Humphreys & Associates approved by PMI as an Authorized Training Partner

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New PMI Authorized Training Partner Program

EVMS Training Partner

Humphreys & Associates, Inc. (H&A) is excited to announce that PMI has approved us as an Authorized Training Partner specializing in Earned Value Management System (EVMS) training. Authorized Training Partners must meet rigorous standards thru PMI for quality and effectiveness. Effective January 1st, 2021, the Project Management Institute (PMI) Registered Educational Provider (REP) program will be retired and replaced with the new Authorized Training Partner (ATP) program.  This new program is designed to ensure the training you receive is of the highest quality. 

For years, H&A has been a recognized leader in project performance measurement training for PMI.  Our professional instructors have extensive experience in evaluating EVMS training requirements, designing comprehensive training plans, developing client-specific instructional material, and presenting training workshops. Training such as Basic and Advanced EVM techniques, Project Scheduling, Variance Analysis Reports (VAR), subcontractor integration and Integrated Baseline Review preparation are just a few of the topics that H&A has developed and enhanced over the last 40 years. As an Authorized Training Partner, all courses are eligible for PMIs Professional Development Units (PDU).

Humphreys & Associates approved by PMI as an Authorized Training Partner Read Post »

Quality Cost Estimates

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Quality Cost Estimates

The Foundation for a Realistic Performance Measurement Baseline (PMB)

If you have been involved in an Integrated Baseline Review (IBR), you can appreciate why a clear understanding of the project’s contractual scope of work and technical requirements is so important.  Without that understanding, it is impossible to create an executable Performance Measurement Baseline (PMB).  The intent of the IBR is to demonstrate to your customer you have created a realistic schedule and cost baseline plan that reflects a shared understanding of the work scope requirements as well as identified technical, schedule, cost, or resource risks that may impact the ability to execute the work as planned.

So, how do you demonstrate to your customer that your schedule and cost baseline plan is realistic for the agreed upon scope of work?  That’s where the quality of the cost estimate and related basis of estimate (BOE) information come into play.  The quality of the PMB is a direct reflection of how the project control team arrived at their cost estimate for the work scope along with documented BOE details that clearly communicates their rationale and assumptions.  The project control team needs this foundation to define the project’s sequence of activities, durations, and resources to do the work that reflects the known requirements and identified risks.

What are the characteristics of a quality cost estimate?

A quality cost estimate:

  • Reflects a shared understanding of the scope of work and technical requirements. This is often the root cause of an unrealistic cost estimate.  The IBR is a perfect opportunity for all parties to confirm the customer’s requirements and expectations.
  • Is data driven. That means the proposal or project control team has access to relevant historical actual costs for analogous tasks, parametric data, or other documented and substantiated basis for the cost estimate.  The source data for the cost estimate can be traced back to the system of record, internal standards for completing common repeatable tasks, or published industry standards.  Where possible, the use of engineering judgement cost estimating methods is minimized because they introduce a level of unknowns.  The risk of cost growth increases because objective facts and data aren’t available for other people to verify the cost estimate rationale or assumptions are reasonable.
  • Includes useful documented rationale with risk/opportunity assessment. The BOE should capture what source data was used for the cost estimate, why it was relevant, assumptions, what factors or other calculations were used to arrive at the cost estimate, what is included or excluded, identification and evaluation of likely risks and opportunities, and other details useful for explaining the cost estimate.  This is invaluable information the project control team needs to create a realistic schedule and cost baseline.  This rationale, or clearly documented rationale someone else can follow, is frequently the missing piece.  Lack of useful documented rationale can handicap the project control team during the planning phase right after contract award – and for the duration of the project.

How do quality cost estimates help improve the PMB?

The project control team, project manager, and the customer need quality cost estimates and useful documented rationale so they can verify:

  • The integrated master schedule (IMS) sequence of activities, resource assignments, and skill mix reflect how the project teams intend to do the work as well as handle identified risks and opportunities.
  • Sequence of schedule activities and resource assignments are the foundation for the time phased budget.
  • The appropriate level of schedule margin and management reserve are established for the project.
  • Useful earned value techniques are selected for the activities and work packages. In addition to technical requirements, the BOE documentation can often provide additional details that can help the project control team define accomplishment criteria or quantifiable backup data so it is easier to objectively measure completed work.

These cost estimates and documented rationale are also invaluable for:

  • Variance analysis and identifying why significant deviations from the baseline plan occurred – whether in work performance or actual costs incurred to do the work. Did an unexpected event occur?  Perhaps the risk assessment process needs a revisit.  Were the assumptions incorrect?  Why did that happen and what could be done differently to either capture or clearly communicate those assumptions?
  • When the project control team needs to process a baseline change request. They can review the source data, rationale, and assumptions to identify what was different from what actually occurred.  Or, in the case where there is a change in the scope of work, the project control team can identify the cost estimate and BOE factors they need to update to reflect the revised scope of work.  It provides a fact-based foundation to explain why the change was required and to determine what updates need to be made to the schedule activities, resource assignments, and time phased budget.
  • Providing fact-based information useful for maintaining a credible estimate to complete so it more accurately reflects the likely completion date and estimate at completion whether for interim deliverables or the entire project.
  • Rolling wave planning. As more becomes known about the future work requirements, the cost estimate and BOE can be refined to reflect the agreed upon statement of work, assumptions, risk and opportunity assessments, and other details needed to adequately plan, budget, and manage the work.

Cost estimate quality improves with each project. 

A realistic PMB reduces the likelihood of schedule and cost growth “surprises” that negatively impact a company’s bottom line or the customer’s program budget.  As work is completed, the performance and actual cost data become useful historical source data for the next proposal or project.  Each cycle improves the quality of the source data proposal or project control teams can use to substantiate their cost estimates and produce useful BOE documentation for the next project’s PMB.

Need help with preparing for an IBR or standardizing your process for producing cost estimates and BOE rationale? Contact us today.

Quality Cost Estimates Read Post »

Who We Are

Humphreys & Associates, Inc. has advocated and promoted the integration of technical, schedule, and cost components to achieve the full benefit of using performance measurement. We have a long tradition of leadership in the industry and providing innovative EVMS processes to apply to project management challenges. We are committed to providing exceptional EVMS consulting services to every client.

H&A is proud of the many veterans who are associates in our company. 50% of our staff, including our founder, are military veterans with a strong work ethic and a “get it done” attitude.

Our Industry Experience

If it flies, swims, goes deep under the water, hovers, blasts out of a tube, or goes into orbit, our associates have been on many of the projects that yielded those capabilities.

H&A’s deep industry experience and knowledge base spans aerospace and defense, engineering, construction, utilities, energy, scientific research, and cutting edge technology in design, development, and production environments. Our consultants have worked with all branches of the US Department of Defense, Department of Energy, NASA, and many other US government agencies. We have supported over 900 companies and government agencies and provided training for nearly 900,000 individuals.

Consulting Services

Humphreys & Associates offers a complete range of EVMS consulting services for the entire project life cycle. From proposal preparation and management, system gap analysis, to mock compliance reviews or third party validations, Humphreys & Associates is the authority on EVMS.

Professional EVMS Evaluation

H&A can evaluate the systems, processes, procedures, practices, and reports currently in place.

H&A can provide the support and expertise to assist you throughout the EVMS Design and Documentation Process, and the EVMS Implementation process.

H&A can provide in-house support to assist your team, on cost, schedule, and risk management to assist contractors to develop, enhance, or maintain an integrated master schedule, performance measurement baseline, or estimate to complete.

H&A can provide our proven training throughout the process.

Conclusion

Whether you are just getting started with earned value management or are ready to shift in high gear, we can be your partner to plan and execute complex projects. Contact us today.

Who We Are Read Post »

Video Release – Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 2 of 2

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The conclusion of our review of the foundational elements of performing a schedule risk assessment (SRA) using Acumen Risk 6.1

0:17 – Risk Exposure Chart
1:03 – Tornado Chart
2:14 – Parting Thoughts

Read the blog post at:

Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 2 of 2

Video Release – Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 2 of 2 Read Post »

Video Release – Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 1 of 2

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How confident are you that your project will finish on time? Review the foundational elements of performing a schedule risk assessment (SRA) using Acumen Risk 6.1

2:22 – Schedule Health Diagnostics
4:55 – Duration Uncertainty
6:35 – Risk Events
8:20 – Simulation Process
 
Read the blog post at:

Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 1 of 2

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New IPMDAR DID and Implementation Guide

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ALERT- New IPMDAR DID and Implementation Guide

The New Integrated Program Management Data and Analysis Report (IPMDAR) Data Item Description (DID) and Implementation Guide

On March 12, 2020, the Defense Department (OUSD/AAP) instituted the new Integrated Program Management Data and Analysis Report (IPMDAR), issuing the Data Item Description (DID) Number: DI-MGMT-81861B.
The IPMDAR is to be used for solicitations and RFPs for contracts with an EV reporting Requirement starting from March 12, 2020 forward. The IPMDAR can also be applied to modified contracts or to existing contracts (under the old IPMR or CPR requirements), but this has to be through a bi-lateral agreement (Government Program Office and Contractor).

Significant Change

This IPMDAR is a significant change from the previous iterations, the Integrated Program Management Report (IPMR) and the old Contract Performance Report (CPR). The IPMDAR has dispensed with the delivery of physical reports (Formats 1 – 7 of the old IPMR/ CPR), instead now requiring contractors to provide three (3) specific electronic data sets:

  • The Contract Performance Dataset (CPD)
  • The Schedule, comprised of
    • The Native Schedule File and
    •  The Schedule Performance Dataset (SPD)
  • The Performance Narrative Report, comprised of
    • The Executive Summary and
    • The Detailed Analysis Report

The DID states: “The IPMDAR’s primary purpose to the Government is to reflect current contract performance status and the forecast of future contract performance.”

Integrated Program Management Data Analysis Report (IPMDAR) Implementation & Tailoring Guide

Implementation & Tailoring Guide

To help expedite the adoption of the New IPMDAR, on May 21, 2020, the AAP office also issued the 87-page Integrated Program Management Data Analysis Report (IPMDAR) Implementation & Tailoring Guide:
“This guide covers the application of the DID, how to tailor the DID in the Contract Data Requirements List (CDRL), and clarification on the intent of the DID.”

Interesting Features

The IPMDAR has introduced some interesting features that are clarified in the Guide:

  • The default reporting is at the Control Account, but there is the option to have Work Package Level reporting (negotiated item)
  • Reporting is by Hours and Elements of Cost (EOCs) (for either the CA or WP level)
  • Time-phased Future Baseline (BCWS) and ETC Forecast (for either CA or WP level)
  • Best Case/Worst Case/Most Likely EACs reported by hours and dollars
  • The Native Schedule is a direct export from the contractor’s scheduling tool
  • The SPD must match the CA or WP level negotiated
  • The Government may have any subcontractors provide the IPMDAR directly to the Government
    • Even if this is required, the subcontractors must still provide the IPMDAR data to their prime contractor
  • The IPMDAR reporting components must be delivered to EVM-CR not later than 16 business days after a contractor’s accounting period
    • Incremental deliveries may be authorized, but all the items must be in NLT the 16th business day and the incremental deliveries are negotiated. A potential example is IMS by third working day after close-of-month, the raw data by fifth working day, and format 5 narrative by the sixteenth working day.
  • Historical Contract Performance Data – The Government may request this “time-phased historical data from contract award” in place of the normally provided CPD (typically no more than annually).

Applicability

IPMDAR Applicability:

  • IPMDAR is intended to be applied completely (i.e., not tailored) for cost or incentive contracts ≥ $20M – unless tailoring is specified within the DID and coordinated with the Service/ Agency EVM Focal Point.
  • If EVM reporting is required on contracts less than $20M, tailoring is more flexible, BUT the Native Schedule and Performance Narrative Report are recommended.
  • IPMDAR typically not required on FFP.

Humphreys & Associates, Inc. can help you properly implement the new IPMDAR requirements, please contact us at (714) 685-1730

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