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Six ½ Day Sessions on the Road To Becoming a CAM

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Six ½ Day Sessions on the Road To Becoming a CAM

  1. 1. SIX, ½ DAY SESSIONS ON THE ROAD TO BECOMING A CAM It sounds painful, but not too painful. In the end there is no path to success that doesn’t involve some pain. 1 Copyright © 2010, Niwot Ridge, LLC, Use of any or all of this material is prohibited without written permission
  2. 2. The Master Plan For The Next 3 Days 2 ½ Day Sessions Times Activities Monday 13:00–17:00 IBR Review and CAM participation Tuesday 08:00–12:00 CAM Notebook Overview Tuesday 13:00–17:00 Walking each CAM’s Notebook Wednesday 08:00–12:00 Hands on CAM Notebook usage Wednesday 13:00–17:00 Hands on CAM Notebook Round 2 Thursday 08:00–12:00 Full Group Interview Session
  3. 3. We’ll Use Army Time For 3 Days 3
  4. 4. Learning Objectives for 3½ Days 4 LO Learning Objective Description LO1 Understand the IBR processes, motivation, and your role as a CAM in the IBR. LO2 Understand the processes of controlling your work in the presence of Earned Value Management and the tools and processes of the Earned Value Management System. LO3 Understand the contents of your CAM Notebook. LO4 Be able to put the contents of your CAM Notebook to work on your Control Accounts, in connection with the PP&C staff. LO5 Be able to answer CAM interview questions with sufficient confidence to convince the government you’re able to control the assigned work according to plan. LO6 Become a member of the Community of CAMs in a mentor–protégée manner, to provide support for each other as the program moves onto baseline. LO7 Understand the work to performed in each Work Package, who’s doing the work, how to take credit for work done, subcontractor management and milestones, etc. LO8 Be able to call yourself a CAM, for the TMT program CLIN0001 and CLIN0005.
  5. 5. Our World View 5 ¨ Being a CAM is a full contact sport ¤ Hands on learning. ¤ Minimal presentation. ¤ “Player / Coach” paradigm. ¤ Sometimes Players and Coaches swap roles. ¨ CAM’s work in teams with PP&C ¤ All CAMs are in the same boat – the Program Boat. ¤ It’s “One for all, All for One.” ¤ It’s the 9 Musketeers.
  6. 6. This May Seem Complicated, But … 6 ¨ Being a CAM takes practice, patience, and skill. ¨ We’re here to help you through every step of the way. ¨ Next week, the government is coming for a “preview” of the Performance Measurement Baseline (PMB). ¨ You’ll be sitting for interviews. These 6, ½ day training sessions are in preparation of that visit.
  7. 7. But Our Real Motivation, is to… 7
  8. 8. MONDAY 13:00–16:50: Review past training of the role of a CAM and the tools used to manage Control Accounts 8 Copyright © 2010, Niwot Ridge, LLC, Use of any or all of this material is prohibited without written permission
  9. 9. ¨ Overview of the IBR process as a CAM participant. ¨ Introduction to the process for the next 3 days. ¨ Identification of gaps from previous training sessions and hands on experience building your Control Accounts. Monday: 13:00–13:509
  10. 10. The IBR in One Page 10 The Integrated Baseline Review Question … The Answer can be found in the … What have we been asked to do? Statement of Work (SOW) When are we supposed to do this work? Integrated Master Schedule (IMS) How much money do we have to do this work? Contract Budget Base (CBB) How do we know we’re making progress? Earned Value (EV) What can go wrong? Risk Management Plan (RMP) What’s the future look like? To Complete Performance Index (TCPI) Who’s doing what during the project Responsibility Assignment Matrix (RAM) How is the money allocated to the work? Control Account Plan (CAP) Who’s accountable for the delivery product? Control Account Manager (CAM) How do we know how much this will cost? Estimate At Completion (EAC) Are we delivering what we said we would? Technical Performance Measure (TPM)
  11. 11. Objectives of the IBR† 11 ¨ Assess the adequacy of the Performance Measurement Baseline (PMB) (scope, schedule, budget, resources and management processes) including identification of associated risks. ¨ Achieve a mutual understanding of the PMB and its relationship to the underlying Earned Value Management System (EVMS). ¨ Insure all tasks are planned and can be measured objectively, relative to technical progress; and that managers have appropriately implemented required management processes. ¨ Attain agreement on a plan of action to evaluate the identified risks. ¨ Quantify the identified risks and incorporate in an updated Estimate At Completion (EAC). † Center for Earned Value Management, Integrated Baseline Review (IBR) Toolkit, March 2008
  12. 12. A Critical Understanding About The IBR 12
  13. 13. Introduction to the NASA IBR Process 13 ¨ The IBR is a step–by–step process guided by: ¤ FAR 34.202 and DFAR 254.234–7004. ¤ NASA/SP-2016-3406 Integrated Baseline Review (IBR) Handbook ¤ NASA/SP-2010-3403 NASA Schedule Management Handbook ¨ The Earned Value Management System is guided by ¤ EIA–748–C. ¤ NASA Earned Value Management (EVM) Contract Requirements Checklist, 13 Nov 2015 ¤ NASA/SP-2012-599 Earned Value Management (EVM) Implementation Handbook ¤ NASA/SP-2016-3708 EVM P-CAM Reference Guide ¤ NDIA Guide to the Integrated Baseline Review (IBR) Revision 2, February 6, 2015.
  14. 14. FAR 34.201. says you “shall” have an EVMS FAR 34.202. says you “shall” have an IBR 14
  15. 15. Some More Sources of IBR Guidance 15
  16. 16. The Road from Contract Award to IBR 16 Schedule Baseline Cost Baseline Technical and Programmatic Risk Pre–IBRDRAFT IMS DRAFT PMB CAM Training CAM CAP, WP & PP CAP Baseline IPMR Dry Run Gaps & REQM IPM 2010 Selection EVMS Roll Out 1st Integration 1st Sys Demo OT&E Pre–Val Review CAM Training CAM Startup RFA Corrections PMB of CLIN0001/05 EIA-748-C Guideline SD DRAFT Work Instructions SD Walk Through CAM Interviews RFA Fix Risk Adj Xfer to PGM EVMS Ready PMB IBR Ready
  17. 17. Goals of the IBR 17 ¨ Confirm the integrity of the Performance Measurement Baseline (PMB). ¨ Foster the use of Earned Value (EV) as a means of communicating the cost implications of technical and schedule problems. ¨ Provide confidence in the validity of contractor cost/schedule reporting. ¨ Identify areas of risk (cost, schedule, and technical performance) associated with the PMB. ¨ Involve technical specialists and contract analysts in the IBR process.
  18. 18. Areas of Concentration for the IBR 18 ¨ Work Definition – what work was contracted? ¨ Schedules – when will the deliverables arrive? ¨ Budget Validation – is there enough money? ¨ Earned Value Management Indicators – what measures of performance provide “actionable information to the decision makers?” ¨ Risk Identification – can risk be managed?
  19. 19. Scope of IBR Activities† 19 ¨ Review 80% of allocated budget. ¨ Focus on critical, risky, and high dollar Control Accounts. ¨ Full documentation review: Technical Schedule Cost Statement Of Work Integrated Master Schedule Estimates WBS / Dictionary Intermediate Networks For Work Packages Control Account Plans Technical Risks Programmatic Risks Cost Risks † Space and Missile Systems Center (SMC) Integrated Baseline Review (IBR) Handbook
  20. 20. The Real Issue Is Programmatic Risk 20
  21. 21. Risk Management Is Critical ¨ Classify risks associated with your Control Accounts: ¤ Technical Risk. ¤ Schedule Risk. ¤ Cost Risk. ¤ Resource Risk. ¤ Management Process Risk. ¨ Agree on the course of action for each risk. ¨ Document that course of action in the Risk Register. 21
  22. 22. 5 Risk Areas In the IBR (1) 1.Technical Risk – ability of the technical plan to meet SOW objectives: ¤ Availability of technology. ¤ Product maturity. 2.Schedule Risk – the adequacy of the time allocated for performing defined tasks: ¤ Time allocations. ¤ Schedule dependencies. ¤ Critical Path. 22
  23. 23. 5 Risk Areas In The IBR (2) 3.Cost Risk – the ability of the PMB to successfully execute the project and attain cost objectives: ¤ Validity of cost assumptions. 4.Resource Risk – the availability of personnel, facilities, material, and equipment required to perform the defined tasks: ¤ Loss of resource availability. ¤ Unexpected equipment downtime. ¤ Material delivery delays. ¤ Management Processes Risk – the ability to establish and maintain a valid, accurate, and timely PMB. 23
  24. 24. 5 Risk Areas In The IBR (3) 5.Management Processes Risk – the ability to establish and maintain a valid, accurate, and timely PMB. ¤ The Earned Value Management System Description if the starting point for reducing or eliminating this risk. ¤ A cadre of qualified Program Planning and Controls staff will be at your side for the IBR and then on for generating the needed reporting and Control Account management processes. 24
  25. 25. ¨ Review of the principles of the CAM role and how you as a CAM participate in the IBR. ¨ Start looking at your CAM Notebook as the vehicle for explaining what you do. Monday: 14:00–14:5025
  26. 26. The Control Account Manager (CAM) 26 ¨ The CAM is the single point of contact for management of the Control Account. ¨ The Control Account (CA) is the control point where budgets and actual costs are accumulated and compared to the Earned Value (EV). ¨ A CA is management point for planning and control, since it represents the work assigned to one responsible organizational element for a single program Work Breakdown Structure (WBS) element.
  27. 27. The Control Account Manager will … 27 ¨ Trace all cost, schedule, technical performance data from the Statement of Work (SOW) to the Work Breakdown Structure (WBS) Dictionary. ¨ Confirm there is adequate descriptions of each deliverable and the planning and forecasting data for these deliverables. ¨ Confirm the effectiveness of the Earned Value Management System for managing the program. ¨ Confirm the Risk Management system is adequate to manage the program.
  28. 28. Documents Used During the IBR 28 ¨ Contract Budget Base (CBB) ¨ Contract Target Cost (CTC) ¨ Work Breakdown Structure (WBS) ¨ Organization Breakdown Structure (OBS) ¨ Responsibility Assignment Matrix (RAM) ¨ Control Account Plan (CAP) ¨ Work Authorization ¨ Work Packages (WP) ¨ Planning Packages (PP) ¨ Management Reserves (MR) ¨ Cost Variance (CV) ¨ Program Work Authorization Directive (WAD) ¨ Performance Measurement Baseline (PMB) ¨ Budgeted Cost of Work Scheduled (BCWS) ¨ Budgeted Cost of Work Performed (BCWP) ¨ Schedule Variance (SV) ¨ Actual Cost of Work Performed (ACWP) ¨ Estimate at Completion (EAC) ¨ Budgeted Cost at Completion (BAC)
  29. 29. The Control Account Manager … 29 ¨ Is responsible and accountable for planning and executing the scope of the Control Accounts assigned within the designated schedule and budget. ¨ Plans the scope into discrete Work Packages, Level of Effort, and Planning Packages that support the schedule. ¨ Is responsible for subdividing the allocated budget to the Work Packages so that it is time–phased to reflect the way actual costs are expected to be incurred. ¨ Identifies and obtains specific resources required to perform the work. ¨ Assigns a Performance Measurements Technique (PMT) to each Work Package that supports the performance goals.
  30. 30. The Key IBR Event 30 ¨ The key event of the IBR is the Performance Measurement Baseline (PMB) review with the Control Account Managers of your Control Accounts. ¨ The review of the PMB includes: ¤ Technical content of the Control Account and Work Packages. ¤ All work is authorized and all authorized work is planned. ¤ The integration within the Control Account of the work, schedule, and resources (costs). ¤ Sufficient resources (labor, material, subcontractors, travel, ODCs) are allocated. ¤ Risks and opportunities have been identified.
  31. 31. The CAM Notebook is our security blanket, used to comfort and inform 31 ¨ Control Account Managers will have ready access to program information, program reports, company policies and procedures through your CAM Notebook. ¨ Each Notebook is customized to the specific CAM. ¨ Is in hardcopy for this program. ¨ Prior to the IBR preparation, CAM Notebooks will be reviewed for completeness and accuracy.
  32. 32. TOC for the CAM Notebook ¨ Statement of Work (SOW) ¨ WBS Structure ¨ WBS Dictionary ¨ Responsibility Assignment Matrix (RAM) ¨ Control Account Plans (CAP) ¨ Earned Value Performance Reports ¨ Staffing Plan ¨ Common Process Flow ¨ Schedules ¤ Master ¤ Intermediate ¤ Detailed ¨ Status Reports ¨ Variance Reports ¨ Program Directives (PD) ¨ Quantifiable Backup Data (QBD) ¨ Subcontractor Data ¨ Formulas and Acronyms 32
  33. 33. Information the CAM Needs to Know 33 ¨ Describe how you plan your work & develop your Control Accounts. ¨ Describe how you manage your work. ¨ Describe how you manage risks. ¨ But your Notebook won’t let you down if you maintain the integrity of the data.
  34. 34. ¨ Earned Value Management is the tool of choice for managing your Control Account. ¨ How to apply EVM to the Performance Measurement Baseline (PMB). ¨ Earned Value Management is supplied by the Program Controls group. You’ll receive reports and you’ll jointly analysis this data to make management decisions Monday: 15:00–15:5034
  35. 35. The Foundation of Earned Value 35
  36. 36. EIA EVMS Guidelines 36 ¨ Organization (5 Guidelines) ¤ Define the contractual effort and assign responsibilities for the work ¨ Planning, Scheduling, and Budgeting (10 Guidelines) ¤ Plan, schedule, budget, and authorize the work ¨ Accounting Considerations (6 Guidelines) ¤ Accurate cost of work and material ¤ Reporting on Progress and Accomplishments to date ¨ Analysis & Management Reports (6 Guidelines) ¤ Compare planned, earned and actual costs, analyze variances, and develop estimate for final costs ¨ Revision and Data Maintenance (5 Guidelines) ¤ Incorporate interbnal and external changes
  37. 37. What Every Program Manager Needs to Know for Success … 37 ¨ How do I know this program on schedule? ¨ How do I know this program on budget? ¨ How do I know much will this program cost on the end date? ¨ How do I know what is the end date for this program? Simple program analysis tools answer these questions using time, progress, and cost tracking … ¨ How much is it costing us to earn each unit of value? ¤ $1.00 spent returns $X.00 of value? ¤ How much of the budget “should have been” spent at this point in the program? ¤ How much “value” has the work on the program “earned” so far?
  38. 38. How Does Earned Value Analysis Improve Program Success?38 ¨ It is a way to measure the amount of work actually performed on a program. ¨ It is a way to forecast a program’s cost and completion date using historical and statistical projections. ¨ It is a way to tell how well a program is “performing” compared to its original plan. ¨ Given this information it is a way to forecast how well the program will perform in the future.
  39. 39. Why Use Earned Value Management? ¨ The EVM system identifies variances that have either exceeded or failed to meet identified thresholds of performance by work element. ¨ Variance analysis is an effective control against further cost and schedule problems that may jeopardize the successful completion of the contract. ¨ EVM does not eliminate cost overruns or schedule slippage. However, when properly implemented, EVM does provide the project manager with a basis for making corrective management decisions to improve overall contract performance. ¨ EVM provides project managers a means to better estimate the total contract cost and total duration of contracts. 39
  40. 40. Some More Earned Value Definitions ¨ Budgeted Cost for Work Scheduled (BCWS)(PC) “The Planned Cost” ¤ This is the total budgeted cost. It answers the question “how much do we plan to spend?” A second question that is answered is “How much work should be been completed by this date?” ¨ Budgeted Cost of Work Performed (BCWP)(PV) “Earned Value” ¤ This is the cost originally budgeted to accomplish the work that has been completed. It answers the question “how much work has been actually completed?” ¨ Actual Cost of Work Performed (ACWP)(AC) “The Investment Cost” ¤ The actual cost to accomplish all the work that was performed by a specific date. It answers the question “how much did we actually spend to deliver the Earned Value?” 40
  41. 41. Earned Value Management 41 EVM is the best tool for managing large complex acquisition programs. – Ashton Carter, Under Secretary of Defense for Acquisition, Technology & Logistics You’ve got this “Cheat Sheet” in your CAM Notebook
  42. 42. The Alphabet of Soup of Earned Value† B C W S B C W P A C W P The same work component is in all three Earned Value variables † CPM–300: Principles of Earned Value Implementation, Lesson E: Developing the Performance Measurement Baseline, Dennis W. White, IPMC 2002 Fall Conference, Professional Education Program. 42
  43. 43. The 32 Guidelines of EIA-748-C And Earned Value Management 43
  44. 44. What Does Earned Value Tell Us? 44 Know where you are in terms of accomplishment as well as how much you’ve spent Can we know the final cost and delivery date with confidence Drill down through the data to where the problem is How can we make informed decisions?
  45. 45. Simple EVMS Terms BCWS The planned of the work to be performed BCWP The “earned value” of the performed work ACWP The actual costs – in dollars – to complete the planned work BAC The budget to complete the project Cost and Schedule Variance SV Schedule Variance BCWP – BCWS CV Cost Variance BCWP – ACWP SPI Schedule Performance Index BCWP / BCWS CPI Cost Performance Index BCWP / ACWP EAC Estimate at Complete ACWP + (BAC – BCWP) TCPI To Complete Performance Index (BAC – BCWP) / (EAC – ACWP) ISAC Independent Schedule at Complete Schedule / SPI VAC Variance at Complete BAC – EAC Print this page and keep in your notebook. No one, not even the pros can remember these acronyms without a cheat sheet Formulas Of Earned Value Management 45
  46. 46. The Program Performance At Glance 46 Management Reserve Cost Variance Schedule Variance ACWP BCWP BCWS $ EAC: Estimate at Complete Time Now Completion Date PMB TAB: Total Allocated Budget BAC: Budget at Complete time The Performance Measurement Baseline (PMB) represents of the program “on baseline”
  47. 47. Components of the PMB Where EV Applies Note: MR is NOT part of the PMB 47
  48. 48. WBS and WBS Dictionary 48 ¨ The WBS decomposes the product and the processes that construct the process into a “well formed” tree. ¨ The terminal nodes of the WBS tree are where Work Packages are defined. ¨ Work Packages are were cost are collected and Earned Value Management measurement is performed.
  49. 49. The Work Breakdown Structure (1) 49 ¨ From MIL–HDBK–881A
  50. 50. The Work Breakdown Structure (2) 50 ¨ Relationships between Function and Product
  51. 51. The WBS Dictionary 51 ¨ The WBS Dictionary states what the WBS element produces when it is complete
  52. 52. 52 § Inattention to budgetary responsibilities. § Work authorization not always followed. § Budget and data reconciliation issues. § Lack of integrated management systems. § Baseline fluctuations and frequent replanning. § Current period and retroactive changes. § Improper use of management reserve. § Earned Value techniques not reflecting actual accomplishments. § Untimely and unrealistic Latest Revised Estimates (LRE). § Progress not monitored in a regular and consistent manner. § Lack of vertical and horizontal traceability (critical path). § Not capturing and using cost and schedule data for corrective action. § Lack of predictive variance analysis. § Lack of internal surveillance and controls. § Managerial actions not demonstrated using Earned Value. Failing to apply discipline and rigor can put you on the beach. So remember… A ship on the beach is a lighthouse to the sea. – Dutch Proverb
  53. 53. Are We Doing Earned Value? § Do we know the value of the planned work? § Have we bounded the period of performance for each work element? § Do we know how to measure Physical Percent Complete for each Work Package deliver? 53www.jack-nicholson.info
  54. 54. ¨ The Integrated Baseline Review work procedures. ¨ 5+1 Exit Criteria for the IBR. Monday: 16:00–16:5054 Lets make sure it’s done … Done
  55. 55. IBR Procedures 55 ¨ The Government Program Manager has the primary responsibility to conduct an IBR. ¨ The contractor has the primary responsibility to provide information, staff, and sufficient capabilities to successfully participate in the IBR? ¨ The IBR is an assessment of the contractors ability to continue to successfully manage the program.
  56. 56. 5 Areas of Concentration for the IBR 56 1. Work Definition–what work was contracted? 2. Schedules–when will the deliverables arrive? 3. Budget Validation–is there enough money? 4. Risk Identification–can risk be managed? 5. Earned Value Management Indicators–what measures of performance provide “actionable information to the decision makers?”
  57. 57. 1. Work Definition 57 ¨ The definition of work starts with the State of Work (SOW) and the supporting documents ¤ CDRLs ¤ DRDs ¨ The work definition is represented in the Work Breakdown Structure (WBS) ¤ The WBS is a logical decomposition of the products and the processes that support the development of the products
  58. 58. 2. Schedules 58 ¨ With the definition of the work, Work Packages produce the “deliverable” representing the products or services that produce the program's outcome. ¨ The Integrated Master Schedule (IMS) sequences the Work Packages and Planning Packages ¤ The relationships between these elements should be FINISH to START
  59. 59. 3. Budget Validation 59 ¨ With the awarded budget the Contract Budget Base (CBB) is the starting point for flowing down budget to Control Account Plans (Program Work Authorization Agreement (PWAA)) ¨ The PWAA’s contain the allocated budget for each Control Account ¤ Control Accounts contain Work Packages and Planning Packages ¨ The budget description of the PWAA’s includes labor, non labor, and Other Direct Costs (ODC)
  60. 60. 4. Risk Identification ¨ Does the schedule identify risk areas? ¨ What is the probability of occurrence? ¨ What is the impact of each risk on cost and schedule? ¨ What is the relationship between the risk elements? ¨ Is there sufficient cost and schedule margin for “normal variance?” ¨ Does each identified risk have a “handling” or “retirement” budget? 60 Technical Risks Programmatic Risks
  61. 61. 5. Earned Value Management Indicators 61 ¨ For each Work Package an Earned Value Management performance indicator must be defined ¤ Discrete. ¤ Apportioned. ¤ Level of Effort. ¤ Milestone accrual.
  62. 62. The 5+1 Questions from the IBR 62 1. Confirm SOW matches the Integrated Master Schedule. 2. Confirm the IMS is Credible. 3. Validate the allocation of funds. 4. Assess the technical integrity of the IMS. 5. Establish a dialog between the government and the contractor. 6. Can the program be executed successfully, given the available schedule, budget, and technical capabilities? The BIG Question That Must Be Answered
  63. 63. 1. Confirm SOW Matches The IMS 63
  64. 64. 2. Confirm IMS Is Credible 64
  65. 65. 3. Validate Allocation Of Funds 65
  66. 66. 4. Technical Assessment of EVM 66
  67. 67. 5. Establish A Dialog 67
  68. 68. 6. The Final Question? 68
  69. 69. Summary of the CAM Discussion Topics During the IBR ¨ What are the Technical Requirements? ¨ What Specifications are dependent on other work getting completed first? ¨ Which specs are the most complicated to complete and have the highest risks? ¨ How would you mitigate the risks? ¨ Which tasks may have too much time and resources allotted? ¨ Which tasks may have too little time and resources allotted? ¨ Why do you think so? ¨ What has been left out? ¨ What should/could be left out if necessary? 69 Technical Scope Assessment ¨ Do you determine schedules? ¨ Do you have budget Authorization authority? ¨ Do you approve your team’s timesheets? ¨ Can you assign/reassign personnel? ¨ Did you have input in to the Control Account Plans? Programmatic
  70. 70. We’ve taken a quick pass through your role as a CAM, the structure of the IBR, the elements that will be assessed during the IBR and a peek at the coming days. Any questions? Monday: Wrap Up70
  71. 71. TUESDAY 08:00–11:50 The government will be interviewing you about your Control Accounts and their deliverables. 71 Copyright © 2010, Niwot Ridge, LLC, Use of any or all of this material is prohibited without written permission
  72. 72. ¨ The CAM Notebook is the “Road Map” to successful delivery of the Control Account outcomes. ¨ Let’s look in some more detail about the contents of this “Book.” ¨ We’ll start with a group page turning exercise. Tuesday: 08:00–08:5072
  73. 73. The Control Account Manager (CAM) ¨ Responsibilities ¤ Manage the cost, schedule and technical performance of the Control Account. ¤ Provide data related to the Control Account. ¤ Review and approve all work assignments, documents and commitments involving the Control Account. ¨ Authority ¤ Approves the CA authorization documents ¤ Approves the CA budget notices ¤ Determines the work schedule and prioritizes the work for each Work Authorization ¤ Approves hours charged to the Work Authorizations ¤ Identifies potential technical, schedule, and cost risks and enters them to the Risk Register 73 ¨ Accountability ¤ Accountable to Program Manager for Control Account Performance. ¤ Completes the CA scope of work within the resources authorized. ¤ Achieves the technical performance goals for the defined scope of work. ¤ Achieves the technical quality ¤ Assures the reported Earned Value is based on Qualified Back Up data ¤ Mitigates technical, schedule, and cost risks
  74. 74. Manage Cost, Schedule and Technical Performance of the Control Account ¨ Establish and maintain Control Account budgets and schedules. ¨ Define the tasks and the sequencing of the schedule for optimizing the accomplishment of the work scope. ¨ Assure the scheduled activities for the Control Account have a realistic duration and performance logic. ¨ Maintain the applicable portions of the WBS Dictionary and approve the Control Account Authorization (CAA) and authorized changes to the CAA. ¨ Proactively manage the personnel performing the Control Account detailed scope of work. ¨ Identify, negotiate and implement required vertical and horizontal interfaces. ¨ Manage Customer Expectation Agreements (CEA) and Memorandums of Understanding (MOU) with other organizations and programs. ¨ Review and approve all resources charged to the Control Account and assure their accuracy. ¨ Monitor and assess Control Account and Work Directive performance. ¨ Prepare Control Account variance analyses. 74
  75. 75. Manage Cost, Schedule and Technical Performance of the Control Account ¨ Develop, implement and manage corrective actions, as appropriate. ¨ Maintain an awareness of Subcontract Data Requirement List (SDRL) items and other applicable contract deliverables. ¨ Prepare Estimates to Completion for remaining Control Account work scope. ¨ Provide forecast dates for accomplishing activities and milestones in the Control Account Schedule. ¨ Manage the integration and monitor the development of any critical technologies. ¨ Inform management of significant problems concerning Control Account performance. ¨ Identify potential technical and programmatic risks and make effective use of the risk management tool. ¨ Employ the baseline change control process for any revisions to the Control Account’s baseline scope, schedule or budget. Submit Budget Change Notices (BCN) as necessary. ¨ Proactively manage all subcontractor effort which affects Control Account performance. ¨ Lead or participate in Make / Buy decisions. ¨ Evaluate alternatives and develop facility utilization plans as appropriate. ¨ Maintain the CAM Notebook in a current and accurate manner. 75
  76. 76. Accountable to Program Manager for Control Account performance 76 ¨ Complete the Control Account scope of work within the schedule period authorized. ¨ Complete the Control Account scope of work within the resources authorized. ¨ Achieve the technical performance goals for the defined scope of work. ¨ Achieve the technical quality ¨ Assure the reported Earned Value performance is based on qualified back–up data (QBD). ¨ Mitigate all technical, schedule and cost risks associated with the Control Account.
  77. 77. Review and approve work assignment, documents and commitments of the CA 77 ¨ Approve the Control Account Authorization documents. ¨ Co–Approve the Make / Buy Plan for material used to perform the Control Account scope of work. ¨ Co–Approve Control Account Budget Change Notices and Requests. ¨ Authorize and coordinate work performed by functional departments on Work Directives within the Control Account. ¨ Determine the work schedule and prioritize work within each Work Directives issued for the Control Account. ¨ Approve hours charged to the Work Directives supporting the Control Account. ¨ Approve material and other direct costs charged to the Work Directives supporting the Control Account. ¨ Identify potential technical, schedule and cost risks and enter them into the Risk Management Process.
  78. 78. The CAM’s Notebook 78 ¨ The CAM Notebook is repository of the technical, cost, and schedule information for the work activities in the Control Account(s): ¤ A description of the work with clear statements of authorization from the customer thru the contractor organization to the CAM’s immediate manager then the CAM to expend resources to perform the tasks. ¤ A time phased plan to accomplish the work with a logical interconnect series of activities leading to work completion. ¤ A time phased budget indicating the amount and type of resources necessary to complete the work indicating both units of resources, e.g., hours and dollars. ¤ Performance results indicating technical progress, schedule status, and resources consumed over time to perform the tasks. ¤ An estimate of the completion date and total resources to be consumed at task completion.
  79. 79. ¨ Let’s open our books and become familiar with the contents to answer the initial questions about your CA/WP. Tuesday: 09:00–09:5079
  80. 80. Starting With The End In Mind? 80
  81. 81. TOC for the CAM Notebook ¨ Statement of Work (SOW) ¨ WBS Structure ¨ WBS Dictionary ¨ Responsibility Assignment Matrix (RAM) ¨ Control Account Plans (CAP) ¨ Earned Value Performance Reports ¨ Staffing Plan ¨ Common Process Flow ¨ Schedules ¤ Master ¤ Intermediate ¤ Detailed ¨ Status Reports ¨ Variance Reports ¨ Program Directives (PD) ¨ Quantifiable Backup Data (QBD) ¨ Subcontractor Data ¨ Formulas and Acronyms 81
  82. 82. Statement of Work 82
  83. 83. The Statement of Work (SOW) 83 ¨ Vertical Traceability ¤ The contract SOW describes the work to be performed and will be traceable to the WBS and the WBS Dictionary ¤ The SOW will be traceable directly to the IMP by coding or SOW paragraph reference number or be traceable indirectly to the IMP by using the WBS coding ¤ The Work Authorization Document work/task statement will be traceable to the SOW ¨ Completeness ¤ The entire SOW work description should be included in the IMP and is included in the WADs ¨ Within Scope ¤ All work described in the WADs should be included in the SOW
  84. 84. WBS Structure 84 ¨ The Work Breakdown Structure (WBS) and WBS Dictionary are critical documents which provide structure to program documentation and further technical detail concerning the contract work to be performed ¤ The contract WBS is the detailed product tree of the work to be performed to execute the contract SOW ¤ The contract WBS is an extension of the program WBS provided by the customer which in turn follows the guidance in MIL–STD– 881A ¤ The WBS dictionary is a description of the WBS elements and should be more detailed than the SOW ¨ The WBS number is included in the IMS, is traceable to the IMS activities and is included in Work Authorization Document (WAD), and the Control Account Plan (CAP)
  85. 85. Common Process Chart 85
  86. 86. Responsibility Assignment Matrix (RAM) 86
  87. 87. WBS Dictionary 87 ¨ The current Statement of Work (SOW) has the dictionary statements mapped to the Work Breakdown Structure (WBS). ¨ The SOW and WBS Dictionary will be interchangeable in this case.
  88. 88. Control Account Plan (CAP) aka Work Authorization Document (WAD) ¨ The CAP/ WAD is the official document from the program manager authorizing the CAM to plan and execute the work task. ¨ The following elements should be on the WAD: ¤ Contract number and name ¤ CAM name ¤ Control account number and title ¤ WBS element number with name ¤ IMS reference ¤ Description of Work/Scope of Work ¤ Control Account period of performance ¤ Budget in hours and/or dollars ¤ PM and CAM signatures and others per the command media ¤ Indication whether WAD is original or a revision with changes from last version indicated ; plus the detailed change history of the WAD ¨ Description of Work trace: ¤ The WAD Description of Work should be traceable to the SOW/SOO and the WBS Dictionary –it should not be “cut and paste” extract ¤ The Description of work should be more detailed and specific than the WBS Dictionary. ¤ Each Description of Work should be unique so that work between WADs can be differentiated ¤ Signatures –PM and CAM signatures should be evident and signed before period of performance begins 88
  89. 89. Earned Value Performance Reports 89 ¨ Compare the Budget at Completion to the control account budget in the CAP ¨ Examine the report for data causing reason for concern ¤ Cumulative budget (BCWS) greater than Budget at Completion (BAC) ¤ Cumulative earned value (BCWP) greater than BAC ¤ Cumulative actual costs (ACWP) greater that estimate at completion ¤ Negative current month and cumulative values ¤ Unusual and widely varying cost performance index (CPI), schedule performance index (SPI) and to–complete cost performance index (TCPI) ¤ Also look for significant differences between the CPI and the TCPI ¨ It is of particular concern if the following is noted ¤ BCWP and BCWS values with no actual costs recorded ¤ Conversely actual costs recorded with no BCWS and BCWP ¤ Inconsistency between cumulative dollar and % cost variance and variance at completion, e.g., cumulative CV of –18% and VAC of –2%
  90. 90. Schedules: Program Master Schedule 90 ¨ The Program Manager provides direction to the development, baselining, and updating of the Program Master Schedule. ¨ The program’s Master Scheduler coordinates with the Program Manager, Intermediate Management, Program Control, and Control Account Manager to establish/revise the Master Schedule.
  91. 91. Program Master Schedule 91
  92. 92. Program Master Schedule 92
  93. 93. Schedules: Integrated Master Schedule 93
  94. 94. System Reports 94
  95. 95. Variance Reports–Notional 95 Header information includes quantified cost and schedule variances and indicates out of tolerance items. Explanations may be required for monthly, cumulative, and at complete variances. Problem Analysis: This section is used to explain the variance drivers, abnormal conditions and factors creating variances, and other issues, problems, and concerns. Task/Project Impact: This section is used to explain the impact to the Control Account and overall Project. WBS: 1.1 Manager: Phillips Desc: House Building Project Charge #: (EAC - Actuals thru JAN-02 + ETC) TOTAL $$ BCWS BCWP ACWP SCHED-VAR % COST-VAR % Mon Hours 389 328 0 -61 -16 328 100 Cum Hours 389 328 0 -61 -16 328 100 Mon Dollars 38,269 33,149 32,400 -5,120 * -13 749 * 2 Cum Dollars 38,269 33,149 32,400 -5,120 * -13 749 * 2 BAC Hours 1,732 EAC: 1,404 VAC: 328 19 BAC Dollars 165,467 EAC: 165,569 VAC: -103 * 0 PROBLEM ANALYSIS: (* = requires explanation) The schedule variance is due to delays in completing the framing of the exterior walls. This delay is caused by both material shortages and availability of qualified resources. The cost variance is due to increased productivity in installing the patio. The concrete subcontractor developed a faster way of forming a pour the stairway. TASK/PROJECT IMPACT: Framing the exterior walls will be completed on schedule and no delay will occur to the project complete. CORRECTIVE ACTION PLAN: The current skill mix will be adjusted to complete this activity as scheduled. The ACME project management team is conducting a review of all future work to determine if resource availability will an issue. Preparer: Dept: Initials: Date: Approval: Dept: Initials: Date: Corrective Action Plan: This section provides the recovery and risk mitigation plan.
  96. 96. Program Directives (PD) 96 ¨ The Program Directive (PD) is the top authorizing document directing work and defining tasks, costs, and schedule under a contract. ¤ All contractual work is authorized and directed by an PD. ¤ No contract work may be performed or costs incurred in the performance of contract work without an PD. ¨ Program Directive is a formal program direction that provides authorization to implement defined action. ¨ Program Directives (PD) are “change orders” from the Program Manager (PM) to you the Control Account Manager (CAM) for changes in the program.
  97. 97. Quantifiable Backup Data (QBD)(1)† 97 ¨ QBD is a detailed listing of tasks necessary to complete all scope in a work package during the defined period of performance. ¨ It is an approach used to objectively measure performance ¤ Each task on the list is weighted–total weighting equals 100% of the work package BAC (weighting is important, should not be equal weighting on every task). ¤ Upon completion of QBD development the QBD is placed under configuration control. ¤ The CAM assesses physical percent complete of each QBD task. ¤ The percent complete is calculated from the cumulative assessments. ¨ The purpose of the QBD is to: ¤ Help ensure and demonstrate that all contract work is accounted for; ¤ Help ensure the schedule and budget are realistic and achievable; ¤ Help to mitigate schedule and budget risks; and, ¤ Provide a basis for objectively assessing progress for discretely measured work packages. † Deliverables Based Planning® Providing Actionable Information the to Program Manager, Glen B. Alleman and Ronald Powell, 11th Annual Rocky Mountain Project Management Symposium
  98. 98. Quantifiable Backup Data (QBD)(2)† 98 ¨ Most program CAMs build detail working schedules to manage the day to day work. ¨ The QBD list, when developed from the detail working schedule, readily correlates each QBD item with a specific IMS activity. ¤ QBD tasks may be one–to–one with the detail schedule activities, however, the QBD tasks may be further expanded if needed; ¤ Dollars are used to weight each QBD task. ¨ The QBD, when completed, is comprised of inch–step tasks that will support the development and completion of specific deliverable. † Deliverables Based Planning® Providing Actionable Information the to Program Manager, Glen B. Alleman and Ronald Powell, 11th Annual Rocky Mountain Project Management Symposium
  99. 99. Quantifiable Backup Data (QBD)(3)† 99 † Deliverables Based Planning® Providing Actionable Information the to Program Manager, Glen B. Alleman and Ronald Powell, 11th Annual Rocky Mountain Project Management Symposium QBD Task List Act 101 IMS 1001 $$ Act 102 IMS 1002 $$ Act 103 IMS 1002 $$ Act 104 IMS 1002 $$ Act 201 IMS 1003 $$ Act 202 IMS 1003 $$ Act 203 IMS 1004 $$ Act 204 IMS 1005 $$ Act 301 IMS 1006 $$ Act 302 IMS 1007 $$ Act 303 IMS 1008 $$ Act 304 IMS 1008 $$ Act 401 IMS 1009 $$ Act 402 IMS 1009 $$ Act 403 IMS 1009 SS Act 404 IMS 1010 SS
  100. 100. EV Status with QBD 100 ¨ The QBD list is the basis for calculating work package earned value. ¨ Project physical percent complete is derived from the earned value data! Task Task Earned Schedule Budgeted Percent Value UID QBD Task List Value Complete Percent 101 Task Title 1 100 100 3.3 102 Task Title 2 200 100 6.7 103 Task Title 3 150 100 5.0 104 Task Title 4 300 85 8.5 201 Task Title 5 100 75 2.5 202 Task Title 6 250 50 4.2 203 Task Title 7 225 25 1.9 204 Task Title 8 100 10 0.3 301 Task Title 9 100 5 0.2 302 Task Title 10 125 0 0.0 303 Task Title 11 350 0 0.0 304 Task Title 12 200 0 0.0 401 Task Title 13 100 0 0.0 402 Task Title 14 125 0 0.0 403 Task Title 15 250 0 0.0 404 Task Title 16 325 0 0.0 Totals $3,000 32.5% Earned Value Calculations Based on QBD
  101. 101. Subcontractor Support / Backup Data 101 ¨ Subcontracts are a high risk area when measures of physical percent complete are not visible to you as a CAM. ¨ The “subcontract” should state how progress to plan will be measured and physical percent complete reported. ¨ If the “subcontract” does not state this, as the CAM you need this measure of performance in some form to manage the Control Account.
  102. 102. Connecting the Dots 102 Our Dynetics
  103. 103. ¨ Open Discussion of the CAM Notebook. ¨ First “run through” of the CAM questions. Tuesday: 10:00–11:50103
  104. 104. TOC for the CAM Notebook - Discussion ¨ Statement of Work (SOW) ¨ WBS Structure ¨ WBS Dictionary ¨ Responsibility Assignment Matrix (RAM) ¨ Control Account Plans (CAP) ¨ Earned Value Performance Reports ¨ Staffing Plan ¨ Common Process Flow ¨ Schedules ¤ Master ¤ Intermediate ¤ Detailed ¨ Status Reports ¨ Variance Reports ¨ Program Directives (PD) ¨ Quantifiable Backup Data (QBD) ¨ Subcontractor Data ¨ Formulas and Acronyms 104
  105. 105. Statement of Work (SOW) 105 ¨ Does everyone have their SOW for the program? ¨ Have you marked up or highlighted the WBS elements you are accountable for.
  106. 106. WBS Structure and The Dictionary 106 ¨ Using your WBS do you have the WBS descriptions (they’re in the SOW)? ¨ Do you have the Work Package narratives?
  107. 107. Responsibility Assignment Matrix 107 ¨ Do you have the RAM in your CAM Notebook? ¨ Can you locate your name in that matrix? ¨ Do you have a list of staff within each Work Package that you’ve assigned to the work?
  108. 108. Control Account Plan (CAP) 108 ¨ Does your notebook contain the Control Account Plan with dollars and WBS elements? ¨ Can you point to each one in the Notebook and can you describe what these people are doing for each Work Package?
  109. 109. Earned Value Management 109 ¨ Do you have sufficient understanding of Earned Value Management to speak about your measurement processes for each Work Package? ¤ Performance Measurement Technique (PMT) for each Work Package is contained in the EV Engine and the IMS. ¨ Are you comfortable – YET – with the language and terms of Earned Value? ¤ The Program Controls staff will be at your side during the interviews and every month for the IPMR.
  110. 110. Staffing Plan 110 ¨ Do you know what your staffing needs are? ¨ Do you have a hiring plan for missing resources?
  111. 111. Common Process Flow 111 ¨ Can you point to the Common Process Flow diagram in this room? ¨ Do you have any interest to looking at this chart in any more detail? ¤ Say YES for now, then you’ll get a check in box. ¨ Are there any other process descriptions in your CAM Notebook? ¤ Say NO, since we’re still building the Work Instructions and the related EVM System Description.
  112. 112. Schedules 112 ¨ Do you have in your hands the IMS for your Control Account and the Work Packages? ¤ Say YES ¤ Look in the TAB for the IMS, you’ll a version. ¤ The current, but still evolving version of the IMS ¨ The IMS is grouped by you the CAM and then the Work Package.
  113. 113. ¨ Lunch Tuesday: 12:00–12:50113
  114. 114. ¨ Review (again) of the “tabs” in your CAM Notebook. ¨ First “pop quiz” on the contents of these “tabs.” Tuesday: 13:00–13:50114
  115. 115. ¨ Start the rehearsal process with a one-on- one walk (again) of the CAM Notebook. Tuesday: 15:00–15:50115
  116. 116. The Interview Process is Guided by DCMA and Past Experience 116 ¨ Organization Process ¨ Scheduling Process ¨ Work And Budget Authorization ¨ Management Analysis ¨ Material Management ¨ Subcontractor Management
  117. 117. What does the interview process look like in practice? 117 Foe Friend
  118. 118. ¨ Open Discussion of the CAM Notebook. ¨ Open Discussion of the Learning Objectives around the CAM Notebook – are we headed in the right direction for you the CAM? ¨ If not, what’s missing and how can we change direction? Tuesday: 16:00–16:50118
  119. 119. WEDNESDAY 08:00–11:50 The CAM Interview is the heart of the IBR for you the Control Account Manager 119 Copyright © 2010, Niwot Ridge, LLC, Use of any or all of this material is prohibited without written permission
  120. 120. ¨ CAM interview questions in more detail Wednesday: 08:00–08:50120
  121. 121. The CAM Interview Questions 121 1. Training 2. Organization 3. Work Authorization 4. Planning 5. Earned Value 6. Change Control 7. Analysis 8. Risk 9. Estimate at Complete 10. Subcontract Management 11. Material Management
  122. 122. Training 122 ¨ Training is the core of CAM success. This training must include the mechanics of the EVMS as well as the governance process applied to Control Accounts ¤ The starting point for all CAM training is the Earned Value Management System Description (EVM–SD) ¤ The Defense Acquisition University (DAU) ¤ National Defense Industrial Association (NDIA)
  123. 123. Organization 123 ¨ The work elements of the program ¨ The organization of the “performing organizations” ¨ Functional organization
  124. 124. Work Authorization 124 ¨ Maintain the proper sequence of Work Packages is critical to the credibility of the Earned Value Management data. ¨ Work preformed out of sequence either has not budget assigned for that period of performance or has budget assigned but no work be performed or some combination. ¨ In both cases the Earned Value number cannot represent the proper progress of the project.
  125. 125. Planning 125 ¨ Schedule the authorized work in a manner, which describes the sequence of work and identifies significant task interdependencies required to meet the requirements of the program. ¨ Identify physical products, milestones, technical performance goals, or other indicators that will be used to measure progress. ¨ Establish and maintain a time–phased budget baseline, at the Control Account level, against which program performance can be measured.
  126. 126. Earned Value 126 ¨ Record direct costs in a manner consistent with the budgets in a formal system controlled by the general books of account. ¨ Summarize direct costs from Control Accounts into the work breakdown structure without allocation of a single Control Account to two or more work breakdown structure elements. ¨ Record all indirect costs that will be allocated to the contract.
  127. 127. Change Control 127 ¨ Incorporate authorized changes in a timely manner, recording the effects of such changes in budgets and schedules. In the directed effort prior to negotiation of a change, base such revisions on the amount estimated and budgeted to the program organizations. ¨ Prevent revisions to the program budget except for authorized changes. ¨ Document changes to the performance measurement baseline.
  128. 128. Analysis 128 ¨ Generate the information at the Control Account and other levels as necessary for management control using actual cost data from, or reconcilable with, the accounting system. ¨ Identify the significant differences between both planned and actual schedule performance and planned and actual cost performance, and provide the reasons for the variances in the detail needed by program management.
  129. 129. Risk 129 ¨ DID 81650 calls out a Statistical Risk Analysis (SRA) for the Integrated Master Schedule (IMS). ¨ The risk management of the technical aspects of the program should be included in the IMS as well. ¨ Technical risk management is guided by the specific procurement agency, but DoD Risk Management is the starting document.
  130. 130. Estimate to Complete 130 ¨ The ETC starts with your performance to date. ¨ The assessment of remaining work needs to consider your past performance. ¨ The ETC is your opportunity to “restate” the work in the future.
  131. 131. Subcontract Management 131 ¨ Your subcontractors have performance reporting requirements as well. ¨ You can decide (at this point) how to measure their performance and when they are to report this reporting. ¨ As we proceed to maturity, we’ll start flowing down the reporting processes.
  132. 132. Material Management 132 ¨ The material receipt and recording of the Earned Value is a major impact on the Earned Value performance measurements. ¨ Like the subcontractors, the material performance reporting will improve in the next reporting cycle. ¨ For now, we’ll report physical percent complete when the material arrived “on dock.”
  133. 133. Being a CAM Means Being on a Team 133
  134. 134. ¨ Walk through each CAM Notebook one–on– one with the top level questions Wednesday: 09:00–09:50134
  135. 135. ¨ More group interview using the CAM questions Wednesday: 10:00–10:50135
  136. 136. ¨ More group interviews using the CAM questions Wednesday: 11:00–11:50136
  137. 137. Let’s Start the Interview Process 137 ¨ Using the question areas from yesterday and the details in the next slides ¤ Let’s use the Notebook to start the CAM Interview questions ¤ We’ll walk through each section of your CAM Notebook
  138. 138. 1. Training 138 ¨ When did you last receive PP&C or CAM training? ¨ What materials have you received in support of this training?
  139. 139. 2. Organization 139 ¨ Show your organizational chart and describe your responsibilities ¨ Where is your scope of work defined? ¨ Do you own or support any of the Events, Accomplishments, or Criteria in the IMP? ¨ What WBS elements are you responsible for? ¨ Show your responsibility Assignment Matrix (RAM) ¨ How many Control Accounts do you have and what are their total budgets?
  140. 140. 3. Work Authorization 140 ¨ What authorizes you to begin your work? Are the appropriate signatures present? ¨ Identify the key elements on the Work Authorization Document (WAD) ¨ Show how you can trace the key work elements on the latest approved WAD? ¨ Does the Control Account period of performance on the WAD match the start and end dates for the time phased resources in your Control Account Plan? ¨ Do the Control Account periods of performance match the schedule time spans in the IMS?
  141. 141. 4. Planning (1) 141 ¨ What key supporting documentation do you use to establish and plan your tasks? ¨ How do you time phase the budget for the tasks? ¨ Do you have any Level of Effort (LOE) ¨ What is the recommended ratio of LOE to discrete budget in a Control Account classified as discrete? ¨ In the current rolling wave, do you have any discrete Control Accounts with more LOE than allowed?
  142. 142. 4. Planning (2) 142 ¨ Are all your LOE Control Accounts detail planned through completion? ¨ Do you have the current approved version of the Integrated Master Schedule and know how your work packages and planning packages support the major program events and milestones? ¨ Is the task / milestone exit criteria clearly defined? Either separately documented or embedded in the task description.
  143. 143. 4. Planning (3) 143 ¨ For the current planning period, what is your total LOE versus Discrete in dollars and hours? ¨ Trace a task(s) from your IMS to your Control Account Plan (CAP) for both total and time phase resources ¨ Show an example that you have predecessors and successors identified within your organization or Integrated Product Team (IPT) and between other organizations or IPTs.
  144. 144. 4. Planning (4) 144 ¨ If you are responsible for any major subcontracts or intercompany work transfers, where is it reflected in your IMS? ¨ If you are responsible for any high value material, where is it reflected in your IMS? ¨ Are any of your tasks on the program or IPT critical path? ¨ Do you have any special requirements because you are on the critical path?
  145. 145. 4. Planning (5) 145 ¨ What are the most critical areas of your work effort? ¨ What is your schedule reserve? ¨ Do you have resources allocated for your float or schedule reserve? ¨ Do you status your IMS detail tasks weekly? ¨ Do you track late starts and late finishes? ¨ Validate that the month–end schedule progress for a Control Account taken in the IMS is consistent with the cost system.
  146. 146. 4. Planning (6) 146 ¨ Do you have approved, documented, discrete criteria for all percent complete work packages and or tasks that exceed 45 workdays in length? ¨ Do you have supplemental schedules? Do they support the IMS?
  147. 147. 5. Earned Value 147 ¨ What Earned Value techniques are approved for use on this program? ¨ How is Earned Value taken for your work? Task Level, Work Package Level? ¨ Is the Earned Value technique or method chosen appropriately for the specific task or work package? ¨ Do you have any apportioned effort?
  148. 148. 6. Change Control (1) 148 ¨ What is the process you must follow to make a change to your baseline budget? ¨ What is the process you must follow to make a change to your baseline schedule? Where is this documented? ¨ What was the last change to one of your Control Accounts? ¨ Were any changes performed in the last 60 days? ¨ Were all appropriate documents used to process the change?
  149. 149. 6. Change Control (2) 149 ¨ What is the difference between the classes of change defined in your change control management system? ¨ Were the changes performed in a timely manner? ¨ What is the acceptable use of management reserve? ¨ What would you do of your requests for additional resources were denied?
  150. 150. 6. Change Control (3) 150 ¨ Who initiates requests for opening and closing charge numbers? ¨ Is it permissible to make changes to the Budgeted Cost of Work Scheduled or Actual Cost of Work Performed?
  151. 151. 7. Analysis (1) 151 ¨ Show how you monitor who charges your Control Account ¨ How does Earned Value get into the cost accounting system? How do you verify what was submitted? ¨ How do you use weekly labor actual reports and organizational performance reports? ¨ What weekly and monthly meetings do you attend where your schedule and cost performance is discussed?
  152. 152. 7. Analysis (2) 152 ¨ Show your latest variance analysis report. Has it been reviewed and approved? ¨ Is the root cause of the variance drivers clearly and accurately identified? ¨ Has the impact to other Control Accounts or the program been identified? ¨ If recoverable, has a corrective action plan been identified? ¨ Does the schedule variance correlate with the schedule status?
  153. 153. 7. Analysis (3) 153 ¨ Who reviewed and approves the variance analysis reports? ¨ How do you use the organizations performance reports or their equivalents? ¨ Show and explain your CPI and SPI values that support your TCPI values? ¨ What drives your variances?
  154. 154. 8. Risk (1) 154 ¨ What is risk mitigation? ¨ Do you have adequate budget and facilities to complete your work? ¨ Is the risk high, medium, or low? ¨ Are there any cost, schedule, or technical risks in your Control Accounts? ¨ Have the risks been documented in the Risk Management Plan? ¨ Are you risk mitigation activities incorporated in the IMS?
  155. 155. 8. Risk (2) 155 ¨ What is the process for retiring or closing out a risk when the mitigation plan is successful? ¨ What is the process for retiring or closing out a risk when the mitigation plan is unsuccessful? ¨ Have resources been provided for the mitigation plans? ¨ Where critical skills exist, are you sufficiently staffed in these areas? Do you have succession planning for these critical areas?
  156. 156. 9. Estimate At Completion (1) 156 ¨ Describe the process you use to update your EAC and what documentation is used? ¨ How do you update your Estimate to Compete (ETC)? When was the ETC last updated? ¨ Show documentation of that update and rationale for the new ETC numbers. ¨ Who reviews and approves your ETC? ¨ Do the cost and schedule variances support the EAC?
  157. 157. 9. Estimate At Completion (2) 157 ¨ How often is a comprehensive EAC (CEAC) performed? ¨ If a CEAC was performed, show your memo with the ground rules from Program Control?
  158. 158. 10. Subcontract Management (1) 158 ¨ What scope is the subcontract responsible for? ¨ How does the subcontractor receive authorizations for scope, schedule, and resources from the prime? ¨ What reporting requirements have been levied on the subcontractors? ¨ Are the subcontractor’s schedules status weekly? ¨ How are the resources planned for the subcontractors (BCWS spreads for the subcontractor work packages)
  159. 159. 10. Subcontract Management (2) 159 ¨ Is the BCWS time phased with the baseline schedule plans? ¨ Can you trace the budget from the Work Authorization to the Control Account Plans, to the subcontractors? ¨ Can you trace the schedule from the subcontractor’s schedule to the Control Account Plan, to the IMS? ¨ How do you determine BCWP for each subcontractor?
  160. 160. 10. Subcontract Management (3) 160 ¨ What are the thresholds for generating a variance analysis report for the subcontractors? ¨ Is the subcontractor’s ETC consistent with the IMS forecast completion date? ¨ Is you subcontractor required to do a Comprehensive EAC (CEAC)? ¨ How often is this done? ¨ How is it incorporated? ¨ Does your subcontractor have a risk mitigation plan?
  161. 161. 11. Material Management (1) 161 ¨ Is the material high or low value, and how are these values determined? ¨ How do you plan your material? Is it listed by Bill of Materials or an equivalent? ¨ Is the high value material tracked in the cost system? ¨ What Earned Value techniques are used for the high value materials? ¨ Are material actual and Earned Value recorded on the same basis / time period?
  162. 162. 11. Material Management (2) 162 ¨ To what extent is the variance being driven by price and / or quantity?
  163. 163. ¨ Lunch Wednesday: 12:00–12:50163
  164. 164. WEDNESDAY 13:00–16:50 Rehearsing for the “real” CAM interview 164
  165. 165. ¨ Open issues with interview questions. Wednesday: 13:00–13:50165
  166. 166. Where Have We Come So Far? 166 ¨ We’ve looked at the CAM Notebook. ¨ We’ve gone through a couple of interview cycles. ¨ We’ve talked about EV, Risk, Work Package, the Performance Measurement Baseline and other activities of the Control Account Manager. ¨ But in the end we seem to always come back to Risk.
  167. 167. Risk Analysis, Mitigation, and Retirement Process Involves Everyone 167 EV Data EV Data Program Manager Functional Managers Work Package Managers Individuals/Team Members Identify Analyze § Review § Prioritize § Evaluate § Classify Track Plan § Approve plans § Recommend actions § Develop plans Control § Integrate across functions § Reprioritize § Authorize project resources Risks Top N risks Decisions Assign Responsibility Required Indicators Trends Risk Status Control § Integrate § Reprioritize § Authorize § Functional area resources EV Data 1 3 2 Top N risks
  168. 168. Let’s See If We Can Do A Risk Trace In The CAM Notebook? 168 ¨ We’ve got the Control Account and Work Package plans in the Notebook. ¨ Where can you point to show us the risks identified in the Risk Registry? ¨ Can you speak to those risks off the top of your head? ¨ How about some simple “handling” strategies for those risks?
  169. 169. ¨ Further “Deep Dive” into the CAM Notebook. ¨ More walking the book to ferret out questions and gaps in understanding. ¨ Is your CAM notebook starting show use? Wednesday: 14:00–14:50169
  170. 170. ¨ Any final open questions for today around that “darn” CAM Notebook ¨ Present certificates of accomplishment for your efforts. ¨ And no forgetting the CAM Notebook for tomorrow full dress rehearsal. Wednesday: 15:00–15:50170
  171. 171. ¨ Wrap up and prepare for tomorrow’s group interview exercise. ¨ What is going to happen, why this is an important processes, and who are the primary participants – you guessed it YOU. Wednesday: 16:00–16:50171
  172. 172. THURSDAY 08:00–11:50 CAMs get interviewed by a “tough” guy in a one-on-one. The Chorus helps their friends. 172 These Past 3 Days Need A Finale Copyright © 2010, Niwot Ridge, LLC, Use of any or all of this material is prohibited without written permission
  173. 173. ¨ Breakup into four groups and walk the CAM notebooks for open issues – one more time for affect. ¨ Review the interview questions in further detail. Thursday: 08:00–08:50173
  174. 174. ¨ Start with two CAMs for the Chorus interviews. (15 minute cycles) ¨ Rotate two more CAMs but use different interview questions. Thursday: 09:00–09:50174
  175. 175. ¨ Review each CAMs open questions for the final walkthrough. Thursday: 10:00–10:50175
  176. 176. ¨ Any final open questions. Thursday: 11:00–11:50176

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