David Kester, Director Operations EVM Implementation Division of the DCMA presented an update on the EVMS compliance processes at the NDIA PMSC in January of this year. In that presentation there were 6 minimal allowable acceptance criteria for an Earned Value Management System
- Ensure a clear definition of the work prior to the beginning of that work
- Present a logical plan for accomplishing the work
- Provide an objective measure of of accomplishments
- Provide an early and accurate identification of the trends and issues
- Provide an accurate picture of contract status
- Provide a basis for the corrective actions
What this means is simple, concise, and critical to the success of any program.
- The definition of work starts with the Work Breakdown Structure. As well as the Integrated Master Plan. Both are needed to define what done looks like in units of measure meaningful to the decision makers. Planning Packages can be used. Emergent rolling waves can be used. Successful CLINs can be used. But in the end, the customer is going to want to know what can be delivered inside the budget and the schedule.
- The logical plan is represented by the Integrated Master Schedule. The IMS is composed of Work Packages and Planning Packages, arranged in a network, with a Critical Path, with schedule and cost margin protecting the deliverables of each Work Package. Getting to done has to be defined in some way in order to have a successful project. Otherwise the work is just level of effort and progress means spending money and the passage of time.
- The measures of accomplishments must be in Measures of Effectiveness, Measures of Performance, Technical Performance Measures, all supported by Quantifiable Backup Data (QBD). This is where Earned Value measures percent complete. The business value can be measured too, so those making the claims EV is not Business Value can connect the dots.
- The early and accurate identification of trends and issues is defined and reviewed on weekly status reviews starting on Physical Percent Complete. It's all about the numbers. It's always about the numbers.
- The contract status must be available minimally monthly, including Contract Funds Status Report (CFSR) and the Contract Performance Report (CPR) that defines the past performance and the future forecast showing CPI and SPI.
- For all variances must be corrective actions to keep the program GREEN or the planned date for getting back to GREEN and the date GREEN will appear.