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!
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.
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.
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).
Figure 1 is a conceptual diagram of applying a schedule margin task before the Preliminary Design Review (PDR) 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.
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.
In June 2022, the Department of Energy (DOE) Office of Project Management (PM) released a new version of its Compliance Assessment Governance (CAG) Version 2.0, formally known as the Compliance Assessment Guidance. The change in name however so slight, reflects the significance the DOE PM places on the EVMS governance process where good governance provides a well-defined structure to continuously sustain and improve the practice of integrated project management. DOE PM believes that during the life cycle of a project EVMS governance is everyone’s responsibility, both customer and contractor alike. While this point has always been the position of DOE PM, its importance towards influencing project outcomes was further highlighted in the results of a recent research study conducted by Arizona State University (ASU) that was sponsored by DOE PM. DOE PM considers the release of CAG 2.0 a significant overhaul to the prior guidance and now aligns with the methodology and structure resulting from the ASU Study.
The primary goal of the ASU Study was to design and produce an evaluation methodology and toolset that can be used across agencies and departments to consistently assess the maturity and environment of projects or programs of various types and sizes that use an EVMS. The toolset developed assesses a spectrum of EVMS maturity attributes centered around the EIA-748 Standard for EVMS Guidelines, while also referencing the Project Management Institute (PMI) American National Standards Institute (ANSI) standard for EVM (2019), and the International Organization for Standardization (ISO) 21508:2018 guidance. It also takes a novel approach by assessing the environment within which an EVMS is employed. This methodology and toolset are known as the Integrated Project/Program (IP2M) Maturity and Environment Total Risk Rating (METRR) (pronounced “IP2M Meter”). By using IP2M METRR to assess both the maturity and environment of an EVMS or less sophisticated management control systems where EIA-748 compliance is not required, project/program leaders and practitioners can understand the efficacy of the EVMS (or similar management control system) in support of integrated project/program management.
Environmental Factors
The new methodology has two primary components. The first component assesses the environmental factors that influence the implementation of an EVMS. The ASU Study identified four primary environmental categories: Culture, People, Practices, and Resources. Each category is further broken down into 27 Environmental Factors (EFs) that are defined by Effectiveness Criteria.
An example of the hierarchy for an EVMS Environmental Assessment is:
Category 1 – Culture
Environmental Factor: 1A – The contractor organization supports and is committed to EVMS implementation, including making the necessary investments for regular maintenance and self-governance.
Factor Check Point: 1A(a) – a) The contractor integrated project team (IPT)—including corporate leadership, execution, and operations personnel, oversight personnel, and support staff—is in place, and it has a demonstrated belief in the intrinsic value of the EVMS to position the project for success.
Each of the 27 EFs is assessed using a 5-point grading scale (i.e., 1. Not Acceptable, 2. Needs Improvement, 3. Meets Some, 4. Meets Most, 5. High Performing) with each having predetermined weightings. When summarized, all EF scores add up to 1,000 possible points. Final weightings were determined through a rigorous statistical analysis of inputs from various professional sources including the survey of professionals experienced with the practice of project management and EVMS implementation. The results of the ASU Study show that the higher the environment score, the better the chances a project or program will achieve better schedule and budget outcomes.
Below are the summary level weightings of the four EVMS Environmental Categories:
Culture: Total Possible Points @ L5 is 313 (31%)
People: Total Possible Points @ L5 is 238 (24%)
Practices: Total Possible Points @ L5 is 235 (24%)
Resources: Total Possible Points @ L5 is 214 (21%)
EVMS Maturity
The second component of the ASU Study and Compliance Assessment Governance (CAG, 2.0) addresses EVMS Maturity. The purpose of EVMS Maturity is to assist in the assessment of compliance with the guidelines in the EIA-748. The maturity assessment consists of ten subprocesses, each of which is further divided into 56 attributes. The ten subprocesses may look familiar to practitioners with EVMS experience with the notable addition of “Risk Management” to the traditional nine guideline process groupings. The ASU Study captured the ten subprocess groups with the associated EIA-748 guidelines by using the following graphic from National Defense Industry Association (NDIA) Integrated Program Management Division (IPMD) Earned Value Management Scalability Guide. The primary purpose for doing this was to place greater focus on management subprocesses which are recognized by most practicing project/program managers rather than placing the entire focus on a particular guideline(s).
Figure 1: Ten Subprocess Groups and Associated EIA-748 Guidelines Source: DOE PM CAG 2.0
EVMS Maturity Subprocesses
As shown in Figure 2, each of the ten subprocesses is further broken down into attributes. Each attribute is assessed for a maturity level on a 5-point grading scale, plus the option of “Not Applicable” for those attributes that are not relevant to the project/program. For example, some project/program teams do not use resource-loaded schedules while others do. The 5-point grading scale is as follows: 1-Not Yet Started, 2-Major Gaps, 3-Minor Gaps, 4-No Gaps, 5-Best in Class. Attributes that are mature enough to be deemed an EIA-748 compliant EVMS are at a maturity level of “4.” The IP2M METRR methodology allows for a grade of “5” acknowledging management practices that optimize the EVMS. There are two primary sources to make this assessment. The first is the Effectiveness Criteria established for each maturity level, and the second is the DOE Attribute Metrics defined in 188 EVMS Testing Specification Sheets.
Below are the summary level weightings of the ten EVMS Maturity Subprocesses:
Organizing: Total Possible Points @ L5 is 96 (10%)
Planning and Scheduling: Total Possible Points @ L5 is 202 (20%)
Budgeting and Work Authorization: Total Possible Points @ L5 is 178 (18%)
Accounting Considerations: Total Possible Points @ L5 is 65 (7%)
Indirect Budget and Cost Management: Total Possible Points @ L5 is 55 (6%)
Analysis and Management Reporting: Total Possible Points @ L5 is 109 (11%)
Change Control: Total Possible Points @ L5 is 116 (12%)
Material Management: Total Possible Points @ L5 is 59 (6%)
Subcontract Management: Total Possible Points @ L5 is 60 (6%)
Risk Management: Total Possible Points @ L5 is 60 (6%)
Figure 2: Ten Subprocess Groups Broken Down into Attributes Source: DOE PM CAG 2.0
Of the ten subprocesses that constitute the EVMS, subprocesses B and C account for 380 points or 38% of the maximum score of 1,000 points (Figure 2). When combined with subprocesses F and G, these four subprocesses account for 605 points, or 61%, of the maximum score. Thus, emphasizing credible plans, schedules, and budgets with adequate controls and rigorous reporting best positions the EVMS to help the project/program team achieve their objectives.
An example of the evaluation hierarchy for an EVMS Maturity Assessment is:
Sub-Process A: Organizing
Attribute A.1: A single product-oriented Work Breakdown Structure (WBS) encompasses all authorized work and is decomposed to the appropriate levels for effective management and reporting.
Effectiveness Criteria A.1.1: The process to establish a singular, product-oriented WBS that accurately defines the products, services, and deliverables required to complete the project/program has been developed, documented, and approved.
Metric ID A.01.05: This metric confirms that the WBS includes all authorized project work and any revisions resulting from authorized changes and modifications. This metric ensures that the WBS identifiers collectively provide a complete definition of work scope requirements.
DOE PM’s goal for the new guidance is to provide a synthesized and uniform approach to assessing an EVMS as a means to ensure fairness and consistency in its operations. The current version of the DOE EVMS Implementation Guidance and IP2M METRR documentation can be found here:
No project is ever without some cost variance. Whether it’s the price of materials changing or workers going over budget, costs always seem to creep up on projects. But what can you do to minimize the impact of cost variance on your project? By understanding where these costs come from and planning for them ahead of time, you can keep your project on track despite any bumps in the road. Check out this blog post for more tips on how to handle cost variance in your next project.
Cost Variance may be calculated as part of a Variance Analysis Report or while monitoring an existing contract’s performance.
More EVMS Training
Take your EVM 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!
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.
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.
Project managers always have to juggle multiple projects, and keeping on top of contract performance is one of their most important tasks. Deviation from the agreed-upon schedule can have major implications for the project as a whole. This video describes how to calculate Schedule Variance using a real-world example.
Schedule Variance may be calculated as part of a Variance Analysis Report or while monitoring an existing contract’s performance.
More EVMS Training
If you liked this video you can purchase the entire course below. This video is an excerpt from the Department of Defense (DOD) version of this eLearning module. We also offer the same EVM training course customized for the Department of Energy’s (DOE) specific Earned Value Management (EVM) implementation/requirements, as well as a version of the course customized for NASA’s EVM implementation/requirements.
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 courses are available online, making it easy for you to get the education and training you need without having to leave your home or office. Plus, our instructors are experienced professionals who will help you learn everything you need to know about EVMS.
We have a wide range of courses available, from introductory level to more advanced subjects. You can find the perfect course for your needs and start learning today.
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.
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.
Top management relies on performance measurement data to make informed decisions about whether a project is worth undertaking and how much money should be allocated to it. This is done by examining trends in performance data over time and benchmarking the organization against others. Additionally, top management uses performance measurement data to assess the effectiveness of their own interventions to improve organizational performance.
Project complexity is increasing and costs are soaring. Despite this, top management remains ever vigilant in their pursuit of ensuring that taxpayer money is being well spent on government projects. In this lesson, we will explore how all performance measurement data are used by top management to make informed decisions about government projects. Stay tuned!
More EVMS Training
If you liked this video you can purchase the entire course below. This video is an excerpt from the Department of Defense (DOD) version of this eLearning module. We also offer the same course customized for the Department of Energy’s (DOE) specific Earned Value Management (EVM) implementation/requirements, as well as a version of the course customized for NASA’s EVM implementation/requirements.
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 courses are available online, making it easy for you to get the education and training you need without having to leave your home or office. Plus, our instructors are experienced professionals who will help you learn everything you need to know about EVMS.
We have a wide range of courses available, from introductory level to more advanced subjects. You can find the perfect course for your needs and start learning today.
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.
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.
