September 2016 EVM 202—Lesson 8 Integrated Product Team (IPT) Analysis and Performance Case

STEP 3 FORMULATE A PLAN OF ACTION

Formulate a Plan of Action Why: Need a way forward for issues uncovered during the three-step Integrated Analysis Model What: Create action plans and recommendations for all issues and report them in a format that supports leadership review and action How: Create action plans Generate Integrated Product Team (IPT) Reports

Create Action Plans Why: To document the results of the integrated program analysis in a format for leadership and oversight reporting What: Collect the key analysis decisions resulting from the three-step Integrated Analysis Model and report them in a format that supports leadership review and action How: Effective EVM provides early insight for PM actions: Update total program budget if necessary based on PAC Ask IPTs for technical scope and/or schedule requirements trade-off opportunities Ensure aggressive risk mitigation activities and attention to problem-solving Reduce overall scope Obtain additional funding

Generate Integrated Product Team (IPT) Reports Why: To document the results of the integrated program analysis in a format for leadership and oversight reporting What: Collect the key analysis decisions resulting from the three-step Integrated Analysis Model and report them in a format that supports leadership review and action How: Collect, summarize, and report contract issues Collect, summarize, and report APB issues and program metrics Collect, summarize, and report EVM program cost and schedule issues Collect, summarize, and report program financial issues

IPT Reports—Contract Issues Step 1.2 P0000 Status Confirm that the PMB reflects all contract modifications Step 1.3 Specification Issues Identify any contract specification issues that current TPMs forecast will not be achieved Identify proposed technical solutions Step 1.4 Contract Delivery Issues Identify any contractual deliveries that the current network schedule forecasts will not be met Identify proposed schedule solutions Steps 1.4 and 1.5 Contract Schedule and Cost Issues Identify any schedule and cost drivers that may be impacting the contract (overtime to correct unfavorable SVs) Identify proposed solutions Step 3 Contractor Finance Issues Identify any cash flow, obligation, expenditure, and termination liability issues that may exist on the contract Identify proposed solutions for these issues

IPT Reports—APB Issues and Program Metrics Step 1.3 Performance KPPs Identify performance KPPs where their associated TPM forecasts indicate they will achieve less than the required threshold and proposed technical solutions Step 1.4 Schedule Parameters Identify any schedule parameters that the current network schedule forecasts a completion date after the required ABP threshold date and proposed schedule solutions Step 3 Cost Parameters Identify any cost overrun estimates that exceed current APB-approved funding levels and proposed solutions Program Metrics Step 1.1—EVMS Compliance and Integrated Baseline Development Step 1.4—Baseline Execution Index Step 1.2—Contract Modifications and Baseline Revisions Step 2—SPIcum, CPIcum, and CPIcum vs. TCPI

IPT Reports—Earned Value Management Status Step 1.2—Confirm the PMB is current and reflects all contract modifications Identify inconsistent MR and UB issues Explain baseline adjustments and OTBs Step 1.4—Identify the top (3–5) schedule drivers using all available data (network schedule, technical drivers, and EVM schedule metrics) Step 1.5—Identify the top (3–5) cost drivers using all available data (network schedule, technical drivers, EVM schedule and cost metrics) Step 2—Determine at completion cost Provide an EAC range of costs consistent with observed and forecast risks and EVM performance indexes Provide a most likely PAC When warranted (mature contracts) provide a risked-based EAC

IPT Reports—Financial Status Step 3—Confirm that PPBE R&P Forms provide adequate resources to efficiently complete the program Step 3—Report current budget obligations and expenditures and identify budget issues and proposed solutions

Step 3—Formulate a Plan of Action Summary In Step 3: Formulate a Plan of Action, the EVM analyst and the IPTs use the information gleaned from the other two steps to recommend an action plan for the PM to: Meet schedule delivery dates Stay within budget Meet technical performance requirements Effective EVM provides early insight for PM actions, such as: Update total program budget, if necessary, based on PAC Ask IPTs for technical scope and/or schedule requirements trade-off opportunities Ensure aggressive risk mitigation activities and attention to problem-solving Reduce overall scope Obtain additional funding