0 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR...

1Office of Performance Assessments and Root Cause Analyses (PARCA)

PARCA EVM

APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.

EVM and Agile Synergies in a DoD Environment

Mr. Gordon Kranz, PARCA Deputy Director for EVMMr. Kevin McKenna

EVM World May 2015

PARCA EVM

Agenda

OSD PARCA

EVM World Agile Track Sessions

DoD EVM and Agile Background

Baseline Planning and Progress Measurement

Discussion

Contact Us

PARCA EVM

OSD PARCA

PARCA EVM

PARCA Organization

PARCA was brought into existence via the reforms called for by the Weapon Systems Acquisition Reform Act (WSARA) of 2009

As the central office for major defense authorization performance assessment, root cause analysis, and earned value management (EVM), PARCA advises AT&L on program execution status; and issues

policies, procedures, and guidance to the Military Departments and the Defense Agencies to improve program management practices

Director, Performance Assessments and Root Cause Analyses (PARCA)Mr. Gary R. Bliss

Deputy Director for Earned Value Management

Mr. Gordon M. KranzO S D E V M Po l i c y

H o l d e r

Deputy Director for Root Cause Analysis

Dr. D. Mark HusbandN u n n M c C u rd y

B re a c h A n a l y s i s

Deputy Director for Performance Assessments

Mr. David S. CadmanP ro g ra m

A s s e s s m e n t s a n d DA E S S e l e c ti o n

Deputy Director for Acquisition Policy

Analysis CenterDr. Philip S. Anton

A n a l y s i s Te a m

PARCA EVM

PARCA EVM Vision

Guiding Principles Increase the quality and utility of EVM data

Increase the use of EVM across the acquisition chain

Improve acquisition professionals’ ability to utilize EVM

Reduce Contractor’s administrative burden of inefficient use of EVM

Ensure constructive 2-way communication between DoD and Industry

EVMS is perceived by all stakeholders to be cost effective

Foster cross functional situational awareness, visibility, and accountability through integrated program

management at all levels of the acquisition community

PARCA EVM

PARCA is responsible and accountable for EVM performance, oversight, and governance across the Department

PARCA Earned Value Management Division Authorities

Policy and Guidance

Develop, publish, and maintain DOD policy

and guidance on EVM

EVM CompetencyServe as DoD EVM

Functional Lead to influence EVM

competency requirements;

Coordinate with Defense Acquisition

University (DAU)

EVM Data Requirements

Review and approve EVM data

requirements for MDAP programs in coordination with

Services and Defense Agencies;

Resolve interpretive differences in EVM policy, practice, and

requirements

EVM Central RepositoryBe responsible for the

Earned Value Mgt Central Repository

(CR) and maintain CR data alignment with

the Acquisition Visibility framework;

Report EVM data compliance, integrity, and quality to AT&L

Communications and Outreach

Maintain communications with

Government and Industry on EVM

policy

PARCA EVM

Earned Value Management (EVM) is an inherent part of the acquisition program management value chain and provides Program Managers with accurate and timely insight into cost, schedule and performance of products, systems, and services programs

Concurrent use of EVM and Agile development provides a program team with the ability to adapt to, track, and report on emerging requirements while significantly reducing program risk

Premise

PARCA EVM

EVM WORLD AGILE TRACK SESSIONS

PARCA EVM

EVM World Agile Track Sessions

Date & Time Practice Symposium

Wed 5/27 | 1:30 Avoiding Chaos – Agile Project Delivery

Wed 5/27 | 2:30 WBS and the Product Backlog

Wed 5/27 | 3:45 Planning, Scheduling, and Baselining

Thu 5/28 | 1:30 Change Control

Thu 5/28 | 2:30 Measuring, Collecting, and Reporting Progress

Thu 5/28 | 3:45 Forecasting ETCs and the Schedule

PARCA EVM

DOD EVM AND AGILE BACKGROUND

PARCA EVM

Objective

Provide DoD guidance on use of EVM Integrated Program Management with Agile Development

PARCA has been collecting information: Hosting periodic Government Agile and EVM Forums

Multiple Industry Events - CPM, NDIA, and AFEI ADAPT - to identify successes, obstacles, and best practices from the field

Government Industry Meetings - exchange ideas and look for common processes

• Feb 2015 Meeting presentations are posted on the PARCA website: http://www.acq.osd.mil/evm/resources/EVM-Agile%20Meeting.html

White paper summarizing EVM in an Agile Environment is in draft stages

PARCA EVM

EVM and Agile

Definitions EVM: disciplined integrated program management tool for

planning and measuring progress to forecast and adapt future execution

Agile: a development framework or methodology for addressing complex problems in an emerging environment

Similarities Promote effective, proactive program management Emphasize planning, forecasting, and estimating Objective technical criteria used to track progress

PARCA EVM

Agile Terminology

There are many different implementations of Agile, so for ease of discussion the following terms will be used:

Feature – A clearly defined technical work scope requirement of an Agile project. Features are decomposed by the development team into Stories

Stories – Individual pieces of work scope that can be completed within a Sprint. Stories are defined by the development team as a result of the decomposition of Features.

Sprint – A fixed time box for development which results in a working increment of software. Sprints are usually 2 to 4 weeks in duration.

Story Points – A measure of a Story’s estimated value as perceived by the development team. The number of Story Points is an abstraction of the effort, complexity, and risk of the Story.

PARCA EVM

Considerations for Implementing EVM and Agile

EVMS Compliance DoD EVMS Interpretation Guide (EVMSIG)

Baseline Planning Definition of work scope (WBS) Time phasing Rolling wave planning

Measuring Progress Establishing objective technical criteria (definition of done) Change control Addressing incomplete work

Dollarization of Effort

PARCA EVM

EVMS Compliance:DoD EVMS Interpretation Guide (EVMSIG)

Provides the overarching DoD interpretation of the 32 Guidelines

Facilitates consistency and a common understanding for determining EVMS compliance within DoD

Offers flexibility for a variety of program execution and development methodologies

MIL-STD-881C WBS

Schedule level of detail

Emphasis on tracking progress to objective technical criteria

PARCA EVM

BASELINE PLANNING

PARCA EVM

Baseline Planning:Definition of Work Scope

From Appendix B of MIL-STD-881C

PARCA EVM

Baseline Planning: Time Phasing and Rolling Wave Planning

PARCA EVM

Intersection of Agile and EVMS (Raytheon Example)

PARCA EVM

Intersection of Agile and EVMS(Lockheed Martin Example)

Feature X1

Feature X3

Control Account

Work Packages

and Planning Packages

EVM Reporting• BAC• Variance Analysis (CV, SV, VAC, CPI, SPI)

EVM Claiming • BCWS• BCWP (Feature

APC)• ACWP

Iterations

76 Planned SPs

82 Planned SPs

Program Milestones Release 2

Performance Measurement Baseline

Iteration 1

Iteration 2

Iteration 3

Iteration 4

Iteration 5

Iteration 6

Iteration 7

Iteration 8

Iteration 12

Agile Development Control Account

30 Planned SPs

TIME NOW

Release 2 Planning Package

Feature X2

Release 1

30 Planned SPs

Objective Measurement Criteria (Analysis for BCWP)

PARCA EVM

MEASURING PROGRESS

PARCA EVM

EVM Progress Measurement

Task Completion• Drawings Completed• Lines of Code Written• Work Products Produced• Reviews completed

Progress is measured by effectiveness of outcomes to the end user

Measuring Design Effectiveness• Critical TPM Achievement• System Capabilities Met• Quality of Work Products• System Under Review Acceptable

Agile is tailor-made for

measuring progress this

PARCA EVM

Measuring Progress: Change Control

Sprint 1

Feature 2

Feature 1

Feature A

Feature B

Feature C

Story 2D

Feature E

Story 2G

Product Backlog

Feature 1 is 100%

complete

Stories A,B,C,E, and F completed; 2D and 2G returned to Backlog

• Fixed “time boxes” (i.e., Sprints) force incomplete work to be put back on the product backlog or rolled over to next Sprint

• Forecasting and change control processes are required to maintain EVM baseline as items are returned to Product Backlog and used in subsequent Sprints

Story 1A Story 1B Story 1C Story 1D

Story 1E Story 1F Story 1G

Story 2A Story 2B Story 2C Story 2D

Story 2D Story 2E Story 2F Story 2G

Sprint 2

PARCA EVM

Measuring Progress: Planning Stories

How to claim credit for completed stories and completed features; can partial story / feature credit be taken?

Is there a relationship between completed stories and performance (i.e., EVM “BCWP”)?

Example of a set of Stories planned for a Sprint; status

mid-Sprint

Point/Weight Progress EarnedStory A 5 Done 5 % CompStory B 2 In Progress 0 50%Story C 3 Not Started 0Story D 2 In Progress 0Story E 5 Done 5Story F 1 Not Started 0Story G 2 Not Started 0

PARCA EVM

Measuring Progress: Adding a Story

Earned value did not change but the overall % complete decreased

For change control, the addition of a story increases the overall amount of performance that can be claimed (i.e., BCWS increases) in the Sprint

Point/Weight Progress EarnedStory A 5 Done 5 % CompStory B 2 In Progress 0 45%Story C 3 Not Started 0Story D 2 In Progress 0Story E 5 Done 5Story F 1 Not Started 0Story G 2 Not Started 0Story H 2 Not Started 0

22 10Story H was

PARCA EVM

Measuring Progress:Removing a Story

Earned value did not change but the overall % complete increased

For change control, the removal of a story decreases the overall amount of performance that can be claimed (i.e., BCWS decreases) in the Sprint

Point/Weight Progress EarnedStory A 5 Done 5 % CompStory B 2 In Progress 0 53%Story C 3 Not Started 0Story D 2 In Progress 0Story E 5 Done 5Story G 2 Not Started 0

Story F was removed

PARCA EVM

Agile Dollarization of Effort

Release n

Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Sprint 6

1 Sprint Team8 Members - $100/hour 2 Week Sprints – 80 hours - $64,000/sprintQuarterly Releases – 6 sprints - $384,000/release

- Good estimation requires historical data- Velocity as relates to sprint costs?- Costs associated with features?- Dollarized story points?

779081 82

76 83 71 86

Product Backlog

PARCA EVM

DISCUSSION

PARCA EVM

Discussion on EVM and Agile

What are the benefits of using EVM in an agile environment?

Are there any implications using EVM within an agile environment that should be addressed in the EVMSIG?

PARCA EVM

EVM and Agile both support effective and proactive program management

Planning, forecasting, and estimating are large parts of both disciplines.

Change control, while not identical between the disciplines, is crucial to the reliability of performance metrics.

Progress tracked with objective technical criteria.

PARCA EVM

Contact Us

PARCA EVM Email:

osd.pentagon.ousd-atl.mbx.evm-interpretation@mail.mil

OR osd.pentagon.ousd-atl.mbx.parca-evm@mail.mil

Thoughts?

Questions?

http://www.acq.osd.mil/evm/index.shtml

PARCA EVM Website:

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