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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
2Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Agenda
OSD PARCA
EVM World Agile Track Sessions
DoD EVM and Agile Background
Baseline Planning and Progress Measurement
Discussion
Recap
Contact Us
3Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
OSD PARCA
4Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
5Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
6Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
7Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
8Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
EVM WORLD AGILE TRACK SESSIONS
9Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
10Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
DOD EVM AND AGILE BACKGROUND
11Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
12Office 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
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
13Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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.
14Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
15Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
16Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
BASELINE PLANNING
17Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Baseline Planning:Definition of Work Scope
Prio
rity
Driv
es S
ched
ule
Even
ts D
rive
Sche
dule
From Appendix B of MIL-STD-881C
18Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Baseline Planning: Time Phasing and Rolling Wave Planning
19Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Intersection of Agile and EVMS (Raytheon Example)
Note: images used with permission from Raytheon Company. All Rights Reserved. (Copyright © 2015) Does not imply DoD endorsement
20Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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)
Note: images used with permission from Lockheed Martin Corporation. All Rights Reserved. (Copyright © 2015) Does not imply DoD endorsement
21Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
MEASURING PROGRESS
22Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
way!
23Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
24Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
20 10
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
20 10
25Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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 10
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
added
26Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
19 10
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
19 10
Story F was removed
27Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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
2123
1619
2218
2017
1918
1620
1921
1724
Product Backlog
28Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
DISCUSSION
29Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
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?
30Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Recap
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.
31Office of Performance Assessments and Root Cause Analyses (PARCA)
PARCA EVM
APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED: 15-S-1591, May 18, 2015.
Contact Us
PARCA EVM Email:
Thoughts?
Questions?
http://www.acq.osd.mil/evm/index.shtml
PARCA EVM Website: