1. Blues Chapter CSEP 1 Earned Value Management System (EVMS) Ron Fradenburg Blues Chapter President 19 March 2013 For more information visit: www.incose.org/educationcareers/certification/ © 2008 International Council on Systems Engineering CSEP

2. Blues Chapter CSEP Agenda EVMS History INCOSE Perspective DAU Gold Card 2

3. Blues Chapter CSEP EVMS History After WWII Contract Performance Measurement (CPM) –Technology Advanced at a Tremendous Rate –Industries Produced Very Complex and Highly Technical Weapon Systems for Our Country's Defense –Government Need To Monitor And Track Defense Contractors Performance Increased 1958 First Formal Contract Performance Measurement (Monitoring) Tool - Program Evaluation Review Technique (PERT) for USN Polaris Program Next Added Cost Information to Arrive at PERT COST. 1966 Air Force used Cost/Schedule Planning Control Specifications (C/SPCS or C-Specs) 1967 DoD instituted Cost/Schedule Control Systems Criteria (C/SCSC) Contract Performance Measurement Standard. 3

4. Blues Chapter CSEP EVMS History 2 Weapon Systems Contracted to Defense Industry Government Asks for Bids (RFP) Technology Often State of the Art Proposed Designs Cost $B and Take Years to Complete Selected Programs are Baselined (APB, PMB) Flexibility in Performance, Cost, and Schedule with Continual Tradeoffs Demands Effective (CPM) DOD Mandated Control Systems Guidelines - EVMS Over 340 Major Programs 1940-1992 4

5. Blues Chapter CSEP EVMS History 3 Needed Improved Performance in Cost-Type Contracts Both Government and Contractors Had Reservations –Deficiencies in Analyzing Performance Data –Variance Thresholds too Restrictive –Ask for Wrong Information –Training and Implementation Non-Standard –Not Supported by Top Management –Review Teams not Well Trained Extensive Training Available Wealth of Reference Material 5

6. Blues Chapter CSEP EVMS History 4 C – Spec Five Groups (35 Criteria) 1966 1)Organization 2)Planning and Budgeting 3)Accounting 4)Analysis 5)Revisions and Access to Data Today DCMA uses 32 Guidelines and Five Groups 6

7. Blues Chapter CSEP DCMA Compliance Review 7 DCMA Designates 16 Core / Foundation Guidelines Non Compliance with any Core Guideline will Fail Contractor’s EVM Compliance Review* * DCMA Presentation to NDIA PMSC, Aug. 2010 Based on ANSI/EIA 748B EVMS Management Systems June 2007 Reference: NDIA Planning and Scheduling Excellence Guide (PASEG) 18 May 2010

8. Blues Chapter CSEP Agenda EVMS History INCOSE Perspective DAU Gold Card 8

9. Blues Chapter CSEP Systems Engineering Program Management 9 Systems Engineering ●Needs and Opportunity Analysis Systems Implementation Project/ Systems Management ●Operational Concept Development ●System Scoping and Requirements Development ●Architecture Definition ●Tradeoff Analysis, Modeling and Simulation ●Production Planning and Analysis ●System Integration ●Technical and Business Risk Analysis ●Production Line Preparation ●Production/ Construction ●Production Control ●Testing ●Lifecycle Planning and Estimating ●Change Analysis Management, CM ●QA, V&V, Continuous Process Improvement ●Staffing, Organizing, Directing ●Cost, Schedule, Performance, and Risk Monitoring and Control (EVMS) ●Operations Planning and Preparation (Deployment) ●Operations Management ●Business Case Analysis ●Systems Engineering Management ●Supply Chain Management ●Systems Implementation Management Developed for BKCASE with Changes ●Records & Reporting ●Work Breakdown Structure ●Technical Baseline ●Program Baseline ●Program Metrics ●Integrated Master Schedule

10. Blues Chapter CSEP Program Management Challenges

11. Blues Chapter CSEP Agenda EVMS History INCOSE Perspective DAU Gold Card 11

12. Blues Chapter CSEP DAU Gold Card 12