EVMS Implementation

Effective EVMS Implementation for Government Contracts: Roles and Challenges

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Effective EVMS Implementation for Government Contracts

Embarking on implementing an Earned Value Management System (EVMS) for government contracts is a complex task. With the expert guidance of Humphreys & Associates, leaders in earned value consulting, organizations can effectively navigate this intricate process. This detailed exploration, the second in a three-part series, delves into the best practices, key roles, and common challenges of implementing an EVMS on government projects.

Best Practices for Implementing an EVMS on Government Projects

The implementation of an EVMS for a government project demands team work and strategic planning. Following best practices facilitates the EVMS compliance process and enhances overall project performance.

  1. Begin with a Clear Strategy: Starting with a clear strategy requires a full understanding of the scope of contract requirements and aligning project management processes with the EIA-748 Standard for EVMS Guidelines. This means establishing clear technical, schedule, and cost objectives as well as establishing a performance measurement baseline that are in harmony with contractual obligations.
  2. Use a Phased Approach: A phased approach to EVMS implementation allows for better management of resources and more focused attention on each aspect of the system. By prioritizing critical areas, such as organizing and decomposing the entire contractual scope of work into manageable product-oriented elements that can assigned to responsible managers, organizations can ensure that the foundational elements of an EVMS are solid before expanding to other areas.
  3. Involve All Stakeholders Early: The early involvement of all stakeholders, including project managers, project controls team, finance, procurement, and even suppliers, ensures that everyone understands the EVMS requirements and their role in the implementation. This early buy-in helps to streamline the integration of EVMS into existing processes and encourages collaborative problem-solving.
  4. Ensure Adequate Training: Comprehensive training programs are essential to equip all team members with the necessary knowledge of EVMS principles as well as how to use the schedule and cost tools that support the EVMS. This training should be tailored to the various roles within the team and include practical exercises that reflect the challenges they will face during implementation.
  5. Focus on Data Quality: High-quality data is the cornerstone of an effective EVMS. Ensuring accuracy, timeliness, and reliability of project data involves setting up rigorous data collection and processing systems, continuous data verification, and validation processes.
  6. Continuously Improve: Continuous improvement involves regularly reviewing and refining the EVMS processes based on project performance, self-governance feedback, and lessons learned. It’s about fostering a culture of constant enhancement to adapt to project changes and industry advancements.

Who’s Who in EVMS Development and Deployment

A successful EVMS implementation relies on the collaborative efforts of a dedicated team, each member plays a critical role.

  • Project Managers: They are the linchpins in ensuring that the EVMS is implemented as intended on the project. They coordinate between different teams, manage resources, and ensure that project contractual objectives are being met.
  • Control Account Managers (CAMs): CAMs have a focused role in managing specific project segments of work. They are responsible for the scope of the work, schedule, and budget for their control accounts that are decomposed into detail work packages or planning packages.  They are critical in ensuring work completion, developing and implementing corrective actions when needed, and providing accurate work status information.
  • EVMS Analysts: These specialists monitor and analyze project performance against the established baselines. They provide forecasts, identify variances, and offer insights that guide decision-making and corrective actions.
  • Finance Personnel: The finance team ensures the integrity of project accounting and its alignment with EVMS requirements. They are responsible for cost recording, allocation, and reporting, playing a vital role in the financial aspect of project control.

Common Challenges and Solutions for an EVMS Implementation

While implementing an EVMS, organizations may encounter several challenges, but with the right strategies, these can be mitigated.

  • Promote Organizational Buy-In: Resistance to change is a common barrier. Overcoming this requires demonstrating the value of the EVMS to the stakeholders, highlighting its benefits in terms of improved project visibility and control. Engaging team members by making them part of the implementation process can foster acceptance and support.
  • Maintain Data Integrity: To ensure the accuracy and completeness of data, it’s imperative to establish standard data governance practices. This includes documenting best practices to help project personnel develop and maintain quality schedule and cost data, performing regular data quality assessments, and conducting continuous training.
  • Seek Expert Advice: Leveraging the knowledge and expertise of EVMS consultants like Humphreys & Associates can be invaluable. Consultants can offer guidance, best practices, and training that are tailored to the organization’s specific needs and challenges.

The implementation of an EVMS is a critical step towards achieving project success, especially in the highly regulated government contracting environment. The insights provided here, coupled with the expertise of Humphreys & Associates, can help organizations to navigate the EVMS implementation landscape effectively.

For a deeper dive into this topic, read our full article, “Navigating EVMS Certification: A Step-by-Step Guide to Compliance.” And stay tuned for the final installment in this series, where we will explore strategies for preparing for compliance or surveillance reviews in “Preparing for EVMS Reviews: Strategies for Success with Humphreys & Associates.”

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EVM for Biotech and Pharma – Part I Implementation and Training

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Updated December 13, 2017

 

EVM for Biotech and PharmaAs you know, the Earned Value Management System (EVMS) is a management process with characteristics that are absolutely logical to manage projects whether there is an external customer or not. The EVMS is also required by the Federal Government on DOD, DOE, FAA, NSA, DOT, DOJ, NASA, etc. contracts over $20M.

With the phasing in of the Affordable Health Care Act and recent funding for research and preparation in the event of bio-terrorism, other branches of the Government, such as Health and Human Services (HHS) and Biomedical Advanced Research and Development Authority (BARDA), are becoming more involved in the healthcare sector. Implementing and using EVMS is a baseline requirement for biotech and pharmaceutical firms awarded large contracts by the Federal Government.

This will require companies and universities that receive funding to understand and implement Earned Value Management and that key project personnel, including management and executives, will require high quality Earned Value Training.

Why EVM and Government Contracts

Earned Value Management has been used since the 1960’s and has become the standard by which the Government measures and evaluates the management and reporting processes on projects awarded to contractors. Initially, it was implemented on projects; such as the development of satellites, long-range missiles, fighter aircraft, etc., but has become the US Government’s gold standard to manage the technical, schedule and cost progress of projects and to identify and manage risk and opportunities.

In order for defense contractors to be eligible for large contracts, they are required to follow the 32 Guidelines of the EIA-748-C which can entail system design and development and a substantial learning curve. Earned Value Management company-wide training and proper implementation becomes critical for project efficiency, future funding and to meet Government requirements.

Integral to EVM are the uses of the Integrated Master Plan (IMP)/Integrated Master Schedule (IMS) and risk and opportunity management.  The Integrated Master Schedule is the basis for developing the Performance Measurement Baseline (PMB) which in turn, is the basis for measuring performance on a project.   Measurement of progress against the baseline provides early identification of problems and helps to identify and mitigate costs and risks, while also identifying opportunities, by implementation of appropriate corrective actions.

Earned Value Management Systems for Project Management

The basic concept of the Earned Value Management System is more than a unique project management technique.  The EIA-748-C contains 32 Guidelines that define a set of requirements that a contractor’s management system must meet. The objectives of an EVMS are:

  •  Relate time phased budgets to specific contract tasks and/or statements of work
  • Relate technical, schedule and cost performance information
  • Furnish valid, timely and auditable data/information for proactive management action and decision making
  • Provide the basis to capture work progress assessments against the baseline plan to facilitate realistic project costs and completion dates
  • Supply managers with a practical level of summarization for effective decision making

Once a contractor’s EVM System is designed and implemented, there are significant benefits to the contractor and to the customer:

  • Contractor benefits include increased visibility and control to quickly and proactively respond to issues which makes it easier to meet project technical, schedule, and cost objectives
  • Customer benefits include confidence in the contractor’s ability to manage the project, early problem identification, and objective rather than subjective contract cost and schedule status

Earned Value Management Training

Experienced project managers will tell you that understanding the scope, schedule and costs of a project is essential to its success. The primary objective of the EVMS is to ensure that all elements of a project are planned, authorized, managed, and controlled in a consistent and cost-effective manner.  There is an increasing demand for training for organizations beyond the traditional aerospace and defense related construction, software, research and development, and production environment to now include non-defense companies to implement and use the Earned Value Management System.

EVM for Biotech and Pharma

Biotech and Pharma companies are not strangers to dealing with government regulations and requirements. Most have gone through rigorous Food and Drug Administration (FDA) processes to receive approval of compounds and/or devices. Nonetheless, learning how to design and use an EVM system can take a considerable investment of time and money, but is an essential requirement for initial and ongoing funding.

In addition to the EIA-748-C, there are numerous documents that give direction regarding the implementation and use of an EVM system.  Some of these are the National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD) EIA-748 Intent Guide, Cost Accounting Standards (CAS), Data Item Descriptions (DID), Military Standards (MIL-STD) such as MIL-STD-881, the Earned Value Management System Interpretation Guide (EVMSIG), and many others.  We have helped many organizations to ensure that they do not overkill or underkill based on their desired management system characteristics.  H&A personnel understand the requirements and are able to “size” those requirements to meet company and customer requirements.

Although Biotech and Pharma are relatively recent industries to use EVM, Humphreys & Associates (H&A) has been providing Earned Value Management training and implementation services for over 35 years. H&A provides self-paced online, classroom and private training courses, and can assist in all aspects of Earned Value Management Implementation.

For more information about EVM training or support, or with questions about your company’s requirements, please contact the Humphreys & Associates corporate office.

EVM for Biotech and Pharma – Part I Implementation and Training Read Post »

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