EVM Training

Implementing an Earned Value Management System (EVMS) Training Program

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A previous blog titled “Retaining EVMS Talent” provided a list of essential components of a successful training and retention program. This blog elaborates on establishing a defined training program as part of a mentoring process. The intent is to guide employees in the technical, schedule, cost estimating, cost analysis, or risk disciplines to become skilled control account managers (CAMs) as a stepping stone to become a project manager or high level manager. This reinforces a commitment to excellence in project management and helps to ensure a high level of EVMS proficiency. 

As noted in the Retaining EVMS Talent blog, a good approach is to chart a path for someone starting with a planning and scheduling role on a smaller project and then advancing them through various project types, different project control roles, and then on to larger more complex projects. The objective is to help employees broaden their experience and knowledge base, mature their skill sets, and build an internal professional network. This is illustrated in the following image from the Retaining EVMS Talent blog.

The goal for establishing a training program is to support this process of guiding and mentoring personnel as well as maturing their expertise to maintain a level of excellence in EVMS. Like any other training or education program, there should be a foundation of basic training courses that progress to more advanced and targeted training.

What is the Challenge?

A common situation H&A earned value consultants encounter is that companies often lack the internal resources to produce and maintain a library of training courses, especially for clients that are new to earned value management. Creating a training program appears to be a daunting task; they need help figuring out a training program. They also need help producing their training materials.

For other clients, as noted in another blog titled “Earned Value Management (EVM): How Much is Enough?”, DCMA may have pointed out that their EVMS project control practices have atrophied. DCMA is questioning whether their EVMS is providing timely, accurate, reliable, and auditable data. Maintaining the EVMS status quo often regresses toward non-compliance. These clients often request H&A earned value consultants to review their training materials and provide recommendations. A frequent finding is that the training content is limited to a few days of training, woefully out of date, or ineffective.

Begin with Defining the Training Program

Whether for a company that is new to EVM or needs to revamp their current approach, a good place to start is to develop and implement a formal training program. This training should focus not only on excellence in planning, scheduling, and EVM practices, but also how to effectively implement the EVMS on a project. Project personnel should have a good understanding of how to use the applicable schedule, cost, analysis, and risk tools to manage a project in alignment with their EVM System Description requirements.

Companies with an EVMS self-governance process in place are also better informed about areas where targeted training may be needed. The training program should be routinely updated to quickly address recent internal findings. For example, perhaps the internal team is finding that project control teams are having difficulty producing their Variance Analysis Reports (VARs). They could add a hands-on training workshop on how to perform in-depth analysis and produce useful narrative content for these reports using the project control tools of choice. Project personnel should know how to concisely describe the issue, the root cause, the potential scope and impact of the problem, and best options for corrective actions to mitigate the issue. They should have the knowledge base to substantiate their analysis and corrective action.

We also recommend including a path for project personnel to become certified to demonstrate they have the experience and expertise to successfully handle various project control issues.

The following table provides a basic training program framework. 

Basic Advanced Example Training Workshops
EVMS Concepts Advanced Earned Value Techniques*
  • Performing EVM Data Quality Assessments*
  • Completing VARs*
  • Developing an Estimate to Complete (ETC) and Estimate at Completion (EAC)*
Scheduling* Advanced Scheduling Techniques*
  • Performing Schedule Data Quality Assessments*
  • Performing Schedule Risk Assessments (SRA)*
  Additional workshops tailored to environment or event preparation
  • Agile and EVM Integration*
  • CAM Mentoring with Data Traces*
  • IBR Preparation*
  • Surveillance or Compliance Review Preparation*
  Discipline Certifications
  • Control Account Manager (CAM)
  • Project Controls/Analyst (PC/A)

* Where possible, the training should incorporate the schedule, cost, analysis, data quality assessment, or risk tools and artifacts (inputs or outputs) as part of the hands-on workshop case studies or exercises. Project personnel should know how to use the tools to view, sort, filter, and analyze data. 

Quick Start Options for Producing and Maintaining Training Content

A quick start option we offer companies setting up or updating their training content is to license the H&A training materials for use as part of their EVMS training curriculum. The license includes all files associated with the workshop including PowerPoint files with speaker notes, case study files in various formats, Desired Learning Objectives, Agenda, Table of Contents, and a hard copy of the workshop. Commonly licensed workshops include the H&A Three-Day EVMS and Three-Day Project Scheduling for Primavera P6 or Microsoft Project courses as a foundation. Companies typically tailor these source materials to include artifacts used in their business environment. 

Licensing H&A training materials reduces the time needed to produce and maintain quality training materials. H&A earned value consultants actively maintain our training materials to reflect current industry best practices, DCMA Business Practices or DOE EVMS Compliance Review Standard Operating Procedures as well as DoD or DOE EVM policy, guides, and requirements. The annual license fee includes updates to the H&A training materials.

To ensure companies licensing our materials are able to conduct the training on demand internally, we recommend completing at least one Train the Trainer session for each workshop with the company’s training team. These sessions provide insight into the intent and training objective of each slide. The H&A instructors work with the company’s training team to review the instructor notes as well as to provide feedback and mentoring as needed highlighting key concepts as the training team learns to present the material. Where applicable, this session also identifies where the standard H&A training material may need to be tailored to reflect the company’s EVMS.

Another option is to leverage the H&A online EVMS Virtual Learning Lab (VLL) or Scheduling VLL. These VLLs provide an intensive 21 hours of instruction. The VLLs cover the principles of earned value management or project scheduling along with case studies, exercises, and examples. The student’s knowledge is tested so they obtain immediate feedback with scored quizzes, case studies, and exams. The courses can be used as a refresher or for personnel who want to learn the basics at their own pace. The VLLs can also be part of an overall training initiative to track course progress with certificates for completion. A number of H&A clients use this feature of the H&A online training to track a student’s progress or level of knowledge. Other clients have incorporated the H&A VLLs into their standard internal training curriculum as the following A&D contractor did. 

“Several years ago, we made the strategic decision to invest in the H&A Scheduling and EVMS Virtual Learning Lab modules, which have since become the cornerstone of our in-house training program. These modules offer a comprehensive and exhaustive guide to Program Management, catering to a wide range of professions involved in the development and maintenance of Integrated Master Schedules (IMSs) and using Earned Value to plan, track, analyze, and report program performance. This audience includes Program Managers, Finance Analysts, Scheduling Analysts, Business Managers, and Control Account Managers (CAMs).”
— Director, Program Process & Services, A&D Contractor

Discipline Certifications

Another component of successful training programs is encouraging employees to pursue industry professional certifications. Common project control related professional certifications include the Project Management Institute (PMI) Project Management Professional (PMP) or the Association for the Advancement of Cost Engineering (AACE) International Certified Cost Professional (CCP) and Earned Value Professional (EVP). PMI and ACCE International encourage those who have earned their certifications to actively maintain them by completing additional training or attending conference sessions to earn Continuing Education Units (CEUs) or Professional Development Units (PDUs).

A number of our clients also incorporate the H&A CAM Certification or Project Controls/Analyst (PC/A) Certification into their advanced training curriculum to ensure they have highly proficient project personnel. Both certification workshops culminate with an in-person examination similar to PMI or AACE International. Either the client or H&A proctors and grades the exam. H&A is an Authorized Training Partner (ATP) for PMI and an approved education provider for AACE International.  H&A is also registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of Continuing Professional Education (CPE).

The H&A Five Day CAM Certification course is ideal for anyone already a part of a project management team. The course work spans the five EVMS guideline process areas in the EIA-748-D Standard for EVMS: 1) Organization, 2) Planning, Scheduling and Budgeting, 3) Accounting Considerations, 4) Analysis and Management Reports, and 5) Revisions and Data Maintenance. Risk and opportunity management topics are also incorporated with an emphasis on data quality, integrity, and traceability. EVM best practices and the use of EVMS data are highlighted along with insights, methods, and approaches that result in better management and decision making.

The H&A Five Day Project Controls/Analyst (PC/A) Certification course is an intensive workshop that focuses on analyzing problems and determining appropriate actions to resolve them. It is intended to build upon a student’s basic EVM skills with wide-ranging advanced EVM and project analysis coursework to develop insightful analytical skills in various areas of project controls.

Next Steps

Need help developing an EVMS training program or producing effective training content? As the preeminent leader in EVMS training, H&A actively maintains a vast library of materials and offers various course options that can help shorten the time to implement an EVMS training program. Our professional instructors have extensive experience in evaluating training requirements, designing comprehensive training plans, developing client-specific instructional material using our library of training materials, and presenting training workshops. Call us today at (714) 685-1730 to get started.

Implementing an Earned Value Management System (EVMS) Training Program Read Post »

Improving Integrated Master Schedule (IMS) Task Duration Estimates

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Improving Integrated Master Schedule (IMS) Task Duration Estimates

One of the top reasons projects fail is because of poor task duration estimating for an integrated master schedule (IMS). Without accurate and consistent estimates, project outcomes can become unpredictable, leading to missed deadlines, budget overruns, and overall project failure. A realistic schedule is required to place the necessary resources in the correct timeframe to adequately budget the work as well as to produce credible estimates to complete and to forecast completion dates. While missed deadlines and budget overruns are detrimental for any project, there can be additional business ramifications when producing schedules in an Earned Value Management System (EVMS) contractual environment.

While there are effective methods available to improve task duration estimates, they are often underutilized. A common reason for this oversight is the lack of time allocated to developing the project schedule and determining task durations.

During the proposal phase, initial durations are typically estimated at a more summary level than the detailed execution phase. The proposed work is often defined at a level one to two steps higher than where the actual tasks will be performed. After project initiation, the team’s initial effort is to break the work down into more manageable tasks. This decomposition is crucial for achieving more accurate estimates. It’s no surprise, then, that the initial breakdown efforts often result in duration estimates that don’t align with the proposed durations.

Parkinson’s Law tells us that work expands to fill the time available. If task durations are excessively long, costs will inevitably rise. To counter this, it’s important to require estimators to provide both the estimated effort and the duration needed to accomplish the task. This approach helps to gain a better understanding of the scope of the task and to avoid unrealistic estimates. If you see a task that requires 10,000 hours with a duration of 2 weeks, then you immediately would suspect something is wrong with the estimates.

Techniques for Developing More Accurate Task Duration Estimates

What are your options? H&A earned value consultants and senior master schedulers often employ the following techniques to help a client produce a more realistic IMS.

  1. Establish a Probability Goal. It is essential to set clear expectations for the estimating team. Without guidance, teams may default to estimates with a 50/50 probability of success, which is a recipe for failure. Instead, directing the team to aim for estimates within a 75% to 80% probability range can lead to better outcomes.
  2. Break Down Tasks. Decompose tasks into smaller, more manageable components. The further out the task’s horizon, the greater the variability in estimates. For example, asking someone to estimate the drive time from Washington, DC, to Boston without specifying the vehicle, route, limitations, or conditions introduces unnecessary uncertainty.
  3. Use Professional Judgment. Engage someone with experience in the specific type of work required for the task. A seasoned expert will provide more accurate duration estimates based on their knowledge and experience. Often, we ask the potential task manager to do the estimate, but that person may not be the one with the most related experience or knowledge about the work.
  4. Leverage Historical Data. If the task or a similar one has been done before, use that historical data to inform the estimate. This approach provides a realistic benchmark for future estimates.
  5. Use generative AI. If you have access to an AI capability along with access to historical data, that could be an option to leverage the source data using specific prompts to glean relevant information. As with all AI tools, always verify the generated results to ensure it is a useful basis to substantiate the estimate.
  6. Apply Parametric Estimating. When possible, use parametric analysis to estimate the durations. For example, if it took a specific number of days to clean up a certain amount of toxic waste under similar conditions, this data can be used to estimate the duration of a new but comparable task.
  7. Engage Multiple Estimators. Gathering estimates from more than one person helps to reduce individual biases and provides a more rounded estimate.
  8. Apply the Delphi Method. This technique involves three knowledgeable individuals providing estimates or three-point estimates. The initial estimates are analyzed, and the results are shared with the estimators without attributing specific values to any individual. After discussing the findings, the estimators revise their estimates based on the collective insights, leading to a more refined and accurate duration estimate.
  9. Use Three-Point Estimates. Ask estimators to provide best-case (BC), most likely (ML), and worst-case (WC) durations, along with their reasoning. Applying a formula like the Program Evaluation and Review Technique (PERT) duration formula (1BC+4ML+1WC)/6 can yield an adjusted and realistic estimate. You can vary the best and worst case estimate for risk if you have information on that.

    To see how this simple approach can work, walk through this exercise. Ask yourself how long it takes you to drive to work most of the time. Let’s say the answer is 45 minutes. Then ask yourself how long it would take on a Sunday morning in the summer when the roads were dry (the best case). Let’s say your answer is 25 minutes. Then ask yourself how long it would take on a Monday morning in the winter during a moderate snow event (the worst case). You tell yourself 90 minutes. Now you have enough information to calculate the PERT duration.

    Best Case = 25 minutes
    Most likely = 45 minutes
    Worst Case = 90 minutes
    PERT Duration = (25 + 180 + 90)/6 = 49 minutes

    Finally, let’s say you ask yourself how likely it is that you end up on the high side instead of the low side. If your answer is it is much more likely to encounter conditions that slow you down, you would modify the formula to use one and a half times the worst case (25 + 180 + 135)/6 = 57 minutes. That longer duration shows the impact of your impromptu risk analysis and provides a duration that has a much higher probability of being achievable.

    Now think about the same scenario but conducted by you interviewing three people who drive the same route to work. That would approximate the Delphi method.
  1. All or something less. It may not be necessary to analyze every task to the degree suggested. Even if you could do the analysis along the top several critical paths that would be an improvement. If you were to apply numerical factors to the tasks in related portions of the project that would be impactful. For example, all mechanical design tasks or all software development tasks.

What is the best approach?

You will need to analyze your project and determine which approach or approaches would yield useful information at a reasonable cost. If you apply your own thinking on how to improve your duration estimates, you will undoubtedly find a method most suitable for your situation. Depending on a project’s complexity and risk factors, you may also find it useful to take a more formal approach. Conducting a schedule risk assessment (SRA), a probabilistic assessment of a project’s outcome, can help you gain a better understanding of where the duration risk exists in the schedule.

H&A earned value consultants and scheduling subject matter experts often assist clients to establish basic guidance to help scheduling personnel to get into the habit of adequately defining tasks and using techniques to improve duration estimates. This is critical to be able to produce well-constructed and executable schedules to improve the likelihood of achieving project technical, schedule, and cost objectives.

H&A offers a range of project scheduling training workshops that can help schedulers to implement industry best practices. These workshops also cover how to take the next step to implement advanced scheduling techniques such as schedule risk assessments to ensure the schedule is realistic and achievable. H&A earned value consultants and master schedulers often provide one-on-one mentoring using the scheduling tool of choice to help scheduling personnel work through the learning curve of using advanced network scheduling techniques to produce executable schedules.  

Call us today at (714) 685-1730 to get started.

Improving Integrated Master Schedule (IMS) Task Duration Estimates Read Post »

Contract Performance Example – Cost Variance Trend

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Monitoring the cost of a project is crucial in order to ensure that it stays within budget and is completed on time. One way to track this is by analyzing the cost variance, or the difference between the actual cost of the project and the budgeted cost. In this video, we will examine a specific example of a cost variance trend that has raised red flags and is causing concern. As the project nears its estimated completion date, the cost variance has dipped into negative territory and appears to be worsening. The chart in this video also provides a visual comparison of variances at completion to the current cost variance.

The cost variance in this video is a significant trend that has crossed into negative territory and appears to be decreasing even further past year 4, which is the estimated completion date. With so little time remaining, the negative cost variance trend is obviously a cause for concern. The chart in the video also shows visually the comparison of variances at completion to the current cost variance that we mentioned in the previous chart in the vidoe.

More EVMS Training

Take your EVMS training to the next level with our online course that is based on Humphreys & Associates’ highly regarded three-day EVMS workshop. We also offer a version of this same EVM training course customized for Department Of Defense (DOD) specific EVM requirements, as well as one designed specifically toward NASA’s EVM requirements!

— Purchase the DOD Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

EVMS is a comprehensive approach to project management that encompasses all aspects of a project, from inception to completion. EVMS courses from Humphreys and Associates will give you the skills and knowledge you need to successfully manage EVM projects of all sizes.

Our EVMS courses are designed for both professionals who are new to EVM and those who are looking to brush up on their skills. We offer a variety of course types, from online self-paced courses to live virtual instructor-led courses. No matter what your schedule or learning style, we have a course that will fit your needs.

Plus, our instructors are experienced EVM professionals who will guide you through every step of the process, from setting up your EVMS system to closing out your project. With Humphreys and Associates, you can be confident that you’re getting the best EVMS training available.

Our online EVMS courses are affordable and convenient, so you can get the education you need without any hassle. Plus, our courses are designed to help you learn everything you need to know about EVMS in a short amount of time.

Get started today and find the perfect online EVMS course for you.

All Online Courses Available from Humphreys & Associates

Upcoming Public EVMS Workshops

EVM training sessions are offered throughout the year by H&A. EVMS, advanced Earned Value Management techniques, and project scheduling are all covered during these frequent public EVM workshops. These earned value education courses are ideal for anybody wanting to increase their understanding of or application of EVMS or scheduling. Our training programs are suited for individuals with various degrees.

Public EVMS Workshops are offered either in person or online. View our Upcoming EVM Workshop Schedule to find one that best suits your schedule and location.

Upcoming Earned Value Training Public Workshops

Contract Performance Example – Cost Variance Trend Read Post »

Contract Performance – Variance Thresholds

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Variance Thresholds are an important part of EVMS Variance Analysis. Project managers can use variance thresholds to help identify potential issues with cost and scheduleperformance. By setting these thresholds in advance, project managers can gain visibility into when a cost or schedule variance is trending at a level that needs to be addressed. The goal is to identify issues before they become catastrophic, and while there is still time to correct them before they impact project objectives.

There are a few different ways to set variance thresholds. One common approach is to base them on percentages of expected cost variance over time. This allows project managers to track performance and take corrective action if necessary.

Variance thresholds can be a valuable tool for managing contract performance. By setting these thresholds in advance, project managers can gain visibility into potential issues and take corrective action before they become catastrophic.

Indirect costs can be a tricky topic to navigate, but we’ve got you covered with our in-depth three-part series that breaks down how to determine responsibility for indirect costs.

More EVMS Training

You can now take your EVMS training to the next level with our online course that is based on Humphreys & Associates’ highly regarded three-day workshop. We also offer an extended version of this same program customized for Department Of Defense (DOD) specific requirements, as well one designed specifically toward NASA’s needs!

— Purchase the DOD Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

EVM course by Humphreys and Associates will give you the skills needed to manage any project, no matter how big or small. The comprehensive approach covers everything from inception all the way through completion so that students can be confident they’re ready for anything when it comes time take on their next endeavor!

Courses are designed with both beginners in mind but also seasoned professionals who want a refresher or new knowledge update on certain aspects of managing these types of endeavors. You can learn anything from the comfort of your own home with our online self-paced courses. Or if you’re looking for an instructor led experience, we have that too! No matter what time zone or learning style we are suited to accommodate all students’ schedules.

Plus, our instructors are experienced EVM professionals who will guide you through every step of the process, from setting up your EVMS system to closing out your project. With Humphreys and Associates, you can be confident that you’re getting the best EVMS training available.

Our online EVMS courses are affordable and convenient, so you can get the education you need without any hassle. Plus, our courses are designed to help you learn everything you need to know about EVMS in a short amount of time.

Get started today and find the perfect online EVMS course for you.

All Online Courses Available from Humphreys & Associates

Upcoming Public EVMS Workshops

EVM training sessions are offered throughout the year by H&A. EVMS, advanced Earned Value Management techniques, and project scheduling are all covered during these frequent public EVM workshops. These earned value education courses are ideal for anybody wanting to increase their understanding of or application of EVMS or scheduling. Our training programs are suited for individuals with various degrees.

Public EVMS Workshops are offered either in person or online. View our Upcoming EVM Workshop Schedule to find one that best suits your schedule and location.

Upcoming Earned Value Training Public Workshops

Contract Performance – Variance Thresholds Read Post »

Contract Performance – Cost/Schedule Variance Trends

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EVM training is critical for project managers seeking to implement an earned value management system (EVMS) on their projects. One of the most important aspects of EVM is tracking cost and schedule variance trends. Cost variance is the difference between the earned value (the budgeted cost for work performed) and the actual costs of work performed. Schedule variance, on the other hand, is the difference between the earned value (actual progress made on a project) and the budgeted cost for work scheduled in cost terms. By closely monitoring these two metrics, project managers can quickly identify issues that could impact the successful completion of a project. EVM training provides project managers with the tools they need to accurately track cost and schedule variances, and ultimately to deliver successful projects.

More EVMS Training

Take your EVMS training to the next level with our online course that is based on Humphreys & Associates’ highly regarded three-day EVMS workshop. We also offer a version of this same EVM training course customized for Department Of Defense (DOD) specific EVM requirements, as well as one designed specifically toward NASA’s EVM requirements!

— Purchase the DOD Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

EVMS is a comprehensive approach to project management that encompasses all aspects of a project, from inception to completion. EVMS courses from Humphreys and Associates will give you the skills and knowledge you need to successfully manage EVM projects of all sizes.

Our EVMS courses are designed for both professionals who are new to EVM and those who are looking to brush up on their skills. We offer a variety of course types, from online self-paced courses to live virtual instructor-led courses. No matter what your schedule or learning style, we have a course that will fit your needs.

Plus, our instructors are experienced EVM professionals who will guide you through every step of the process, from setting up your EVMS system to closing out your project. With Humphreys and Associates, you can be confident that you’re getting the best EVMS training available.

Our online EVMS courses are affordable and convenient, so you can get the education you need without any hassle. Plus, our courses are designed to help you learn everything you need to know about EVMS in a short amount of time.

Get started today and find the perfect online EVMS course for you.

All Online Courses Available from Humphreys & Associates

Upcoming Public EVMS Workshops

EVM training sessions are offered throughout the year by H&A. EVMS, advanced Earned Value Management techniques, and project scheduling are all covered during these frequent public EVM workshops. These earned value education courses are ideal for anybody wanting to increase their understanding of or application of EVMS or scheduling. Our training programs are suited for individuals with various degrees.

Public EVMS Workshops are offered either in person or online. View our Upcoming EVM Workshop Schedule to find one that best suits your schedule and location.

Upcoming Earned Value Training Public Workshops

Contract Performance – Cost/Schedule Variance Trends Read Post »

Using Schedule Margin to Increase the Accuracy of Forecast Completion Dates

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Header Image with geometric background that says Schedule Margin - Increase the Accuracy of Forecast Completion Dates

As part of our project scheduling workshops, hands-on Oracle Primavera P6 or Microsoft Project (MSP) workshops, or scheduling support assignments, we often assist clients with establishing their scheduling best practices. One of the techniques we cover in our EVM training workshops or help incorporate into our client’s scheduling process and procedures is the use of schedule margin as a means to handle schedule risks on a project. The proper use of schedule margin as well as making it a part of a project’s risk and opportunity management process can help to increase the accuracy of an integrated master schedule (IMS) to forecast milestone or project completion dates. 

What is Schedule Margin?

The NDIA Planning and Scheduling Excellence Guide (PASEG) Version 4.0 dated August 2019, defines schedule margin as “an optional technique used for insight and management of schedule risks.” Schedule margin is a period of time that is identified in the project’s plan for risk mitigation where an internal target date is set prior to a commitment date such a major project milestone or deliverable. Schedule margin is a defined task in the integrated master schedule (IMS) with logic ties (the immediate predecessor task) to a project finish milestone or intermediate decision point/milestone.

The placement and duration of the schedule margin task is based on a risk management assessment that may include a probabilistic three-point Schedule Risk Assessment (SRA). It may also be driven by schedule incentives, stakeholders needs, subcontractor interfaces, customer provided inputs, tightening of range estimates to single point estimates, or other influences.  

Some have described schedule margin as management reserve for time. A simple example would be scheduling your drive to work. Should you easily get through the traffic lights and there are no issues, you can usually make it in 30 minutes. However, because of the “risks” associated with hitting more red lights and other issues, coupled with the penalty of being late, you might plan for the trip to take 45 minutes. Those additional 15 minutes are your schedule margin.

Note however, schedule margin is not a space filler to hide positive float, a schedule stash to cover slippage, or a method used to hold an event’s date. It is a way to incorporate risk into the schedule and improve the forecast accuracy. Some government customers have refined the definition and usage of schedule margin which can impact how you incorporate schedule margin in a given project’s IMS. We will address a couple of specific government customer requirements below.

Applying the Schedule Margin Technique

The customer and contractor project manager both have a vested interest in establishing and using schedule margin. During the development of the project’s requirements definition and planning, the customer will establish need dates. Based on these need dates, target dates for key decision points/milestones are established based on an assessment of risks and constraints. Depending on the complexity, life cycle phase, and risk, the targets may be stated as a single date or range of dates. These targets are provided in the request for proposal or as guidance to the internal project team. The contractor creates a plan and estimate based on their proposal process that includes a risk management assessment. The risks that impact the ability to achieve the target dates are included in the assessment and schedule margin tasks are identified as needed.

Upon award, the contractor creates a baseline IMS with defined schedule margin tasks. These schedule margin tasks are identified as schedule visibility tasks (SVTs) within the IMS. These SVTs are usually placed immediately prior to the decision point/milestone or project finish milestone. The schedule margin SVTs do not have associated resources, they represent a time reserve. Each SVT should be clearly labeled as Schedule Margin and defined. There should be linkage and traceability between the schedule margin SVTs and the risk management plan. The customer may also identify additional schedule margin beyond the contractor’s project target dates to reflect risk to the customer need dates.

As work progresses on the project, the assessment of risks and impact to schedule margin are evaluated. Performance is measured against the baseline targets and forecasts are provided. The risk management plan is also assessed, and mitigations adjusted as needed. These assessments provide input into determining whether the schedule margin requires an updated forecast. Any changes or consumption of the schedule margin should be documented and communicated.

Specific Contracting Requirements

Know your customer’s requirements! Customers may have specific requirements related to the creation, management, and reporting of the IMS. Within the IMS requirements, the customer may have included specific guidance for the use of schedule margin. Be sure you have considered all contract clauses, data item descriptions, and statement of work requirements when planning the project. Views into the Department of Defense (DoD) and Department of Energy (DOE) schedule margin requirements are provided below. Note: we are focusing on schedule margin for this discussion and purposely avoiding other IMS related topics.

Use of Schedule Margin on DoD Contracts

Schedule margin is an optional technique used for insight and management of schedule risks. It is represented by a task or tasks within the IMS with no assigned resources and is established as part of the baseline. In a DoD contractual environment, schedule margin:

  • Resides in both the baseline and forecast schedules.
  • Should be under the control of the contractor’s project manager.
  • Is only placed as the last task before key contractual events, significant logical integration/test milestones, end item deliverables, or contract completion.
  • Is associated with schedule risk as part of a formal risk management plan.

The duration of the schedule margin task should be based on risk in subsequent events and traceable to the risk management plan. Schedule margin may be directly or indirectly connected to discrete predecessor and successor activities and fall on critical paths. All schedule margin tasks should be clearly and consistently identifiable. Schedule margin tasks should be excluded (zero duration) when performing a Schedule Risk Assessment (SRA).

Significant changes to the status of schedule margin tasks and impacts to the project’s primary critical path, if any, should be discussed in the Integrated Program Management Report (IPMR) Format 5 or the Integrated Program Management Data and Analysis (IPMDAR) Performance Narrative Report.

Figure 1 is a conceptual diagram of applying a schedule margin task before the Preliminary Design Review (PDR) milestone.

Example of a Schedule Margin Task Before a Major Milestone
Figure 1: Example of a Schedule Margin Task Before a Major Milestone

Use of Schedule Margin on DOE Contracts

The DOE has provided more specific definitions for schedule margin. They have also defined the use of DOE owned schedule contingency to buffer the schedule against unforeseen events that could cause a delay. This is documented in the DOE Guide 413.3-24 for Planning and Scheduling.

The contractor is responsible for managing their schedule margin. It resides as a single task just prior to the contractor’s project completion milestone. The DOE program office is responsible for managing schedule contingency. Schedule contingency resides after the contractor’s project completion milestone and just prior to the Critical Decision (CD) 4 milestone (Approve Start of Operations or Project Completion).

The contractor’s schedule margin and the DOE schedule contingency are both established in conjunction with CD-2 (Approve Performance Baseline), but updates may occur in conjunction with changes. The schedule margin is set commensurate with the schedule risk calculated at a probability level typically between 70 and 90 percent. The SRA accounts for risk events assigned to the contractor and contractor activity duration uncertainty. Activity duration uncertainty is determined either through a three-point duration estimate or by confidence level (high, medium, or low).

Similar to schedule margin, the DOE owned schedule contingency is set commensurate with the schedule risk calculated at a probability level typically between 70 and 90 percent. This SRA accounts for risk events assigned to DOE and DOE activity duration uncertainty.

The IMS may depict these activities as SVTs. Figure 2 is a conceptual diagram that shows the application of the schedule margin task before the contractor’s completion milestone and the DOE schedule contingency before the project finish milestone.

Example of a Schedule Margin Task and DOE Schedule Contingency Task
Figure 2: Example of a Schedule Margin Task and DOE Schedule Contingency Task

Interested in incorporating the schedule margin technique into your scheduling best practices? Call us today at (714) 685-1730. We have experienced master schedulers familiar with a variety of scheduling tools that can help you incorporate industry best practices into your scheduling process and procedures. They also well versed in applying schedule risk analysis techniques that complements incorporating schedule margin tasks into an IMS.

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