LCLS Project Management Project Document # 1.1-015 Management Revision 3.0 Earned Value Management System Description Patricia Mast (LCLS Project Controls Signature Date Manager) Mark Reichanadter (LCLS Deputy Project Director) Signature Date John Galayda (LCLS Project Director) Signature Date Change History Log Rev Revision Sections Description of Change Number Date Affected 0.0 01/18/2006 All Initial version released. 1.0 03/09/2006 All Complete rewrite and reformat 2.0 10/03/2007 1.3.8, App. B MR, Contingency definition update 3.0 11/13/2007 All Changed text to make the System Description for all SLAC projects, not just LCLS. Stanford Linear Accelerator Center (SLAC Earned Value Management System Description Table of Contents Table of Contents INTRODUCTION .................................................................................................................................................. V PROJECT ORGANIZATION AND PRELIMINARY PLANNING...............................................................1 1.1 PROJECT STRUCTURE ....................................................................................................................1 1.1.1 Objective [Guide 1, 2, 3 {2.1a, b, c}] ................................................................................................1 1.1.2 Project Execution Plan [Guide 3 {2.1c}] ..........................................................................................1 1.1.3 Work Breakdown Structure [Guide 1 {2.1a}]....................................................................................1 1.1.4 Work Breakdown Structure Dictionary [Guide 1 {2.1a}] .................................................................2 1.1.5 Organizational Breakdown Structure [Guide 2 {2.1b}] ....................................................................2 1.1.6 Responsibility Assignment Matrix [Guide 3, 5 {2.1c, e}]..................................................................2 1.2 PROJECT SCHEDULE.......................................................................................................................2 1.2.1 Objective [Guide 6, 7 {2.2a, b}]........................................................................................................2 1.2.2 Schedule Development [Guide 6, 7 {2.2a, b}]...................................................................................3 1.3 PLANNING AND BUDGETING .......................................................................................................4 1.3.1 Objective [Guide 8, 9, 15 {2.2c, d, j}] ...............................................................................................4 1.3.2 Performance Measurement Baseline [Guide 8, 9, 15{2.2c, d, j}] .....................................................4 1.3.3 Control Accounts [Guide 3, 5, 18 {2.1c, e, 2.3c}] .............................................................................5 1.3.4 Control Account Planning [Guide: 3, 5, 8, 9, 10, 11, 30 {2.1c, e, 2.2c, d, e, f, 2.5c}] ......................5 1.3.5 Work Packages [Guide 3, 7, 9, 10, 11, 12 {2.1c, 2.2b, d, e, f, g}].....................................................6 1.3.6 Planning Packages [Guide 3, 7, 9, 10, 11 {2.1c, 2.2b, d, e, f}].........................................................7 1.3.7 Acquisition Planning [Guide 2, 9, 10, {2.1b, 2.2d, e}]......................................................................7 1.3.8 Management Reserve/Contingency and Undistributed Budget [Guide14 {2.2i}] .............................7 1.4 WORK AUTHORIZATION................................................................................................................8 1.4.1 Objective [Guide 3 {2.1c}] ................................................................................................................8 1.4.2 Contractual Authorization [Guide 3 {2.1c}] .....................................................................................8 1.4.3 Work Authorization Document [Guide 3 {2.1c}]...............................................................................8 EARNED VALUE ANALYSIS AND PROGRESS REPORTING ................................................................11 2.1 EARNED VALUE.............................................................................................................................11 2.1.1 Requirements for Employing Earned Value Methodology [Guide 7, 12 {2.2b, g}].........................11 2.1.2 EV Measurement Techniques [Guide 7, 12 {2.2b, g}].....................................................................11 2.1.2.1 Discrete Effort.................................................................................................................................... 12 2.1.2.2 Level of Effort (LOE) ........................................................................................................................ 12 2.2 STATUS AND EARNED VALUE CALCULATION.......................................................................12 2.2.1 Objective..........................................................................................................................................12 2.2.2 Performance Measurement Data [Guide 22, 23 {2.4a, b}].............................................................12 2.2.3 Evaluation of Planned Value [Guide 7, 12, 22, 23 {2.2b,g, 2.4a,b}] ..............................................14 2.2.4 Current Schedule Progress Evaluation [Guide 22, 23 {2.4a, b}]....................................................14 2.3 PERFORMANCE ANALYSIS .........................................................................................................15 2.3.1 Objective..........................................................................................................................................15 2.3.2 Variance Analysis [Guide 22, 23, 25 {2.4a, b, d}] ..........................................................................16 2.3.3 Variance Thresholds [Guide 22, 23, 25 {2.4a, b, d}] ......................................................................16 2.3.4 Performance Indices [Guide 22, 23, 25 {2.4a, b, d}] ......................................................................16 2.3.5 Control Account Performance Analysis [Guide 22, 23, 25, 26, 27 {2.4a, b, d, e, f}]......................17 2.3.6 Project Performance Analysis [Guide 22, 23, 25, 26, 27 {2.4a, b, d, e, f}].....................................17 2.3.7 Monthly Project Status Calculations and Forecasts [Guide 22, 23, 25, 27 {2.4a, b, d, f}].............18 2.4 REPORTING.....................................................................................................................................18 2.4.1 Objective..........................................................................................................................................18 i LCLS Earned Value Management System Description 2.4.2 General Reporting [Guide 25, 26 {2.4d, e}] ...................................................................................18 2.4.3 Monthly Reporting Cycle [Guide 22, 23, 25 {2.4a, b, d}] ...............................................................19 ACCOUNTING ..................................................................................................................................................21 3.1 ACCOUNTING PROCESSES ..........................................................................................................21 3.1.1 Objective..........................................................................................................................................21 3.1.2 Cost Accounting Policy [Guide 16 {2.3a}]......................................................................................21 3.1.3 Cost Code Structure [Guide 16, 17, 18, 19 {2.3a, b, c, d}] .............................................................21 3.1.4 Cost Accumulation [Guide 16 {2.3a}].............................................................................................22 3.1.5 Direct Labor Cost [Guide 16 {2.3a}]..............................................................................................22 3.1.6 Material Cost and Accounting [Guide 16, 21 {2.3a, f}]..................................................................22 3.1.7 Subcontract Cost [Guide 16 {2.3a}]................................................................................................22 3.1.8 Other Direct Cost (ODC) [Guide 16 {2.3a}] ..................................................................................23 3.1.9 Indirect Cost Accumulation [Guide 13, 19 {2.2h, 2.3d}] ................................................................23 3.1.10 Accounting Adjustments [Guide 19, 30 {2.3d, 2.5c}]......................................................................23 3.2 INDIRECT COST PLANNING AND CONTROL............................................................................23 3.2.1 Objective..........................................................................................................................................23 3.2.2 Indirect Cost Pools [Guide 4, 13, 19, 24 {2.1d, 2.2h, 2.3d, 2.4c}]..................................................23 3.2.3 Allocation of Indirect Costs to Projects [Guide 4, 13, 19, 24 {2.1d, 2.2h, 2.3d, 2.4c}] ..................23 3.2.4 Revisions to Indirect Rates [Guide 4, 13, 19, 24 {2.1d, 2.2h, 2.3d, 2.4c}]......................................23 3.3 MATERIAL ACCOUNTING [G UIDE 20, 21 {2.3 E , F }] ...................................................................24 SUBCONTRACT MANAGEMENT ................................................................................................................25