Earned Value Consulting is support services that an expert in Earned Value Management (EVM) provides to an organization to help them implement an Earned Value Management System (EVMS). EVM consulting services may be offered by organizations that have certified Earned Value professionals on staff, or by service providers who have been trained in EVM and can offer advisory or implementation services.
For a full description of what Earned Value Consulting is and who it is for, see our Knowledge Base article: https://www.humphreys-assoc.com/evms/earned-value-consulting-ta-a-252.html
A major challenge with an Integrated Master Scheule (IMS) is making the most out of this powerful project management tool. Large and even not-so-large projects are required to have an IMS which adheres to the requirements of the Integrated Program Management Report (IPMR) or Integrated Program Management Data and Analysis Report (IPMDAR) Data Item Description (DID) and meets the schedule data quality checks available. But having met the DID requirements and passing the quality checks does not mean the IMS is being used to get the most information into the hands of decision makers on the project.
The IPMR or IPMDAR DID, even though detailed and thorough, is generic. The same DID is used on a contract whether it is for an important new hardware-based system, a new software system, or some other goal. The DID misses the point that the type of product on the contract means that unique topics may be the most important. There is no focus in the DID; it is high level and comprehensive. What’s missing are the special interest or special focus schedules that can be drawn from the IMS with good coding, grouping, filtering, and sorting techniques.
Remember that the statement of work (SOW) for the project is really comprised of promises made in the various plans submitted in the proposal and updated after contract award. The System Engineering Management Plan (SEMP), the Software Development Plan (SDP), Make/Buy Plan, Procurement Plan, Test and Evaluation Management Plan (TEMP), and others all contain commitments that should be translated into actions in the IMS. There should be access to the portions of the IMS that show how these commitments will be accomplished.
Examples of Special Interest Schedules
On a new hardware-based project, key pieces of information revolve around getting designs done and into a form to plan for the procurement of the various things needed to build the end items. This information often resides in the IMS but must be pulled out into a “drawing release” schedule. That is a schedule showing the transition from design to 3-D models or drawings. Pinpointing the times and links in the IMS where design becomes actionable for procurement enables the project team and their suppliers to be prepared to execute the procurements. The teams or engineers (designers) and procurement people should be focused on the drawing release schedule with frequent, at least weekly meetings to coordinate.
One of the serious issues I witnessed on a project was the lack of preparedness in having trained and qualified drawing checkers who could sign-off and release drawings. Because of the need for flight safety considerations, the drawing checker position could only be filled by qualified people. Instead of preparing months ahead for the wave of drawings, the waves were allowed to crash into the far-too-few checkers. What was supposed to be a short cycle became weeks long as drawings sat waiting for release.
As the transition is made from design to production, then the procurement schedule becomes another focused schedule which should show the information about what is being procured, from whom, and when it will be delivered. This information is used by the engineers, procurement, and inventory control people including receiving to understand the timing and volume of inbound items. Frequent coordination with suppliers and internal team members using this focused schedule helps to ensure a smooth process. Will the factory be ready to receive, inspect, process, and store all the inbound items?
What about software development as a special topic focus schedule? This is often needed. The project personnel must be able to quickly understand where in the cycle the software is and when releases will be made as well as what the release is needed for in the overall project.
Think about all the other important focus areas that could exist on a project. For example, the training effort should be in a focused schedule showing the development of the training material (courseware), training aids, facilities, instructor preparation and anything else needed to execute the statement of work related to training.
Testing is possibly more complicated than training. This includes development of test plans and procedures, as well as the creation of test fixtures and tools. The preparation of test personnel capable of performing complicated tests should be in the focused schedule.
By now you get the idea. The IMS is the combination of all these schedules, the thing that coordinates between and among them. But the focused schedules are the real bread-and-butter of the schedule discipline. It is shocking to see a project where these do not exist. Maybe the managers don’t know they are needed or possibly that they are available. Maybe the schedule team did not prepare for these extractions from the IMS.
If your project does not have focused schedules and does not use them, the project is in jeopardy. These schedules should be generated and used frequently; weekly at least. Even if the IMS itself is only undergoing a monthly update, the detailed schedules should be much more alive and part of the weekly communication between work teams on the project.
Tips and Suggestions
How to get started. Begin with the source documents and their authors, the SEMP, the TEMP, and so on. Make a list of the likely focused schedules that need to be drawn from the IMS. Read them and extract the information you need to build your IMS. If you are just starting the IMS, you could build individual schedules with the authors and then integrate them into the IMS. If you already have built the IMS, you can find the tasks you need and code them so they will appear on the focused schedule. Once coded, extract the focused schedule from the IMS using the applicable coding filters and verify it matches the commitments that were made in the source documents from the various authors.
Hold “report court.” Rather than reading and sorting through all the various plans, schedule a project meeting with the key team members and ask them what reports and what schedules they need to do their jobs. Remind them of the commitments they made in the plans. They can bring or provide a list and description to you, and you can decide “in court” which items you can or cannot incorporate into the IMS. That can help to streamline what is included in the IMS and who is responsible for what.
Create a schedule data dictionary if you haven’t already done so. This is essential to identify standard as well as project unique activity, milestone, or resource coding and how the coding is used so there is a common understanding of the content. The customer will need this information as well as when the IMS is provided as a monthly performance reporting data deliverable (see the IPMDAR Section 2.4.2.20, Data Dictionary for Native Schedule File). It is a prerequisite to ensure consistency in use as well as to establish a level of discipline throughout the IMS development and maintenance process. Ensure tasks always include the necessary coding. Ideally, you did your homework on the likely special topic schedules you need to draw from the IMS before starting to build the IMS. Otherwise you may need to determine various sorting and filter techniques to identify the tasks that require additional coding details. As noted above, once the tasks are coded, you or other project personnel will be able to extract the various special interest schedules from the IMS as needed.
Need help?
Building a useful IMS for complex projects is not easy. Up front planning for the development of the IMS can help to identify the necessary outline codes and other coding to be able to group, filter, or sort the activities to extract the special topic or special focus details from the IMS. The IMS is an essential communication tool for everyone on the project. How the schedule is constructed and coded makes a difference. H&A scheduling subject matter experts (SMEs) have decades of experience in a variety of complex project environments and can help you avoid common pitfalls. Contact us today.
For anyone following the process to update the SAE EIA-748 Standard for EVMS Revision D to Revision E, the NDIA Integrated Program Management Division (IPMD) EIA-748 Committee is getting closer to the finish line. As the author and steward of the EIA-748 Standard for EVMS, the IPMD is responsible for working with the SAE International standards organization to maintain the EIA-748 following SAE’s protocols.
At the March 2025 IPMD meeting, the EIA-748 Committee briefed membership on the coming Revision E publication. A summary of the scope of the Revision E changes follows.
Section 1, Scope of EVMS. General refresh of the Revision D content.
Section 2, EVMS Guidelines. There are now 27 guidelines that were agreed upon and adjudicated with the joint government and industry team. This also included a general refresh of content in Section 2.6 Common Terminology.
Section 3, EVMS Process Discussion. Mostly unchanged from Revision D with minor updates. The NDIA IPMD EIA-748 Intent Guide provides additional context to the guidelines in Section 2.
Sections 4, System Documentation and Section 5, System Evaluation. General refresh of the Revision D content.
Following the current schedule, any comments for Revision E will be adjudicated by May 31, 2025 and finalized for publication. Revision E will then be available on the SAE web site for purchase. The next step for the NDIA IPMD EIA-748 Committee is to update and publish the IPMD EIA-748 Intent Guide for the Revision E set of 27 guidelines. This guide will be available for download from the NDIA IPMD Guides and Resources page once completed and approved by IPMD membership.
What’s the same and what’s different in the set of guidelines?
The guidelines are organized into the same five process categories with an update to the name of one category to improve clarity. As part of the guideline updates, the order of some of the guidelines changed to more accurately follow the typical project life cycle process, others were merged. Four guidelines were deleted. Two were added resulting in final set of 27 guidelines. In some instances, the guideline text was modified to improve clarity. A summary of these changes along with an impact assessment by category follows.
NOTE: The final order and/or text of the guidelines are subject to change as a result of the SAE comment and adjudication process. Refer to the published EIA-748-E for the official set of guidelines and text. The NDIA IPMD March presentation is available for download at the end of this blog. This presentation includes the full text for the revised set of guidelines.
Guideline Map
Process Category: Organization
748 D
748 E
Guideline
D 1
E 1
2.1a
Decompose Scope Using a Work Breakdown Structure
D 2
E 2
2.1b
Identify Organizational Responsibilities for the Work
D 5
E 3
2.1c
Integrate WBS/OBS to Create Control Accounts
D 3
E 4
2.1d
Integrate Management Processes Using the WBS and OBS
D Guideline 4, Identify Overhead Management was deleted.
Assessment: No impact as E Guidelines 1 to 4 reflect the same requirements as D Guidelines 1, 2, 3, and 5.
Guideline Map
Process Category: Planning, Scheduling and Budgeting
748 D
748 E
Guideline Description
D 6
E 5
2.2a
Schedule the Authorized Work
D 7
E 6
2.2b
Identify Indicators to Measure Progress
D 8
E 7
2.2c
Establish and Maintain a Time Phased Budget Baseline
D 9
E 8
2.2d
Authorize Scope, Schedule and Budget by Cost Elements
D 10
E 9
2.2e
Plan Scope, Schedule and Budget into WP/PPs
D 10, 12
E 10
2.2f
Establish Work Package Performance Measurement Criteria
D 13
E 11
2.2g
Develop/Apply Indirect Rates to Determine Indirect Budgets
D 14
E 12
2.2h
Identify any Undistributed Budget and Management Reserve
D 11, 15
E 13
2.2i
Reconcile to Target Cost Goals
D Guidelines 10 (Determine Discrete Work) and 12 (LOE) were merged/modified and became E Guideline 10. D Guidelines 11 (Sum Detail Budgets to Control Accounts) and 15 (Reconcile to Target Cost) were merged/modified and became E Guideline 13. The text for E Guidelines 9 and 11 were modified.
Assessment: Minimal impact as E Guidelines 5 to 13 reflect the same requirements as D Guidelines 6 to 15.
Guideline Map
Process Category: Progress Assessment and Data Collection
748 D
748 E
Guideline Description
ADD
E 14
2.3a
Measure Progress and Determine Earned Value
D 16, 19
E 15
2.3b
Collect Actual Costs by Cost Elements
D 21
E 16
2.3c
Account for Purchased Material
The title for the process category changed to more accurately reflect the guideline requirements. E Guideline 14 was added to explicitly state the requirement to measure progress and calculate earned value. D Guidelines 16 (Record Direct Costs) and 19 (Record/Allocate Indirect Costs) were merged into E Guideline 15. D Guidelines 17 and 18 on summarizing direct costs by WBS/OBS were deleted as cost management software does this automatically. D Guideline 20 on identifying unit and lot costs was deleted; this is a separate business system function.
Assessment: Minimal impact. Clarified and streamlined requirements. One potential exception is text add to E Guideline 15 that states: “Where actual costs are not available for comparison, estimated costs will be entered into the EVMS.”
Guideline Map
Process Category: Analysis and Management Reports
748 D
748 E
Guideline Description
D 22
E 17
2.4a
Generate Schedule and Cost Variances
D 23
E 18
2.4b
Identify and Evaluate Significant Variances
D 24
E 19
2.4c
Evaluate Indirect Cost Variances
ADD
E 20
2.4d
Update Control Account Estimates at Completion
D 25
E 21
2.4e
Summarize, Review, Evaluate Performance Data and Variances
D 26
E 22
2.4f
Implement Management Actions in Response to EVM Data
D 27
E 23
2.4g
Develop Revised Program Estimate at Completion
D Guideline 27 was split into two E guidelines to highlight the difference and purpose of the control account and program level EACs. E Guideline 20 was added to explicitly state the requirement to maintain control account level ETCs and EACs. E Guideline 23 text was modified for clarity and scope of the EAC at the program level.
Document and Reconcile Internal Replanning Changes
D 30
E 26
2.5c
Control Retroactive Changes
D 31
E 27
2.5d
Over Target Budget or Over Target Schedule
This process category was significantly improved to eliminate redundancy and to clearly separate out the types of changes: 1) customer directed, 2) internal replanning (merged D Guidelines 29 and 32), or 3) OTB/OTS situation. In all instances, retroactive changes must be controlled.
If your EVM System Description is organized somewhat in alignment with the EIA-748 five guideline process categories or the nine process groups as illustrated in the following table, there should be minimal impact. In general, the requirements are the same.
EIA-748 Five Guideline Process Categories
Nine Process Groups
Organization
Organization
Planning, Scheduling and Budgeting
Planning and Scheduling
Work Authorization and Budgeting
Accounting Considerations
Accounting Considerations
Indirect Management
Analysis and Management Reporting
Analysis and Management Reporting
Change Management
Change Management
Material Management
Subcontract Management
With the publication of the EIA-748-E, use this opportunity to make EVM System Description content improvements. In particular, review content related to:
Use of estimated costs (Guideline 15). Verify this is addressed in your EVM System Description.
Managing changes. Potentially align with the types of changes identified in Revision E.
ETC/EAC process. Verify content is clear on purpose/requirements at the control account level versus the program level.
Discussion on unit/lot costs as a result of the Revision D Guideline 20 deletion. This is often dependent upon whether your business environment includes production. Your EVM System Description may include content about supporting other contractual reporting requirements for production such the Contractor Cost and Data Reporting (CCDR) DIDs.
What will require an update is mapping the EVM System Description sections to the EIA-748-E set of guidelines. Also remember to review the content in your self-surveillance or self-governance section to see what may need to be updated.
Caveats
Note that the Cognizant Federal Agencies (CFAs) such as DCMA, NASA, DOE, and others will need to update their EVMS compliance or surveillance processes and materials to reflect the EIA-748-E once it is published. Timing is unknown, however, representatives from the various agencies participated in the IPMD joint government and industry team that produced the final set of guidelines. They are aware of the changes and have been planning to make the necessary updates to documents such as the DoD EVMS Interpretation Guide (EVMSIG). The updates to these agency documents have the potential to impact a contractor’s EVM System Description.
Note that government agency regulations (FAR, DFARS) refer to the EIA-748 guideline requirements (Section 2 only), not the entire standard. They ignore the rest of the standard as they define their process for evaluating whether a contractor complies with the Section 2 guidelines; an example is the DoD EVMSIG.
Planning Ahead
This is a good time to consider updates to improve or streamline your EVM System Description or related processes as industry and government both need to digest the EIA-748-E. Likely your training materials will need a refresh as well. Hopefully, your EVM System Description was not organized by Guideline. In that case, you may have significant work ahead. If you have a CFA approved EVMS, be sure to coordinate with them on the updates to your EVM System Description as they will need to review your changes.
H&A earned value consultants often review and assess EVM System Descriptions. If you need an independent third party to assess your EVMS documentation and provide recommendations on what could be improved, simplified, or clarified, give us a call today at (714) 685-1730.
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.
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.
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.
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.
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.
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.
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.
Engage Multiple Estimators. Gathering estimates from more than one person helps to reduce individual biases and provides a more rounded estimate.
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.
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.
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.
Working with numerous clients, H&A earned value consultants have observed many instances where project management teams consider the risk and opportunity (R&O) management process to be something technical in nature, run by engineers and focused on the technical aspects of the project’s product. Meanwhile, there is often a separate risk process going on much less formally to consider risks in terms of the project’s schedule and cost goals. This bifurcated approach is a source of risk itself.
Procuring agencies such as the DoD, NASA, DOE, and others have published their own risk management guides. The Government Accountability Office (GAO) has various reports on this topic including examples of their findings. DCMA mentions risk in their Business Practice 4 Guideline Evaluation Template (GET) Process/Implementation Verification Points often used by contractors to check whether their earned value management system (EVMS) meets the intent of the EIA-748 Standard for EVMS guidelines. The exact questions asked by DCMA are important but the overall idea that risk and EVMS are co-dependent is the critical aspect. This is also true for the DOE. They identify risk management as one of the 10 subprocesses necessary for an EVMS.
Setting the Stage
Risk is defined as a factor, element, constraint, or course of action that introduces an uncertainty of outcome that should it occur, could negatively impact the ability to meet the project’s planned technical, schedule, or cost objectives. Negative impacts are sometimes called a threat where the objective is to mitigate the risk. A realized risk becomes an issue that must be resolved to minimize the impact. An opportunity is defined as a positive risk where the objective is to capture the beneficial impacts. Opportunities are not as common as threats.
R&O management is defined as the process of identifying, assessing, and responding to risks and opportunities throughout the project’s life cycle. The goal of R&O management is to identify potential risks and opportunities, determine the likelihood or probability the risk or opportunity will occur, and determine the impact should a risk be realized, or an opportunity is captured. Risks and opportunities are prioritized so that those with greater impact and a higher probability of occurring receive a greater share of resources and attention.
In this blog, we are using the term risk with a focus on the negative impacts or threats to a project.
Example of Common Project Risks and Risk Assessment Approach
H&A’s senior management routinely reviews literature, considers our work with clients, and discusses with our earned value consultants the main contributors to project failure. These findings are updated regularly and presented in H&A training materials as an Ishikawa Fishbone Cause and Effect diagram. Figure 1 is an example of this type of diagram.
Figure 1: Example of an Ishikawa Fishbone Case and Effect Diagram
When this approach is used for risk assessments, each contributing risk is assessed, and the response documented. An example of a risk/response table is shown below for the first three identified risks.
Risk Item
Good Example of a Real Project Response to an Identified Risk
Poor communications
Goals are known and documented. Communications plan is in place. Have an established cadence for weekly internal and customer meetings to quickly resolve issues. An internal project performance management dashboard is updated daily with current data. Updated IMS and risk register are broadcast weekly to the team. A strong business rhythm has been established.
Scope creep
Work scope (requirements and SOW) are well defined and a change control process is in place. Performers are trained in spotting scope creep and how to handle potential changes in scope.
Inaccurate cost estimate
Implemented a process enabling cost estimators to search historical actual cost data, identify analogous tasks, substantiate, and document the basis of estimate. For high risk areas, techniques such as the Delphi method, SMEs, and non-advocate reviews are used. Performance is constantly monitored to spot work elements where the actual costs do not align with the budgeted costs or the estimate at completion (EAC) is triggering internal variance at completion (VAC) thresholds.
This same type of approach can be used by the project control team to create risk Ishikawa diagrams to identify technical risks that could impact the ability to achieve schedule and cost goals. Likewise, risk Ishikawa diagrams can be used to identify risks in the integrated master schedule (IMS) and time phased budget or estimate to complete (ETC) and EAC.
A Unified Approach to Risk
A unified approach includes technical, schedule, cost, and other risk identification and assessment that is an integral part of a contractor’s EVMS. R&O management should be integrated into the EVMS subsystems including work organization, planning and scheduling, work authorization and budgeting, management analysis and reporting, and change management.
Identified risks are analyzed and quantified to develop a risk handling strategy. Where applicable, risk mitigation tasks have been entered into the IMS. Ideally a schedule risk assessment (SRA) has been completed to gain an understanding of duration risks that can help to improve the accuracy of the schedule. Assuming the IMS is resource loaded and leveled, the result is a more accurate time phased budget plan as it incorporates the risk handling strategies when the performance measurement baseline (PMB) is established. The R&O process also provides the necessary rationale for determining the budget amount set aside for management reserve (MR).
The R&O assessments should be a normal part of generating the Variance Analysis Reports (VARs) and updating the ETC and EAC. These assessments can also drive the need for processing baseline change requests (BCRs) as well as determining the best approach for corrective actions.
Using Directed Searches of Identified Risks
To facilitate a unified approach, we recommend establishing a cadence of standing risk review sessions that are conducted in a methodical way to ensure the project manager, integrated product team (IPT) leads, control account managers (CAMs), schedulers, and financial analysts routinely walk through the identified risks that have the potential to impact the project’s IMS or time phased cost.
The intent is to establish a framework such as Ishikawa diagram to guide the risk review session, a directed search of the identified risks should anything further need to be addressed. It is important that a “does anyone have a risk to suggest” approach is not used. Every topic should be covered in every session by walking the Ishikawa risk items. Most of the time it will be a quick “no change” response. Separate Ishikawa diagrams could be used to guide the discussions for the contributing technical, schedule, and cost risks. The meeting room should have the ability to view the live IMS, cost data, and performance analysis data. Team members should be prepared to take notes during the meeting to compile action items.
Figure 2 is an example of a basic Ishikawa diagram of IMS risks the project control team could focus on for the risk review session. This would reflect the project control team’s identified risks to the IMS they routinely monitor.
Figure 2: Example of an IMS Ishikawa Fishbone Case and Effect Diagram
For example, updating the current schedule every reporting period has the potential to compromise the integrity of the IMS to provide accurate forecast information about the project’s remaining work. Perhaps the project control team has identified a list of contributing schedule status risks, risk response, and example directed questions for each review meeting. These questions could be focused at the CAM level. The following table is a simple example.
Risk Item
Risk Response
Example Directed Questions
IMS critical or driving paths
Verify logic. Verify traceability exists and has not been damaged by updates. Review constraints, deadlines, and milestones. Perform data quality check, correct errors.
Did milestones move? Did the end date move? What were the baseline dates for starts or finishes that fall into the period?What were the forecasted dates for starts and finishes that fall into the period?What did not happen? Why?
Realism
Calculate and assess the Baseline Execution Index (BEI) and Current Execution Index (CEI). Compare the ratio of actual performance to the ratio of future performance.
Is the BEI/CEI result within goals? Are there performance discrepancies? Does the forecast need to be updated to align with reality? Is the forecast showing the performance the team can achieve based on what has been achieved?
Quality of ETC/EAC
Verify updates are occurring. Compare current ETC/EAC to previous ETC/EAC.
Has the ETC been updated? What changed and why? For example, for activities with material requirements, price or usage variances may impact the ETC/EAC. For activities with labor requirements, availability or personnel changes may impact future work effort ETC/EAC.
The same approach would be used for guided budget and cost risk discussions. Tailored cause and effect diagrams should be created for a company business environment and each project’s unique characteristics.
A company’s EVMS should be designed to aid the identification and management of risks and opportunities. For example, during the process of developing the schedule and budget baseline, activity durations, resource requirements, and budget distribution can be refined to reflect identified and assessed risks. Proactively identifying and managing risks improves project performance. The expectation of specific risks occurring leads to contingency plans that lower the likelihood and impact of risks as well as the establishment of schedule margin and MR to address identified and assessed risks.
Clients are often seeking advice from our earned value consultants about implementing a practical approach in response to government customer requirements to proactively manage level of effort (LOE) tasks. The DoD EVMS Interpretation Guide (EVMSIG), NASA guidance, and DOE guidance such as the Compliance Assessment Governance(CAG) document clearly state the requirements for contractors related to planning, maintaining, and managing LOE. DOE also specifies a limit to the percentage of LOE allowed within a control account to avoid skewing performance measurement of the discrete work effort. In addition, both the DCMA and DOE EVMS data quality test metric specifications include manual and automated tests with thresholds specific to LOE.
Reducing the amount of LOE to the lowest level possible to minimize the number of activities that need to be actively managed. Objective measures of performance are always preferred.
When LOE activities are included in the schedule, they should not drive the date calculations of discrete activities in the integrated master schedule (IMS). They should also not appear on the critical path.
LOE must be segregated from discrete work effort. In practice, this means a work package can only be assigned a single earned value method. The work package is one of three types. It is either 1) discrete effort with an assigned earned value technique such as the Milestone or Percent Complete technique, 2) apportioned effort, or 3) LOE.
It must be verified it is truly LOE, i.e., it is management or sustainment type of activity that has no identifiable end products or established relationship to other measurable effort. It is clearly not discrete effort or apportioned effort. Remember that with LOE, the passage of time is the only measurement criteria. At the end of the performance month, the budget value for that month is earned. For this reason, LOE is the least desirable earned value method.
The budget or estimate to complete the work effort is time phased and reflects the planned or forecast period of performance. The period of performance and resource requirements must be substantiated. Determining the basis of estimate for the LOE activity can also help to verify the work is truly LOE.
So, what is the problem?
Common situations H&A earned value consultants run into are contractors where:
Managing the LOE is put on “auto pilot.” This might work for project management type of activities that span the duration of the project. It does not work so well when the LOE is associated with the occurrence of discrete work effort that is subject to change – i.e., the discrete work effort duration changes or the start date and/or the complete date changes. The result?
LOE tasks may incur actual cost of work performed (ACWP) with no budgeted cost for work performed (BCWP);
LOE tasks earn BCWP with no ACWP; or
The estimate at completion (EAC) is greater than the ACWP with BCWP equal to the budget at completion (BAC).
Any one of these conditions would trip the DCMA and DOE test metrics and should be avoided. These types of situations were illustrated in a previous blog, “Level of Effort Decision Tree” that discusses how to properly replan LOE.
Their EVM System Description doesn’t provide sufficient guidance to project personnel on what proactive management of LOE means. What are the rules for planning and maintaining LOE? How is LOE handled differently from discrete work packages?
Some System Descriptions allow LOE replanning to occur within the “freeze period,” usually defined as the current reporting period and often plus one additional month. This is contrary to other best practice guidance about how to handle changes for open discrete effort work packages. For discrete effort work packages, changes within the freeze period are not allowed and the work package must be closed to replan the remaining work. What’s the process for handling that open LOE work package? What about retroactive changes when the LOE work occurs earlier or later than planned, or the duration is different than planned? Then what?
When project personnel lack guidance, then arguments often ensue about what is the “correct” interpretation of the wording in governing documents or test metric specifications that are often inconsistent.
Validation checks are not routinely performed. This includes validation checks to ensure that control account managers (CAMs) are selecting the appropriate earned value method for a work package following the EVM System Description guidance during the work definition and planning phase. It also includes routine monthly data checks to identify common data anomalies typically associated with LOE such as ACWP and no BCWP or BCWP with no ACWP. The goal is to fix problems in the current reporting month and avoid making any retroactive changes. You should be catching and fixing avoidable DCMA or DOE EVMS test metric “triggers” every reporting period.
Best Practice Tips
Here is a short list of best practice tips that H&A earned value consultants have helped clients to implement over the years to ensure LOE is properly planned and proactively managed. The approach is tailored for each client to reflect the type of work the company typically performs. This is documented in their EVM System Description, related procedures, and recurring training to ensure project personnel have clear, specific guidance they can follow.
Consider using the Percent Complete earned value technique instead of LOE. A best practice is to identify quantifiable backup data (QBD) for a work package using the Percent Complete earned value technique. The QBD for the LOE type of work package could be the milestones identified for the discrete effort work package the LOE work package is supporting. This helps to ensure the work packages are reviewed and managed together.
Could the Apportioned Effort method be used instead of LOE? Is it possible to establish a direct relationship between the discrete effort and supporting effort? For example, is historical data available to document that the support number of hours is a given percentage of the discrete effort labor hours? If so, then using the Apportioned Effort method is a much better alternative. When the discrete work package is statused, the apportioned effort work package would be automatically statused as well.
Consider shorter durations for the LOE when that LOE is supporting discrete effort. Should the first occurrence of the LOE trigger a data anomaly test metric, it can be proactively handled along with any future replanning. The remaining LOE would already be in one or more separate work packages so there won’t be any criticism for changing open work packages. Any adjustments can be made in the current reporting period avoiding any retroactive changes that would trigger other data metric tests. What is considered to be “short duration” should be defined in the EVM System Description. An example would be LOE work packages of 3 to 4 months in duration. Be sure to provide specific guidance to project personnel on how to process these types of current reporting period LOE replanning adjustments. The LOE work package breakpoints should be technically related. For example: “Phase I Support,” “Drawing Support,” and so forth instead of generic descriptions such as “April Support,” “May Support,” or “June Support.”
Use rolling wave planning. This is by far one of the better solutions. This helps to ensure the discrete tasks and any supporting LOE tasks are planned together before the work is authorized to begin. Shorter durations for the LOE tasks are often used to align with the forward planning window.
Incorporate LOE earned value method checks into your routine status and data analysis process. Identify any upcoming LOE activities (for example, the next 60 to 90 days), along with the CAM responsible for the work effort to verify they accurately reflect the current plan. It is always better to proactively replan future LOE when needed instead of defaulting to an “auto pilot” mode. The CAM should understand this is part of their responsibilities.
Does your EVM System Description or training materials need a refresh to include specific guidance for project personnel that documents the preferred approach for planning, maintaining, and managing LOE? H&A earned value consultants frequently help clients with EVM System Description content enhancements or creating specific procedures that reflect your unique business environment. Call us today at (714) 685-1730 to get started.
Earned Value Management Systems are a critical component in the project management landscape. At its core, an Earned Value Management System (EVMS) offers a systematic approach to integrating scope, schedule, and cost. Implementing an EVMS enables project managers to measure project performance and progress in an objective manner that increases management visibility and control.
Key Principles and Terminology
To grasp the fundamentals of Earned Value Management, one must become familiar with its primary principles and associated terminology. Some of these key terms include Planned Value (PV), Earned Value (EV), and Actual Cost (AC), which form the basis for evaluating project performance and predicting future outcomes. Understanding these concepts is essential for anyone seeking to implement an EVMS.
The Role of EVM in Project Management
Effective project management hinges on the ability to forecast potential issues and measure ongoing performance against the project plan. An EVMS provides a structured framework for this purpose, allowing managers to identify variances in cost and schedule before they become critical. By integrating scope, schedule, and cost, an EVMS serves as a compass for project managers, guiding them through the complexities of project execution.
The Benefits of Implementing an EVMS
Implementing an EVMS reaps several benefits, including enhanced visibility into the health of a project and the ability to make data-driven decisions. An EVMS enables stakeholders to objectively assess project performance against the baseline, ensure alignment with strategic objectives, and encourage accountability among team members. Moreover, with an EVMS in place, organizations are better equipped to meet contractual requirements, especially for government contracts which oftentimes mandate the use of such systems.
By grasping the basic principles of EVM and the role it plays in project management, professionals can start their journey toward effective project control and successfully implementing an EVMS. With a comprehensive understanding of the basics, they can build a solid foundation for further exploration of the practices and principles that will lead to mastery of Earned Value Management.
Section 2: Steps to Obtain a Professional EVM Certification
Eligibility Criteria for a Professional EVM Certification
Before embarking on the journey to obtain a Professional EVM Certification, it is important to clarify the prerequisites. Typically, these may include a certain level of experience in project management, understanding basic accounting principles, and familiarity with the EIA-748 Standard for EVMS Guidelines. Professionals who wish to get a professional certification should review the specific eligibility requirements as dictated by the certifying body to ensure they qualify to undergo the certification process.
Detailed Step-by-Step Guide to the Professional Certification Process
Research and Select a Certifying Organization: Begin by identifying an organization that offers an EVM Certification.
Undergo Formal EVM Training: Enroll in and complete a formal training program that covers the core components of Earned Value Management. This step is pivotal, as it lays the groundwork for the practical application and understanding of EVM. Humphreys & Associates provides online EVM Training for employees of contractors that do business with the DOD, DOE, NASA, and other U.S. government agencies such as the FAA.
Study the Standards and Guidelines: Gain a comprehensive understanding of industry standards, such as the EIA-748 Guidelines. Knowledge of these standards is fundamental, as they will inform the set-up and management of an EVMS.
Prepare for the Examination: Most certifications will require passing an exam to demonstrate your proficiency. This will involve rigorous study and attending review courses to prepare.
Apply for the Certification Exam: Submit your application along with any necessary documentation and fees to the chosen certifying body. Ensure all prerequisites have been met before applying.
Take the Certification Exam: Schedule and sit for the certification exam. This will typically cover a range of topics, from the basic principles of EVM to more advanced concepts.
Receive Certification: Upon successful completion of the exam, you will receive your EVM Certification, which endorses your knowledge and understanding of EVM.
Essential Documentation and Preparation Tips
To ensure a smooth certification process, maintain an organized file of all coursework, training certificates, and professional references. Consider using study guides, practice exams, and other preparatory materials to fully equip yourself for the certification exam.
How to Maintain and Renew EVM Certification
An EVM Certification is not a one-time event but requires ongoing professional development to maintain. Stay abreast of any Continuing Education Units (CEUs) or Professional Development Units (PDUs) required to keep your certification active. Engage with the community of practice, attend EVMS workshops, and continue learning to stay current in Earned Value Management best practices.
Section 3: EVM Consulting and Expert Guidance
The Need for Expert Consultancy in the Professional EVM Certification Process
As professionals navigate the path towards EVM certification, expert consultancy can play a pivotal role. These consultants have extensive experience with EVM principles and the process for implementing an EIA-748 compliant EVMS. They can offer personalized guidance, which is often critical to ensuring a smooth and successful journey to compliance with EIA-748 Standard for EVMS.
How to Choose the Right EVM Consultant
When selecting an EVM consultant, consider the following criteria to ensure you make an informed decision:
Experience and Credentials: Look for consultants with a proven record of accomplishment in EVMS implementations and a robust portfolio of successful client engagements. Certified consultants, particularly those with additional qualifications in project management, bring a wealth of knowledge.
Industry Reputation: Investigate the consultant’s standing within the industry through testimonials, case studies, and peer recommendations. A reputable consultant will have positive feedback and be recognized as an authority in the field.
Approach to Training and Consulting: Evaluate the consultant’s methodology. The right consultant should offer a tailored approach, adapting their expertise to your organization’s specific needs and challenges.
Compatibility with Organizational Culture: Ensure the consultant’s style and communication align with your organization’s culture. A collaborative and adaptable consultant can integrate more seamlessly into your team.
Maintenance and Support: It is not just about successfully completing a Cognizant Federal Agency (CFA) EVMS Compliance Review, it is also about sustaining the EVMS and how project personnel implement it on their project. Check whether the consultant offers support and guidance to ensure ongoing compliance and effectiveness.
The Role of Consultants in Ensuring Compliance and Efficient System Implementation
An EVM consultant’s role extends beyond just advice on CFA compliance reviews—it involves hands-on assistance in setting up an EVMS that complies with industry standards, training staff to understand and use the system effectively, and preparing the organization for the rigorous CFA compliance review process. Furthermore, consultants can help identify any gaps in current practices and tailor the EVMS to best fit the organization’s unique environment.
By providing insights into best practices, drawing from a wide range of experiences with different clients, and offering objective assessments of current systems, consultants can ensure that an organization’s EVMS is both compliant and optimized for performance.
Earned Value Consulting provides valuable expertise that can streamline the CFA compliance process, facilitate the successful adoption of EVM, and ensure long-term compliance. By leveraging the knowledge and experience of a seasoned EVM consultant, organizations can overcome obstacles more efficiently and optimize their project management practices for greater success. Thus, engaging the right consultant is a strategic investment that can lead to significant dividends in project execution and management.
Section 4: EVM Training Course List
To enhance your skills in this area, H&A offers a comprehensive list of EVM Training Courses tailored to meet the needs of various stakeholders, from project managers to government contractors. Whether you’re preparing for a customer Integrated Baseline Review (IBR), seeking to improve your EVM proficiency, or aiming to pass professional certification exams, these courses offer valuable insights and practical experience. Delivered in an online format, these courses provide the flexibility to learn at your own pace while ensuring a deep understanding of EVM principles and their application in real-world scenarios.
CAM Discussion: The CAM Discussion serves as an essential component of the preparation process for a customer Integrated Baseline Review (IBR), compliance review, or surveillance review. This simulation offers a practical experience of a CAM documentation review and interview session, illustrating how a proficient CAM conducts an interview with a government customer. Additionally, it provides a useful recap emphasizing key technical points along with suggestions for follow-up action items.
CAM Essentials_DOD: CAM Essentials provides comprehensive training to improve EVM proficiency and understanding of the basics. This online training bundle features the EVMS Virtual Learning Lab (DOD), Scheduling Virtual Learning Lab, and CAM Discussion courses, all available separately.
CAM Essentials_DOE: CAM Essentials offers comprehensive tools for improving EVM skills and understanding the fundamentals. This online training bundle includes the EVMS Virtual Learning Lab (DOE), Scheduling Virtual Learning Lab, and CAM Discussion courses, each available separately.
CAM Essentials_NASA: CAM Essentials provides comprehensive training to improve EVM proficiency and understanding of the basics. The online training bundle includes the EVMS Virtual Learning Lab (NASA), Scheduling Virtual Learning Lab, and CAM Discussion courses, which are also available individually.
CPR/IPMR/CFSR Completion and Reconciliation: The Integrated Program Management Report (IPMR) and Contract Funds Status Report (CFSR) are crucial communication tools between contractors and their customers. This online course provides valuable insights into the proper completion of these reports and their reconciliation.
EVMS Certification and Preparation Quiz: This online course comprises 120 questions in four separate quizzes, covering the nine EVMS process groups, the Integrated Program Manager Report (IPMR), earned value data analysis, Integrated Baseline Review (IBR), and compliance reviews. It serves as an excellent study and preparation resource for the AACE International Earned Value Professional (EVP) or the PMI Project Management Professional (PMP) certification exams.
EVMS DOD Virtual Learning Lab: The EVMS Virtual Learning Lab offers a comprehensive 21-hour instruction program. This online training delivers Humphreys & Associates’ acclaimed three-day EVMS workshop in an interactive, multimedia format. The video content includes all workshop coursework, quizzes, and case studies, allowing students to assess their understanding and receive prompt feedback through scored quizzes and exams.
EVMS DOE Virtual Learning Lab: The EVMS Virtual Learning Lab offers a comprehensive 21-hour online training program. This interactive multimedia format is based on Humphreys & Associates’ acclaimed three-day EVMS workshop, delivering all course content, quizzes, and case studies in a video format. Students can assess their understanding through scored quizzes and exams.
The course can be used for project personnel to enhance their EVM proficiency or for someone who wants to learn the basics of earned value management at their own pace.
EVMS NASA Virtual Learning Lab: An intensive 21-hour online training program that offers a complete presentation of Humphreys & Associates’ three-day EVMS workshop. The course has been adapted into an interactive multimedia format, including all quizzes and case studies from the original workshop. Students can test their knowledge and receive immediate feedback through scored quizzes and exams.
The course can be used for project personnel to enhance their EVM proficiency or for someone who wants to learn the basics of earned value management at their own pace.
IBR – Online Video: The Integrated Baseline Review (IBR) course is designed to provide a comprehensive understanding of the IBR process. It is a fast-paced presentation that is essential for ensuring a clear grasp of the technical requirements of a project and establishing accurate schedule and cost goals. This course offers a detailed explanation of the review process and can be tailored to provide training for specific needs and timings. The approximate duration of the course is 2 hours.
OTB/OTS Implementation – Online Video: Learn about Over Target Baseline (OTB) and Over Target Schedule (OTS) Implementations in this approximately 1 hour and 30-minute video.
A formal re-programming action, known as an OTB and/or an OTS, may occur during risky major acquisitions. Understanding the rationale for and the various methods used to implement an OTB/OTS, as well as correctly completing the IPMR formats in accordance with the Data Item Description (DID) instructions, is not a simple process. Our video provides clarity on this complex process.
The video includes completed IPMR Formats 1, 2, and 3, showcasing four OTB methods, along with before and after Baseline graphs for each method. It also contains examples and Baseline graphs for Over Target Schedule, Format 3.
Scheduling Virtual Learning Lab: The Scheduling Virtual Learning Lab offers an intensive 21 hours of instruction covering critical path fundamentals, schedule baseline, float, network logic development, risk assessment, changes, and scheduling in an EVMS environment. The content is based on the well-regarded three-day Project Scheduling Workshop by Humphreys & Associates, adapted to a video format and featuring quizzes and case studies for immediate knowledge testing and feedback.
The course is designed for project personnel looking to enhance their project scheduling skills and for individuals who want to learn the fundamentals of project scheduling at their own pace.
A student who completes the Scheduling course will earn 21 Professional Development Units (PDUs) or 2.1 Continuing Education Units (CEUs).
Evaluating the Effectiveness of Your EVM Training
To ensure that the EVM training investment yields the expected results, it is important to monitor and evaluate its effectiveness. This can be done through various means, such as feedback surveys, performance assessments, and observing improvements in project management practices post-training. Metrics like increased efficiency, reduced project variances, and improved forecasting accuracy can indicate the success of the training program.
Additionally, incorporating a continuous improvement process for training—where feedback is used to refine and enhance the training offerings—can help ensure that the organization continues to improve on your EVMS over time.
Properly tailored EVM training programs are not the only key to successful professional certifications and EVMS implementation—they empower organizations to achieve strategic objectives and enhance overall project management proficiency. With the right training program, professionals and teams can develop the expertise needed to leverage EVM capabilities fully, leading to improved project outcomes and sustained success.
The journey through the complexities of building an Earned Value Management System (EVMS) underscores its pivotal role in effective project management. By committing to understanding the basic principles of an EVMS and striving for formal certification, professionals elevate their ability to forecast, monitor, and steer complex projects toward success.
EVM training equips project teams with the tools and strategies necessary to implement and manage robust project control systems. This, in turn, fosters informed decision-making, enhanced accountability, and improved alignment between project objectives and outcomes. Professional certification recognizes proficiency that benefits the individual and the organization by establishing credibility and assurance in project management capabilities.
Having traversed this guide, the next steps involve consolidating your newfound knowledge and venturing into tailored training programs that suit your or your organization’s specific requirements. From here, it is essential to consistently apply, adapt, and refine the skills gained through training to real-world scenarios.
Encourage yourself and your peers to persist in your journey towards EVM mastery. Continued learning, networking with other EVM professionals, and staying abreast of evolving practices will ensure that your expertise remains current and beneficial. May this guide serve as both a foundation and steppingstone on your path to excelling in the discipline of Earned Value Management.
For information on Corporate or Quantity Discount pricing, please contact us at products@humphreys-assoc.com or call us at (714) 685-1730.
