Introduction

• Discussion of workshop approach.
• Review of notebook contents.

Introduction to the Earned Value Concept

• Problems with comparing plan versus actual to ascertain performance.
• Earned Value - An essential parameter.

The Brick Wall

• An illustrative example of Earned Value methods.

Introduction to Earned Value Management Systems (EVMS)

• The essential features of a disciplined Earned Value Management System.
• Objectives and policies of customer-implemented requirements.
• What are the benefits to the Customer?
• Why should the seller implement an Earned Value Management System?
• Who uses Earned Value?
• The evolution of Earned Value Management.

Organization and Work Definition

• WBS defined.
• Purposes of a WBS.
• Developing a WBS for standard and non-standard systems.
• Trade-off assessments on determining the number of levels in the WBS.
• Negotiating the WBS with the customer.
• Purpose and importance of defining WBS elements.

Work Breakdown Structure (EVMS Case Study #1)

     A concise exercise in developing a WBS considering conflicting purposes, alternative orientations, and varying levels of detail.

Responsibility Assignment

• Matrixing the organization structure with the WBS.
• Essential features of a Control Account.
• Guidance in the identification of Control Account levels and contents.
• Why the Control Account is the driving factor in system cost and how to minimize this cost.
• Integrating management subsystems around the WBS and Control Accounts.

Control Account Definition (EVMS Case Study #2)

     An exercise involving relating the WBS developed previously to the organization structure, taking into consideration the trade-offs between detailed or summary Control Accounts.

Planning, Scheduling and Budgeting

• Planning, Scheduling, and Budgeting - A three-stage iterative process.
• Proper design of a scheduling system.
• Horizontal and Vertical Integration.
• Critical Path.
• Integrating cost and schedule.
• Management philosophies on Management Reserve and Undistributed Budgets.

Measuring Accomplishment

• Description of Work Measurement classifications.
• Work Packages defined.
• Discrete Work Measurement techniques.
• Milestone Characteristics.
• Rolling Wave - How far in the future must you plan?
• Summary Planning Packages and their use.

Integrated Baseline Review (IBR)

• What to expect during the IBR Process.

Transmission Design Control Account Plan (EVMS Case Study #3)

     A comprehensive, but concise, exercise involving selecting appropriate Earned Value methodologies and calculating the budget and Earned Value for a sample Control Account.

Accounting

• Why Actual Cost of Work Performed (ACWP) is different from "actual costs".
• Structuring an effective cost control code for accumulating Actual Costs of Work Performed.
• Common problems and solutions to accumulating material costs for performance measurement.
• "Enlightened" customer requirements on material costs.
• How to identify meaningful material variances.

Analysis

• Identifying cost and schedule variances.
• Methods of portraying variances.

Variance Calculation Exercise (EVMS Case Study #4)

     A simplistic exercise in the calculation of cost and schedule variances.

Earned Value Methods (EVMS Case Study #5)

     An exercise involving the determination of BCWS and BCWP based on selected Earned Value Methods.

Estimates, Indices and Forecasts

• Developing Estimates at Completion (EAC)
• Utilization of Performance Indices

Performance Efficiency Factors and Estimate at Completion (EVMS Case Study #7)

     A simplistic exercise requiring the calculation of past and future efficiency factors and an Estimate At Completion forecast.

Variance Analysis

• Interpreting cost and schedule variance.
• What constitutes a significant variance?
• Writing useful Variance Analysis Reports.
• Comparing past and future efficiency factors.

Variance Analysis Report Critique (EVMS Case Study #6)

     A comparison and evaluation of alternative Variance Analysis Reports.

Reporting

• What types of financial reports are required and what is their purpose?
• How to prepare and interpret the various reports.
• Reconciling funds reports with performance reports - An accuracy check.
• Differences in reporting requirements.

Highway Case (EVMS Case Study #8 – Scheduling and Cost)

     A reinforcement of variance calculation, performance indices, and EAC analysis.

Revisions and Baseline Maintenance

• The importance of baseline management.
• Obtaining a balance between a firm baseline and the requirement for replanning flexibility.
• How the baseline is affected by various changes.
• Acceptable reasons for retroactive changes to the baseline.

Project/Contract Budget Base (PBB/CBB) Log Preparation (EVMS Case Study #9)

     A concise exercise on how changes affect the budget and how to document them.

Top Management Use of Earned Value Data

• Graphical presentations.

Earned Value Management System Development

• How to implement an EVM System.
• Cost factors to develop and operate an EVM System.
• Common problems and solutions.

The Validation Process

• What to expect during the Validation Process.

The Use of Performance Measurement Data

• Definition of key data elements.
• Review of course to date.

Appendix

Course Evaluation Sheet

Adjourn