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1 EVMlOl Fundam entals of Earned Value Managem ent lesson Module Introduction RESOURCES I PRINT I HELP Module 1 W elcome - EVM in the Acquisition Environment I... I Poge1of4 I...
2 EVMlOl Fundamentals of Earned Value Management Module 1 Welcome - EVM in the Acquisition Environment Team meeting displays. Program manager displays. Text displays: lightweight, Assault and Reconnaissance, or LAR, Vehicle Program. LAR requirements display: maneuverable, easily transportable, and capable of rapid deployment. Text displays: ACAT-1 Engineering and Manufacturing Development, or EMD, Program. LAR EMD contract document displays. Text displays: single contract award, $100 million, and 3 years. APB diagram displays illustrating cost, schedule, and technical performance risk. Kate, the intern, displays. Earned Value Management, or EVM, purpose displays: manage contractor performance, identify, evaluate, and manage risks, and provide valid data with which to make management decisions. EVM key concerns display: What is EVM? How is EVM implemented? What are the policies and guidelines? When is EVM applied? Schedule analyst displays. Question displays: How does the Government use EVM information? -... I Pa gelof 4 I...
3 Closed Captioning [Project Manager - Female Character] I would like to welcome Kate, our new intern in the Program Management Office. Kate comes to us with a lot of experience working on small contracts. She is transitioning to our team to learn about the unique challenges of managing DoD acquisition programs. Kate, you will be working on our Lightweight, Assault and Reconnaissance, or LAR, program. Let me start by providing a little background on this program. Our warfighters expressed the need for a small, maneuverable, and easily transportable vehicle that can be rapidly deployed anywhere in the world. The solution the LAR vehicle. This is an Acquisition Category 1 program, and we are currently in the Engineering and Manufacturing Development, or EMD, phase. A single contract will be awarded for the development and manufacture of four prototype vehicles. This is a large, highly visible program, with a Research, Development, Test and Evaluation, or RDT&E budget objective of $100 million dollars and a schedule of 3 years. It will require tight controls and management to make sure we meet our cost, schedule, and performance objectives. Kate, you will play a key role in supporting the management of this LAR EMD program. Do you have any questions so far? [Kate the Intern - Female character] Not about the LAR EMD program specifically but I do have a lot of questions about how to manage such a large program! [PM] Well, I ve asked for the program team s support in explaining the use of Earned Value Management, or EVM, as a tool to manage the contractor s cost and schedule performance, provide valid data to give program managers early warning of cost and schedule performance problems, and provide information for decision making. Kate, I m sure you re already aware of the problems that programs often face with cost growth and schedule slippage. We use EVM to manage large, risky programs and keep them on track. Do you have any specific questions about EVM? [Kate the Intern - Female character] I know I have a lot to learn! My first questions are fundamental: What exactly is EVM, and why do we use it? How is EVM effectively implemented on a project? Are there any policies or guidelines that I need to know? And when is EVM applied to a contract?
4 [EVM Analyst, Charles Knight] Great questions Kate! I think it s also valuable to see how the Government and contractor work together to effectively use EVM to manage contract cost and schedule performance. [Kate] Thanks, I see I ll learn a lot from everyone. [Narrator] Welcome to Module 1, EVM in the Acquisition Environment.
5 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Process Earned Value Management ( EVM) is a method of managing projects that integrates the technical performance, schedule, and cost parameters of a contract. How does the project team carry out EVM? This course has six modules which address the following key activities involved in implementing and using EVM to manage programs. Module 1 explains what EVM is and deals with various topics related to defining EVM requirements. to I Execute --- Contract
6 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Pr ocess Earned Value Management ( EVM) is a method of managing projects that integrates the technical performance, schedule, and cost parameters of a contract. How does the project team carry out EVM? This course has six modules which address the followin ke activities involved in im lementing and using EVM to manag Define EV M Requirements ated to defining EVM requireme What are the cost, schedule, and performance parameters? ~ ~~;e ~ Requirements to I Execute --- Contract
7 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Pr ocess Earned Value Management ( EVM) is a method of managing projects that integrates the technical performance, rry out EVM? Organize t o Ex e cute Contract This course ha ting and using EVM to manag What are the contractual EVM requirements? ated to defining EVM requireme Are appropriate systems and structures in place? EIA- 748 Guidelines 1-5: Organization ~ ~~;e ~ Requirements to I Execute --- Contract
8 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Process Earned Value performance, This course ha EVM to manag EVM requireme Dev elop 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 hnical rry out EVM? ting and using ated to defining ~ ~~;e t o 1 I Execute ~ Requirements --- Contract
9 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Process Earned Value performance, This course ha EVM to manag EVM requireme Measure & Document Performanc e How much of the planned work is accomplished to date? How much did that work cost? What variances exist between budgeted, earned, and actual costs? EIA- 748 Guidelines 16-21: Accounting Considerations EIA- 748 Guidelines 22-27: Analy sis and Management Reports hnical rry out EVM? ting and using ated to defining ~ ~~;e t o 1 I Execute ~ Requirements --- Contract
10 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Process Earned Value performance, Analyze hnical rry out EVM? Is the work on schedule? This course ha ting and using EVM to manag Are the costs on budget? ated to defining EVM requireme Given the analysis, what action is needed? EIA-748 Guidelines 22-27: Analysis and Management Reports ~ ~~;e ~ Requirements to I Execute --- Contract
11 1 -, Organize EVMlOl Fundamentals of Earned Value Management EVM Process Earned Value Management ( EVM) is a method of managing projects that integrates the technical performance, schedule, and cost parameters of a contract. How does the project team carry out EVM? This course ha EVM to manag EVM requireme Revise PMB Given the analysis, does any thing need to be revised in the PMB? EIA- 748 Guidelines 28-32: Revisions and Data Maintenance ting and using ated to defining ~ ~~;e to 1 I Execute ~ Requirements --- Contract
12 EVMlOl Fundamentals of Earned Value Management EVM Pr ocess Earned Value Management ( EVM) is a method of managing projects that integrates the technical performance, schedule, and cost parameters of a contract. How does the project team carry out EVM? This course has six modules which address the following key activities involved in implementing and using EVM to manage programs. Module 1 explains what EVM is and deals with various topics related to defining EVM requirements. l o n g De scriptio 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, and 6. Revise PMB. Step 1 is highlighted.
13 EVMlOl Fundamentals of Earned Value Management Module Overview This module, EV M in t he Acquisit ion Environm ent, contains three lessons that introduce the foundations of EVM....,,,, MYOOAI.S - Lesson Terminal Learning Objective - "'... lesson 1: Key Concepts of Earned Value Management Recognize key concepts about EVM as a program management tool that integrates cost, schedule, and technical performance lesson 2: Earned Value Management System Guidelines lesson 3: DoD EVM Policy and Implementation Activities Describe the Earned Value Management System (EVMS) guidelines Describe DoD EVM policy and implementation activities... I Page3of 4 I...
14 EVMlOl Fundam entals of Earned Value Managem ent lesson 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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