The document discusses the necessity and structure of an effective Earned Value Management System (EVMS), emphasizing the importance of understanding project controls, EVMS, and Earned Value Analysis. It outlines the objectives, content, and processes of various assurance reviews including System Demonstration Reviews (SDR), Integrated Baseline Reviews (IBR), Surveillance Reviews (SR), and Annual Estimate at Completion Reviews (AEAC). The aim is to clarify misconceptions and ensure credible implementation and adherence to EVMS in project management.

1. An Introduction to an
Effective Earned
Value Management
System
By Scot Butcher & Martin Eveleigh
1

2. Webinar 3 of 3
The Assurance
Review Model:
2
Objective.
How to assure attainment of a credible
Earned Value Management System
and
How to Maintain its credibility through
time

3. Introductions
• Scot Butcher
• 30 years working in defence
acquisition and support
• Started out life as a mechanical
engineer but quickly moved to
management of projects
• Last 18 years have been spent in
project controls
• First experience of EVM was in
2003
• Experienced IBR participant and
chair
• Martin Eveleigh
• 40+ years working in the Defence
Sector both in the UK and USA
• Mechanical/Electrical Engineer,
but moved to
Programme Management in 1993
• Author of a US
DoD Validated Earned
Value Management System
Description (EVMSD)
• Holds an MSc in Programme &
Project Management
• Experienced in enabling and leading
IBRs
3

4. Why these webinars?
• There is clear confusion between Project Controls, Earned Value Management
and Earned Value Analysis.
• There is an acknowledged and widespread obsession with Earned Value metrics
and its analysis without a firm understanding of the system required to underpin
it.
• There is a false belief that if you are planning discrete activities, that you can/are
performing EVM
• Therefore, these webinars are aimed at dispelling myths and advising what it
takes to establish an appropriate, pragmatic Earned Value Management System
4SB

5. Content of the 3 webinars
1. Basics and myth busting:
• Incessant ‘false focus’ - the Earned Value Management ‘Iceberg’.
• The relationship between Project Controls (PC), Earned Value Management System (EVMS) and Earned Value
Analysis (EVA).
• The understanding and importance of the Performance Measurement Baseline (PMB).
2. What’s needed……..and importantly what’s not!:
• Explain the attributes of an effective EVMS with/without compliance to EIA748.
• Discuss were Earned Value Analysis is beneficial and where not!
3. Assurance reviews:
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)
5SB

6. Assurance Reviews and
how they fit together
6SB
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)

7. Project Controls/EVMS Reviews & Alignment
7
EVM System
Description
System
Demonstration
Review (SDR)
EVM System
Description
Validation
Integrated
Baseline Review
(IBR)
Surveillance
Review
Cause for Review
Annual EAC
Review
• Capability Assurance
• Specific Performance
• Improvement Needs
• Training Needs
• Independent Analysis
• Contractual Adherence
SB

8. System Demonstration
Review (SDR)
8ME
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)

9. Purpose of an SDR
• Initial Assurance Review, focussed on Capability
• Intended as being a one-off review, be site based, and uses a Pilot
Project
• Assures the creditability of Earned Value Management System (EVMS)
• Examines – People, Processes, Data and to an extent Tools
• Will require highly experienced personnel to lead and participate
• Leads to contractual compliance and associated Project & Programme
Integrated Baseline Reviews (IBR)
9ME

10. The SDR Focus
• Organisation
• Estimate Quality
• Scheduling
• Resourcing (Labour and Material)
• Budgeting & Authorisation
• Sub-contract management
• Cost accounting
• Managerial analysis
• Change Control & Change Management
• Risk
• Behavior/general - training, support, tools
10
System
Capability
Focus
ME

11. The SDR Process
PlanSDR
SDR Handbook
Team Composition
Roles &
Responsibilities
SDR Timetable
SDR Documentation
Areas of Focus
Interview identification
Assumptions
Domestics
SDRReview
SDR In-brief
PCSD In-brief
Process Review,
including data traces
Daily, interim Out-
briefs
SDR initial finding out-
brief
SDRReport
Final SDR report,
including CARs
CAR sponsors and CAR
action owners
identified
CAR closure tasks
agreed
SDRClosure
CAR closures agreed by
spo9nsors
SDR closure
communicated
11ME

12. Integrated Baseline
Review (IBR)
12SB
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)

13. Purpose of an IBR
To achieve and maintain a Project/Programme and customer understanding of the
Performance Measurement Baseline (PMB), it's inherent Risks, and the Management
Control Processes that will operate during contract execution
An IBR aims to confirm:
• The PMB incorporates the entire Scope
• That Work is scheduled to meet Objectives
• Risk are Identified and Managed
• That an appropriate mix of skills/experience are assigned to accomplish Requirements
• That suitable Management Control Processes are implemented, understood and
adhered to
Important: An IBR is NOT a pass/fail event – it is aimed at Assuring that a Baseline is robust
and that the Project Control System is enabled, adhered to and controlled.
13SB

14. When to Conduct an IBR
• It is usual to conduct an IBR only once, however it can be enacted multiple
times depending on circumstances:
• Contract Phasing
• Replanning or Rebaselining
• Significant Performance deterioration
• Scope Change
• In either case an IBR should be scheduled to be conducted after 3-6
reporting cycles from initially starting/restarting, but….
• …NEVER after more than circa 10% of the total duration.
• Evidence demonstrates that performance will have ‘normalised’ by the 10%-20%
point and little can be done to fundamentally improve performance.
14SB

15. The IBR Focus……..look familiar?
15
• Organisation
• Estimate Quality
• Scheduling
• Resourcing (Labour and Material)
• Budgeting & Authorisation
• Sub-contract management
• Cost accounting
• Managerial analysis
• Change Control & Change Management
• Risk
• Behavior/general - training, support, tools
SB
Specific
Project
Focus

16. The IBR Process
Pre-IBR
IBR Preliminary Plan
IBR Terms of Reference
PlanIBR
IBR Handbook
IBR Team Composition
Roles & Responsibilities
IBR Timetable
Review Documentation
Areas for particular
focus
Assumptions
Domestics
DataTrace
Initial issues, risks
Data analysis
Clarification points
Understanding of
process/system
IBRReview
Daily out-briefs
Issues – major, minor &
observations
CAM reports/discussion
summaries
Out-brief
IBRReport
Identification of
corrective actions
(major and minor)
May include post-IBR
visits to confirm closure
of corrective actions
16SB

17. Surveillance Reviews
17SB
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)

18. Purpose of a Surveillance Review
• Keeping the ‘Pedal to the Metal’
• Planned annually and performed monthly.
• Is 'Risk Based'
• Allows for continuous review of all aspects of a Project Control System and Key Role Players
• Assures continual compliance to the PCS
• Provides for acceptance and sentencing of necessary Corrective Actions
• Highlights errors/issues with the reported Performance data
• Points to improvement needs - PCS and/or Training
• Mitigation reasons for a possible Review for Cause (RfC)!
18SB

19. When to conduct a Surveillance Review
• Immediately a contract has been
let and work has begun.
• Comprises of monthly short
duration reviews with specific topic
focus
• i.e. Scheduling, Change Control, Risk
Management, Supplier Management, Cost
Management etc...
• Instigated annually through contract
completion
19
Continuous
System/
Project
Focus
SB

20. The Surveillance Review Process
Planning
Capture scope of
project(s) to be reviewed
Conduct risk Based review
to highlight topics to be
investigated
Agree plan with
stakeholders
Review
Prepare and issue review
expectations and question
sets
Arrange venue and
participants
Conduct review
Actions
Capture and discuss
actions and
recommendations
Identify sponsors and
owners
Identify need for a
‘Review for Cause’
Formally agree closure
requirements
Closure
Perform and agree root
cause analysis of
actions/recommendations
raised
Implement
Formally agree closure
20SB

21. Annual Estimate at
Completion Review
21ME
• System Demonstration Review (SDR)
• Integrated Baseline Review (IBR)
• Surveillance Review (SR)
• Annual Estimate at Completion Review (AEAC)

22. Purpose of an Annual EAC Review
• To independently and objectively review a Project/Programme
in terms of……to see the wood for the trees:
• Performance to-date
• Risks
• Lessons Learned
• Programmatic & Technical Content
• Concur or reset the Estimate to and at Completion
• Management Reserve 'burn-down' and regeneration
• Provide Corrective Action advice, and if needed on Replanning or Rebaselining
22ME

23. When to conduct an Annual EAC Review
• Usually this type review is aimed at being held annually, however
depending on circumstances, can be quarterly or 6 monthly.
• Circumstances that lean toward an increase in frequency include:
• High Risk issues
• Excessive Stakeholder focus
• Team turnover / SQEP maturity
• Reported Cost & Schedule Performance issues
• Management Reserve depletion issues
Note: whilst similar in nature to an IBR, an Annual EAC Review is intended to
be a deep dive and look at history and well as future effort in order to
provide a balanced view of reported performance and future outcome
likelihood
23ME

24. The Annual EAC Review Process
Planning
Assign lead and reviewers
Agree scope of project(s0 to
be reviewed
Align customer and
contractor PoCs
Pre-evaluate:
- Performance
- Risk & Opps
- ETC & BAC
- Dependencies
- Potential change requests
Review
Prioritise based on risk
Adjudge budget and
forecast reality
Decide if re-baseline or re-
plan is required
Agree immediate and
potential BCRs
Update R&O register and
MR burn-down
Agree target EAC & BAC
Agree implementation
dates
Actions
Implement BCRs
Update IMS & PMB
Agree with sponsor that
targeted performance has
been agreed
Publish revised iMS, PMB,
EAC, ETC, BAC, R&O register
and MR burn-down
Closure
Formally agree closure
Set date for next review
24ME

25. Thank you for
joining us for
the webinars.
Questions?
25