0 eCPIC User Training: Earned Value Management (EVM) in eCPIC These training materials are owned by the Federal Government. They can be used or modified only by FESCOM member agencies.

1 Earned Value Management (EVM) in eCPIC Slide 2 – Overview Slide 4 – Project Activities Table Slide 8 – Project Summary Background and Logic Slide 20 – Project Summary Monthly Calculations Table Slide 26 – Administrator Only EVM Functions

2 EVM Overview  eCPIC has the capability to perform Earned Value Management (EVM) calculations and analysis.  EVM is a project management technique for measuring and forecasting project performance and progress in financial terms. EVM combines measurements of schedule, scope, and cost into a single integrated system.  The accuracy of your Agency's EVM data is directly correlated to the level of data entered in the investment's work breakdown structure. Therefore, it is recommended that Agencies capture and enter the most granular investment data available, as this will result in more accurate EVM calculations.

3 Earned Value Management (EVM) in eCPIC Slide 2 – Overview Slide 4 – Project Activities Table Slide 8 – Project Summary Background and Logic Slide 20 – Project Summary Monthly Calculations Table Slide 26 – Administrator Only EVM Functions

4  The Project Activities table displays the investment’s activities that are used for the EVM calculations and analysis. Major investment owners regularly update the Project Activities data for annual and monthly OMB submissions, so it is logical to utilize this data for generating EVM calculations.  The Project Activities table is a field located in the Major IT Business Case Detail process > Project Plan and Execution Data section > Project Activities subsection. Locating the Project Activities Table

5  To view all of the EVM-related fields in the Project Activities table, navigate to the ‘Select View’ dropdown menu on the top- right of the page. Click on ‘EVM Fields View’.  The data from these activities are used as the basis for the EVM calculations and analysis. Selecting the EVM Fields View Use the down arrow in the left column to expand and collapse sub-activities (children activities to parent activities)

6 ‘In Calc’ in Project Activities Table  To include specific activities in an investment’s EVM calculations, open the EVM Fields view within the Project Activities table and select the activities that will be tracked in EVM by clicking on the ‘In Calc’ checkbox in the corresponding rows. The ‘In Calc’ row can be found in the right-hand column in the EVM Fields view.  Note: For parent activities with children, the ‘In Calc’ checkbox needs to be selected in order to include the specific child in EVM calculations. For these hierarchy activity relationships, only the children themselves are used in the EVM calculation; the parent activity serves only as a placeholder to organize the children.

7 Earned Value Management (EVM) in eCPIC Slide 2 – Overview Slide 4 – Project Activities Table Slide 8 – Project Summary Background and Logic Slide 20 – Project Summary Monthly Calculations Table Slide 26 – Administrator Only EVM Functions

8  To view the summary EVM data for an investment, navigate to the Project Summary (EVM) field. It will be located in the process/section/subsection where the System Administrator has placed it (see slide 27 for details on how the System Administrator adds the Project Summary field to a process).  Once selected, the Project Summary page containing EVM calculations will be displayed. Locating the Project Summary Field

9 Performance Baseline Table Selection 1)The first prompt will allow you to choose the data source for the EVM calculations. There are two available options:  The default selection is ‘Master Cost & Schedule’. This will import data from the Project Activities table, which will automatically populate the rest of the page. This is the recommended setting.  The user can also select the ‘Free Text Entry (PV, EV, AC)’, which allows manual entry throughout the rest of the page. Note: When switching between these source options, the user will be prompted with a warning screen to verify that the switch is intended. Click ‘OK’ to proceed, which will allow the user to move forward with the desired selection. 1 Within the Project Summary field, there are a number of available options to choose from when setting up your EVM calculations. The following numeric steps (on the next several slides) will walk you through each of these options.

10 As Of Date and Period of Measure 2)Choose appropriate date from the dropdown calendar to identify when the investment summary information is from. 3)Select one of the periods of measure from the dropdown:  ‘Full Life Cycle’ – Calculations based on all activities selected as ‘in Calc’.  ‘Current Fiscal Year’ – Calculations based on all activities selected as ‘in Calc’ in the current fiscal year.  ‘Current Fiscal Year and Budget Year’ – Calculations based on all activities selected as ‘in Calc’ that fall within the current fiscal year and budget year. 3 2

11 Project Name and Updating Data 4)Select a specific project for data analysis, providing the opportunity for a more detailed breakdown. In the example below, there are three projects assigned to this particular investment (located in the Projects Table).  The user can also pick all of the projects for analysis by selecting ‘All’. 5)In the ‘Master Cost & Schedule’ setting (shown in the image), the checked boxes will be automatically calculated based on the inputted data (unchecked boxes will lock the shown value in the field).  In the ‘Free Text Entry (PV, EV, AC)’ setting, the user will be able to manually input these fields. All activities will fall into one of the first two columns: Development, Maintenance, and Enhancement (‘DME’) or ‘Steady State (SS)’. The third column – ‘All Checked Milestones’ – is the sum of the first two columns. 4 5

12 Calculate and Validate Button 6)Save changes in the application and then select Calculate and Validate to update the data based on what was selected and/or changed in the previous steps. Many of the fields are calculated based on other fields, so by selecting ‘Calculate and Validate’, changes are updated throughout the page. 6

13 AbbreviationNameFormulaAlso Referred to As: PVPlanned Value∑ (Planned % Complete x Activity Cost)Budgeted Cost for Work Scheduled (BCWS) PVFYPlanned Value for Fiscal Year∑ (Planned % Complete x Activity Cost x Fiscal Year Completion %) EVEarned Value∑ (% Complete x Activity Cost)Budgeted Cost for Work Performed (BCWP) EVFYEarned Value for Fiscal Year∑ (% Complete x Activity Cost X Fiscal Year Completion %) ACActual Cost∑ Actual Cost Spent to DateActual Cost of Work Performed (ACWP) ACFYActual Cost for Fiscal Year∑ (Actual Cost Spent to Date x Fiscal Year Completion %) CVCost VarianceEV – AC CV%Cost Variance Percent(CV/EV) x 100% CPICost Performance IndexEV/AC SVSchedule VarianceEV – PV SV%Schedule Variance Percent(SV/PV) x 100% SPISchedule Performance IndexEV/PV BACBudget at Completion∑ Current Baseline Planned Total Costs EACEstimate at Completion(BAC-EV)/CPI + AC VACVariance at CompletionBAC – EAC VAC%Variance at Completion Percent (VAC/BAC)*100% ETCEstimated Cost to CompleteEAC – AC Key EVM Abbreviations and Formulas  The following chart displays the abbreviations, names, and formulas that appear on the Project Summary page. These values are calculated automatically, although the chart below illustrates the process for how these fields are updated.

14 Planned Value (PV) Logic The following slides expand on some of the key EVM formulas that were provided in the previous slide. Planned Value (PV): The total cost of work scheduled/planned as of a reporting date. In other words, it is the money that should have been spent by a certain ‘as of’ date, according to the initial schedule. How PV Gets Calculated:  If the ‘As Of’ date is the same or later than the ‘Planned Completion Date’, then PV = ‘Planned Total Cost’  If the ‘As Of’ date is before than the ‘Planned Completion Date’ and later than the ‘Planned Start Date’ and…  …The ‘Planned Percent Complete’ field has a value, then… PV = [‘Planned Total Cost’ X (‘Planned Percent Complete’/100)]  …The ‘Planned Percent Complete’ field is blank, then… PV = ‘Planned Total Cost’ X [(Number of days between ‘Planned Start Date’ and ‘As Of’ date)/(Number of days between ‘Planned Start Date’ and ‘Planned Completion Date’)]

15 Planned Value (PV) Logic, continued PV Calculation Example:  You have a project to be completed in 360 days, and the total cost of the project is $100,000. You are now 180 days into the project, and want to calculate your Planned Value. How should you go about doing this?  Scenario 1: There is a ‘Planned Percent Complete’ value listed for today’s date, stating that 50% of the work should be completed at this point.  Calculation: Since there is a ‘Planned Percent Complete’ value, the formula used should be: PV = [‘Planned Total Cost’ X (‘Planned Percent Complete’/100)]. This comes out to [$100,000 X 50/100] = $50,000**  Scenario 2: There is not a ‘Planned Percent Complete’ value listed for today’s date.  Calculation: Since there is no ‘Planned Percent Complete’ value, the formula used should be: PV = ‘Planned Total Cost’ X [(Number of days between ‘Planned Start Date’ and ‘As Of’ date)/(Number of days between ‘Planned Start Date’ and ‘Planned Completion Date’)]. This comes out to PV = $100,000 X (180/360) = $50,000** **Note: The PV values for Scenario 1 and Scenario 2 could be different, depending on what the ‘Planned Percent Complete’ was set to in Scenario 1. For simplicity’s sake, we said that 50% of the work would be completed at the halfway mark, but this number could be adjusted, leading to a different PV in Scenario 1.

16 Earned Value (EV) and Actual Cost (AC) Logic Earned Value: The value of the actual work completed by the ‘as of’ date, expressed in terms of the original planned budget. How EV Gets Calculated:  If the ‘Actual Percent Complete’ field has a value, then… EV = ‘Planned Cost’ X (‘Actual Percent Complete’/100)  If the ‘Actual Percent Complete’ field is blank, then… EV = 0 EV Calculation Example:  You have a project to be completed in 360 days, and the total cost of the project is $100,000. You are now 180 days into the project, and want to calculate your Earned Value. At this point, your ‘Actual Percent Complete’ is determined to be at 55%. How should you go about calculating your EV?  Calculation: Since there is an ‘Actual Percent Complete’ value, EV = ‘Planned Total Cost’ X (‘Actual Percent Complete’/100), so EV = $100,000 X 55/100 = $55,000 Actual Cost: The total cost incurred for the actual work completed by the ‘as of’ date. Simply put, it is the amount of money you have spent to date. AC Calculation Example:  You have a project to be completed in 360 days, and the total cost of the project is $100,000. You are now 180 days into the project, and have spent $60,000. Your Actual Cost is therefore $60,000.

17 Schedule Variance (SV) Logic Using the previous slides’ calculations our example has yielded the following results:  PV = $50,000  EV = $55,000  AC = $60,000 What Do These Values Mean? At first glance, we can see that the project is ahead of the original schedule in terms of work completed (EV vs. PV), but that it has also gone over budget for the amount of work that has been completed (EV vs. AC).  To better understand the significance of these values, we use calculations called Schedule Variance and Cost Variance. Schedule Variance (SV): A measure of the schedule performance of a project. If the variance is positive you are ahead of schedule, and if it is negative, you are behind schedule. How SV Gets Calculated  SV = EV – PV. SV Calculation Example  In our previous example, EV = $55,000 and PV = $50,000. So, EV – PV = $55,000 - $ 50,000 = $5,000  Since the SV is positive, the project is ahead of schedule.

18 Cost Variance (CV) Logic Cost Variance (CV): A measure of the current spending on the project, and whether it is over or under the cost baseline of the project. If the variance is positive you are under budget, and if it is negative, you are over budget. How CV Gets Calculated  CV = EV – AC CV Calculation Example  In our previous example, EV = $55,000 and AC = $60,000. So, EV – AC = $55,000 - $60,000 = -$5,000  Since the CV is negative, the project is over budget. So, based on our PV, EV and AC values, the Schedule and Cost Variance values tell us that we are ahead of schedule but over budget for this particular example. Now that we have a better understanding of how Planned Value, Earned Value, Actual Cost, Schedule Variance, and Cost Variance are calculated, let’s get back to eCPIC and how to calculate these and other EVM data values using the EVM functionality…

19 Earned Value Management (EVM) in eCPIC Slide 2 – Overview Slide 4 – Project Activities Table Slide 8 – Project Summary Background and Logic Slide 20 – Project Summary Monthly Calculations Table Slide 26 – Administrator Only EVM Functions

20 7)By selecting the ‘Click Here to View Monthly Calculations’ text, calculations will be developed based on the ‘In Calc’ activities and the chosen EVM calculation options. The resulting EVM data is described in more detail on the next slides. Initiating Monthly Calculations 7

21 Populating Monthly Calculations Table Data When the ‘Click Here to View Monthly Calculations’ text is selected on the previous slide, the following monthly calculations functionality will open on the page. 8)The System Administrator can set a threshold cost variance percentage for each investment or project, which is displayed to the user in this field. This value is displayed as read-only to Users. 9)If the CV% is greater than the provided variance threshold %, then the user will be prompted to enter a reason for the variance in this field )From the dropdown menu, select the month that the EVM calculation will be reported against in the Monthly Report Table. 11)An open, recommended comment field for the user to populate with additional information. 12)Click the Submit button to populate the monthly control table with up-to-date information. The completed fields in steps 9-12 will be within the appropriate columns in the table.

22  Once the monthly variance calculations are submitted, the monthly calculations table will populate with project specific EVM data for that specific month. If the same month’s data is submitted with the same project attributes selected (i.e. All projects), then by design, the prior row of data will be replaced by the up-to-date calculations.  Rows that have been submitted by a user will display with a white background, along with the relevant data at that point in time. Gray rows are for months that have not been manually submitted by a user, but thus, show in the table as ‘Projected Values’ for the relevant months.  Users have the ability to view the specific activity type calculations by toggling between the tabs at the top of the table: (DME, SS, or All). Monthly Calculations Table Details

23 Rebaseline and Toggle Excel Export/Import  The toggle Excel export/import functionality allows for a MS Excel compatible version of the table to be exported or imported into the monthly calculations table. This functionality works in a similar manner to how toggle Excel/import works for most other tables in eCPIC. To initiate the toggle Excel export/import, click on the button.  The ‘Rebaseline’ tab resets any projected values listed in the data. The user will be prompted with a warning screen, and must approve the rebaseline.

24 Cost Curve and Variance Chart  When either of the ‘Cost Curve’ or ‘Variance Chart’ options are selected, new windows will open, generating a graph based on the investment data in the Monthly Capture table.

25 Earned Value Management (EVM) in eCPIC Slide 2 – Overview Slide 4 – Project Activities Table Slide 8 – Project Summary Background and Logic Slide 20 – Project Summary Monthly Calculations Table Slide 26 – Administrator Only EVM Functions

26  The System Administrator must first add the ‘Project Summary’ field (officially called ‘Project (Investment) Summary Cumulative’) to a new or existing process. Navigate to the process builder area within the Admin module to begin the process. Adding the Project Summary Field to a Process in the Admin Module 1)Assign the field from the ‘Unassigned Fields’ list by clicking the next to the field’s name, followed by the ‘Assign Fields’ button. Note: For additional information on assigning fields to a process, please refer to the eCPIC Custom Processes training module. 2)With the field added to the ‘Assigned Fields’ list select ‘Update Field Properties’ to complete and save the changes. 3)Logout of eCPIC and log back in to see the field displayed. eCPIC Tip: As a best practice, add the Project Summary page as its own Subsection in the Major IT Business Case Detail process, Section B: Project Plan and Execution Data section. This ensures that this field is located in the same section as the Project Activities page for easy scrolling between the two fields. 12

27  eCPIC allows System Administrators to edit the submitted calculations in the Monthly Calculations table, as well as an option to delete an existing row in the table. To make updates, select the ‘Edit’ button and an editable version of the row will open.  In the example below, the user forgot to enter ‘Oct 13 variance’ in the ‘Comment’ field when submitting his/her monthly calculation. Thus, the Administrator can update the data without needing to submit a new calculation. Administrator Row Options in the Monthly Calculations Table

28  Through the Admin module, System Administrators set the default Variance Threshold (found on Slide 21).  The default threshold is 10 percent, but this value can be updated in the Admin module by navigating to the Field Management dropdown on the top-row toolbar > Manage Cost and Schedule > Cost and Schedule Configuration.  When Users are submitting their EVM monthly calculations, if the CV% exceeds the Variance Threshold, then an answer must be provided in the ‘Reason for Variance’ field.  Other Project Summary-related settings can also be found on this Admin module page. Setting the Variance Threshold