1. September 2016
EVM 202—Lesson 4 Integrated Baseline Review (IBR) Process (Part 1: IBR Process and Baseline Development)

2. Lesson 4 Learning Objectives
Terminal Learning Objective
Examine the performance measurement baseline (PMB) validity
Enabling Learning Objective
Explain the PMB development process
Apply the DoD Integrated Baseline Review (IBR) policy and process
Given the Earned Value (EV) technique, analyze control account EVM variables to select EVM metrics
Analyze a schedule using the Precedence Diagram Method (PDM)
Analyze IBR documents to determine areas of concern within the five risk areas in preparation for control account manager (CAM) interviews
Analyze the current schedule to determine status
Explain the importance of PMB maintenance

3. EVM within the Contracting Process

4. DoDI 5000.02 EVM Policy Guidance Enclosure 1 Table 8 EVM Application Requirements

5. Baseline Development

6. PMB Budget Allocation

7. PMB Budget Allocation (Cont.)
Management reserve (MR): Budget withheld by contractor program manager for unknowns/risk management
NOT part of the PMB
Undistributed budget (UB): Broadly defined activities not yet distributed to a control account (CA) or summary level planning package (SLPP)
Is NOT time-phased
Does not have a WBS number
IS part of the PMB
Is a short-term holding account; UB to be distributed into SLPPs or CA
Summary level planning package (SLPP): Far-term contract activities not yet defined into CAs
IS time-phased
Can be distributed to reporting level WBS elements at a higher level than the CA, which distinguishes it from UB

8. Baseline Planning Approaches
Detailed planning of all contract tasks is not usually possible at the contract’s start
Detailed planning is done in “waves” or increments
Once the nearest-term work is completed, the next segment of work is detail planned, and then the next, etc.
Detailed planning concepts include:
Rolling wave—Always detail plan a certain number of months into the future; constant planning mode
Block planning—Plan a block of time or to the next major milestone; planning in increments, not in constant planning mode

9. PMB Development Steps Category Steps Scope Identify the scope of work
Extend to control account (CA)/work package level
Schedule
Arrange the work packages in order
Schedule work packages
Classify the work and select an earned value (EV) technique
Budget
Budget the work packages
Spread the budget over time
Calculate cumulative budgeted cost for work scheduled (BCWScum)

10. The Control Account: A Key Management Control Point
(Responsibility Assignment Matrix)

11. Scheduling Process Overview
The Integrated Master Plan (IMP) is an event-based plan, which serves as the starting point for the Integrated Master Schedule (IMS)
The IMS should reflect contract milestones and technical requirements
The IMS and lower level schedules must provide vertical and horizontal traceability
Integrated product team (IPT) members must be knowledgeable of commonly used schedule presentation techniques

12. Schedule Integration
The IMS and lower level schedules must be traceable both vertically and horizontally.
Summary Master Schedule
Contract program schedule
Shows horizontal integration
Intermediate Schedule
Major event or functional organization milestone schedule
Shows vertical integration to summary master schedule and detailed level
Detailed Schedule
Control account and work package schedules

13. Integrated Master Schedule (IMS)
*LRE = Latest revised estimate; the contractor’s estimate at completion (EAC)

14. Intermediate Schedule

15. Detailed Schedule

16. Determine When Tasks Happen

17. Classifying the Work Discrete or measurable Apportioned effort
Specific end product or result
Most objective category of work because the work is objective
Apportioned effort
Work dependent on other discrete work
Level of effort (LOE)
Has no specific product or hard to measure
Does not have to be level loaded

18. Prefer or require most objective technique
EV Techniques
Discrete tasks
0/100 method
50/50 method
Incremental milestone method
Equivalent unit method
% complete method
Supervisor’s estimate method
Apportioned effort
Measured as a factor, e.g., 10% of discrete task
Level of effort (LOE)
Scheduled work earned based on passage of time
Prefer or require most objective technique

19. EV Techniques Illustrated
Method
BAC
Time Period
BCWP Calculation
0/100 4
1 Period
50/50 8
2 Periods
Incremental Milestone 20
2 or more periods
Equivalent Units Complete 18
Varies
% Complete 72
Apportioned
Level of Effort (LOE)
Tied to the discrete task (e.g., QA is 5% of pipe welding work package budget)
BCWP = BCWS

20. Budget the Work Packages
Labor
Material
Other
Total
Work Package 1 7
Work Package 2 11
Work Package 3 28
Work Package 4 9

21. Calculate Cumulative BCWS

22. Draw the PMB from the Cumulative BCWS

23. PMB Development Concepts
Represents all work
Is a participative process
Is time-phased to contract and program milestones
Is budgeted appropriately
Reflects risk assessment
Is realistic/achievable
Is objective/measurable

24. PMB Summary Identifies the supplier’s plan to do the work
Integrates technical, schedule, and cost
Helps identify problems and allows early correction
Defines means of determining status

25. EV Techniques Exercise
Key: Comp = Complete LOE = Level of effort MS = Milestone

26. Basic Scheduling

27. Why Should You Care about Scheduling?
Provides basis for project communication
Identifies key milestones, activities, and interdependencies
Provides baseline for performance measurement
Provides current status and forecasts completion dates
Allows management by exception
Focus on critical path and slipping tasks
Supports Better Buying Power (BBP)
Basis to analyze resource leveling and facility/range availability
Exploration of alternatives in cost/time trade-off studies
Schedule status reported to management
Through Central Repository (CR) and Defense Acquisition Executive Summary (DAES) to the Office of the Secretary of Defense (OSD)
Through Selected Acquisition Report (SAR) to Congress
Program schedule is a key consideration at milestone decisions
Schedule slips may result in funding cuts and/or other major impacts
To accomplish project objectives on time

28. Baseline Versus Current Schedule
Current schedule—The plan reflecting actual accomplishments and projections for completing remaining objectives
Baseline—The original approved plan for accomplishing project objectives

29. Network Scheduling Process
Tasks
Identify everything that needs to be done
Ensure tasks trace to the WBS
Duration
Identify the duration of each task
Determine the measure of duration (e.g., calendar days vs. business days)
Order
Identify what must happen before each task
Establish criteria for starting a task
Constraints
Limitations to what may be done (e.g., facilities, resources)

30. Precedence Diagram Method (PDM)
Task Relationships
Finish-to-start
Finish-to-finish
Start-to-start
Start-to-finish

31. Task Relationships—Finish-to-Start
B cannot start until A has finished e.g., You cannot plant the flower until you have dug the hole.

32. Task Relationships—Finish-to-Finish
B cannot finish until A has finished e.g., You cannot finish the analysis until the testing is finished.

33. Task Relationships—Start-to-Start
B cannot start until A has started e.g., You cannot analyze test data until you have started testing.

34. Task Relationships—Start-to-Finish
B cannot finish until A has started e.g., You cannot shut down the old computer system until the new one has come on line.

35. Task Relationships—Finish-to-Start with a Lag
B cannot start until 1 day after A has finished e.g., You cannot remove the forms until 1 day after the concrete is poured.
Lag should always be positive. A negative lag is called a lead and should not occur in a schedule.

36. Task Relationships—Start-to-Start with a Lag
B cannot start until 1 day after A has started e.g., You cannot start painting until 1 day after the primer has set.

37. Task Relationships Exercise

38. Work Accomplished Out of Sequence?
Possible scenarios:
Task more complex than planned
Relationship not required for subsequent tasks (redundant logic)
Work completed, schedule not updated—incorrect status
Purposefully decided to work out of sequence

39. Changing the Model Relationships
Team changed relationships to reflect reality
Legitimate planning techniques can be abused after a project starts—can add unnecessary risk if used incorrectly
Things to look for:
Sequential relationships changing to overlapping
Task relationships changing from finish-to-start to start-to-start or finish-to-finish—Ask why?

40. Poor Scheduling Practices
Poor scheduling practices can make it more difficult to use the schedule.
The finish-to-start relationship between Task A and Task E is an example of redundant logic. The logic is already addressed through the finish-to-start relationship between Tasks A and B and the finish-to-start relationship between Tasks B and E.

41. Constraints
A constraint is a field that imposes a restriction on the start date (start constraint) of a task or milestone or on the finish date (finish constraint) of a task and/or milestone
Hard constraints anchor a schedule or task in time to a specific date regardless of predecessor logic
Soft constraints anchor a task’s start or finish date but they respect predecessor logic and allow the schedule end date to move to the right (or slip)
Use of constraints within a schedule should be minimized
Constraints should never be used in the place of proper logic ties in the executable IMS
For network calculation purposes, it is essential to limit and control the use of constraints

42. Schedule Analysis
Forward pass—Determines earliest time (dates) for each activity (earliest finish time, EFT)
EFT = EST + Duration - 1
Backward pass—Determines latest time (dates) for each activity (latest finish time, LFT)
LST = LFT – Duration + 1
Float—Amount of time an activity can be delayed or expanded before it impacts the project finish time (Float = the lesser value of either LST - EST or LFT - EFT)
Critical path—A sequence of discrete tasks/activities and milestones through the network that has the longest duration through the project with the least amount of float

43. Critical Path and Float Exercise
Determine the critical path and note any poor scheduling practices.

44. Gantt Chart Schedule View
Software is typically used to develop a contract or project schedule.
A Gantt chart displays the activities and milestones in a project against time.
This Gantt chart of the Critical Path and Float Exercise project was developed in MS Project.

45. Gantt Chart Critical Path
To determine the critical path, start with the first task in the project and work through the network following these steps:
Identify the first task on the critical path:
Eliminate summary tasks (an aggregation of subordinate tasks, no predecessors or successors).
Eliminate completed tasks (check the Actual Finish date).
Note: An incomplete task with the earliest start date is usually the first task on the critical path. If two or more tasks have the same start date, select the one with the latest finish date.
If a task is on the critical path, evaluate its successor tasks to determine next task on critical path:
Apply steps 1a and 1b.
Find the successor with the latest finish date and least amount of float (usually 0 days).
Always check relationship logic between tasks.
Repeat step 2 for each task on the critical path until you have mapped out the complete critical path to the end of the project.

46. Determine Critical Path in Scheduling Tool Gantt Chart
Identify the first task on the critical path.
ID 0 (Project Summary): This is a summary task, so it is not on the critical path.
Task A:
Is not a summary task and is not complete (i.e., Actual Finish = NA)
Is the first incomplete task in this project, with the earliest start date and the least amount of float (0 days), so is the first task on the critical path
Note that Task A is represented by a red bar on the Gantt chart, which is a typical Gantt chart format for critical tasks.
Tasks on critical path so far: Task A

47. Determine Critical Path in Scheduling Tool Gantt Chart (Cont. 1)
Evaluate the successors for tasks on the critical path.
Using successor column: Task A has three successors: 2SS+3, 4, and 6.
Successors are identified by their ID number.
SS+3 refers to start-to-start plus a lag of 3 days.
IDs 4 and 6 are finish-to-start relationships, the most common type.
None of the successors are summary tasks or are complete.
Evaluate each successor to see if it has the latest finish date and least amount of float.
Task B has 3 days of float with a finish date of 1/4/07. It is not represented by a red bar on the chart.
Task D has 0 days of float with a finish date of 1/15/07. It is represented by a red bar on the chart.
Task F has 6 days of float. Its finish date is 1/21/07. It is not represented by a red bar on the chart.
Is Task D (0 float) or Task F (latest finish date) on the critical path? Check the relationship logic to see what it tells you.

48. Determine Critical Path in Scheduling Tool Gantt Chart (Cont. 2)
Evaluate the successors for tasks on the critical path (continued).
Task A has a finish-to start-relationship with Task D and Task F. Task D also has a finish-to-start relationship with Task F. This is the redundant logic illustrated earlier in the PDM example.
The redundant logic can be removed between Tasks A and F, leaving just Tasks D and B as Task A’s successors.
Of the two remaining successor tasks, Task D has the latest finish date and least amount of float, so it is on the critical path. Task D is represented by a red bar on the chart.
Tasks on critical path so far: Tasks A and D

49. Determine Critical Path in Scheduling Tool Gantt Chart (Cont. 3)
Repeat step 2 for each task on the critical path.
Task D, the next task on the critical path has two successors, Tasks F and G.
Neither Task F nor G is a summary task or completed.
Task G has the latest finish date and least amount of float (0 days), so it is next on the critical path. Task G is also represented by a red bar on the chart.
Now the tasks on the critical path are A – D – G.
Next, evaluate the Task G’s successors. Task G has only one successor, Task H, which has 0 float days and is the last task in the network. Task H is represented by a red bar on the chart.
The critical path is A – D – G – H, just as was determined using the PDM schedule.
Tasks on critical path: Tasks A – D – G – H

50. Resource Loading Analysis

51. Early Start

52. Late Start

53. Level Loaded