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?

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.

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.

Planning, Scheduling and Budgeting

• Planning, Scheduling, and Budgeting - A three-stage iterative process.
• Proper design of a scheduling system.
• Integrating cost and schedule.
• Scheduling: Mechanics and Policies
• Integrated Master Plan and Integrated Master Schedule
• Scheduling Mechanics
• Critical Path methodology
• Network scheduling concepts

Managing Schedule Risk

• Schedule Risk Assessments

Schedule Status

• Statusing - where are we now?
• Forecasting - where are we going?
• Baseline vs. current schedule
• Schedule forecast vs. Schedule % Complete
• EV %Complete vs. Schedule %Complete

Planning, Scheduling and Budgeting (continued)

• Budget Summary Relationship

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.

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.

Estimates, Indices and Forecasts

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

Combined CPM Data with Performance Measurement

Schedule Analysis Combining SPI, CPI, and Critical Path (PS Case Study #16)

An exercise to apply the techniques learned in Tabs 3-6, combining CPM and EVM schedule data

Variance Analysis

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

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.

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.

Top Management Use of Earned Value Data

• Graphical presentations.

The Use of Performance Measurement Data

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

Course Evaluation Sheet

Adjourn