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1 EVMlOl Fundam entals of Earned Value Managem ent lesson Module I ntr oduction RESOURCES I PRINT I HELP Module 6 W elcome - Baseline Maintenance Program Manager... I Poge1of4 I...
2 EVMlOl Fundamentals of Earned Value Management Module 6 Welcome - Baseline Maintenance l ong Descript ion Program manager and Kate, the intern, display. The three steps on an integrated analysis model display: analyze past performance, predict future performance, and formulate a plan of action. Categories of changes display: contract changes ; internal contractor replanning ; and formal reprogramming. Question displays: Has the scope of work changed? Question displays: Can existing scope be completed within existing schedule and budget? Question displays: Does existing scope require additional performance budget or schedule? Text displays: Good performance measurement and analysis can help mitigate the need for formal reprogramming. Text displays: Changes must be incorporated into the performance measurement baseline ( PMB ). Program Manager... I Pagelof 4 I...
3 Closed Captioning [Program Manager] Well, Kate, we've completed our most recent analysis of the Lightweight, Assault and Reconnaissance, or LAR, program. What did you think about it? [Kate] It was eye opening. It is interesting to learn how even on the most carefully planned programs, something unexpected can happen and throw things off. [Program Manager] That's so true. One of the key take-aways from these types of analyses is that change is inevitable on most programs. So we need to be watching for it and prepared to deal with it. [Kate] How do we do that? [Program Manager] That's a good question. Clearly we can't let an entire program get derailed by changes, big or small. Fortunately, in Earned Value Management, or EVM, there are processes in place for managing changes. [Kate] Are there different types of changes? [Program Manager] There are. In fact, there are three main categories of changes: contract changes, internal contractor replanning, and formal reprogramming. Each of these gets implemented differently. [Kate] How do you know which type of change you need? [Program Manager]Well, at the highest level, we can determine this by answering some simple questions. Does the change require us to modify the project scope? If it does, then you are talking about a contract change. If the project scope hasn't changed, can the work still be completed within the existing schedule and budget? If it can, the contractor typically still needs to internally replan work packages to adjust to project realities. Also, as time passes, the contractor will need to convert planning packages to work packages. [Kate] What happens if the scope hasn't changed, but the contractor tells us the remaining budget is
4 significantly insufficient to complete the work? [Program Manager] You've just asked the third question. A case like this may require formal reprogramming of the remaining work resulting in a total budget that exceeds the contract budget base, or baseline schedule that exceeds contract milestones, or both. This is also known as an over target baseline. [Kate] That one sounds pretty serious. [Program Manager] It is. Fortunately, it shouldn't happen a lot, especially if we've been paying attention to performance measurement and analysis. [Kate] It seems to me that any of these changes are going to affect the program's performance measurement baseline, or PMB. [Program Manager] That's a good observation, Kate. Any change we make, regardless of type, will require us to revise the PMB. So let's take a closer look at what we learned in our analysis and see what type of changes we might need to make to manage the LAR contract. [Narrator] Welcome to Module 6, Baseline Maintenance.
5 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Pr ocess and Revising the PMB Throughout the life of any program, it is likely you will need to make changes. These changes may affect the program scope, requiring contract changes, or they may require replanning or reprogramming the existing scope of work. To maintain the performance measurement baseline ( PMB ) and the usefulness of Earned Value Management ( EVM), once changes have been identified, the PMB must be revised to reflect these changes. Define to EVM I Execute 1 Requirements -- Contract... I Page2of4 I...
6 1 -, EVMlOl Fundamentals of Earned Value Management EVM Process and Revising the PMB Throughout the life of any program, it is likely y ou will need to make changes. These changes may affect the program scope, requiring contract changes, or they may require replanning or reprogramming the existing scope of work. To maintain the ~~~9 ' -;Q """"._""-'"""-'"""'""'"""<Q.l-"""'-"'"'"'---"'"""""" ' """""'""'"'"'~""'""'"IIIP.iue Management ( E Define EV M Requirements these changes. What are the cost, schedule, and performance parameters? Define EVM Requirements Organize t o I Execute --- Contract... I Page2of 4 I...
7 1 -, EVMlOl Fundamentals of Earned Value Management EVM Process and Revising the PMB To maintain the Management ( E changes. Organize t o Execute Contract What are the contractual EVM requirements? Are appropriate systems and structures in place? EIA-748 Guidelines 1-5: Organization ue these Define EVM Requirements Organize t o I Execute --- Contract... I Page2of4 I...
8 1 -,_ Organize EVMlOl Fundamentals of Earned Value Management EVM Process an Throughout the the program sco existing scope o To maintain the Management ( E changes. Re>~i.sinn.Jh~=' Develo p the PMB What needs to be done? When must it be done? How much will it cost? What are the risks? EIA- 748 Guidelines 6-15: Planning, Scheduling & Budgeting s may affect ming the ue these Define EVM Requirements t o I Execute --- Contract... I Page2of 4 I...
9 1 -, EVMlOl Fundamentals of Earned Value Management EVMProcessanct- --~-- ~ ~ ~ Measure & Document Performance Throughout the s may affect the program sco How much of the planned work is accomplished to date? ming the existing scope o How much did that work cost? To maintain the Management ( E changes. What v ariances exist between budgeted, earned, and actual costs? EIA-748 Guidelines 16-21: Accounting Considerations EIA-748 Guidelines 22-27, Analysis and Management Reports ue these Define EVM Requirements Organize t o I Execute --- Contract... I Page2of 4 I...
10 1 -, EVMlOl Fundamentals of Earned Value Management EVM Process and Revising the PMB Throughout the r 'les may affect the program sco Analyze ming the existing scope o Is the work on schedule? To maintain the ue Management (E Are the costs on budget? these changes. Given the analysis, what action is needed? EIA-748 Guidelines 22-27: Analysis and Management Reports Define EVM Requirements Organize to I Execute --- Contract... I Page2of4 I...
11 1 -, EVMlOl Fundamentals of Earned Value Management EVM Pr ocess and Revising the PMB Throughout the life of any program, it is likely y ou will need to make changes. These changes may affect the program scope, requiring contract changes, or they may require replanning or reprogramming the existing scope of work. ~ ~ To maintain the Rev ise PMB ue Management ( E these changes. Giv en the analysis, does any thing need to be revised in the PMB? EIA- 748 Guidelines 28 32: Revisions and Data Maintenance Define EVM Requirements Organize t o I Execute --- Contract... I Page2of 4 I...
12 EVMlOl Fundamentals of Earned Value Management EVM Pr ocess and Revising the PMB Throughout the life of any program, it is likely you will need to make changes. These changes may affect the program scope, requiring contract changes, or they may require replanning or reprogramming the existing scope of work. To maintain the performance measurement baseline ( PMB ) and the usefulness of Earned Value Management ( EVM), once changes have been identified, the PMB must be revised to reflect these changes. l o ng Descriptio n Six step EVM process. 1. Define EVM Requirements, 2. Organize to Execute Contract, 3. Develop PMB, 4. Measure and Document Performance, 5. Analyze Performance and T ake Corrective, and 6. Revise PMB. Step 6 is highlighted.... I Page2of 4 I...
13 EVMlOl Fundamentals of Earned Value Management Module Overview This module, Baseline Maintenance, contains four lessons that introduce how the contractor and the Government implement changes to the PMB....,,,, -- MYOOAI.S Lesson lesson 1: Introduction to EVMS PMB Revision Processes Terminal Learning Objective -- "'... Recognize contractor PMB maintenance processes, as documented in their Earned Value Management Systems (EVMS) l esson 2: Incorporating Contract Changes lesson 3: Contractor Replanning Processes l esson 4: Formal Reprogramming Recognize EVMS processes for incorporation of contract changes into the PMB Recognize contractor internal replanning processes as a category of change to the PMB Describe the use of formal reprogramming using over target baseline/ over target schedule (OTB/ OTS) to implement changes to the PMB... I Page 3of4 I...
14 EVMlOl Fundam entals of Earned Value Managem ent lesson 6.0 Module I ntr oduction RESOURCES 1 PRINT 1 HELP lesson Completion You have comple ted the content for this lesson. T o continue, select another lesson from the T able o f Contents on the le ft. If you have closed or hidden the T able of Contents, click the Show T OC button at the top in t he Atlas navigation bar.... I Poge 4of4 I...
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EVMlOl Fundam entals of Earned Value Managem ent lesson 4.0 - Module Introduction RESOURCES I PRINT I HELP Module 4 W elcome - Measuring Pe.rformance October... I Poge 1of4 I... Module 4 Welcome - Me.asuring
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In this lesson you will learn what the performance measurement baseline (PMB) is and examine the components that comprise the PMB. The terminal learning objective for this lesson is to explain key points
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