High Density Interconnect (WBS 1.4.3) Extension Cables (WBS 1.4.4)
1. 101/Student...WBS dictionary . As part of developing a Program WBS, the program manager will also...
Transcript of 1. 101/Student...WBS dictionary . As part of developing a Program WBS, the program manager will also...
This lesson introduces the Work Breakdown Struc ture ( WBS) and its role in Earned Value Management (EVM)
The terminal learning objective for this lesson Work is to describe the integrated management Breakdown Structure framework used in implementing EVM
lAR Vehicle
Primary Systems Vehicle Engbullnccring
r-------11------r------shyPower Package
Frame ArmamentDrive Train
Power Engine Transport
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This lesson introduces the Work Breakdown Structure (WBS) and its role in Earned Value Management ( EVM)
The terminal learning is to describe the in framework used in im~ll ern
l ong Desc ri ption
Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Power PackageFrame Annamentome Train
Power Transport
Combustion Ignition
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In this lesson you will
bull Given contract scenario documents ( Program Work Breakdown Structure (PWBS) Contract Work Breakdown Structure ( CWBS) Statement of Work (SOW) excerpt) recognize the use of the Work Breakdown Structure (WBS) as a management framework describing the scope of work in a contrac t
bull Given scenario documents ( Integrated Program Management Report ( IPMR) Format 1 and Format 6 risk register technical performance measures) recognize the integrated program management information that is reported by WBS
bull Given contract risk management and EVM data and Department of Defense ( DoD) guidance select WBS elements for EVM reporting below WBS level 3
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Breakdown Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc ture CCWBSl
The WBS facilitates effective planning and assignment of management and technical responsibilities It also provides a common thread for tracking of technical efforts risks and Earned Value Management System ( EVMS ) data including EVM data and Integrated Master Schedule ( IMS) data This commonali ty facilitates integrated program assessment of cost schedule technical performance and associated risks
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Br eakdown Structur e
The WBS is a critical tool in ensuring all portions of the program are covered I t is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu
Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program including the System ( EVMS) data including EVM da Contract WBS and other Government elements ( for example facilitates integrated program assessm program office operations manpower Government furnished
equipment ( GFE) and Government testing ) I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions The PWBS is used by the Government program manager ( PM) and contractor to develop a Contract Work Breakdown Structure ( CWBS) Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 88 1
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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This lesson introduces the Work Breakdown Structure (WBS) and its role in Earned Value Management ( EVM)
The terminal learning is to describe the in framework used in im~ll ern
l ong Desc ri ption
Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Power PackageFrame Annamentome Train
Power Transport
Combustion Ignition
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In this lesson you will
bull Given contract scenario documents ( Program Work Breakdown Structure (PWBS) Contract Work Breakdown Structure ( CWBS) Statement of Work (SOW) excerpt) recognize the use of the Work Breakdown Structure (WBS) as a management framework describing the scope of work in a contrac t
bull Given scenario documents ( Integrated Program Management Report ( IPMR) Format 1 and Format 6 risk register technical performance measures) recognize the integrated program management information that is reported by WBS
bull Given contract risk management and EVM data and Department of Defense ( DoD) guidance select WBS elements for EVM reporting below WBS level 3
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Breakdown Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc ture CCWBSl
The WBS facilitates effective planning and assignment of management and technical responsibilities It also provides a common thread for tracking of technical efforts risks and Earned Value Management System ( EVMS ) data including EVM data and Integrated Master Schedule ( IMS) data This commonali ty facilitates integrated program assessment of cost schedule technical performance and associated risks
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Br eakdown Structur e
The WBS is a critical tool in ensuring all portions of the program are covered I t is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu
Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program including the System ( EVMS) data including EVM da Contract WBS and other Government elements ( for example facilitates integrated program assessm program office operations manpower Government furnished
equipment ( GFE) and Government testing ) I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions The PWBS is used by the Government program manager ( PM) and contractor to develop a Contract Work Breakdown Structure ( CWBS) Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 88 1
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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In this lesson you will
bull Given contract scenario documents ( Program Work Breakdown Structure (PWBS) Contract Work Breakdown Structure ( CWBS) Statement of Work (SOW) excerpt) recognize the use of the Work Breakdown Structure (WBS) as a management framework describing the scope of work in a contrac t
bull Given scenario documents ( Integrated Program Management Report ( IPMR) Format 1 and Format 6 risk register technical performance measures) recognize the integrated program management information that is reported by WBS
bull Given contract risk management and EVM data and Department of Defense ( DoD) guidance select WBS elements for EVM reporting below WBS level 3
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Breakdown Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc ture CCWBSl
The WBS facilitates effective planning and assignment of management and technical responsibilities It also provides a common thread for tracking of technical efforts risks and Earned Value Management System ( EVMS ) data including EVM data and Integrated Master Schedule ( IMS) data This commonali ty facilitates integrated program assessment of cost schedule technical performance and associated risks
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Br eakdown Structur e
The WBS is a critical tool in ensuring all portions of the program are covered I t is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu
Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program including the System ( EVMS) data including EVM da Contract WBS and other Government elements ( for example facilitates integrated program assessm program office operations manpower Government furnished
equipment ( GFE) and Government testing ) I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions The PWBS is used by the Government program manager ( PM) and contractor to develop a Contract Work Breakdown Structure ( CWBS) Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 88 1
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Breakdown Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc ture CCWBSl
The WBS facilitates effective planning and assignment of management and technical responsibilities It also provides a common thread for tracking of technical efforts risks and Earned Value Management System ( EVMS ) data including EVM data and Integrated Master Schedule ( IMS) data This commonali ty facilitates integrated program assessment of cost schedule technical performance and associated risks
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Br eakdown Structur e
The WBS is a critical tool in ensuring all portions of the program are covered I t is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu
Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program including the System ( EVMS) data including EVM da Contract WBS and other Government elements ( for example facilitates integrated program assessm program office operations manpower Government furnished
equipment ( GFE) and Government testing ) I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions The PWBS is used by the Government program manager ( PM) and contractor to develop a Contract Work Breakdown Structure ( CWBS) Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 88 1
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The Work Br eakdown Structur e
The WBS is a critical tool in ensuring all portions of the program are covered I t is defined as a productshyoriented family tree composed of hardware software services data and facilities The Government program manager ( PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and interrelated WBS structures Program Work Breakdown Struc ture ( PWBSl and Contrac t Work Breakdown Struc tu
Program Work Breakdown structure ( PW BS) The WBS facilitates effective planning also provides a common thread for trac The WBS that encompasses an entire program including the System ( EVMS) data including EVM da Contract WBS and other Government elements ( for example facilitates integrated program assessm program office operations manpower Government furnished
equipment ( GFE) and Government testing ) I t defines at a high level what is to be procured and consists of at least three program levels with associated definitions The PWBS is used by the Government program manager ( PM) and contractor to develop a Contract Work Breakdown Structure ( CWBS) Examples of WBSs for various items of defense materiel that may be used as a guide for acquisition programs are contained in Military Standard ( MIL-STD ) 88 1
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
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EVMlOl Funda me ntals of Earned Value Management l esson 21 middot Integrated Management Framework - The W BS RESOURCES I PRINT I HELP
The Wo rk Brea kdow n Structure
The WBS is a critical tool in ensuring all portions of the program are covered It is defined as bulla productshyoriented family tree composed of hardware software services data a nd fa cilities bull The Government program manager PM) is responsible for maintaining the program WBS as it develops through systems engineering and management planning processes
There are two fundamental and int errelated WBS structures Program Work Breakdown Strycture CPWBS) and Contract Work Breakdown Structure (CWBS)
T he Contract Work Breakdown structure CW BS) nd technical responsibili t ies It also s ys facil
A complete WBS for a contrac t I t includes the DoD-approved program WBS extended to the agreed contract reporting level and any discre tionary extensions to lower levels for reporting or
d Earned Value Managemen t e IMS) data This commonality erformance and associated risks
o ther purposes It includes all the elemen ts for the products (hardware software data or services) that are the responsibility of the contractor This comprehensive WBS forms the framework for the contractors management control system
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management Lesson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Work Managemen t Office (PMO) provided a preliminary Breakdown Structure contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on LAR Military Standard 881 ( MJL-STD-8811 Vehicle
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line items and the
Primary Vehicle
Systems Engmeering
Statement of Work (SOW) completed the workshydefining elements of the RFP Frame
Power Packaampe Drive Tram
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
Engjne Povter
Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Manageme nt Fra mework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP) for the Lightweight Assault and Reconnaissance LAR) vehicle projec t the Government Program Management Office PMO) provided a preliminary contrac t work breakdown structure derived from a top- level product-oriented PWBS based on Militarv Standard 881 ( MIL-STD- 881)
T he RFP included an initial WBS dictionarv based on the generic definitions in MIL-STD-881 Top- level sys tem specifica tions c ontract line items and the Statement of Work ( SOW) completed the workshydefining elements of the RFP
The contrac tor uses all the work-de fining elements in the RFP to develop the CWBS
Request fo r Pro posals ( RFP)
A solicita tion used in negotia ted acquisitions to communicate Government requirements to prospec tive contractors and to solici t proposals
LAK Vehicle
Primary Systems Vehicle Engineering
Power PackageFrame
Drive Train
PowerEngine
Transport
Combustion Ignition
We will follow the Engine WBS elemen t in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office (PMO) provided a preliminary contract work breakdown structure derived from a top - level product- oriented PWBS based on Militarv Standard 881 CMil-STD-881)
The RFP included an initial WBS dic tionarv based on the generic definitions in Mi l - STD- 881 Top- level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
Military standard 881 ( Mil-STD-881)
Addresses mandatory procedures for those programs subject to DoD Instruction 5000 02 I t also provides guidance to industry in extending contract work breakdown structures This standard is approved for use by all Departments and Agencies of the Department of Defense
Power PackageFrame
AnnamentDrive Train
PovterEngine Transport
Combustion Ignition
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying Scope
As part of the Request for Proposals CRFP l for the lightweight Assault and Reconnaissance ( LAR) vehicle project the Government Program Management Office ( PMO) provided a preliminary contract work breakdown structure derived from a top-level product-oriented PWBS based on Militarv Standard 881 ( Mil-STD-881 )
The RFP included an initial WBS dic tionarv based on the generic definitions in Mll-STD- 881 Top-level system specifications contract line items and the Statement o f Work ( SOW) completed the workshydefining elements of the RFP
The contractor uses all the work- defining elements in the RFP to develop the CWBS
WBS dictionary
As part of developing a Program WBS the program manager will also develop a WBS dictionary The dictionary lists and defines the WBS elements Although initially prepared by the Government program manager the contractor expands the dictionary as the Contract WBS is developed The WBS dictionary will be developed starting with the generic definitions in this Standard and made program-specific to define the products being acquired to support effective Program Management by the contractor and to meet essential Request for Proposal ( RFP) requirements
The dictionary shows the hierarchical relationship of the elements and describes each WBS element and the resources and processes required to produce it It also provides basic technical characteristics for the WBS elements and provides a link to the detailed technical definition documents The WBS dictionary is routinely revised to incorporate changes and must reflect the current status of the program throughout the programs life
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management Lesson 21 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
I dentifying Scope
As part of the Request for Proposals CRFP) for the Ughtweight Assault and Reconnaissance (LAR) vehicle project the Government Program Managemen t Office (PMO) provided a preliminary contrac t work breakdown struc ture derived from a top-level product-oriented PWBS based on Military Standard 881 ( MJL-STD-8811
The RFP included a n initial WBS djctionary based on the generic definitions in Mll-STD-881 Top- level system specifications c ontract line i tems and the Statement of Work (SOW) completed the workshydefining elements of the RFP
The con trac tor uses all the work- de fining elements in the RFP to develop the CWBS
stclt ement of Woric (SOW)
The portion of a contract that es tablishes and de fines all nonspecification requirements for contrac tors e fforts either direc tly or with the use of speci fic cited documents
Primary Systems Vehicle Engmeering
Power PackaampeFrame Drive Tram
PovterEngjne Transport
Combustion Ignition
we will follow the Engine WBS element in this lesson t o illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Identifying Scope
As p art of the Regyest for Proposals RFP) for the Lightweight Assault and Reconnaissance (LAR) vehicle project the Governmen t Progra m Work Mana gement Office (PMO) provided a preliminary Breakdown Structure contract work breakdown structure derived from a
level product-oriented PWBS based on
l ong Description The RFP included an Systemsthe generic de fini t ions in Reprised Work Breakdown Struc ture LAR vehicle is level Engmeering system specifica tions 1 Primary vehicle and sys tems engineering are level 2
Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
T he contractor uses all tt11~1111111111111~~1___=-r~~---f--in the RFP to develop the ewes Power
Engine Transport
Combustion
We will follow the Engine WBS element in this lesson to illustrate the role of the WBS in EVM
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdown Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its CWBS when estima ting the project duration resources and the overall cost for their proposal
Primary SystemsThis is the contractors starting point Vehicle Enampmeering
Power PackageFrame Drive Train
PowerEngine Transport
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The Contract Work Breakdow n Structure
The technical proposal the contractor presented to the Government source selection committee provided the Work companys unique approach to the program including their Breakdown Structure CWBS The contractors technical proposal was accepted by the Government as a favored solution lAR
Vehicle The contractor used its cr------~~-------------middot duration resources and l ong Description
SystemsThis is the contractors s Enampmeering
Reprised Work Breakdown Structure LAR vehicle is level 1---r-------shy1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level Armament
3 Engine and power transport are level 4 Combustion and ignition are level 5 Engine is highlighted
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Which document includes the Department of Defense (DoD) approved Work Breakdown Structure (WBS) extended to the agreed contract reporting level and any discretionary extensions to lower levels for reporting or other purposes
Program Work Breakdown Struc ture (PWBS )
U Solicitation
0 In tegrated Mas ter Schedule ( I MS)
~ Contract Work Breakdown Structure (CWBS)
Check Answer
The CWBS includes the DoD-approved WBS to the agreed upon contac t reporting level and any
discretionary ext ensions to lower levels for reporting or other purposes
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
The CWBS as a Managem ent Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
Breakdown bull Identifies wha t work the contrac tor mus t Structure
perform (CWBS)
bull Breaks the work down into smaller manageable pieces
bull Allows for performance measurement at lAR both high and low levels Vehicle
bull Provides a common thread for the EVMS the IMS and other important acquisition Primary Systems
Vehicle Engmeeringdocuments such as the SOW and technical performance measures (TPMs)
Power PackageThe WBS provides complete and proper Frame Drive Trainidentification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule TraMporl
Combustion Ignition
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
The CWBS as a Management Tool
The CWBS provides an ideal structure for tracking project work and acts as a useful project Contract management tool because it Work
bull Identifies what work the contractor must Structure perform ------- -------L-Brelakdown
r bull Breaks the work l ong Description 1
manageable pieces Reprised Work Breakdown Struc ture LAR vehicle is level 1 Primary vehicle and systems engineering are level 2 Frame power package drive train and armament are level 3 Engine and power transport are level 4 Combustion 1-- shyand ignition are level 5 Engine is highlighted
Power PackageThe WBS provides complete and proper Frame ArmamentDrive Train identification of all contractually authorized work to be accomplished on a program to help ensure resources are correctly identified and work is Power
Engineplanned within the authorized program schedule Transport
Combustion Ignition
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the nex t screens are examples of some key LAR program Engineering and Manufacturing Development ( EMD) contract artifacts which can all be related using the WBS Structure
Work Breakdown Structure
Technical Perform ance Measure ( TPM )
Statement of Wort (SOW)
Risk Register
----You must select the SOW Risk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Managemet Fmew rkrn ra~~o~________________________l
stat e m ent of Work (SOW)Use o f the W BS as a common relating the SOW risk mltmltlCEml reported in the Integrated Here is the Statement of Work for the LAR sc enario Pow er Pac kage
W BS element 113 e xamples o f some key LAR w hic h c an all be related
C113 Powe r PackageDrive Train 1 htt wrk~nAld_rivst~cment refers to the means for generating power and delivering power in the required quantities and driving rates to t he driving member (The LAR Vehicle must accommodate a quiet running diesel engine and protection from emitting heat to avoid detection by unfriendly heat seeking radar) This element includes fo r example engine-mounted auxiliaries such as air d ueling and manifolds controls and instrumentation exhaust systems and cooling means It also includes such power transport components as clutches transmission shafting assemblies torque converters differentials final drivers and power t akeoffs It may include brakes and steering when these are integral to power transmission rather than in the suspensionsteering element All effort d irectly associated with the remaining level 3 WBS elements and the integration assembly test and checkout of these elements into the Statement of primaryvehicle is excluded Wort (SOW)
You must select the SOW Risk Register and TPM icons to move on
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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bullbull
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Risk Regist er
The LAR PMO has identified the Engine as a top risk driver for Survivability through its risk management process One of the TPMs chosen to track this performance is IR signature
LARKey Key Risks Risks TPMs allocatedAffected WBSPerformance (and WBS element) Associated TPMs
Elements to WBS elements Parameters (KPPs) affecting KPP
~ 1 Engine I shy
113 Power IR Signature Power Survivability 2 Cooling
Package Package Weight3 Exhaust
Note This is just an excerpt Full risk registers include more detail such as impac ts probabilities and mitigations
~ bull r~bull J
~-~RiskStatement of ~
Register bullbullWort (SOW) bullbull middot~ bullbull bullraquobullbull bullbull
---shy shybullbull -shy shy~) tl
You must select the SOW Rtsk Regtster and TPM icons to move on
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals o f Earned Value Management Lesson 21 - Integ rated Management Fr amework - The WBS RESOURCES I PRI NT I HELP
Technical Performance Measure (TPM )
I R signature is a TPM chosen to manage technical risk on the LAR program EMD providing a way of contract This TPM relates to the Power Package WBS element 1 13 specifically mance information to the engine cooling and exhaust sub- elements ext screens are
) contract artifacts
I R lgnaturcgt Dec II TPi1
230 - shy220 210 200 110 i180 ~ 170
~150 ~no
~- _jy_~r- I I
-l rfo r man ce ~140 t no (TPM )- a-t-middot 1if-120 -~
Q 110 ~ bullbullbull rmiddot ~~CI I 1
100 --_middot shyto 1 I80 ~ 70 -f -f-- Teo -j50 40 ~-~~-- j_ - i--
Jmiddot11r--------------------------------61le sow Risk Registerand TPM icons to move on Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework
Use of the WBS as a common framework facilitates integrated program management providing a way of relating the SOW risk management information TPMs and cost and schedule performance information reported in the Integrated Program Management Report ( JPMR) Below and on the next screens are examples of some key LAR program Engineering and Manufacturing Development (EMD) contract artifacts which can all be related us1na the WBS Structure
l ong Descript ion
Excerpt of Work Breakdown Structure showing Frame Power Package Drive Train and Armament Three callouts flow from the Power Package Drive Train Statement of Work or SOW Risk Register and Technical Performance Measure or TPM A sample SOW shows Cll3 Power Package Drive Train excerpt A sample Risk Register shows a LARKey Performance Parameter or KPP which is Survivability The key risks and WBS element affecting this KPP are 1 Engine 2 Cooling and 3 Exhaust The affected WBS element is 113 Power Package The nee associated TPMs are IR signature and Power Package Weight Risks and TPMs are allocated to WBS elements A sample TPM graph for the
Statem IR signature shows that the actual performance for this TPM is almost Wort ( out of tolerance compared to the planned technical performance
bullraquo ---shybullbull -shy shymiddot~ ~
You must select the SOW Rtsk Register and TPM icons to move on
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
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To continue select another lesson from the Table of Contents on the left
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EVMlOl Fundamentals of Earned Value Management lesson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
The IPMR reports data critical to EVM and risk management by WBS element The use of the common WBS facilitates a comparison of cost and schedule performance
Integrated Program Management Report Format 1
Note IPMR Format I values are in thousands ofdollars ($)
3796 4978 359 82 4 -6634 7803 3 8 1465 -3432
8538 7221 4583 -331 middot1109 11455 1 119892 -5341
1284 2771 2344 1488 42] middot1074 middot2308 3 718 3 38917 middot1734
1 13 1 11 Subsystem T r edes amp Analysis
1 13 1 12 Critical Design
1 131 13 Finalize Design 140 days
1 13 1 13 1 Develop Interface Specifications 120 days
1 131 132 Develop Development Test 90 days
Finalize 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
The WBS - A Common Management Framework Cont
l ong Descript ion
Format 1 reports EVM data by WBS Element Note IPMR Format 1 values are in thousands of dollars ($ ) Format 1 of the Integrated Program Management Report shows performance data in Section 8 For item 11 the prime vehicle the current periods BCWS is 1416 BCWP is 1959 and ACWP is 1790 The current periods schedule variance is 543 3 and cost variance is 1686 The prime v ehicles cumulativ e data is BCWS 24626 BCWP 23 188 ACWP 25235 Cumulativ e schedule v ariance is -1438 5
N and cost v ariance is -2047 BAC is 36301 EAC is 37517 and the variance is -1216 Item 111 Frames current period data is BCWS 105 7 BCWP 1065 ACWP 823 schedule variance 0 8 and cost o variance 242 The cumulative data is BCWS 2039 8 BCWP 1783 3 ACWP 1853 5 schedule v ariance
is -2565 and cost variance is -702 The frames BAC is 27097 EAC is 27813 and at completion variance is -716 Item 112 Suspension and steerings current data is BCWS 343 7 BCWP 3796 ACWP 4978 schedule variance 35 9 and cost variance -1182 The cumulative data is BCWS 55925 BCWP 56749 ACWP 6338 3 schedule variance 824 and cost v ariance -663 4 BAC is 7803 3 EAC is 81465 and variance at completion is - 343 2 Item 113 Power packages current period data is BCWS 3955 BCWP 853 8 ACWP 722 1 schedule v ariance 4583 and cost variance 13 17 The cumulativ e data is BCWS 87049 BCWP 8373 9 ACWP 90848 schedule variance - 331 and cost variance -7109 BAC is 11455 1 EAC is 119892 and variance at completion is -534 1 Item 113 1 engines current period data is BCWS 1284 BCWP 2771 ACWP 234 4 schedule variance 1488 and cost variance 427 The cumulativ e data is BCWS 28256 BCWP 27182 ACWP 29489 schedule variance -1074 and cost variance -2308 BAC is 37183 EAC is 38917 and variance at completion is -173 4 Format 6 reports IMS data by WBS element Gantt chart shows the roll up of the durations of tasks for the Power Package Driv e The Engine is 476 day s consisting of Engine Design Completed and Finalize Design tasks Engine design completed is 340 day s with tasks of subsystem trades and analy ses 120 day s and critical design 80 days Finalize design is 140 days with tasks of develop interface specifications 120 day s develop development test 90 day s and finalize drawings 140 day s
Finalize Drawings 140 days
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Variance
The IPMR Format 1 reports cost and schedule variances by WBS element In this example focus first on the cumulative-to- date schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equation for SV
SV = BCWP - BCWS
( BCWP budgeted cost for work performed BCWS budgeted cost for work scheduled )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the BCWS of 28256 results in an unfavorable SV of -107 4
Now using the WBS element as the management framework you can easily compare this SV in dollars with the I MS which shows status in terms of dates
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost Variance ACWP
BCWS BCWP Schedule Cost
11 Prime Vehicle 246261 231876 2 5 2345 middot 1438 5 middot2046 9
111 Frame 20398 17833 18535 middot2565 middot702
112 middot Suspension Steering 5592 5 567 4 9 63383 824 -6634
113 middot Power Package 8704 9 83739 9 084 8 middot331 middot7109
113 1 middot Engine 28256 27182 2948 9 middot1074 middot2308
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Schedule Var iance
The IPMR Forma t 1 reports cos t and schedule variances by WBS element In this example focus firs t on the cumula tive- to- da te schedule variance ( SV) for WBS element 113 1 Engine The SV is unfavorable Recall the equa tion for SV
P - D l I CSV = BCW
J l ong Descr iptio n ( BCWP b
Using the inform Reprised Forma t 1 of the Integra ted program management report results in an un f shows cumula tive to da te performance da ta as follows Item 11 Prime
Now using the the I MS which
Vehicle - BCWS 24626 1 BCWP 231876 ACWP 252345 schedule variance - 14385 and cos t variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cos t variance - 702 112 Suspension and s teering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cos t variance - 6634 Item 113 Power package - BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cos t variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance - 1074 and cos t variance - 2308 Engine BCWS BCWP and schedule variance are highlighted
11 Prime Vehicle 246261 231876 252345 middot1438 5 middot20469
111 Frame 20398
112 middot Suspension Steering 5592 5
113 middot Power Package 87049
113 1 middot Engine 28256
17833 18535 middot2565 middot702 56749 63383 824 -6634
83739 90848 middot331 middot7109
27182 29489 middot1074 middot2308
Note I PMR Format 1 va lues are in t housands of dollars ($)
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~ )
BCWS of 2825 6
~V in dollars with
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 1131 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the information from this WBS you can calculate that the BCWP of 2718 2 minus the ACWP of 29489 results in an unfavorable CV of -230 8 This means the contractor has spent more than planned in performing the work completed to date
Integrated Program Management Report Format 1 8 Performance Data
Cumulative to Date
Item Budgeted Cost
BCWS BCWP ACWP
Variance
Schedule Cost
11 Prime Vehicle 246261 2318 7 6 2 5 2345 middot14385 middot20 46 9
111 middotFrame 20398
112 middot Suspension Steering 5592 5
17833 567 4 9
18535
63383
middot2565 824
middot702 -6634
Note IPMR Format 1 va lues are in t housands
113 middot Power Package 87049 83739 90848 middot331 middot7109 of dollars ($) 113 1 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by W BS Element - Cost Var iance
IPMR Fo rmat 5 --EXAMPLE-shy
Integrated Program Management Report Format 5 Ex planatio n and Problem Analy sis
WBS Element 1131 - Engine Cumulativ e Cost Variance -230 8
Cause Problems meeting technical requirements during tests caused schedule slips and required the use of additional senior engineers causing cost variances
Impact T he design task slipped due to performance issues uncovered in test causing the Engines Final Drawings task to drop down to zero float putting it on the critical path Additional senior engineers were brought on to support the engine design causing cost variances Additional variances can be expected in the future as we work to resolve the design issues
Mitigatio n Experienced vehicle design engineers and additional systems engineering resources will remain on board to assist in design changes and additional test in the near term T o recover schedule we are in the process of hiring two more junior engineers to support one senior engineer T his is expected to lower costs and this is reflected in the variance at completion which shows improvement is expected over the cumulative cost variance
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - Cost Variance
IPMR Format 1 also reports cost variances The cost variance (CV) for the Engine WBS element 113 1 is unfavorable Recall the equation for CV
CV = BCWP - ACWP ( actual cost of work performed )
Using the inform ACWP of 29489 l ong Descript ionresults in an unf nned in
performing the VI Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule variance -14385 and cost variance - 20469 Item 111 Frame shyBCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 and cost variance - 70 2 112 Suspension and steering - BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 and cost variance - 663 4 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 and cost variance - 7 10 9 Item 113 1 Engine - BCWS 28256 BCWP 2718 2
Note IPMR ACWP 29489 schedule variance -1074 and cost variance - 2308 r m at 1 va lues
Engine BCWP ACWP and cost variance are highlighted Fre in t housands 11Ll middot fower fackage 1llU49 lJ9 ~j middotlJ 1 middotflU9 of dollars ($) 1131 middot Engine 28256 27182 29489 middot1074 middot2308
Explanations for the key cost and schedule variances are provided in IPMR Format 5 Technical Integrated Product Team ( IPT) members can also use their knowledge from TPM analysis and technical reviews and meetings to try to validate the root causes of the variances and make an assessment of the potential
impact on the contract You must select IPMR Format 5 to move on
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data b y WBS Element - At Completion
I PMR Format 1 also reports budge t at comple tion ( BAC) estimate at comple tion ( EAC) and the resulting v ariance at comple tion (VAC) Here the contrac t or control account managers report their latest updated EAC whic h should reflec t the cost and schedule performance trends technic al performance trends impac ts of any work- around plans and current assessment of risks
Carrying the engine WBS element example forw ard the contrac t or EAC reflec ts a v alue higher than the original BAC which means there is an unfavorable VAC Recall the equation for VAC
bull VAC = BAC - EAC
bull Using the information from this WBS y ou c an c alculate that the BAC of 3718 3 minus the EAC of 3891 7 results in a cost VAC of - 173 4
Integrat ed Program Management Report Format 1 8 Performance Dat a
Cumulative t o Dat e At Completion
Item Budgeted Cost Variance ACWP Budgeted Estimated Variance
BCWS BCWP Schedule Cost
11 Prime Vehicle 2 4 6261 231876 25234 5 middot14385 middot20469 363014 275174 middot12 16
111 Frame 20398 17833 18535 middot 2565 middot702 27097 27813 middot716
112 middot Suspension Steering 55925 567 4 9 63383 824 -6634 78033 8146 5 middot343 2
113 middot Power Package 87049 83739 90848 middot331 middot7109 114551 119892 middot5341
113 1 middot Engine 2825 6 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are m t housands of dollars ( $)
I Page12 o f 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page12of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Data by WBS Element - At Completion
IPMR Format 1 also reports budget at completion ( BAC) estimate at completion ( EAC) and the resulting variance at completion (VAC) Here the contractor control account managers report their latest updated EAC which should reflect the cost and schedule performance trends technical performance trends impacts of any work-around plans and current assessment of risks
Carrying the than thel ong Descript ion original BAC
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - BCWS 246261 BCWP 231876 ACWP 252345 schedule the EAC variance -14385 cost variance - 20469 BAC 363014 EAC 27517 4 and VAC -12 16 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shy
Perfor1mancel BCWS 55925 BCWP 56749 ACWP 63383 schedule variance 824 cost variance - 663 4 BAC 78033 EAC 8 146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 83739 ACWP 90848 schedule variance - 331 cost variance - 7 109 BAC 114551 EAC 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP 2718 2 ACWP 29489 schedule variance -107 4 cost varianceshy
1------=---1 2308 BAC 3718 3 EAC 38917 and VAC -1734 Engine Budgeted at ~~~~~t Completion Estimated at Completion and Variance at Completion are
t112 middot highlighted
29489 37183 38917
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 1131 Engine data in the IPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on any program or contract effective management of complex programs requires WBS definition at considerably lower levels
Work If the Government considers some program Breakdown Structure elements to be high-cost or high-risk the reporting requirement for the system may be LAR defined to a lower level of the WBS The EVM Vehicle reporting level is specified in the Contract Data Requirements List (CDRL) Primary Systems
The contractor has complete flexibility to extend Vehicle Engineering
the Contract WBS below the reporting requirement to reflect how work is to be accomplished and managed Frame Armament
ExhaustEngine System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
I Page13of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Detailed EVM Reporting
As you have just learned the PM and his team need the proper level of WBS insight to understand cost and schedule performance effectively Without insight into WBS element 113 1 Engine data in the JPMR the LAR PM might have delayed visibility into cost and schedule performance of a risky WBS element
The WBS can be expressed to any level of detail While the top three levels are the minimum required for reporting purposes on program or contract effective management of complex programs requires WBS definition at
l ong Descr ipt ion
If the Government consdl Reprised Work Breakdown Structure LAR vehicle is level elements to be hic1h -costl 1 Primary vehicle and systems engineering are level 2 reporting requirement for Frame power package drive train and armament are level defined to a lower level 3 Engine cooling system and exhaust system are level reporting level is speci 4 Combustion and ignition are level 5 WBS is divided Requirements List (CDRL) between levels three and four showing the level at which
Systemsthe contractor must report to the Government
The contractor has co1npp__ the Contract WBS below -
Engineering
to reflect how work is to be accomplished and managed Frame Power Package
Drive Train Armament
Cooling ExhaustEngine System System
I
Combustion Ignition I
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EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
How does the Work Breakdown Structure WBS facilitate integrated progra m management
Select all that apply)
It shows the relationship between the contractor and Government organizations
I t identifies the contractually agreed-upon reporting levels for the project
~ It serves as a common framework by providing a way to relate information from mul tiple sources
~ It provides the contractor with the flexibili ty needed to reflect how work is to be accomplished
The WBS facilitates integrated program management by pro v id ing the contractor w ith t he flexibility needed t o reflect how w ork is to be accomplished and serving as a commo n fram e w ork by prov id i ng a way t o relate i nform ation from multiple source s including the SOW Risk Register TPMs and cost and schedule performance information reported in the IPMR
I Poge 14 of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
EVM Reporting l evels and the CWBS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a point where contractor control account managers can maintain an adequate span of control The WBS at the control account level is the level at which EVM is used to manage the contract work All EVM analysis originates there including variance analysis so it is important to establish it at the right level for effective management insight
The Government receives insight into EVM data via the IPMR report The IPMR reporting level is typically the Mi l - STD- 881 WBS at level 3 tailored to the level required for effective program management on the Government side Refer to the IPMR Data I tem Description ( DID ) or IPMR Implementation Guide in the EVM Resources document in the Resources tab for details on how to select reportable variances by WBS element
The WBS is structured to best manage and report on program performance Cost collection requirements such as Cost and Software Data Reporting ( CSDR) may require a different reporting structure than the WBS used in the EVMS for program management
I Page1Sof 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
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EVMlOl Fundamentals of Earned Value Management l esson 2 1 middot Integrated Management Framework - The WBS RESOURCES 1 PRINT 1 HELP
EVM Re porting levels a nd the CW BS
The CWBS provides the opportunity for the contractor to further break down the WBS for internal management control
The contractor breaks the required work down to a poin t where contractor control account managers can main tain an adequate span o f control T he WBS at the control account level is the level a t which EVM is used to manage the contract work All EVM analysis origi __~ middot middot middot important to establish it a t the right level for e ffec tive m control account
The Government receives insight into EVM data via the 1 the MIL-STD-BBl WBS at level 3 tailored to the level req Government side Refer to the lPMR Data Item Descriptio Resources document in the Resources tab for details o
A management control point at which budgets (resource plans) a nd actual costs are accumulated and compared to earned value for management and control purposes A control
element account is a natural management point for
The WBS is s truc tured to best manage and report on pro such as Cos t and Software Data Reporting (CSDR) may WBS used in the EVMS for program management
planning and control because it represents the work assigned to one responsible organizational element on one program work breakdown struc ture ( WBS) element
~ I Page1Sof20 I ~ Ba ck Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detailed Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following high risks Engine Exhaust and Cooling These risks primarily affect Work the following WBS elements within WBS 113 Breakdown Structure Power Package
LARbull 1131 Engine Vehicle
bull 1139 Exhaust System
bull 11310 Cooling System Primary Systems Vehicle Engineering The LAR program manager tailored the CDRL for the
IPMR to require insight into those WBS elements r--------jl-------------- shyAs noted previously the contractor will Power Package Frame Armament still breakdown the risky WBS elements Drive Train into lower level CWBS elements for internal management control purposes
Cooling ExhaustEngine
System System
I Page16 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
Identifying WBS Elements for Detai led Reporting
WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
Through the LAR risk management process the LAR PMO identified the following risks Engine Exhaust and rnnlirbulln middot co- _ the following WBS elemerl l ong Description Power Package
Reprised Work Breakdown Structure LAR vehicle is level bull 1131 Engine 1 Primary vehicle and systems engineering are level 2
Frame power package drive train and armament are level bull 1139 Exhaust 3 Engine cooling system and exhaust system are level bull 11310 c ooling 4 The Engine cooling system and exhaust system WBS Systems
elements are highlighted -Fnai n PPrin
The LAR program mbullbull nbullg~i~tm~)~Sre~~~--=======J=====IPMR to require insight
As noted previously the contractor will still breakdown the risky WBS elements
Frame Power Package Drive Train
Armament
into lower level CWBS elements for internal management control purposes
Engine Cooling System
Exhaust System
I Page16of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundam entals of Earned Value Managem ent Lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
Knowledge Review
Given the indicated information for each of the following Work Breakdown Structure WBS) elements which of the following WBS elements would you be le ast likely to request lower levels of Integrated Program Management Report IPMR) reporting on
WBS Element 1 High cost medium risk
U WBS Element 2 High cost high risk
~ WBS Element 3 Low cost low risk
WBS Element 4 High cost low risk
Check Answer
You would be least likely to request lower levels of IPMR reporting on W BS Element 3 which is lo w cost and lo w risk
I Poge17of20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
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EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the I n tegrate d Ma n a g e m e n t Frame w ork - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
Breakdown Structure work because it
bull Identi fies what work the contractor must perform
Breaks the work down into smaller manageable pieces
Allows for performance measurement at both high and low levels
- bull The JPMR details cost and schedule performance information by WBS element
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EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management
lesson 2 1 middot Integrated Management Fr amework- The WBS RESOURCES I PRINT I HELP
lesson Summary
Congratulations You have completed the Integrated Manampgement Framework - The WBS lesson
You should now know the following key points about EVM
Work Breakdown Structure
bull T he CWBS provides an ideal structure for tracking project work because it
Identifies what work the contractor must perform
Breaks the work down into smaller manageable pieces
bull Allows for performa nce measurement at both high and low levels
bull The IPMR details cost and schedule performance information by WB
cost ampnd schedule performance information
cost variance schedule variance variance at completion and IMS schedule information
Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Summary
Congratulations You have completed the Integrated Management Framework - The WBS lesson You should now know the following key points about EVM
Work bull The CWBS provides an ideal structure for tracking project
l ong De scription must perform
Reprised Work Breakdown Struc ture LAR vehicle is level manageable pieces
1 Primary vehicle and systems engineering are level 2 t at both high and Frame power package drive train and armament are level 3 Engine cooling system and exhaust system are level 4 Combustion and ignition are level 5-
I Poge18of20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mll-STD-881 appendix to suit the needs of the contract
Integrated Program Management Report Format 1
8 Performance Data
1 12 Suspension 3437 3796 49 78 359 middot1182 55925 56749 63383 824 middot6634 78033 8 1465 middot3432 Steering
1 13 middot Power Package 3955 8538 7221 4583 13 17 87049 83739 908 48 middot331 middot7109 114551 119892 middot5341
1131 Engine 1284 2771 2344 1488 427 28256 27182 29489 middot1074 middot2308 37183 38917 middot1734
Note IPMR Format 1 va lues are in t housands of dollars ($)
Q
I Page 19 of 20 I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
If you have closed or hidden the T able of Contents click the Show TOC button in the Atlas navigation bar at the top of the screen
I PogelOoflO I Back Next
EVMlOl Fundamentals of Earned Value Management l esson 21 -Integrated Management Framework- The WBS RESOURCES I PRINT I HELP
l esson Summary Cont
bull WBS elements requiring more detailed reporting are typically identified by evaluating the level of technical schedule or cost risk associated with each element WBS elements with the highest risk are good candidates for more detailed EVM reporting
bull The Government program office specifies the EVM WBS reporting level in the CDRL by tailoring the appropriate Mil-STD- 881 appendix to suit the needs of the contract
l ong Description
Reprised Format 1 of the Integrated program management report shows cumulative to date performance data as follows Item 11 Prime Vehicle - CVWS 24626 1 BCWP 231876 ACWP 252345 schedule variance -1438 5 cost variance - 20469 BAC 3630 14 EAC 375174 and VAC -1216 Item 111 Frame - BCWS 20398 BCWP 17833 ACWP 18535 schedule variance - 2565 cost variance - 70 2 BAC
f-------+-1 27097 EAC 27813 and VAC - 7 16 112 Suspension and steering shyf------+=t BCWS 5592 5 BCWP 56749 ACWP 18535 schedule variance 82 4
cost variance - 6634 BAC 7803 3 EAC 8146 5 and VAC - 3432 Item 113 Power package- BCWS 87049 BCWP 8373 9 ACWP 90848
f----+--1 schedule variance - 331 cost variance - 710 9 BAC 114551 EAC ~~~~~~=ower 119892 and VAC -5341 Item 113 1 Engine - BCWS 28256 BCWP
t----7---middot-1 27182 ACWP 2948 9 schedule variance -1074 cost varianceshy1131 middot 2308 BAC 3718 3 EAC 389 17 and VAC -173 4 Engine
Note IPMR Format 1 va lues are in t housands of dollars ($)
I Page 19of 20 I Back Next
EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
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EVMlOl Fundam entals of Earned Value Managem ent lesson 21 - Integr ated Management Framewor k - The WBS RESOURCES 1 PRINT 1 HELP
lesson Completion
You have completed the content for this lesson
To continue select another lesson from the Table of Contents on the left
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