entals of Earned Value Managem ent Lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP Knowledge Review Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes? Program Work Breakdown Structure (PWBS ) U Solicitation 0 Integrated Mas ter Schedule ( I MS) ~ Contract Work Breakdown Structure (CWBS) Check Answer The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any discretionary ext ensions to lower levels for reporting or other purposes.... I Poge 6of10 I... Back

16 lesson 2. 1 Integrated Management Fr amework- The WBS The CWBS as a Managem ent Tool The CWBS provides an ideal structure for tracking project work and acts as a useful project management tool because it: Contract Work Breakdown Identifies what work the contractor mus t Structure perform (CWBS) Breaks the work down into smaller, manageable pieces Allows for performance measurement at both high and low levels lar Vehicle Provides a common thread for the EVMS, the IMS, and other important acquisition Primary Systems documents such as the SOW and technical performance measures (TPMs) The WBS provides complete and proper identification of all contractually authorized work to be accomplished on a program to help ensure Frame Vehicle Engmeering Power Package Drive Train resources are correctly identified and work is planned within the authorized program schedule. TraMporl Engine Power Combustion Ignition... I Page7of 20 I... Back

17 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP The CWBS as a Management Tool The CWBS provides an ideal structure for tracking project work and acts as a useful project management tool because it: Contract Work Identifies what work the contractor must Structure perform L...-Brel.::! r akdown Breaks the work l ong Description 1 manageable pieces Reprised Work Breakdown Struc ture. LAR vehicle is level 1. Primary vehicle and systems engineering are level 2. Frame, power package drive train, and armament are level 3. Engine and power transport are level 4. Combustion and ignition are level 5. Engine is highlighted. Power Package The WBS provides complete and proper Frame Armament identification of all contractually authorized work to be accomplished on a program to help ensure Drive Train resources are correctly identified and work is Power Engine planned within the authorized program schedule. Transport Combustion Ignition... I P oge7of10 I... Back

18 The WBS - A Common Management Framework Use of the WBS as a common framework facilitates integrated program management, providing a way of relating the SOW, risk management information, TPMs, and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR). Below, and on the nex t screens, are examples of some key LAR program Engineering and Manufacturing Development ( EMD ) contract artifacts which can all be related using the WBS Structure. Work Breakdown Structure Statement of Wort (SOW) Risk Register Technical Perform ance Measure ( TPM ) I Page8of20 I... Back You must select the SOW, Risk Register, and TPM icons to move on.!!

19 The WBS - A Common Manageme rn ;;.t ;..;.ra F;.;;;;mew ~~;,;o ;;;rk ~;... 'l Use o f the W BS as a common relating the SOW, risk m<m<lce!ml reported in the Integrated e xamples o f some key LAR w hic h c an all be related Statement of Wort (SOW) stat e m ent of Work (SOW) Here is the Statement of Work for the LAR sc enario Pow er Pac kage, W BS element C Powe r Package/Drive Train. 1 ht:t..:::;.::. ::wrk~nald_rivs,t"'~,cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LARVehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar). This element includes fo r example, engine-mounted auxiliaries such as aird ueling and manifolds, controls and instrumentation. exhaust systems, and cooling means. It also includes such powertransport components as clutches. transmission. shafting assemblies, torque converters, differentials, final drivers. and power t akeoffs. It may include brakes and steering when these are integral to power transmission rather than in the suspension/steering element. All effort d irectly associated with the remaining level 3 WBS elements and the integration. assembly, test and checkout of these elements into the primaryvehicle is excluded.... I Page8of20 I... Back You must select the SOW, Risk Register, and TPM icons to move on.!!

20 The WBS - A Common Management Framework Risk Regist er The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process. One of the TPMs chosen to track this performance is IR signature. LARKey Key Risks Affected WBS Risks, TPMs allocated Performance (and WBS element) Associated TPMs Elements to WBS elements Parameters (KPPs) affecting KPP ~ 1. Engine I Power IR Signature, Power'" Survivability 2. Cooling Package Package Weight 3. Exhaust Note: This is just an excerpt. Full risk registers include more detail, such as impac ts, probabilities, and mitigations. Risk Register ~- ~ ~., Statement of ~ Wort (SOW).tl» ~\ r~ J ".) ". ~... I Page8of20 I... Back You must select the SOW, Rtsk Regtster, and TPM icons to move on.!!

21 EVMlOl Fundamentals o f Earned Value Management Lesson Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP Technical Performance Measure (TPM ) I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract. This TPM relates to the Power Package WBS element 1.1.3, specifically mance information to the engine, cooling, and exhaust sub- elements. ext screens, are ~no ~ '~ I R lgnatu rc.> Dec II TPi\ ~140.~r-',"' ~- :_jy.,._,. i I I - a.-,t-,1 ) contract artifacts -l rfo r man ce t: no (TPM ) 'i:f-120 -~ Q 110 ~.,. r ,_ ~ ~\C'I I 1 to 1 '.. I 80 ~.. T 70 -f.,...,... -f--,.... eo. -..;;: 50 j r le sow, Risk Register, 40 ~-~~-- j_ - i--, J I Page8of20 I... Back and TPM icons to move on..q

22 The WBS - A Common Management Framework Use of the WBS as a common framework facilitates integrated program management, providing a way of relating the SOW, risk management information, TPMs, and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR). Below, and on the next screens, are examples of some key LAR program Engineering and Manufacturing Development (EMD ) contract artifacts which can all be related us1na the WBS Structure. l ong Descript ion Excerpt of Work Breakdown Structure showing Frame, Power Package Drive Train, and Armament. Three callouts flow from the Power Package Drive Train: Statement of Work, or SOW, Risk Register, and Technical Performance Measure, or TPM. A sample SOW shows C.l.l.3 Power Package/ Drive Train excerpt. A sample Risk Register shows a LARKey Performance Parameter, or KPP, which is Survivability. The key risks and WBS element affecting this KPP are 1 Engine, 2 Cooling, and 3 Exhaust. The affected WBS element is Power Package. The associated TPMs are IR signature and Power Package Weight. Risks and TPMs are allocated to WBS elements. A sample TPM graph for the Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance, compared to the planned technical performance.... I Page8of 20 I... Back» ~.." nee -- - '*... " ~ You must select the SOW, Rtsk Register, and TPM icons to move on.!!

23 lesson 2.1 -Integrated Management Framework- The WBS The WBS - A Common Management Framework, Cont. The IPMR reports data critical to EVM and risk management by WBS element. The use of the common WBS facilitates a comparison of cost and schedule performance. Integrated Program Management Report, Format 1 'Note: IPMR Format I values are in thousands ofdollars ($) ] Subsystem T r edes & Analysis Critical Design Finalize Design 140 d.ays Develop Interface Specifications 120 days Develop Development Test 90 days Finalize 140 days "iillllllll I Page9of20 Back _...

24 The WBS - A Common Management Framework, Cont. l ong Descript ion Format 1 reports EVM data by WBS Element. Note: IPMR Format 1 values are in thousands of dollars ($ ). Format 1 of the Integrated Program Management Report shows performance data in Section 8. For item 1.1, the prime vehicle, the current period's BCWS is 1416, BCWP is 1959, and ACWP is The current period's schedule variance is and cost variance is The prime v ehicle's cumulativ e data is BCWS 24626, BCWP , ACWP Cumulativ e schedule v ariance is 'N and cost v ariance is BAC is 36301, EAC is 37517, and the variance is Item " Frame's current period data is BCWS , BCWP 106.5, ACWP 82.3, schedule variance 0.8, and cost o variance The cumulative data is BCWS , BCWP , ACWP , schedule v ariance is , and cost variance is The frame's BAC is , EAC is , and at completion variance is Item 1.1.2, Suspension and steering's current data is BCWS , BCWP 379.6, ACWP 497.8, schedule variance 35.9, and cost variance The cumulative data is BCWS , BCWP , ACWP , schedule variance 82.4, and cost v ariance BAC is , EAC is , and variance at completion is Item Power package's current period data is BCWS 395.5, BCWP 853.8, ACWP , schedule v ariance and cost variance The cumulativ e data is BCWS , BCWP , ACWP , schedule variance - 331, and cost variance BAC is , EAC is , and variance at completion is Item , engine's current period data is BCWS 128.4, BCWP 277.1, ACWP 234.4, schedule variance 148.8, and cost variance The cumulativ e data is BCWS , BCWP , ACWP , schedule variance , and cost variance BAC is , EAC is , and variance at completion is Format 6 reports IMS data by WBS element. Gantt chart shows the roll up of the durations of tasks for the Power Package/ Driv e. The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks. Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days. Finalize design is 140 days with tasks of develop interface specifications 120 day s, develop development test 90 day s, and finalize drawings 140 day s. Finalize Drawings... I Page9of 20 I... Back 140 days

25 EVM Data by WBS Element - Schedule Variance The IPMR Format 1 reports cost and schedule variances by WBS element. In this example, focus first on the cumulative-to- date schedule variance ( SV) for WBS element , Engine. The SV is unfavorable. Recall the equation for SV: SV = BCWP - BCWS ( BCWP: budgeted cost for work performed ; BCWS: budgeted cost for work scheduled ) Using the information from this WBS, you can calculate that the BCWP of minus the BCWS of results in an unfavorable SV of Now, using the WBS element as the management framework, you can easily compare this SV in dollars with the I MS, which shows status in terms of dates. Integrated Program Management Report, Format 1 8. Performance Data Cumulative to Date Item Budgeted Cost Variance ACWP BCWS BCWP Schedule Cost 1.1. Prime Vehicle Frame Suspension/ Steering Power Package Engine *Note: IPMR Format 1 va lues are in t housands of dollars ($).... I Page10of20 I... Back

26 EVM Data by WBS Element - Schedule Var iance The IPMR Forma t 1 reports cost and schedule variances by WBS element. In this example, focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element , Engine. The SV is unfavorable. Recall the equa tion for SV: P. - D l""'\, I C' SV = BCW ( BCWP: b J l ong Descr iptio n Using the inform results in an un f Now, using the the I MS, which Reprised Forma t 1 of the Integra ted program management report shows cumula tive to da te performance da ta as follows. Item 1.1 Prime Vehicle - BCWS , BCWP , ACWP , schedule variance , and cost variance Item Frame BCWS , BCWP , ACWP , schedule variance , and cost variance Suspension and s teering - BCWS , BCWP , ACWP , schedule variance 82.4, and cost variance Item Power package - BCWS , BCWP , ACWP , schedule variance - 331, and cost variance Item Engine - BCWS , BCWP , ACWP , schedule variance , and cost variance Engine BCWS, BCWP, and schedule variance are highlighted Prime Vehicle Frame Suspension/ Steering Power Package Engine *Note: I PMR Format 1 va lues are in t housands of dollars ($).... I Page10of 20 I... Back ~ ) BCWS of ~ V in dollars with

27 EVM Data by WBS Element - Cost Variance IPMR Format 1 also reports cost variances. The cost variance (CV) for the Engine WBS element is unfavorable. Recall the equation for CV: CV = BCWP - ACWP ( actual cost of work performed ) Using the information from this WBS, you can calculate that the BCWP of minus the ACWP of results in an unfavorable CV of This means the contractor has spent more than planned in performing the work completed to date. Integrated Program Management Report, Format 1 8. Performance Data Item Budgeted Cost BCWS BCWP Cumulative to Date ACWP Schedule Variance Cost 1.1. Prime Vehicle Frame Suspension/ Steering *Note: IPMR Format 1 va lues are in t housands Power Package of dollars ($) Engine Explanations for the key cost and schedule variances are provided in IPMR Format 5. Technical Integrated Product Team (IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential impact on the contract. You must select IPMR Format 5 to move on.!!... I Page 11 of 20 I... Back

28 EVM Data by W BS Element - Cost Var iance IPMR Fo rmat 5 --EXAMPLE- Integrated Program Management Report Format 5: Ex planatio n and Problem Analy sis WBS Element Engine Cumulativ e Cost Variance : Cause: Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers, causing cost variances. Impact: T he design task slipped due to performance issues uncovered in test, causing the Engine's Final Drawings task to drop down to zero float, putting it on the critical path. Additional senior engineers were brought on to support the engine design, causing cost variances. Additional variances can be expected in the future as we work to resolve the design issues. Mitigatio n : Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term. T o recover schedule, we are in the process of hiring two more junior engineers to support one senior engineer. T his is expected to lower costs, and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance. Explanations for the key cost and schedule variances are provided in IPMR Format 5. Technical Integrated Product Team (IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential impact on the contract. You must select IPMR Format 5 to move on.!!... I Page 11 of 20 I... Back

29 EVM Data by WBS Element - Cost Variance IPMR Format 1 also reports cost variances. The cost variance (CV) for the Engine WBS element is unfavorable. Recall the equation for CV: CV = BCWP - ACWP ( actual cost of work performed ) Using the inform ACWP of results in an unf l ong Descript ion nned in performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows. Item 1.1 Prime Vehicle - BCWS , BCWP , ACWP , schedule variance , and cost variance Item Frame BCWS , BCWP , ACWP , schedule variance , and cost variance Suspension and steering - BCWS , BCWP , ACWP , schedule variance 82.4, and cost variance Item Power package- BCWS , BCWP , ACWP , schedule variance - 331, and cost variance Item Engine - BCWS , BCWP , Note: IPMR ACWP , schedule variance , and cost variance r m at 1 va lues Engine BCWP, ACWP, and cost variance are highlighted. Fr.e in t housands 11.Ll f'ower f'ackage 1ll!U4.9!l:J/:!.9 ~!j :l:j 1 flu.9 of dollars ($) Engine Explanations for the key cost and schedule variances are provided in IPMR Format 5. Technical Integrated Product Team (IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential impact on the contract. You must select IPMR Format 5 to move on.!!... I Page 11 of 20 I... Back

30 EVM Data b y WBS Element - At Completion I PMR Format 1 also reports budge t at comple tion ( BAC), estimate at comple tion ( EAC), and the resulting v ariance at comple tion (VAC). Here the contrac t or control account managers report their latest updated EAC whic h should reflect the cost and schedule performance trends, technic al performance trends, impac ts of any work- around plans, and current assessment of risks. Carrying the engine WBS element example forw ard, the contrac t or EAC reflects a v alue higher than the original BAC, which means there is an unfavorable VAC. Recall the equation for VAC: VAC = BAC - EAC Using the information from this WBS, y ou c an c alculate that the BAC of minus the EAC of results in a cost VAC of Integrat ed Program Management Report, Format 1 8. Performance Dat a Cumulative t o Dat e At Completion Item Budgeted Cost Variance ACWP Budgeted Estimated Variance BCWS BCWP Schedule Cost 1.1. Prime Vehicle Frame Suspension/ Steering Power Package Engine * Note: IPMR Format 1 va lues are m t housands of dollars ( $).... I Page12 o f 20 I... Back

31 EVM Data by WBS Element - At Completion IPMR Format 1 also reports budget at completion ( BAC), estimate at completion ( EAC), and the resulting variance at completion (VAC). Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends, technical performance trends, impacts of any work-around plans, and current assessment of risks. Carrying the original BAC, l ong Descript ion Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows. Item 1.1 Prime Vehicle - BCWS , BCWP , ACWP , schedule variance , cost variance , BAC , EAC , and VAC Item Frame - BCWS , BCWP , ACWP , schedule variance , cost variance , BAC , EAC , and VAC Suspension and steering Perfor1ma,nce'l BCWS , BCWP , ACWP , schedule variance 82.4, cost variance , BAC , EAC , and VAC Item Power package- BCWS , BCWP , ACWP , schedule variance - 331, cost variance , BAC , EAC , and VAC Item Engine - BCWS , BCWP , ACWP , schedule variance , cost variance 1-:-:-:---= , BAC , EAC , and VAC Engine Budgeted at ~~~~~t Completion, Estimated at Completion, and Variance at Completion are highlighted. t1.1.2 than the the EAC *Note: IPMR Format 1 va lues are in t housands of dollars ($) I Page12of 20 I... Back

32 Detailed EVM Reporting As you have just learned, the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively. Without insight into WBS element Engine data in the IPMR, the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element. The WBS can be expressed to any level of detail. While the top three levels are the minimum required for reporting purposes on any program or contract, effective management of complex programs requires WBS definition at considerably lower levels. If the Government considers some program elements to be high-cost or high-risk, the reporting requirement for the system may be defined to a lower level of the WBS. The EVM reporting level is specified in the Contract Data Requirements List ( CDRL). The contractor has complete flexibility to extend the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed. Frame Work Breakdown Structure LAR Vehicle Primary Syst ems Vehicle Engineering Armament Engine Exhaust Syst em I I Combustion... I Page13of 20 I... Back Ignition

33 Detailed EVM Reporting As you have just learned, the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively. Without insight into WBS element Engine data in the JPMR, the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element. The WBS can be expressed to any level of detail. While the top three levels are the minimum required for reporting purposes on program or contract, effective management of complex programs requires WBS definition at l ong Descr ipt ion If the Government co,ns,,dl Reprised Work Breakdown Structure. LAR vehicle is level elements to be hic1h -costl 1. Primary vehicle and systems engineering are level 2. reporting requirement for Frame, power package drive train, and armament are level defined to a lower level 3. Engine, cooling system, and exhaust system are level reporting level is speci 4. Combustion and ignition are level 5. WBS is divided Requirements List ( CDRL) between levels three and four showing the level at which the contractor must report to the Government. The contractor has co1np:p the Contract WBS below to reflect how work is to be accomplished and managed. - Frame Power Package Drive Train Syst ems Engineering Armament Engine Cooling Syst em Exhaust Syst em I I Combustion... I Page13of 20 I... Back Ignition

34 EVMlOl Fundam entals of Earned Value Managem ent Lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP Knowledge Review How does the Work Breakdown Structure {WBS} facilitate integrated progra m management? {Select all that apply) It shows the relationship between the contractor and Government organizations I t identifies the contractually agreed-upon reporting levels for the project ~ It serves as a common framework by providing a way to relate information from mul tiple sources ~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov idi ng a way t o relate i nform ation from multiple source s including the SOW, Risk Register, TPMs, and cost and schedule performance information reported in the IPMR.... I Poge 14 of20 I... Back

35 EVM Reporting l evels and the CWBS The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control. The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control. The WBS at the control account level is the level at which EVM is used to manage the contract work. All EVM analysis originates there, including variance analysis, so it is important to establish it at the right level for effective management insight. The Government receives insight into EVM data via the IPMR report. The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side. Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document, in the Resources tab, for details on how to select reportable variances by WBS element. The WBS is structured to best manage and report on program performance. Cost collection requirements, such as Cost and Software Data Reporting ( CSDR), may require a different reporting structure than the WBS used in the EVMS for program management.... I Page1Sof 20 I... Back

36 l esson 2. 1 Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP EVM Re porting levels a nd the CW BS The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control. The contractor breaks the required work down to a poin t where contractor control account managers can maintain an adequate span o f control. T he WBS at the control account level is the level a t which EVM is used to manage the contract work. All EVM analysis origi....~""' '"' ",..:.,...,., important to establish it a t the right level for e ffec tive m control account The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side. Refer to the lpmr Data Item Descriptio Resources document, in the Resources tab, for details o A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes. A control element. account is a natural management point for The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR), may WBS used in the EVMS for program management. planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS ) element. ~ I Page1Sof20 I ~ Ba ck

37 Identifying WBS Elements for Detailed Reporting WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical, schedule, or cost risk associated with each element. WBS elements with the highest risk are good candidates for more detailed EVM reporting. Through the LAR risk management process, the LAR PMO identified the following high risks : Engine, Exhaust, and Cooling. These risks primarily affect the following WBS elements within WBS 1.1.3, Power Package : Engine Exhaust System Work Breakdown Structure LAR Vehicle Cooling System Primary Systems The LAR program manager tailored the CDRL for the IPMR to require insight into those WBS elements. Vehicle Engineering As noted previously, the contractor will still breakdown the risky WBS elements into lower level CWBS elements for internal management control purposes. r jl Frame Engine Power Package Drive Train Cooling System Armament Exhaust System... I Page16 of 20 I... Back

38 Identifying WBS Elements for Detai led Reporting WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical, schedule, or cost risk associated with each element. WBS elements with the highest risk are good candidates for more detailed EVM reporting. Through the LAR risk management process, the LAR PMO identified the following risks : Engine, Exhaust, and rn,nlir n the following WBS elemerl l ong Description Power Package : Engine Exhaust c ooling Reprised Work Breakdown Structure. LAR vehicle is level 1. Primary vehicle and systems engineering are level 2. Frame, power package drive train, and armament are level 3. Engine, cooling system, and exhaust system are level 4. The Engine, cooling system, and exhaust system WBS Systems elements are highlighted. -Fnai n PPrin The LAR program m n g~i~t'm~:"\')~s"::re:~~~--::=======::j=====:!::::;::: IPMR to require insight " co-..._ As noted previously, the contractor will still breakdown the risky WBS elements into lower level CWBS elements for internal management control purposes. Frame Engine Power Package Drive Train Cooling System Armament Exhaust System... I Page16of 20 I... Back

39 EVMlOl Fundam entals of Earned Value Managem ent Lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP Knowledge Review Given the indicated information for each of the following Work Breakdown Structure {WBS) elements, which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report {IPMR) reporting on? WBS Element 1: High cost, medium risk U WBS Element 2: High cost, high risk ~ WBS Element 3: Low cost, low risk WBS Element 4: High cost, low risk Check Answer You would be least likely to request lower levels of IPMR reporting on W BS Element 3, which is lo w cost and lo w risk.... I Poge17of20 I... Back

40 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP lesson Summary Congratulations! You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson. You should now know the following key points about EVM: - Work The CWBS provides an ideal structure for tracking project Breakdown Structure work because it: Identi fies what work the contractor must perform Breaks the work down into smaller, manageable pieces Allows for performance measurement at both high and low levels The JPMR details cost and schedule performance information by WBS element... I Poge18of20 I... Back

41 lesson 2. 1 Integrated Management Fr amework- The WBS lesson Summary Congratulations! You have completed the Integrated Man&gement Framework - The WBS lesson. You should now know the following key points about EVM: Work Breakdown Structure T he CWBS provides an ideal structure for tracking project work because it: Identifies what work the contractor must perform Breaks the work down into smaller, manageable pieces Allows for performa nce measurement at both high and low levels The IPMR details cost and schedule performance information by WB cost &nd schedule performance information cost variance, schedule variance, variance at completion, and IMS schedule information Back

42 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP lesson Summary Congratulations! You have completed the Integrated Management Framework - The WBS lesson. You should now know the following key points about EVM: Work The CWBS provides an ideal structure for tracking project l ong De scription must perform - Reprised Work Breakdown Struc ture. LAR vehicle is level, manageable pieces 1. Primary vehicle and systems engineering are level 2. t at both high and Frame, power package drive train, and armament are level 3. Engine, cooling system, and exhaust system are level 4. Combustion and ignition are level I Poge18of20 I... Back

43 l esson Summary, Cont. WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical, schedule, or cost risk associated with each element. WBS elements with the highest risk are good candidates for more detailed EVM reporting. The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract. Integrated Program Management Report. Format 1 8. Performance Data Suspension/ Steering Power Package Engine *Note : IPMR Format 1 va lues are in t housands of dollars ($).... I Page 19 of 20 I... Back.Q

44 l esson Summary, Cont. WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical, schedule, or cost risk associated with each element. WBS elements with the highest risk are good candidates for more detailed EVM reporting. The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract. l ong Description Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows. Item 1.1 Prime Vehicle - CVWS , BCWP , ACWP , schedule variance , cost variance , BAC , EAC , and VAC Item Frame - BCWS , BCWP , ACWP , schedule variance , cost variance , BAC f-:-:-:--::--+-.,., , EAC , and VAC Suspension and steering f-,-:-::---+'.=..:t BCWS , BCWP , ACWP , schedule variance 82.4, cost variance , BAC , EAC , and VAC Item Power package- BCWS , BCWP , ACWP , f-,--..: schedule variance - 331, cost variance , BAC , EAC ~~~~~~=ower t-:--:-:::7---: , ACWP , schedule variance , cost variance , BAC , EAC , and VAC Engine , and VAC Item Engine - BCWS , BCWP *Note: IPMR Format 1 va lues are in t housands of dollars ($).... I Page 19of 20 I... Back

45 EVMlOl Fundam entals of Earned Value Managem ent lesson Integr ated Management Framewor k - The W BS RESOURCES 1 PRINT 1 HELP lesson Completion You have completed the content for this lesson. To continue, select another lesson from the Table of Contents on the left. If you have closed or hidden the T able of Contents, click the Show TOC button in the Atlas navigation bar at the top of the screen.... I PogelOoflO I... Back