Earned Value Training is a project management methodology that helps organizations track and manage the performance of their projects. It involves the measurement of project progress in terms of both cost and schedule, allowing project managers to assess whether they are on track, behind, or ahead of schedule and budget. Through Earned Value Training, project teams learn how to use key metrics and calculations like Earned Value (EV), Planned Value (PV), and Actual Cost (AC) to gain insights into project health and make informed decisions for successful project execution. This training equips professionals with the skills to monitor and control projects effectively, ensuring that they deliver value while staying within budget and on schedule.
In this brief video we review the US Governments dollar thresholds for requiring the implementation of an Earned Value Management System and why Contractors may wish to implement Earned Value for a Firm Fixed Price contract, even if it is not required by the government.
You can use the links below to jump to a specific part of the video. 0:06 – Earned Value Project Dollar Thresholds 0:36 – Earned Value Scrutiny and Cancelations 0:57 – Firm Fixed Price Contracts EVMS
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
This chapter looks at how risk is evaluated when developing an Earned Value Management System.
Video Contents
You can use the links below to jump to a specific part of the video. 0:00 – A Closer Look at Risk 0:25 – Risk Drives Other Concerns 0:59 – Types of Risk 1:19 – Risk Opportunities 1:38 – Risk Analysis and Selective Controls 1:54 – Balance Cost with Benefit
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
This video provides an overview of why Earned Value Management is a benefit to both the company implementing it and their customer.
Video Contents
You can use the links below to jump to a specific part of the video. 0:00 – Introduction 0:12 – EVMS Benefits to Customers 1:01 – EVMS Benefits to Companies 1:54 – Mutual Benefits of Earned Value
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
Earned Value Consulting
Earned value consulting is a process by which a consultant can help a company to better understand the financial implications of their projects. This understanding can then be used to make more informed decisions about whether or not to undertake a project, and also to ensure that the project is completed as efficiently as possible. The goal of earned value consulting is always to improve the bottom line for the company.
Looking to improve your company’s bottom line? Earned value consulting can help! Our experienced consultants can analyze your project costs and help you make informed decisions about whether or not to undertake a project. We’ll also help you stay on track during the project’s execution, ensuring that it stays within budget and on schedule. Contact us today to request a free consultation.
Do any (or many) of these situations apply to you?
The Project has to comply with the EIA-748 EVMS Standard! What is that? How do we do that?
You have a new contract of over $20 Million, and you need to get yourself, your staff, and all the Project personnel up to speed on your new contractual Earned Value requirement.
The RFP says the company must have an Earned Value Management (EVM) certification. How can we respond to the RFP?
Your contract is over $100 Million and now you must have and demonstrate a Certified Earned Value Management System (EVMS). How do you do that?
How do you get a compliant EVMS Description in the first place?
You reviewed company training materials and everything dealing with Earned Value is out of date; and it is going to cost thousands to update the materials and keep them up to date!
What are Control Account Managers (CAMs)? Must we have CAMs to do Earned Value? How do I get CAMs/Train them?
I used to have great CAMs, but none of my new CAMs can spell EV. How do I train them?
You Are Not Alone
If you answered “yes” to any of these, don’t feel like the Lone Ranger. Even though the Earned Value concept has been around for over 50 years, the requirement can still be new to your company, new to your contract, and new to your employees. Most will not have learned EVM in college. Even companies that have been using EVM for years face a recurring need for training. We’re pretty consistently seeing a turnover of 20-40% of our experienced CAMs each year across the industry.
If you answered “yes” to several, I’m sure you’re a bit overwhelmed and asking yourself, how can we possibly meet all these requirements?
H&A has trained over 950,000 people around the world in all aspects of the Earned Value requirements and has built the largest, most comprehensive library of training materials in the Earned Value Management consulting industry. We have tailored training materials and have trained and supported contractors whose customers have been from DOD, DOE, NASA, FAA, HHS, as well as international customers such as the Australian DOD, the Canadian DND, Sweden Defense, and the UK.
Basic and Advanced Courses in Earned Value Management and
Control Account Manager/Project Controls Staff Training and Certification;
EVMS Review training to prepare upper management and project teams for:
Earned Value Management System Review,
Integrated Baseline Review (IBR), and
Internal/Joint/External Surveillance;
Specialized training in:
Developing a WBS,
Planning Techniques,
Project Scheduling,
Baseline Establishment,
Materials Management,
Subcontract Management,
Basic and Advance Variance Analysis,
Estimating,
Change Management,
Government Reporting requirements,
OTB/ OTS incorporation, and
Agile Software Development
Real-World Application
Our curriculum makes extensive use of real-world examples and case studies to extend the process of learning into application. We offer these hands-on courses in a variety of settings and formats to meet your needs.
Public offerings are open to the industry at large and are particularly useful when you have a limited number of individuals needing the training or those individuals who are widely geographically separated.
In-house offerings at your facilities allows us to meet the training need at one location or for one specific team and can include specifics of your system description.
Earned Value Webinars
Webinar offerings of the two courses above and our Virtual Learning Lab (VLL) format are available, especially in these times of limited travel. Webinars of the public and in-house training courses rely on the same content as the in-person courses with the addition of virtual interaction opportunities to increase student involvement and enhance learning. Our Virtual Learning Lab (VLL) format provides an opportunity for busy individuals to learn at their own pace and time of their choice – even if they are working from home. The VLL makes extensive use of video presentations and application case studies to enhance the learning environment and ensure the students continue to apply the knowledge they have gained.
Training Materials
If you have an existing training staff, H&A can even be your source for training materials. Most of our courses are available for purchase/licensing and our staff of EVMS experts can tailor them to any company environment. The big benefit here is you leveraging H&A active involvement with EVM requirement changes to keep the material up to date and your training staff don’t have to do it. In the end you get an up-to-date course without out committing the staff and costs to do the work. This approach also aligns your material across all our offerings to provide you delivery flexibility with a consistent core content.
In addition to providing course materials, H&A also can provide Train-The-Trainer sessions in those courses, so your company’s training department can understand and become comfortable with the training materials and updates.
EVMS Certification Programs
Our Certification programs go beyond the public or in-house training courses to create the Qualified CAMs and Project Controls (PC) personnel that are integral parts of a successful EVMS implementation. These roles are where “the rubber meets the road” for EVMS. CAMs and PCs will be expected to demonstrate how the company’s EVM System is actually operating on a day-to-day basis. H&A offers comprehensive and rigorous Certification Courses for both of these important functions so you can be assured that your people not only understand Earned Value concepts but have demonstrated the ability to address the requirements or even problems that can arise on a Project.
Mock Reviews
To enhance the review training listed above (EVMS, IBR, and Surveillance) and best prepare your organization for these events, H&A also provides teams of our consultants who can conduct Mock Reviews for all three of these events. These mock reviews simulate each type of government review, including the conduct of CAM and other manager interviews, the running of metrics testing, and the preparation of in-briefs and exit briefs all of which are integral parts of a government EVMS Review. These Mock reviews can also be used as on-the-job training for company personnel who may be required to conduct IBRs or Surveillance at a subcontractor’s facility. H&A can also augment your company teams in conducting these subcontractor reviews to extend the training while helping your team complete required tasks.
Agile
H&A has a team of experienced Agile Coaches who are also experts in integrating Agile and Earned Value Management methodologies. H&A also has a vast library of Agile and EVM training materials that can be tailored to meet specific client needs.
Specialized and Experienced Training
Our specialized training courses have been developed over time to address the specific training needs of past clients and provide in-depth, focused training in a variety of topics to enhance your application EVM to effectively manage your projects. These courses build on the general knowledge provided by the basic courses to make your team more effective and efficient in each topic area. In cases where your team needs specific, focused training and you don’t find it listed here, we would be happy to discuss the situation and provide a recommended approach to make you successful.
Each H&A Senior Team Lead typically has over 30 years of experience in Industry, in Government, and/or in consulting – so there is virtually no situation or problem that they have not encountered before. So, although your company may be overwhelmed by the EVMS requirements and the expectations of your customer, you can rely on our H&A team of experts to get you through it all successfully.
So please, take a look at the H&A website and all that we have to offer, and then give us a call at (714) 685-1730, or email us so we can get you started on the road to EVMS success. We look forward to helping you be successful!
The world of Earned Value Management (EVM) can sometimes be daunting with a seeming overabundance of resources, guides, training, and services designed to help the user. Depending on which industry and/or government agency you are dealing with, the EVM interpretation can differ. Below is a listing of free online training resources meant to help you in finding the right information for the right situation. Each online source provides a summary of resources available and the URL to find them.
The EVMS Education Center is an online Earned Value Training resource for cutting-edge thought and insight on Earned Value Management Systems. The user can select an EVM category from the list below to access more detailed information:
The Policy & Guidance page provides the user with OMB Circular A-11, FAR, and DFARS, 5000 series documents, Data Item Descriptions as well as sample CDRLs and Guides and References. In addition, Training Presentations on IPMDAR Application, Tailoring and Reporting are provided.
The EVM-CR is a data repository managed by the IPM division of OUSD(A&S) AAP, the office of Acquisition, Analytics and Policy.
The purpose of the EVM-CR is to establish a source of authoritative Earned Value Management (EVM) and Integrated Program Management (IPM) data for the Department and to provide prompt access for PMOs, Services, OSD, and DoD Components.
Government users with Analyst role can access all published reports in the EVM-CR
Contractors that support DOD HQ organizations can be granted similar access by providing appropriate NDAs
Training includes an EVM Tutorial which consists of 8 modules and provides a high-level overview of EVM principles and reporting, intended for novice EVM users.
In addition, a series of 34 short video snippets, sponsored by the Office of Project Management (PM), provides training in a variety of EVMS topics.
Includes several downloadable handbooks for reference including:
· Integrated Baseline Review (IBR) Handbook
· Schedule Management Handbook
· Link to request STAT Access and to download the STAT User’s Guide
· Work Breakdown Structure Handbook
· EVM Implementation Handbook
· NASA/SP 2016-3708 EVM P-CAM Reference Guide
NASA IPMR DRD
The Integrated Program Management Report (IPMR) is a consolidation of the Contract Performance Report (CPR) and the Integrated Master Schedule (IMS) and is required on all new contracts when an EVMS is a requirement.
In conjunction with PMI, this website includes several webinar presentations, templates and articles designed to aid the student in a greater understanding of Earned Value Management. The site is continuously updated by contributors across the world and is applicable to both commercial and government environments.
This site provides a comprehensive list of guidance documents applicable across the DoD Environment. Complementary documents to the EIA-748 Standard for Earned Value Management Systems include:
· EIA-748-C Designation Memo
· Earned Value Management System Acceptance Guide
· Earned Value Management System Guideline Scalability Guide
· Earned Value Management Systems Application Guide
· Earned Value Management Systems Intent Guide to the EIA Standard for EVMS (EIA-748)
· Intent Guide Appendix Compliance Map Template
· Guide to Managing Programs Using Predictive Measures
· Industry Practice Guide for Agile on Earned Value Management Programs
· Integrated Baseline Review Guide
· Master Definitions List for IPMD Guides
· Planning and Scheduling Excellence Guide (PASEG)
In Part 2 we talked about the over-application of EOCs at or below the Work Package level and how a CAR assuming that a charge against an Element Of Cost (EOC) equals a charge against a “zero-budgeted WP” was inaccurate.
Use a New EOC
Both of the examples from part 2 were over-applications of the EOC requirement. The point here was that the work (it was to design a circuit card), was planned as labor and was also accomplished (earned) in the month it was planned; so the value would be “earned” as planned. In that period, however, it happened that the planned resource was not available, so the work was actually accomplished using a different EOC such as a subcontractor engineer. The contractor’s system properly showed that the design had been completed and the value earned and that the ACWP for that completion was also in the system (i.e. consistent with the BCWP). However, it just happened to be the Subcontract EOC instead of the Labor EOC originally planned, and the CAM addressed the cost difference in the VAR for the Control Account. The team’s comments on the CARs were that the CAM should have replanned the effort using the new EOC instead of the original one. The problem with this is that in many cases the CAM does not know the original resource is not going to be available until the day it happens. There would (1) be no time to process the change and (2) the change would occur in the “freeze period” (actually in the current month), and (3) this could result in unnecessarily large numbers of Change Requests since these types of events commonly occur in the industry.
Noted instances:
Work planned and earned as internal labor (Labor EOC) had to be performed by contract support (subcontract EOC) in that period because of the non-availability of the planned resource.
[Some Contractors consider each labor grade a separate EOC within labor] Work planned and earned for an Engineer 2. However, the period the work was performed used an Engineer 3 (higher cost).
The plan was to build sub-assemblies in-house (Labor EOC), but a machine breakdown necessitated having a vendor provide substitute off-the-shelf assemblies (Material EOC) that month.
In each of these cases, the “EOC ACWP substitution” was temporary, and the work resumed the next period as planned, using the originally planned Element of Cost. The key here is that in each case, the work was performed, and so it was earned; as it should have been. The only difference was that a different EOC was used to accomplish the work – a simple Cost Variance. While it is certainly true that each WP (and PP) should be planned and WPs earned using a single EOC, the misinterpretation here was that every EOC then is a Work package and they are not. In other words, temporarily using a different Engineer category than planned, or using contract support instead of internal labor, or substituting a purchased material item instead of fabricating internally, etc. simply represents a Cost Variances, and should not be cited as a violation of the EVMS Guidelines.
The “consistency” required by the Guideline and the sub-question is that the EOC actually used was expended in the same period in which the work was completed and the Earned Value claimed (i.e. consistent with the BCWP). The variance analysis would show BCWS, BCWP, and ACWP at the CA level with the EOC details at lower levels.
Now for the big “HOWEVER”!
If the switch in use of the alternate EOC is short term, then the differences should be addressed as a Cost Variance (which could be higher or lower than with the planned EOC); HOWEVER, if the change is expected to be permanent or long term, then the CAM should replan the remainder of the work package using the new EOC, and the EAC should be updated, as well, to reflect the new anticipated total cost using that revised EOC.
Note: Some contractors have what is called a “gray badge” environment, whereby a subcontractor charges their labor directly into the Prime contractor’s labor system. Under this arrangement, for this subcontractor, there would be no difference in EOC if the subcontractor performed the work instead of the prime contractor.