1. 0 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVM and Agile Synergies in a DoD Environment Mr. Gordon Kranz, PARCA Deputy Director for EVM Mr. Kevin McKenna EVM World May 2015

2. 1 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Agenda  OSD PARCA  EVM World Agile Track Sessions  DoD EVM and Agile Background  Baseline Planning and Progress Measurement  Discussion  Recap  Contact Us

3. 2 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. OSD PARCA

4. 3 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. PARCA Organization PARCA was brought into existence via the reforms called for by the Weapon Systems Acquisition Reform Act (WSARA) of 2009 As the central office for major defense authorization performance assessment, root cause analysis, and earned value management (EVM), PARCA advises AT&L on program execution status; and issues policies, procedures, and guidance to the Military Departments and the Defense Agencies to improve program management practices Director, Performance Assessments and Root Cause Analyses (PARCA) Mr. Gary R. Bliss Deputy Director for Earned Value Management Mr. Gordon M. Kranz Deputy Director for Root Cause Analysis Dr. D. Mark Husband Deputy Director for Performance Assessments Mr. David S. Cadman Deputy Director for Acquisition Policy Analysis Center Dr. Philip S. Anton

5. 4 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. PARCA EVM Vision  Guiding Principles  Increase the quality and utility of EVM data  Increase the use of EVM across the acquisition chain  Improve acquisition professionals’ ability to utilize EVM  Reduce Contractor’s administrative burden of inefficient use of EVM  Ensure constructive 2-way communication between DoD and Industry  EVMS is perceived by all stakeholders to be cost effective Foster cross functional situational awareness, visibility, and accountability through integrated program management at all levels of the acquisition community

6. 5 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. PARCA EVM PARCA is responsible and accountable for EVM performance, oversight, and governance across the Department PARCA Earned Value Management Division Authorities Policy and Guidance EVM Competency EVM Data Requirements EVM Central Repository Communications and Outreach

7. 6 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015.  Earned Value Management (EVM) is an inherent part of the acquisition program management value chain and provides Program Managers with accurate and timely insight into cost, schedule and performance of products, systems, and services programs  Concurrent use of EVM and Agile development provides a program team with the ability to adapt to, track, and report on emerging requirements while significantly reducing program risk Premise

8. 7 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVM WORLD AGILE TRACK SESSIONS

9. 8 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVM World Agile Track Sessions Date & TimePractice Symposium Wed 5/27 | 1:30 Avoiding Chaos – Agile Project Delivery Wed 5/27 | 2:30 WBS and the Product Backlog Wed 5/27 | 3:45 Planning, Scheduling, and Baselining Thu 5/28 | 1:30 Change Control Thu 5/28 | 2:30 Measuring, Collecting, and Reporting Progress Thu 5/28 | 3:45 Forecasting ETCs and the Schedule

10. 9 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. DOD EVM AND AGILE BACKGROUND

11. 10 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Objective  Provide DoD guidance on use of EVM Integrated Program Management with Agile Development  PARCA has been collecting information:  Hosting periodic Government Agile and EVM Forums  Multiple Industry Events - CPM, NDIA, and AFEI ADAPT - to identify successes, obstacles, and best practices from the field  Government Industry Meetings - exchange ideas and look for common processes Feb 2015 Meeting presentations are posted on the PARCA website: http://www.acq.osd.mil/evm/resources/EVM-Agile%20Meeting.html http://www.acq.osd.mil/evm/resources/EVM-Agile%20Meeting.html  White paper summarizing EVM in an Agile Environment is in draft stages

12. 11 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVM and Agile  Definitions  EVM: disciplined integrated program management tool for planning and measuring progress to forecast and adapt future execution  Agile: a development framework or methodology for addressing complex problems in an emerging environment  Similarities  Promote effective, proactive program management  Emphasize planning, forecasting, and estimating  Objective technical criteria used to track progress

13. 12 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Agile Terminology  There are many different implementations of Agile, so for ease of discussion the following terms will be used:  Feature – A clearly defined technical work scope requirement of an Agile project. Features are decomposed by the development team into Stories  Stories – Individual pieces of work scope that can be completed within a Sprint. Stories are defined by the development team as a result of the decomposition of Features.  Sprint – A fixed time box for development which results in a working increment of software. Sprints are usually 2 to 4 weeks in duration.  Story Points – A measure of a Story’s estimated value as perceived by the development team. The number of Story Points is an abstraction of the effort, complexity, and risk of the Story.

14. 13 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Considerations for Implementing EVM and Agile  EVMS Compliance  DoD EVMS Interpretation Guide (EVMSIG)  Baseline Planning  Definition of work scope (WBS)  Time phasing  Rolling wave planning  Measuring Progress  Establishing objective technical criteria (definition of done)  Change control  Addressing incomplete work  Dollarization of Effort

15. 14 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVMS Compliance: DoD EVMS Interpretation Guide (EVMSIG)  Provides the overarching DoD interpretation of the 32 Guidelines  Facilitates consistency and a common understanding for determining EVMS compliance within DoD  Offers flexibility for a variety of program execution and development methodologies  MIL-STD-881C WBS  Schedule level of detail  Emphasis on tracking progress to objective technical criteria

16. 15 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. BASELINE PLANNING

17. 16 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Baseline Planning: Definition of Work Scope Priority Drives Schedule Events Drive Schedule From Appendix B of MIL-STD-881C

18. 17 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Baseline Planning: Time Phasing and Rolling Wave Planning

19. 18 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Intersection of Agile and EVMS (Raytheon Example) Note: images used with permission from Raytheon Company. All Rights Reserved. (Copyright © 2015) Does not imply DoD endorsement

20. 19 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Intersection of Agile and EVMS (Lockheed Martin Example) Feature X1 Feature X3 Control Account Work Packages and Planning Packages EVM Reporting BAC Variance Analysis (CV, SV, VAC, CPI, SPI ) EVM Claiming BCWS BCWP (Feature APC) ACWP Iterations 76 Planned SPs 82 Planned SPs Program Milestones Release 2 Performance Measurement Baseline Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6 Iteration 7 Iteration 8 Iteration 12 Agile Development Control Account 30 Planned SPs …. TIME NOW Release 2 Planning Package Feature X2 Release 1 30 Planned SPs Objective Measurement Criteria (Analysis for BCWP) Note: images used with permission from Lockheed Martin Corporation. All Rights Reserved. (Copyright © 2015) Does not imply DoD endorsement

21. 20 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. MEASURING PROGRESS

22. 21 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. EVM Progress Measurement Task Completion Drawings Completed Lines of Code Written Work Products Produced Reviews completed end Progress is measured by effectiveness of outcomes to the end user Measuring Design Effectiveness Critical TPM Achievement System Capabilities Met Quality of Work Products System Under Review Acceptable Agile is tailor- made for measuring progress this way!

23. 22 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Measuring Progress: Change Control Sprint 1 Feature 2 Feature 1 Feature A Feature B Feature C  Story 2D Feature E  Story 2G Product Backlog Feature 1 is 100% complete Stories A,B,C,E, and F completed; 2D and 2G returned to Backlog Fixed “time boxes” (i.e., Sprints) force incomplete work to be put back on the product backlog or rolled over to next Sprint Forecasting and change control processes are required to maintain EVM baseline as items are returned to Product Backlog and used in subsequent Sprints  Story 1A  Story 1B  Story 1C  Story 1D  Story 1E  Story 1F  Story 1G  Story 2A  Story 2B  Story 2C  Story 2D  Story 2E  Story 2F  Story 2G Sprint 2

24. 23 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Measuring Progress: Planning Stories  How to claim credit for completed stories and completed features; can partial story / feature credit be taken?  Is there a relationship between completed stories and performance (i.e., EVM “BCWP”)? Example of a set of Stories planned for a Sprint; status mid-Sprint

25. 24 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Measuring Progress: Adding a Story  Earned value did not change but the overall % complete decreased  For change control, the addition of a story increases the overall amount of performance that can be claimed (i.e., BCWS increases) in the Sprint Story H was added

26. 25 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Measuring Progress: Removing a Story  Earned value did not change but the overall % complete increased  For change control, the removal of a story decreases the overall amount of performance that can be claimed (i.e., BCWS decreases) in the Sprint Story F was removed

27. 26 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Agile Dollarization of Effort Release n Sprint 1Sprint 2Sprint 3Sprint 4Sprint 5Sprint 6 1 Sprint Team 8 Members - $100/hour 2 Week Sprints – 80 hours - $64,000/sprint Quarterly Releases – 6 sprints - $384,000/release -Good estimation requires historical data -Velocity as relates to sprint costs? -Costs associated with features? -Dollarized story points? 77908182 76837186 2123 1619 2218 2017 1918 1620 1921 1724

28. 27 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. DISCUSSION

29. 28 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Discussion on EVM and Agile  What are the benefits of using EVM in an agile environment?  Are there any implications using EVM within an agile environment that should be addressed in the EVMSIG?

30. 29 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Recap  EVM and Agile both support effective and proactive program management  Planning, forecasting, and estimating are large parts of both disciplines.  Change control, while not identical between the disciplines, is crucial to the reliability of performance metrics.  Progress tracked with objective technical criteria.

31. 30 Office of Performance Assessments and Root Cause Analyses (PARCA) PARCA EVM PARCA EVM APPROVED FOR PUBLIC RELEASE DISTRIBUTION UNLIMITED : 15 -S-1591, May 18, 2015. Contact Us PARCA EVM Email: osd.pentagon.ousd-atl.mbx.evm- interpretation@mail.mil OR osd.pentagon.ousd-atl.mbx.parca- evm@mail.mil PARCA EVM Email: osd.pentagon.ousd-atl.mbx.evm- interpretation@mail.mil OR osd.pentagon.ousd-atl.mbx.parca- evm@mail.mil http://www.acq.osd.mil/evm/index.shtml PARCA EVM Website: