DOCSLIB.ORG

Earned Value Management Systems Interpretation Handbook Evmsih (2.0)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Earned Value Management Systems Interpretation Handbook Evmsih (2.0) m EARNED VALUE MANAGEMENT SYSTEMS INTERPRETATION HANDBOOK EVMSIH (2.0) The Mission of the Energy U.S. DEPARTMENT OF ENERGY Department is to Ensure OFFICE OF PROJECT MANAGEMENT America’s Security and OVERSIGHT AND ASSESSMENTS (PM) Prosperity by Addressing WASHINGTON, D.C. Its Energy, Environmental and Nuclear Challenges AUGUST 2016 through Transformative Science and Technology Solutions This page is intentionally blank. II TABLE OF CONTENTS 1.0 INTRODUCTION ................................................................................................................. 1 1.1 EVMS Policy and Intent ....................................................................................................... 1 1.2 Purpose of the EVMSIH ....................................................................................................... 2 1.3 EVMS Compliance ............................................................................................................... 4 1.4 Materiality ............................................................................................................................ 6 1.5 Content and Format of the EVMSIH ..................................................................................... 6 1.6 Approach to Terminology ..................................................................................................... 8 1.7 General Topics to Understand Guideline Intent ................................................................... 9 2.0 ORGANIZATION ................................................................................................................ 11 Guideline 1 – Define the WBS ........................................................................................................ 13 Guideline 2 – Define the Project OBS ............................................................................................. 17 Guideline 3- Integrate Subsidiary Management Processes ............................................................ 19 Guideline 5 ‐ Integrate WBS/OBS to Create Control Accounts ..................................................... 21 3.0 PLANNING, SCHEDULING, AND BUDGETING ............................................................. 25 Guideline 6 – Scheduling Work ..................................................................................................... 28 Guideline 7‐ Identify Products and Milestones for Progress Assessment ..................................... 49 Guideline 8 ‐ Establish the Performance Measurement Baseline (PMB) ....................................... 51 Guideline 9‐ Authorize and Budget by Cost Elements ................................................................... 57 Guideline 10 ‐ Determine Discrete Work and Objective Measures ............................................... 61 Guideline 11 ‐ Sum WP/PP Budgets to Control Account ................................................................ 71 Guideline 12 ‐ Level of Effort (LOE) Planning and Control ............................................................ 72 Guideline 14 ‐ Identify MR and UB ................................................................................................ 74 Guideline 15 ‐ Reconcile to Target Costs ....................................................................................... 77 4.0 ACCOUNTING CONSIDERATIONS ................................................................................. 79 Guideline 16 ‐ Record Direct Costs ............................................................................................... 80 Guideline 17 ‐ Summarize Direct Costs by WBS Elements ............................................................. 87 Guideline 18 ‐ Summarize Direct Costs by OBS Elements .............................................................. 89 Guideline 20 ‐ Identify Unit and Lot Costs ...................................................................................... 91 Guideline 21 ‐ Track and Report Material Cost/Quantities ........................................................... 93 5.0 ANALYSIS AND MANAGEMENT REPORTS .................................................................... 98 Guideline 22 ‐ Calculate Schedule Variance and Cost Variance ................................................... 99 Guideline 23 ‐ Analyze Significant Variances .............................................................................. 104 Guideline 25 ‐ Summarize Performance Data and Variances for Management Reporting ......... 107 Guideline 26 ‐ Implement Corrective Actions ................................................................................ 108 Guideline 27‐ Maintain Estimate At Completion .......................................................................... 111 III 6.0 REVISIONS AND DATA MAINTENANCE .................................................................... 118 Guideline 28 – Incorporate Changes in a Timely Manner ............................................................. 120 Guideline 29 – Maintain Baseline and Reconcile Budgets ............................................................ 124 Guideline 30 – Control Retroactive Changes ................................................................................ 132 Guideline 31 – Prevent Unauthorized Revisions ........................................................................... 136 Guideline 32 – Document PMB Changes ...................................................................................... 138 7.0 INDIRECT CONSIDERATIONS ...................................................................................... 139 Guideline 4 ‐ Identify Overhead Management ............................................................................. 140 Guideline 13 ‐ Establish Overhead Budgets ................................................................................. 143 Guideline 19 ‐ Record/Allocate Indirect Costs ............................................................................. 145 Guideline 24 ‐ Analyze Indirect Cost Variances............................................................................ 147 APPENDIX A – ACRONYMS AND ABBREVIATIONS ................................................................. 149 APPENDIX B – DEFINITIONS AND SOURCES ......................................................................... 151 APPENDIX C – REFERENCES ................................................................................................... 162 APPENDIX D – TABLE OF QE LOIs (Numerical Order) .......................................................... 163 IV LIST OF FIGURES Figure 1 - EIA-748 EVMS Guidelines by Management Area Plus Indirects .................................. 3 Figure 2 - EIA-748 EVMS by Management Process ....................................................................... 5 Figure 3 – Companion Document: EVMSIH Test Objectives by QE LOI ....................................... 8 Figure 4 - Sample WBS .................................................................................................................. 16 Figure 5 - Construction Sample WBS ............................................................................................ 16 Figure 6 - WBS and OBS Integration and Control Account .......................................................... 22 Figure 7 - Single Numbering Schema ............................................................................................ 32 Figure 8 ‐ Resource Allocation ...................................................................................................... 48 Figure 9 - EVMS Requirements – Source PM EVM Training Snippet 1.1 .................................... 50 Figure 10 - Time Phasing the PMB ............................................................................................... 52 Figure 11 - Baseline Hierarchy ..................................................................................................... 53 Figure 12 - IPMR/CPR Format 1, Column 13 Reprogramming Adjustments ............................... 55 Figure 13 - Element of Cost Vertical Alignment ........................................................................... 59 Figure 14 ‐ QBD Example ............................................................................................................. 69 Figure 15 ‐ Estimated Actuals Example ........................................................................................ 83 Figure 16 - Example Revisions and Data Maintenance Process ................................................ 119 Figure 17 - Freeze Period Changes ............................................................................................ 125 Figure 18 - Single Point Adjustment Approaches ....................................................................... 135 Figure 19 - Example thresholds for indirect pool variance analysis .......................................... 148 V DOCUMENT CHANGE CONTROL VERSION DATE BRIEF DESCRIPTION OF UPDATES 1.0 September 30, 2015 • Initial Release 1.1 (DRAFT) January 07, 2016 • Break Fix Changes • Test Formula Updates • Define Thresholds for Automated Tests • Clarifications • Not formally released but used to guide analysis/ testing during Roadside Assist Visits and Compliance Assessments during V2.0 development 2.0 August 31, 2016 • Moderate Content Changes • Consolidate Duplication and Redundancy • Separate Out QE LOI Testing Protocols in Companion Document • Streamline and Formatting Changes VI 1.0 INTRODUCTION 1.1 EVMS POLICY AND INTENT Earned Value Management (EVM)
Load more

Recommended publications
  • Integrating the Accounts Payable and Procurement Functions
    PERSPECTIVE Driving excellence together: Integrating the accounts payable and procurement functions Abstract The accounts payable (AP) and procurement functions are two sides of the same coin. A key factor toward making these functions deliver outstanding results is the integration of their transactional and strategic activities. This paper provides a perspective on the approach to be followed while setting up an integrated procure- to-pay function (P2P). Background While recent trends across the world continues to maintain its relevance. ended up being just a cosmetic exercise in are heavily tilted towards automation in Although this need is felt all around, many renaming department names as ‘procure-to- accounts payable, the need for a well- organizations have failed on the execution pay’, ‘requisition-to-pay’, or ‘procure-to-settle’. integrated procure-to-pay (P2P) function that front. More often than not, an enterprise’s While the intent was good, the results have can drive accounts payable (AP) performance drive towards an integrated P2P function has not always been impressive. Tying the procurement and accounts payable functions together The AP and procurement functions hold The key focus areas of these two functions are detailed in the table below. great potential to unleash the synergies in their key objectives, focus areas, and Key Focus Area Procurement Accounts Payable challenges. Let us look at these briefly. Faster procurement of goods or services Yes – The key objective of a procurement team Procure at best possible price Yes – is to procure goods and services within Obtain invoices on time Indirect Yes stipulated timelines at the best available Process invoices in timely fashion – Yes price, whereas that of an AP team is to Pay invoices on time Yes Yes process and pay invoices on time.
    [Show full text]
  • RFP for Enterprise Resource Planning System (ERP) RFP Title: Procurement
    RFP Number: RFP # IS18-14 RFP for Enterprise Resource Planning System (ERP) RFP Title: Procurement Submittal Deadline Deadline November 17, 2017 @ 4:00 PM PST Name Patricia Garcia, Buyer Submittal Form VIA EMAIL ONLY Email [email protected] RFP TIME LINE: The anticipated schedule for this RFP is as follows: Activity Date/Time RFP Issue Date October 4, 2017 Pre-Proposal Conference Call October 13, 2017, 10:00 AM – 11:00 PM PST Final Written Questions Due October 20, 2017, 4:00 PM PST Final Addenda Posted October 27, 2017 Proposal Submission Deadline November 17, 2017, 4:00 PM PST Shortlist Notification December 15, 2017 Onsite Demonstrations January 2018 Recommendation to Council March 2018 Purchasing Division 300 West Third Street Oxnard, CA 93030 (805) 385-7538 www.oxnard.org September 27, 2017 Ladies and Gentlemen: The City of Oxnard invites proposals from qualified vendors to provide all or part of an Enterprise Resource Planning solution for the City. The City will consider solutions that are Software-as-a- Service (Saas) or On-Premises systems; preference will be given to the systems where functionality is superior. Vendor’s proposals will be preferred if they are providing most, if not all, components of a complete solution, even if they are partnering with other vendors to complete their solution. This request for proposal is made up of the following sections: A. RFP Narrative, which includes the City’s General Terms and Conditions and two (2) Attachments, a sample Consulting Services Agreement and insurance requirements, B. Functional Requirements, and C. Proposal Response Forms. For your bid, you are required to return B and C in their native format as provided and completed by your firm.
    [Show full text]
  • Manual on Financial Management and Procurement for RMSA
    Manual on Financial Management and Procurement for RMSA Government of India Ministry of Human Resource Development Department of School Education and Literacy Dated: January 24, 2012 Table of Contents Page Abbreviations and Acronyms 04 Chapter 1 Introduction 07 Chapter 2 Capacity Building 12 Chapter 3 Planning and Budgeting 15 Chapter 4 Fund Flow, Financial Management & Reporting 19 Chapter 5 Accounting 26 Chapter 6 Monitoring, Internal Control and Internal Audit 40 Chapter 7 Statutory Audit 51 Chapter 8 Procurement 56 2 Annexures Annexure Description Page No. Annexure-I Calendar for Preparation of AWP&Bs 84 Annexure-II Format for Costing Sheet 86 Annexure-III Suggestive list of Activities and Norms under RMSA 92 Annexure IV Utilisation Certificate Format 102 Annexure-V Provisional Utilisation Certificate (Recurring) cum 104 expenditure Statement for previous year Annexure-VI-A Quarter-wise Financial Statement for the current year 105 Annexure-VI-B Expenditure statement for previous year 106 Annexure-VII Activity-wise expenditure report 107 Annexure-VIII Cumulative non-recurring progress report 111 Annexure-IX Statement on fund flow at SPO 113 Annexure-X Statement on fund flow at DPO 114 Annexure-XI Status of staff for finance unit at SPO and DPO 115 Annexure-XII Status of capacity building of staff for finance unit at 116 SPO and DPO Annexure-XIII Status of audit, audit report and annual report 117 Annexure-XIV Register of Fixed Assets 118 Annexure-XV Advance Register 119 Annexure-XVI Sample Chart of Accounts (RMSA) 120 Annexure-XVII
    [Show full text]
  • Financial Performance Is King. Clarity PPM Makes Managing Investments Easy
    Financial performance is king. Clarity PPM makes managing investments easy. Being a finance manager can be a thankless task. Finance managers are rarely, if ever, included in project planning, and if they are involved in the tracking of progress it’s generally limited to status reports—forwhich they are dependent on the project manager. At the same time, all stakeholders expect to have the latest, most accurate information on the project financial situation available to them at all times, in a format thatis tailored to their own individual needs. To compound the problem, project management and financial management systems have traditionally been siloed: Projects are managed using resources and effort, with little attention given to cost. This means financial managers need to manually extract project data and map it to costs in their system, because at the end of the day, the financial metrics are what’s most essentialto the business. It doesn’t have to be this way. 33 percent of organizations don’t track project benefits after completion.1 33% 1 “What’s really going on in your organization—projects, people and performance” ProjectManagement.com 2016 2 Relieving the Pains The financial management pain truly is a self-inflicted The solution to that problem requires greater wound. Organizations create environments and integration and alignment between financial approaches that fail to align project delivery with the management and every other aspect of project financial elements of that delivery, and then they fail delivery. to optimize financial performance because of that lack of insight. 3 Pain: No one wants to play with finance When financial managers aren’t involved in project decisions, mistakes get made.
    [Show full text]
  • Some Collaborative Systems Approaches in Knowledge-Based Environments
    18 Some Collaborative Systems Approaches in Knowledge-Based Environments Mihaela I. Muntean West University of Timisoara, Faculty of Economics and Business Administration Romania 1. Introduction Collaboration represents a strategic alternative to the monolithic approach to business development and competition. It involves a different approach to business – focused on managing business relationships between people, within or without groups, and within and between organizations. Fig. 1. Collaboration – A Business Strategy (http://literacy.kent.edu/CommonGood ) In the present global economy, strongly influenced by IT (information technology) and information systems evolution, the modern organizations try to face the challanges by adjusting their strategies and restructuring their activities, for aligning them to the new economy requirements. It is certain, that the enterprise’s performance will depend on the capacity to sustain collaborative work. The evolution of information systems in these collaborative environments led to a sudden necessity to adopt, for maintaining all kind of virtual activities/processes, the latest technologies/systems that are capable to support integrated collaboration in business services. It is obvious that, all collaborative environments (workgroups, practice communities, collaborative enterprises) are based on knowledge, and between collaboration and knowledge management (KM) there is a strong interdependence. Therefore, we focused on how collaborative systems are capable to sustain knowledge management and their impact on optimizing the KM life cycle. Some issues regarding collaborative systems are explored and a portal-based IT solution that sustains the KM life cycle is highlighted. In addition, an agile development framework for portals will be proposed www.intechopen.com 380 New Research on Knowledge Management Models and Methods 2.
    [Show full text]
  • Why Procurement Professionals Should Be Engaged in Supply Chain
    business solutions for a sustainable world WBCSD Future Leaders Team (FLT) 2011 Why procurement professionals should be engaged in supply chain sustainability “The Future Leaders Team is an unparalleled of common challenges – across sectors – and learning experience for young managers of WBCSD shared best practices. Above all, they experienced member companies. They have the opportunity to what is recommended here: engaging people in understand the benefits of why sustainability matters sustainability. I am convinced that they brought back to business and to develop a solid international valuable knowledge and information to their jobs.“ and professional network. Sustainability is complex subject is some cases, and it is therefore crucial for Congratulations to Eugenia Ceballos, John Zhao, multinational companies to enrich their work with Baptiste Raymond, and to all participants of the other companies’ experiences through collaboration. Future Leaders Team 2011! FLT 2011’s theme was sustainability in the supply chain, which is increasingly considered as an area of direct responsibility for companies. The following report reflects FLTs’ peer learning experience and team work. This is not the work of experts or consultants. Rather, the three managers from DuPont China, Holcim and Lafarge, took this opportunity Kareen Rispal, to engage with key people across functions and Lafarge Senior Vice President, geographies within their companies. In doing Sustainable Development so, they have deepened their understanding and Public Affairs I. Why procurement functions all stakeholders involved in bringing products and services to market. should be engaged in sustainability for their We believe that a sustainable supply chain can drive supply chain: competition and profit, and is a great opportunity to make a difference to companies, communities 1.
    [Show full text]
  • Managing the Configuration of Information Systems with a Focus on Security
    MANAGING THE CONFIGURATION OF INFORMATION SYSTEMS WITH A FOCUS ON SECURITY Shirley Radack, Editor Computer Security Division Information Technology Laboratory National Institute of Standards and Technology U.S. Department of Commerce Organizations have to make frequent changes to their information systems in order to implement new and updated hardware and software components, correct software flaws and other errors, address new security threats, and adapt to changing business objectives. These constant changes result in adjustments being made to the configuration of information systems; these activities could have an impact on the security of the systems and operations. In developing information systems, organizations employ many components that can be interconnected in different arrangements to meet the organization’s business, mission, and information security needs. To protect information systems and information, organizations need techniques for the secure configuration, operation, and management of system components, including mainframes, workstations, servers, networks, operating systems, middleware, and applications, and for the management and control of risks to systems and information. The Information Technology Laboratory (ITL) at the National Institute of Standards and Technology (NIST) has issued a new guide to help organizations develop a well-defined process for managing and controlling secure system configurations, and for managing risks in information systems. NIST Special Publication 800-128, Guide to Security- Focused
    [Show full text]
  • Collaboration: a Framework for School Improvement Collaboration: a Framework for School Improvement
    Collaboration: A Framework for School Improvement Collaboration: A Framework for School Improvement LORRAINE SLATER University of Calgary Abstract: The ability to work collaboratively with others is becoming an essential component of contemporary school reform. This article reviews current trends in school reform that embody collaborative principles and also draws on the literature to provide a theoretical overview of collaboration itself. The article then outlines the findings from a qualitative, self-contained focus group study that involved 16 individuals (parents, teachers, and administrators) who were selected using a purposeful sampling technique. According to Patton (1990), “the purpose of purposeful sampling is to select information rich cases whose study will illuminate the questions under study” (p.169). Accordingly, because of their experience in collaborative school improvement activities, the participants were able to assist the researcher in addressing the general research question, what are the understandings, skills, and attitudes held by participants in school improvement initiatives that result in successful collaboration. This study allowed the essential nature of collaboration to show itself and speak for itself through participants’ descriptions of their experiences. The findings are presented within a graphic conceptualization that not only represents the large number of issues that participants identified in their collaborations, but also demonstrates the complexity of the interrelations between these issues and school improvement. The model provides a framework for thinking about the school improvement process that is anchored in collaboration. Introduction Themes of teacher empowerment and professionalism, school-based management, shared decision making, and choice and voice for parents have dominated school reform in the last decade.
    [Show full text]
  • Ensuring Sound Financial Management Elizabeth Norton-Schaffer University of San Francisco, [email protected]
    The University of San Francisco USF Scholarship: a digital repository @ Gleeson Library | Geschke Center Public and Nonprofit Administration School of Management 2010 Ensuring Sound Financial Management Elizabeth Norton-Schaffer University of San Francisco, [email protected] Follow this and additional works at: http://repository.usfca.edu/pna Part of the Nonprofit Administration and Management Commons Recommended Citation Norton-Schaffer, E. (2010) Ensuring Sound Financial Management. In M. Carlson and M. Donohoe (Eds.), The Executive Director’s Guide to Thriving as a Nonprofit Leader (229-244). Jossey-Bass. ISBN: 978-0-470-40749-3 This Book Chapter is brought to you for free and open access by the School of Management at USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. It has been accepted for inclusion in Public and Nonprofit Administration by an authorized administrator of USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. For more information, please contact [email protected]. chapter Ensuring Sound Financial SEVENTEEN Management By Elizabeth Norton-Schaffer Your organization is a mission - based business, not a charity. — Peter Brinckerhoff, Mission - Based Management s an Executive Director, you are constantly balancing the A pursuit of the mission and the fi nancial sustainability of your organization. Financial oversight cannot be delegated; it lies at the heart of your accountability to your Board, your stakeholders, and your nonprofi t ’ s legal requirement to uphold the public
    [Show full text]
  • Business Rule Based Configuration Management and Software System Implementation Using Decision Tables
    Business Rule Based Configuration Management and Software System Implementation Using Decision Tables Olegas Vasilecas, Aidas Smaizys Vilnius Gediminas Technical University, Sauletekio av. 11, LT-10223 Vilnius, Lithuania [email protected], [email protected] Abstract. Deployment and customization of the software in different information systems of separate organizations challenge large requirement conformity, project and specification management, design and architecture complexity, code integration, compatibility and interoperability issues, frequently causing the need of reengineering through the entire all the system development lifecycle. The paper proposes new business rule based method of information system configuration management and automated way of configuration implementation into the final software system code. 1 Introduction Business systems are functioning according to business rules in specific business domain. Due to dynamic of its nature, business environment is changing frequently according to internal and external influences such as changes in law, new competition etc. [1]. However Business rules (BR) of particular problem domain are similar in several organizations but they are never applied the same way even they depend on the same legal regulations. Production and implementation of such a software system into the large amount of slightly different information systems of separate organizations challenge large requirement conformity, project and specification management, design and architecture complexity,
    [Show full text]
  • Earned Value Management (EVM) System Description
    NASA/SP-2019-3704 Earned Value Management (EVM) System Description National Aeronautics and Space Administration November 1, 2019 Electronic copies are available from: NASA STI Program: https://wwww.sti.nasa.gov NASA STI Information Desk: [email protected]/ (757) 864-9658 Write to: NASA STI Information Desk Mail Stop 148 NASA Langley Research Center Hampton, VA 23681-2199 NASA Engineering Network (NEN) at https://nen.nasa.gov/web/pm/ (inside the NASA firewall only). OCFO-SID EVM Homepage at https://community.max.gov/dis- play/NASA/Earned+Value+Management+HOMEPAGE (inside the NASA firewall only) RECORD OF REVISIONS R E DESCRIPTION DATE V Basic Issue November 2013 1 Incorporate IPMR, ANSI/EIA-748 reference change March 2016 2 Added EVM reciprocity, scalability and new EVM $250M threshold January 2018 Added SMD Class-D EVMS Deviation, revised Intra-Agency Work Agree- ment EVM requirements, updated links, updated NASA EVMS requirements 3 September 2019 thresholds chart, deleted special publication numbers from references, cor- rected Data Requirements Description acronym, minor edits, etc. NASA EVM System Description ii ii TABLE OF CONTENTS P.1 Purpose ............................................................................................................ vi P.2 Applicability ..................................................................................................... vii P.3 Authority .......................................................................................................... vii P.4 References .....................................................................................................
    [Show full text]
  • ITIL Asset and Configuration Management in the Cloud
    ITIL Asset and Configuration Management in the Cloud January 2017 © 2017, Amazon Web Services, Inc. or its affiliates. All rights reserved. Notices This document is provided for informational purposes only. It represents AWS’s current product offerings and practices as of the date of issue of this document, which are subject to change without notice. Customers are responsible for making their own independent assessment of the information in this document and any use of AWS’s products or services, each of which is provided “as is” without warranty of any kind, whether express or implied. This document does not create any warranties, representations, contractual commitments, conditions or assurances from AWS, its affiliates, suppliers or licensors. The responsibilities and liabilities of AWS to its customers are controlled by AWS agreements, and this document is not part of, nor does it modify, any agreement between AWS and its customers. Contents Introduction 1 What Is ITIL? 1 AWS Cloud Adoption Framework 2 Asset and Configuration Management in the Cloud 3 Asset and Configuration Management and AWS CAF 5 Impact on Financial Management 5 Creating a Configuration Management Database 6 Managing the Configuration Lifecycle in the Cloud 8 Conclusion 9 Contributors 10 Abstract Cloud initiatives require more than just the right technology. They also must be supported by organizational changes, such as people and process changes. This paper is intended for IT service management (ITSM) professionals who are supporting a hybrid cloud environment that leverages AWS. It outlines best practices for asset and configuration management, a key area in the IT Infrastructure Library (ITIL), on the AWS cloud platform.
    [Show full text]