Ndia pmsc august 28, 2006 Baseline eia-748 Earned Value Management Systems contents page




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NDIA PMSC -- August 28, 2006 Baseline EIA-748

Earned Value Management Systems
CONTENTS

Page

Foreword iii

1. INTRODUCTION 1

2 EVMS GUIDELINES 3

2.1 Organization 3

2.2 Planning, Scheduling, and Budgeting 3

2.3 Accounting Considerations 4

2.4 Analysis and Management Reports 5

2.5 Revisions and Data Maintenance 5

2.6 Common Terminology 6

3 EVMS PROCESS DISCUSSION 9



3.1 Statement of Work (SOW) 9

3.2 Work Breakdown Structure 9

3.2.1 WBS Dictionary 9



3.3 Program Organization 9

3.3.1Control Accounts 10

3.3.2 Control Account Managers 10

3.3.3 Earned Value Management Flow Down Subcontract Management 10

3.3.4 Intraer OrganizationCompany Work Transfers 10

3.4Program Schedule 11

3.4.1 Master Schedule 11

3.4.2 Supporting Schedules 11

3.4.3 Subcontract/Procurement Schedules 11



3.5Budget Allocation and Resource Planning 11

3.5.1 Program Budget 12

3.5.2Elements of Control 12

3.5.3 Budget Rates 12

3.5.4 Management Reserve 12

3.5.5Undistributed Budget 13

3.5.6Work Authorization 13

3.5.7Resource Plan/Time-Phased Budgets 13

3.5.8Planning Packages 13

3.5.9Higher Level Accounts Summary Level Planning Packages 14

3.5.10 Work Packages 14

3.5.11Planning Package Conversion 14

3.5.12 Performance Measurement Baseline 14

3.5.13Funding Issues 15



3.6 Accounting Considerations 15

3.6.1 Cost Associated with Material Costs 15

3.6.2 Cost Associated with Flow Down Effort 15

3.7 Earned Value Methodology 15

3.7.1 Discrete Effort 15

3.7.2 Apportioned Effort 16

3.7.3Level of Effort 16



3.8Performance Measurement 16

3.8.1 Schedule Performance 16

3.8.2 Cost Performance 17

3.8.3 Apportioned Effort 17

3.8.4 Level Of E Effort 17

3.8.5 Price/Usage Analysis (Material) 17

3.8.6Performance Analysis/Exception Reports 17

3.9 Estimates at Completion 18

3.9.1Frequency 18

3.9.2 Content 18

3.10 Revisions and Data Maintenance 18

3.10.1 Retroactive Changes 18

3.10.2 Authorized Changes 19

3.10.3Internal Replanning 19

3.10.4Operating Schedules/Plans 19

3.10.5Over-Target Baseline (OTB) 19

4 SYSTEM DOCUMENTATION 19

20


5 SYSTEM EVALUATION 20

5.1Evaluation Process 20

5.2Prior System C/SCSC Acceptance 20

5.3 System Surveillance 21



Foreword

The earned value management system guidelines incorporate best business practices to provide strong benefits for program or enterprise planning and control. The processes include integration of program scope, schedule, and cost objectives, establishment of a baseline plan for accomplishment of program objectives, and use of earned value techniques for performance measurement during the execution of a program. The system provides a sound basis for problem identification, corrective actions, and management replanning as may be required.


The guidelines in this document are purposely high level and goal oriented as they are intended to state the qualities and operational considerations of an integrated management system using earned value analysis methods without mandating detail system characteristics. Different organizations companies must have the flexibility to establish and apply a management system that suits their management style and business environment. The system must, first and foremost, meet the organization’s company needs and good business practices.

#1. Address the appropriate form of recognition in a standard with GEIA

Appreciation is extended to the team that drafted this standard and to the individuals and professional organizations that supported the initial development efforts. The team that prepared and coordinated the original guidelines was an industry team staffed and chaired by members of the Management Systems Subcommittee of the National Defense Industrial Association. The EVMS work team that drafted the initial guidelines included Bob Pattie (Boeing Aerospace), John Pakiz (McDonnell Douglas), Gary Humphreys (Humphreys and Assoc.), Tom Jennings (Lockheed Martin) Paul Solomon (Northrop Grumman), Gail Saltzman (Rockwell), Harry Sparrow (Performance Management Associates), and Bob Surrency (Lockheed Martin) who chaired the team. This team reported to Art Anderson (Texas Instruments), chairman of the Management Systems Subcommittee. Their efforts were supported by the American Shipbuilding Association, Electronic Industries Association, Performance Management Association, and the Shipbuilders Council of America. Each of these organizations provided valuable inputs and encouragement to the industry team efforts. Notable individual contributors were Tom Shaw (EIA), Frank Losey (SCA). Appreciation is also extended to the representatives of the Department of Defense and Defense Contract Management Command who have supported implementation of these same guidelines in the government sector. Special appreciation is extended to Gary Christle (DoD), Wayne Abba (DoD), and Kevin Kane (DCMC). Others have since become involved, organizations have changed and people have changed positions, but this notice of appreciation recognizes the names and business units who contributed so much to the origination of this standard.

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE, SCHEDULE, AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

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