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1 EVMlOl Fundam entals of Earned Value Managem ent lesson Module Introduction RESOURCES I PRINT I HELP Module 4 W elcome - Measuring Pe.rformance October... I Poge 1of4 I...
2 Module 4 Welcome - Me.asuring Perfor mance I l ong Descrip t ion EVM Analyst and October IPMR icon display. Kate, the intern, displays. Key concerns display: What information does the IPMR provide? and How does the contractor measure progress, or realize BCWP? Chart displays representing the performance measurement baseline, or PMB, for the LAR contract over time, from contract start to contract end. The contract value is sixty-five million dollars, with a two million dollar management reserve. The chart depicts the BCWS through contract end, the BCWP and ACWP through time now, and the projected ACWP from time now through contract end. The chart also displays the cost variance between BCWP and ACWP, and the schedule variance between BCWS and ACWP. Additional key concerns display: How does the contractor calculate cost and schedule variances and metrics? and How can EVM metrics be used to understand contract performance? Systems engineer, cost estimator and schedule analyst icons display. II... I Pagelof 4 I... ~AU
3 Closed Captioning [EVM Analyst] Hi Kate, We just received the latest Integrated Program Management Report, or IPMR, from our contractor. Do you want to take a look at it and tell me what you think? [Kate the Intern] Sure, Charles, but I am not sure what I should be looking for. It s been awhile, and I need to refresh my memory on what is in an IPMR. [EVM Analyst] I can walk you through each of the seven formats and the type of data contained in each. [Kate the Intern] I do remember that the IPMR documents show how much work has been accomplished. How does the contractor measure performance? [EVM Analyst] The contractor control account managers determine their work accomplished the budgeted cost for work performed or BCWP using a number of different EVM techniques. They compare the BCWP to the actual cost of work performed (ACWP) and to the budgeted cost for work scheduled, BCWS. If there are variances, they determine the root causes, and develop workaround plans. [Kate the Intern] You ll walk me through how the contractor measures BCWP? [EVM Analyst] Yes, I ll do that. I'll also show you how the contractor calculates schedule and cost variances to the performance measurement baseline. Even though these calculations are performed by the contractor, it s important that the Government understand the data we ll be using to track contract performance. We need to understand how the contractor arrived at the metrics to help us determine if we agree with the contractor conclusions and so that we can act and make informed decisions to keep the contract on track. [Kate] Whatever you need, I d be happy to help. [EVM Analyst] Thanks. It s pretty straightforward. Once you have it down, I d love your help analyzing this performance data on a continuous basis.
4 [Kate] What if there are significant variances? [EVM Analyst] We defined the criteria for determining a significant variance in the IPMR Contract Data Requirements List, or CDRL. You should familiarize yourself with the criteria in the CDRL and review the IPMR Format 5 to understand the root cause, impact and, corrective action for these significant variances. You will work with the technical IPT members, and with the schedule analyst to help with the analysis and next steps. [Narrator] Welcome to Module 4, Measuring Performance.
5 EVM Process and Measuring Performance The contractor has established the performance measurement baseline ( PMB), which is used to assess performance throughout the program. Now, the contractor measures and documents performance so it can be compared against the PMB.... I Page2of4 I...
6 EVM Process and Measuring Performance The contractor has established the performance measurement baseline ( PMB), which is used to assess performance throughout the program. Now, the contractor measures and documents performance so it can be compared against the PMB. Define EV M Requirements What are the cost, schedule, and performance parameters?... I Page2of 4 I...
7 EVM Pr ocess and Measur ing Performance The contractor has established the performance measurement baseline ( PMB ), which is used to assess performance throu hout the ro ram. Now, the contr Organize t o Ex e cute Contract What are the contractual EVM requirements? Are appropriate systems and structures in place? EIA- 748 Guidelines 1-5: Organization the PMB.... I Page2of 4 I...
8 EVM Process aflme"51ldnjj..e~ad.ounan.i Develo p the PMB The contractoi performance t What needs to be done? ed to assess Now, the contr When must rt be done? the PMB. How much will it cost? What are the risks? EIA- 748 Guidelines 6-15: Planning, Scheduling & Budgeting... I Page2of 4 I...
9 EVM Pr ocess ar '-'.I Measure & Document Performance The contractoi performance t How much of the planned work is accomplished to date? ed to assess Now, the contr How much did that work cost? the PMB. What variances exist between budgeted, earned, and actual costs? EIA- 748 Guidelines 16-21: Accounting Considerations EIA- 748 Guidelines 22-27, Analysis and Management Reports... I Page 2 of 4 I... Ba ck
10 EVM Process and Measuring Performance The contractor: 'led to assess performance t 1 Analyze Performance & Take Corrective Action Now, the contr Is the work on schedule? the PMB. Are the costs on budget? Given the analysis, what action is needed? EIA-748 Guidelines 22-27: Analysis and Management Reports... I Page2 of 4 I...
11 EVM Pr ocess and Measur ing Perfor mance The contractor has established the performance measurement baseline ( PMB ), which is used to assess performance throughout the program. Now, the contrr-._ _"i: the PMB. Rev ise PMB Given the analysis, does any thing need to be revised in the PMB? EIA- 748 Guidelines 28-32: Revisions and Data Maintenance... I Page2of 4 I...
12 EVM Process and Measuring Performance The contractor has established the performance measurement baseline ( PMB ), which is used to assess performance throughout the program. Now, the contractor measures and documents performance so it can be compared against the PMB. l ong De script ion Six step EVM process. 1. Define EVM Requirements, 2. Organize to Execute Contract, 3. Develop PMB, Del 4. Measure and Document Performance, 5. Analy ze EVI Performance and Take Corrective Action, and 6. Revise PMB. Step 4 is highlighted. Rec... I Pa ge2of 4 I...
13 Module Overview This module, Measuring Performance, contains three lessons that introduce how the contractor calculates Earned Value Management (EVM) metrics and documents performance measurement information in the Integrated Program Management Report (IPMR)....,,,, MYOOAI.S - Lesson Terminal Learning Objective - "'... lesson 1: Documenting Performance Measurement Information Describe how the contractor monthly performance measurement information is documented in the IPMR and submitted to the Government l esson 2: Measuring Progress lesson 3: Earned Value Management Metrics Recognize the fundamentals of integrated performance measurement Calculate EVM metrics... I Page 3of 4 I...
14 EVMlOl Fundam entals of Earned Value Managem ent lesson 4.0 Module Introduction 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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In this lesson you will learn about how contractors measure progress and report program performance in the Integrated Program Management Report ( I PMR). The terminal learning objective for this lesson
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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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