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CONTROL ACCOUNT
MANAGER
SHORT COURSE
6/18/12 – Short Overview of being a CAM
1
Learning Objectives for this course
Surviving the first 60 days of being a CAM
LO: 1 What is your role as a Control Account Manager?
LO: 2 What are you accountable for as the CAM?
LO: 3 What is in your CAM Notebook and how do you use this
information on a weekly basis?
LO: 4 What role does Earned Value play in your weekly
management activities?
LO: 5 Where are the sources of information you need to manage
your Control Accounts?
LO: 6 What are your weekly and monthly business rhythms?
LO: 7 A quick look at Risk Management
LO: 8 What’s beyond this Short Course - toward Validation interviews
2
Skills needed to survive the 1st 60 days as a Control
Account Manager (CAM)
¨ What does it mean to be a CAM?
¨ As a CAM, what are you accountable for?
¨ Concept of Earned Value Management?
¨ What are your weekly management activities?
¨ What is your role in getting the CPR out the door?
The Control Account Manager says its name –
the Manager of Control Accounts.
But what does that really mean? It means you’re
accountable for the performance of the work
contained in the Control Account.
You’re the go to person from delivering the
outcomes from that work.
You are the Manager of the Control Account.
What is your role as a CAM?
LO: 1
4
Control Account Manager has …
Responsibility to …
¨ Manage the cost,
schedule, and technical
performance of the
Control Account work
activities.
¨ Provide performance
and forecasting data
related to the Control
Account.
¨ Review and approve
all work assignments,
documents, and
commitments involving
the Control Account
work activities.
Authority to …
¨ Approve the Control
Account authorization
documents
¨ Approve the Control
Account budget notices
¨ Determine the work
schedule and
prioritizes the work for
each Work
Authorization
¨ Approve hours charged
to the Work
Authorizations
¨ Identify potential
technical, schedule, and
cost risks and enters
them to the Risk
Register
Accountability …
¨ To Program Manager
for Control Account
Performance.
¨ For complete the
Control Account scope
of work within the
resources authorized.
¨ For achieving the
technical performance
goals for the defined
scope of work.
¨ For achieving
technical quality
¨ For assuring the
reported Earned
Value is based on
Quantifiable Backup
Data (QBD)
¨ For mitigating
technical, schedule,
and cost risks
LO: 1
5
6
As a CAM, you are in charge of the outcomes
from the Control Account work efforts.
You’ll need lots of support from others, functional teams,
subcontractors, other CAMs, internal and external resources.
But in the end, you are accountable for the success of the
Control Account
LO: 1
If you’re the Control Account Manager of your
Control Account, what is it that you’re actually a
manager of?
The Control Account of course.
But what does that mean?
The Control Account
LO: 1
7
Program Performance
Management Team
Program Organization
8
LO: 1
A Control Account and its children?
LO: 1
9
Where your Control Account lives
10
LO: 1
The Control Account is the …
11
¨ Intersection of WBS and OBS
¤ WBS element – The deliverables
¤ Control Account Manager (CAM) – accountable for those
deliverables
¨ Key control point for …
¤ Schedule, time-phased budget – BCWS
¤ Actual cost accumulation – ACWP (in this case actuals are at
the Work Package Level
¤ Earned value determination – BCWP
¤ Variance analysis (cost& schedule) – for submission in the
CPR
¤ Corrective action – to get the CA back to GREEN
¤ Estimate At Completion (EAC) – for the remaining work
LO: 1
Where Control Accounts Come From
12
Work Breakdown Structure (WBS)
OrganizationBreakdownStructure(OBS)
1 2 3 4 5 6 7 8
ABCDEF
Control Account
LO: 1
Where scope,
schedule, and
cost are planned
and managed
Where CA Budgets Come From
13
Summary Planning Packages
Management
Reserve
Undistributed Budget
Work Packages
LO: 1
3 Baselines in your Control Account
14
Cost
Baseline
Schedule
Baseline
Technical
Baseline
Perform
Functional
Analysis
Determine
Scope and
Approach
Develop
Technical
Logic
Develop
Technical
Baseline
Develop
WBS
Define
Activities
Estimate
Time
Durations
Sequence
Activities
Finalize
Schedule
Identify
Apportioned
Milestones
Determine
Resource
Requirement
Prepare
Cost
Estimate
Resource
Load
Schedule
Finalize
Apportioned
Milestones
Determine
Funding
Constraints
Approve
PMB
LO: 3
Work Package Types
15
¨ Discrete – the work performed produces tangible
outcomes through the consumption of hours and dollars
¨ Apportioned Effort – the work performed is in
proportion to the work somewhere else. You probably
don’t have any of these.
¨ Level of Effort – the work performed is from the
passage of time. Surveillance, oversight, watching
things.
¨ Planning – work is not defined in detail, but budget is
assigned. You don’t have nay of these, maybe in the
next CLINs.
LO: 1
What’s a CLIN?
16
¨ Contract Line Item Number
¨ A check book with money, a Statement Of Work,
and the list of deliverables.
¨ There are 2 CLINs
¤ CLIN1 – Ebola
¤ CLIN5 – Marburg
¨ Each CLIN (1 and 5) have a Statement of Work,
which you should have and also have read in detail
to know what you are accountable for.
LO: 1
Work Package
17
¨ The Work Package says its name it is a Package of
Work.
¨ Tasks (activities) in the Work Package produce a
single outcome from this package of work.
¨ The Work Package has a finite duration, weeks to
maybe a few months.
¨ Performance is recorded at the Work Package level
for Earned Value, but measurement is taken at the
activity level.
LO: 1
As a CAM your primary accountability is for the
outcomes of your Control Account.
Within the Control Account, there are several
items that come along with those outcomes.
The Program Controls elements of the Control
Account are also in your area of accountability.
What are you accountable for?
LO: 2
18
Connecting all the Dots
19
Risk
SOW
Cost
WBS
IMP/IMS
TPM
PMB
Named Deliverables
defined in the WBS.
Budgets for the work at
the Work Package.
Performance attached to
each critical deliverable in
the WBS and identified in
each Work Package in the
IMS.
The Products and Processes
that produce the
deliverables in a “well
structured” decomposition
in the WBS.
IMS containing the
Work, Budget, Risk
mitigation plans,
define in the
Integrated Master
Schedule to
measure maturity.
Technical and Programmatic
Risks Connected to the WBS.
LO: 2
Core Elements of your Control Account
20
Work Break Down Structure
Schedule the Work
Budget Spreads (BCWS)
MR
Performance
M
easurement
Baseline
Contract Budget Base (CBB)§SOW
§WBS
§OBS
§RAM
§IMS
§WAD
§CAP
§WP
§PP
+
LO: 2
Connecting the Dots starts with the
Control Account Plan (CAP)
21
Program Work Authorization Directive (WAD)
LO: 2
Control Account
The intersection of the WBS and OBS
Connecting more Dots between work,
organization, and performance measurement
22
WBS
OBS
BCWS 30 25 50 10 30
BCWP 30 22
ACWP 26 27
BCWS 30 25 50 10 30
BCWP 30 22
ACWP 26 27
Incremental Cumulative
LO: 2
Building the Performance Measurement
Baseline (PMB) from Cost and Schedule
23
Integrated Master Schedule
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
Cost and Materiel Baseline
Quarter Quarter Quarter Quarter Quarter
§ CAP contains Budget, Hours, Staff, deliverables,
spread by month, quarter.
§ PMB contains Work Packages, BCWS, EV methods,
sequenced in the proper order.
The integration of the IMS and the Cost Baseline is 2
of the 3 elements of the PMB. The cost spreads by
quarter currently in place are spread to the Work
Packages in the IMS and the BCWS baselined for
performance measurement
SOW Sub #
SOW Sub # SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
LO: 2
When we come back, we’ll open your CAM notebook and
use it for the source of questions and training.
Let’s Take a 5 Minute BreakDay 1
The CAM Notebook contains all the information
needed to manage the Control Account, or has
references to the location of this information.
The CAM makes use of this information on a
weekly basis, for the monthly reporting, and for
the knowing where the Control Account are at all
times.
In the CAMing business surprises are usually
unpleasant surprises.
What is in your CAM Notebook?
LO: 3
25
NOT THAT NOTEBOOK
the
Control Account Manager
Notebook
ü A notebook containing
all the information you
need to manage your
Control Accounts
ü Much of the information
is electronic, but you
should have hardcopies
with you as well.
ü The DCMA and
customer expects you to
know this information.26
LO: 3
Your CAM Notebook is
the starting point for all
the items you’re
accountable for.
Keep it with you at all times
LO: 3
27
The CAM Notebook
28
¨ The repository for technical, cost, and schedule information
to manage the work activities of the Control Account(s):
¤ A description of the work (WBS), with clear statements of
authorization (WAD) from the customer thru the contractor
organization to the CAM’s immediate manager then the CAM to
expend resources to perform the tasks.
¤ A detailed time phased plan (IMS) to accomplish the work with a
logical interconnect series of activities leading to work
completion.
¤ A detailed time phased budget (PMB) indicating the amount and
type of resources necessary to complete the work indicating both
units of resources, e.g., hours and dollars.
¤ Performance results (EV) indicating technical progress, schedule
status, and resources consumed over time to perform the tasks.
¤ An estimate of the completion (EAC) date and total resources to
be consumed at task completion.
LO: 3
Why should you care about this?
29
¨ The CAM Notebook gives a clear picture of whether the
control account’s technical scope, schedule , risk and
resources are integrated –play together –make sense.
¨ The CAM Notebook, when understood by the CAM,
brings both parties to a clear mutual understanding of
all aspects of the task.
¨ The CAM Notebook ensures a foundation of information
for continuity if the CAM reassigned or not available
for some reason
¨ The CAM Notebook documents what is going on and
enables a third party to be convinced that all aspects
of the task are being considered and harmonized and
reasonably managed now and with an eye on the
future.
Your CAM Notebook Contains …
1. Formulas and Acronyms
2. Common Process Chart
3. Work Breakdown
Structure (WBS)
4. Responsibility Assignment
Matrix (RAM)
5. Statement of Work
(SOW)
6. WBS Dictionary
7. Basis of Estimate (BOE)
8. Control Account Plans
(CAP)
9. Earned Value
Performance Reports
10. Schedules
¤ Master
¤ Intermediate
¤ Detailed
11. Staffing Plan
12. System Reports
13. Variance Reports
14. Program Directives (PD)
15. Quantifiable Backup
Data (QBD)
16. Subcontractor Data
30
LO: 3
Key Document Relationships
31
Statement of Work (SOW)
32
¨ Vertical Traceability
¤ The contract SOW describes the work to be performed and
traceable to the WBS and 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 (WAD) for work activities
traceable to the SOW.
¨ Completeness
¤ The entire SOW work description should be included in the
Master Plan and the WADs.
¨ Within Scope
¤ All work described in the WADs should be included in the
SOW.
WBS Dictionary
33
¨ 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 traceable to the IMS activities and is
included in Work Authorization Document (WAD), and the
Control Account Plan (CAP).
Work Authorization Document (WAD)
¨ The official document from the
program manager authorizing
the CAM to plan and execute the
work task. It should be signed by
the program manager, the CAM
and usually the business
manager.
¨ The following elements are in the
WAD:
¤ 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
¨ 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
34
Control Account Plan (CAP)
35
¨ The Control Account Plan (CAP) lays out the work packages
and planning packages with time phased resources
necessary to accomplish all the work in the WAD Description
of Work
¤ The resource category, e.g., labor, material, subcontract, should
be indicated
¤ The earned value technique, e.g., percent complete, LOE, should
be stated.
¤ Planning Packages should be properly coded and resources time
phased.
¨ The CAP contents are traced to other CAM Notebook
contents
¤ Total budget agrees with WAD
¤ Start date of earliest work package and end date of latest work
package/planning package agrees with the WAD and IMS.
Basis of Estimate (BOE)
36
¨ Basis of Estimate (BOE) provides detailed estimating
methodology for the Control Account Plan budgeted value
and/or the last Comprehensive Estimate At Completion
(CEAC)
¤ The BOE is time phased in hours and dollars if labor, and dollars
if non-labor.
¤ Month to month wide variations in resources estimated should be
explained and should be supported by similarly varying IMS
activities.
¤ Hours converted to equivalent person months using the accounting
calendar to determine the number of staff charging to provide
an accurate staffing profile
¤ Period of performance agrees with the CAP
¤ Detailed cost justification and estimates sum to totals presented
for the Control Account.
IMS Review
37
¨ Logical connectivity
¤ Critical Path : Start to Finish
¤ Predecessor and Successor relationship
¤ Horizontal and Vertical Traceability
¨ Schedule Transparency
¤ Visibility and Accuracy
¤ Schedule Effectiveness
¨ Schedule Maintenance Process
¨ Resourced Schedule
¤ Traceable to control accounts
¨ Integration between Prime and Major Subs
¤ Integration of interfaces tied points
¤ Scheduling tools compatibility
¨ Integration between IMS and Supplemental Schedule
Performance Report
38
¨ Compare the Budget at Completion to the control account budget in
the WAD and CAP
¨ Examine the report for data causing reason for concern and/or not
logical
¤ 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%
Risk Management
39
¨ Examine risk and opportunity documentation
¤ Identify control account risks tracked at program level.
¤ Identify other risks CAM tracked at the control account
level.
¤ Locate and evaluate
retirement plans.
¤ Look for inclusion for risk
related schedule activities
and budgeted work
packages.
ANSI-748-B is applicable to all FAR/DFARS
programs greater than $20M and requires a
validated Earned Value Management System for
programs greater than $50M.
This program is greater than $50M, so Earned
Value Management and the use of the Earned
Value Management System is mandatory.
Earned Value Management
LO: 4
40
What is Earned Value Management?
41
ü Measures actual progress to
plan using units meaningful
to the decision makers.
ü Provides visibility to
physical percent complete
on fine grained boundaries.
ü Provides visibility to future
performance given past
performance and risk
adjusted forecasting.
LO: 4
The Foundation of Earned Value
LO: 4
42
Past Present Future
What is the “to go” plan?
How is it resourced?
When will we finish?
What will it cost in the end?
How can we control the trend?
How do we adjust for risk?
The Core Purpose of EVM
LO: 4
43
Are we on schedule?
Are we on cost?
What are the significant variances?
What is the trend to date?
What risk have been reduced or
added?
44
Measures Past Present Future Measures
What does SV and SPI
say?
Are we on schedule?
What is the "to go"
plan?
TCPI?
Critical path analysis
What does CV and
CPI say?
Are we on cost? When will we finish?
Probabilistic schedule
analysis
Over threshold?
What are the
significant variances?
How is it resourced? BCWS spreads
What does TCPI say?
What is the trend to
date?
What will it cost when
we are done?
BCWS probabilistic
model
Trace probabilistic
programmatic and
technical risks to IMS
activities
What risk have been
reduced or added?
How can we control the
trends?
Physical percent
complete measures of
progress
How do we adjust for
risk?
Integration on Risk
Register in the IMS
What Does Earned Value Tell Us?
Know where you are in
terms of accomplishment
as well as how much
you’ve spent
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?
LO: 4
45
The Alphabet 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.
LO: 4
46
The S-Curve of Earned Value
47
LO: 4
48
Project
Execution
Project
Planning
Actual
Schedule
Status Update
Actual
Costs
GL, Time
Planned
Schedule
IMS
Planned
Costs
BCWS
Monitor &
Control
EVM Reporting
Program Status
Analyze
Managerial
Analysis
Performance
Financial
Analysis
Trend & Variance
ANSI–748-B 32 Guidelines
49
LO: 4
EVM is Performance Management†
50
Performance
Management
ANSI–748–B Framework
§ Establish Product
Requirements
§ Measure progress toward
deliverables
§ Use 0/100 or apportioned
milestones
§ Never use ACWP=BCWP
as progress measure
§ Integrate requirements
and quality with plan
§ Integrate risk
management with plan
§ Establish probabilistic cost
and schedule estimates
† from Performance Based Earned Value, Paul Solomon, IEEE Computer Society, John Wiley & Sons, November 2006
LO: 4
Next comes the collection of data and its use in your
weekly business rhythm. Where is this data, how can you
get it, and when you get it, what can you do with it?
Let’s Take a 5 Minute BreakDay 1
Where do you get the information you need to
manage your Control Account and its Work
Packages?
The first source – the document of record – the
Performance Measurement Baseline (PMB) held
in the Earned Value Engine – Safran Project and
Proteous.
Other sources are in a variety of databases and
file cabinets.
Sources of Information You’ll Need
LO: 5
52
Information for your CAM Notebook
53
¨ Safran and Proteus hold the Document of Record
for all Control Account cost and schedule
information.
¤ BOE, CAP, WAD, EV Reports, Schedules, CPRs,
performance to date, and Variance Reports.
¨ WBS Dictionary is maintained by Program Planning
and Controls.
¨ SOW and other contract documents available from
Program Management Office (PMO).
¨ Quantifiable Backup Data developed through your
own development and use of Work Packages.
The Control Account Manager is accountable for
the performance of the work in the Control
Account.
The cost, schedule, and technical performance
are assessed weekly and reported monthly to
the customer.
Business Rhythm
LO: 6
54
Three Core Elements of the PMB
55
¨ Evaluation of the
performance
measurement baseline:
¤ Scope, schedule, and
resources.
¤ Identification of inherent
risk during execution.
¨ Is a joint assessment of
the PMB.
¨ Documented results and
startup of the
“Integrated Baseline
Management” processes.
Technical Baseline
ScheduleBaseline
CostBaseline
Integrated
Baseline
using the
PMB
LO: 6
Dependencies between measures
56
LO: 6
Flow of Data in the EVMS
57
LO: 6
Weekly reporting of progress to plan is the primary responsibility of the CAM, along
with managing the corrective actions needed from that reporting to keep the Control
Account GREEN.
Managing your Control Account is all about taking corrective actions as early as
possible.
Monthly Business Rhythm58
LO: 6
Success is about managing variances
59
¨ Budget
¨ Schedule
¨ Technical performance
¨ Resource conflicts
¨ Subcontractors
¨ All these, and more, are in the CAM role, with
support and help from the PM and Functional
Manager
LO: 6
Monthly Business Rhythm
60
LO: 6
Let’s Start with the End in Mind
Successful Program Management Means…
¾ No surprises in cost and schedule
for Work Packages open and
under way.
¾ Forecasts of future cost and
schedule have a credible
confidence level matched by the
actual cost and schedule
performance.
¾ All cost and schedule values are
risk adjusted.
¾ Measures of Physical Percent Complete used for all deliverables.
¾ Updates to Physical Percent Complete, cost and schedule impacts
done every Thursday for the life of the program
LO: 6
Each week all the CAMs come together to compare their progress to
plan, determine any dependencies, report risks and their handling,
and confirm that the deliverables they are accountable for will arrive
on or around the planned dates.
Plan of the Week62
All Programs Are
Lost
One
Week At A Time
LO: 6
The Plan of the Week (PoW)
64
¨ The Plan of the Week (PoW) is the framework for planning the
work and working the plan.
¨ The PoW is derived from the Integrated Master Schedule (IMS).
¨ Coming due items for the 30/60/90 look head (moving window)
are extracted from the IMS for each CAM to discuss. These
include the planned starts and planned finished during the
period.
¨ This report is produced on the Thursday prior to the weekly
Program Review.
¨ Each CAM discusses those coming due items and speaks to the
confidence that they will completed on or before the due date –
either started or finished.
¨ With this information, the CAMs can then have a conversation
among themselves of the commitments needed for the
interdependencies between their planned work.
LO: 6
65
Extracting Coming Due from the IMS
CAM Planned Start Planned Finish Dependency
CAM #
1
What should start
this period?
What should finish
this period?
Who am I
dependent on?
CAM #
2
… … …
… … … …
LO: 6
66
The Script for the one hour status review meeting
¾ The status review script is like a
story script.
¾ It tells the participants what
their role is in this story.
¾ There can be improv, but you
have to follow to the story line
or the reader gets confused.
What’s our story line?
¾ What work must start in the next period to stay on schedule?
¾ What work must finish in the next period to stay on
schedule?
¾ What is the cost for this work that keeps us in budget?
¾ How do we know the produced outcomes meet the needed
results?
LO: 6
67
The First 15 Minutes
¾ The previous Thursday, after the IMS status by PP&C, the Plan
of the Week extract will be forwarded to the CAMs.
¾ The HFV Program Manager reviews the collective coming due
data and provides a summary of the high points, major risks,
and discussion topics for the remainder of the meeting.
¾ During the first 15 minutes of the PoW meeting the PM will
report the activities scheduled for the coming weeks that
require senior management action.
¾ If there are items planned for the week that are not on the
coming due list, they will be noted and added AFTER the first
15 minute phase of the meeting.
LO: 6
68
The Second 15 Minutes
¾ After the PoW items have been reviewed by the PM, the
CAMs confirm they have all the information they need for the
next 3 weeks.
¾ And any additions, changes, or deletes made, we can move to
“new business,” which will include items that:
• Did not complete when promised and are therefore late
• Have been rescheduled for the coming period and are therefore late to
plan
• Have been moved to future date through a change control approval
process
• Have not started as planned and are therefore candidates for being
late
¾ Items not completed as promised will be called out for
corrective action.
LO: 6
69
Last 30 Minutes
¾ Each CAM will walk through the coming due items and
confirm that the dependencies required for success for their
deliverables or completion items are in place.
• Planned to start in the next 3 weeks
• Planned to finish in the next 3 weeks
¾ External dependencies are confirmed and agreed to
• Each CAM will confirm with other CAMs owning that external
dependency that the required items will be available when needed.
• If not, then the supplying CAM must state when that item will be
available.
¾ Wrap up concurrence between the CAMs
• All CAMs and the PM concur that the planned start and planned finish
items will take place on or before the planned date.
LO: 6
Progress to Plan reporting is guided by
DI–MGMT–81466A70
¨ The CPR consists of five formats
¤ Format 1 – Work Breakdown Structure
¤ Format 2 – Organizational Categories
¤ Format 3 – Baseline
¤ Format 4 – Staffing
¤ Format 5 – Explanations & Problem Analyses
¨ Uses of CPR Data
¤ Integrated Cost & Schedule EVM Data
¤ Identify the cost and schedule impact of actual and potential problems
¤ Provide valid, timely program status info for higher management
¨ The CPR provides timely, reliable summary–level data with
which to access current and projected contract performance.
LO: 6
The Earned Value Relationships – Focus on
Percent Complete
71
LO: 6
§ Lack of predictive
variance analysis.
§ Untimely and unrealistic
Latest Revised Estimates
(LRE).
§ Progress not monitored
in a regular and
consistent manner.
§ Lack of vertical and
horizontal traceability
cost and schedule data
for corrective action.
§ Lack of internal
surveillance and controls.
§ Managerial actions not
demonstrated using
Earned Value.
§ Inattention to budgetary
responsibilities.
§ Work authorizations that
are not always followed.
§ Issues with Budget and
Data reconciliation.
§ Lack of an Integrated
Management System.
§ Baseline fluctuations and
frequent replanning.
§ Current period and
retroactive changes.
§ Improper use of
Management Reserve.
§ EV techniques that do
not reflect actual
performance.
The Program Train Wreck Starts When There is…
72
Mary K. Evans Picture Library
73
Unpleasant Surprises
You’re over budget
You’re behind schedule
The stuff you’re building doesn’t work
This can be true, but you can’t be surprised
LO: 6
74
Day1
END
With the data, the business rhythm, and the knowledge of
the status of your Control Accounts, you can start
performing the role of a Control Account Manager.
Let’s Take a 5 Minute BreakDay 1
Managing a Control Account requires a steady rhythm of six processes. Steps any
step, get out of synch on the rhythm results in distribution of the flow of progress.
Sustaining the rhythm starts with weekly status of the Control Account, with credible
data from actual performance of your work activities.
Business Rhythm of the CAM76
LO: 6
77
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
What are your Deliverables for the period of performance?
Cost Schedule Technical Performance
ü Budget to WBS
elements down to
the Control Account.
ü Better – budget to
the Work Package
and Activity level.
ü Intermediate and
final deliverables.
ü Incremental
accomplishments.
ü Lay out logical flow
of deliverables.
ü Measures of
Effectiveness (MoE).
ü Measures of
Performance (MoP).
ü Performance upper
and lower limits.
ü Increasing maturity
measures.
78
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
What Work do you do to produce the deliverables?
Cost Schedule Technical Performance
ü Work packages with
BCWS spreads.
ü Work packages with
durations and
resource
requirements.
ü Outcomes of each
work package
ü Unit of measure for
success of each
outcome
79
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
Did you Execute the work starting and finishing on time?
Cost Schedule Technical Performance
ü Performance Upper
and lower variance
limits for each
Control Account.
ü Forecasting for CA,
WBS, deliverables
WITH variance.
ü Duration
performance upper
and lower limits
ü Measures of
Effectiveness (MoE)
ü Measures of
Performance (MoP)
ü Technical
Performance
Measures (TPM)
ü Risk measures for
each performance
item
80
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
Did you perform Work in the proper sequence?
Cost Schedule Technical Performance
ü BCWS profile
ü Cost demand curves
ü CFSR profiles
ü Vertical integration
comes FIRST
ü Horizontal
integration comes
SECOND
ü Focus on value flow
of the deliverables
ü Work Packages
produce 100/0
compliance with
performance
measures
ü Tasks in WP 0/100
completion criteria
81
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
Did you Perform the Work in the planned sequence?
Cost Schedule Technical Performance
ü Work authorization
through charge
numbers.
ü Work authorization
through Work
Package start / end.
ü Measure perform in
units meaningful to
the decision makers.
82
LO: 6
Address each activity with a Cost, Schedule, and
Technical Performance answer
Do you have credible Measures as Physical Percent Complete?
Cost Schedule Technical Performance
ü Earned Value
ü Probabilistic cost
forecasting
ü Risk adjusted ETC
and EAC in
monetary units
ü Earned Value
ü Probabilistic
schedule forecasting
ü Risk adjusted ETC
and EAC in time units
ü Tangible evidence
of progress
ü Pre-planned
measures of
Effectiveness and
Performance
83
LO: 6
Remember, the World Is A Stochastic Process
$
Cost Driver (Weight)
Cost = a + bXc
Cost
Estimate
Historical data point
Cost estimating relationship
Standard percent error boundsTechnical Uncertainty
Combined Cost Modeling and
Technical Uncertainty
Cost Modeling Uncertainty
stochastic/stəˈkastik/ processes are time
varying random process found in every
aspect of a project.
84
LO: 6
Time to put our Short Course learning to work. Let’s take out your CAM notebook
and walk through some of its contents for the weekly CAM meeting and the month
end CPR.
Now Let’s Take Out Our CAM Notebooks85
LO: 6
Success Factors for the CAM Meeting
86
¨ Know your IMS COLD.
¤ This means you can speak to your IMS without looking
¤ You know your deliverables, their dates, and the
confidence you’ll make that date.
¨ Know your dependencies
¤ What are you waiting to receive?
¤ What are you sending?
¨ Know your top 5 risks
¤ What are your mitigations?
LO: 6
Month End Status
87
¨ Weekly status rolled into the monthly status
¨ Variances provided for analysis
¨ Variance reports written for CPR Format 5
¤ Kevin, Liviu, and Esther will help you here
¨ Verification that your budgets, plans, and
performance are the way you want them to be
¨ Any changes submitted through a Baseline Change
Request (BCR) for updates to the Integrated Master
Schedule (IMS).
¨ Monthly report submitted to the government.
LO: 6
Risk Management is how Adults Manage Projects
- Tim Lister Emeritus Fellow, IBM
Quick Look At Risk Management88
LO: 7
Risk Management Model
89
Key Elements
§ Risk Identification
What can go wrong?
§ Risk Analysis
How big is the risk?
§ Risk Mitigation Planning
What will you do about them?
§ Risk Mitigation Plan Implementation
How is the planned risk mitigation being implemented?
§ Risk Tracking
How are things going?
LO: 7
What is a Risk?
90
¨ Risk has three components
¤ A future risk root cause.
n What’s the source of the risk so you can address it with a
handling plan?
¤ A probability (likelihood) of the future risk root cause
occurring.
n What are the chances the risk will occur, so you can judge
the priority of having to handle it?
¤ The probabilistic consequence (or effect) of the future
occurrence.
n what is the variances on the undesirable outcomes from the
risk?
LO: 7
The First Understanding
DoD Risk Management Guide
DoD RM Handbook Objective
Context of Risk Management
Risk versus Issues versus Opportunities
95
¨ Risks: yet to happen
¤ Future consequences
¤ Can be “closed” only after successful mitigation
¤ through avoiding, controlling, transferring, or
¤ assuming the risk
¨ Issues: current problems and/or challenges
¤ Real-time consequences
¤ Can be closed within 30-60-90 days windows
¨ Opportunities: yet to happen
¤ Future potentially desirable situation or circumstance
¤ Process for managing similar to risk process
LO: 7
Human failings inhibit risk management
96
¨ Status quo bias
¤ Strong bias toward alternatives that perpetuate the
status quo
n More choices = increased attraction to status quo
¨ Confirming evidence bias
¤ We seek out information that supports our existing point
of view while avoiding information that contradicts it
¤ Underlying factors
n Tendency to be engaged more by things we like than dislike
n Tendency to subconsciously decide what we want to do
before we figure out why
LO: 7
Human failings inhibit risk management
97
¨ Anchoring bias
¤ We tend to give disproportionate weight to the first
information we receive
n Most common anchor: a past event or trend
¤ Underlying factors
n Initial impressions, estimates, or data “anchor” subsequent thoughts
and judgments
¨ Sunk cost bias
¤ We tend to make choices in a way that justifies past choices
n Allowing old investments of time/money to influence new decisions
¤ Underlying factors
n Failure to admit to past mistakes; failure to recognize previous
investments as “unrecoverable”
LO: 7
With this Short Course, you’ll be ready to start
your role as a CAM, with full support of Program
Planning & Controls plus other CAMs.
But in September of 2012, AVI must submit a
data package to the DCMA showing compliance
with the 32 Guidelines of ANSI-748-B, and you
data will be in that package.
Then in late January, 2013, DCMA will come on
site and interview you about your job as a CAM.
Beyond this Short Course98
LO: 8
99
It is not an interrogation but it may feel like one
LO: 8
1. Your Control Accounts are within tolerance for schedule and
budget, and their products meet their desired specifications –
that is they work as planned, AND
2. You can demonstrate to the DCMA and DCAA you are following
all the rules and regulations while performing the work in #1.
At this time, there are two measures of success for you as a CAM…
ü If you are successful at #1 but not at #2, you’ve failed as a CAM.
ü If you are successful at #2 but not at #1, the DCMA and DCAA
don’t really care. The customer does of course.
LO: 8
DCMA / DCAA CAM Interview Topics
101
Topic Information from the interview
Organizing Who is doing the work?
Scheduling When are we doing the work?
Work and Budget
Authorization
How much money do we need to do the planned work
and have some in reserve?
Managerial Analysis
How do we measure our progress, variances, and
corrective actions?
Change Management How do we make official changes to our plans
Material Management How do we keep track of materials?
Subcontract
Management
How do we manage our subcontractors for their work?
General Management
How do we inform management of our progress, risks
to our progress, and plans for our future progress?
LO: 8
CAM Interview Questions
¨ Can you show how you fit in
the organization?
¨ How many Control Accounts
you are responsible for?
¨ What is the total value of
these Control Accounts?
¨ Is any of your work on the
critical path?
¨ How do you communicate
schedule information?
¨ How do you assure your
schedules are aligned with
other CAMs?
102
Organizing Scheduling
LO: 8
CAM Interview Questions
¨ Can you speak to the risks of
achieving your work within
budget?
¨ How are you authorized to
start work?
¨ Define a Work Package.
¨ What portion of your work is
LOE?
¨ Can you show how EV is taken
in the same way as budgets
are planned?
¨ How do you determine EV for
WIP?
¨ What reports to do receive
for cost and schedule status?
¨ What are you variance
thresholds?
¨ When do you prepare
variance reports?
¨ Do you have any samples?
¨ Do you develop corrective
action plans?
¨ How do you follow thorough
with these?
¨ What is you EAC?
¨ How often is your EAC
revised?
103
Budget and Work Authorization Managerial Analysis
LO: 8
CAM Interview Questions
¨ What is the process for
making changes to your
budgets?
¨ Have you had any budget
transfers between Control
Accounts and Management
Reserve?
¨ How are material budgets
planned?
¨ What EV techniques are you
using for material?
¨ How do you track material
when deliveries are late?
¨ How are EACs calculated for
your material?
104
Change Incorporation Material Management
LO: 8
CAM Interview Questions
¨ Are you responsible for any
subcontracts?
¨ How do you take Earned
Value for your subcontracts?
¨ Does the subcontract effort
support key milestones?
¨ Are these subcontractor
milestones integrated in the
schedule?
¨ How often do you require
your subcontractors to update
their EAC?
¨ How often do you
communicate and use Earned
Value metrics, EACs, and
variance impacts?
¨ Do you know if you are on the
critical path?
¨ If so, how do you plan on
managing your work to not be
late, or get off the critical
path?
105
Subcontract Management General Management
LO: 8

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Control Account Manager Short Course

  • 1. CONTROL ACCOUNT MANAGER SHORT COURSE 6/18/12 – Short Overview of being a CAM 1
  • 2. Learning Objectives for this course Surviving the first 60 days of being a CAM LO: 1 What is your role as a Control Account Manager? LO: 2 What are you accountable for as the CAM? LO: 3 What is in your CAM Notebook and how do you use this information on a weekly basis? LO: 4 What role does Earned Value play in your weekly management activities? LO: 5 Where are the sources of information you need to manage your Control Accounts? LO: 6 What are your weekly and monthly business rhythms? LO: 7 A quick look at Risk Management LO: 8 What’s beyond this Short Course - toward Validation interviews 2
  • 3. Skills needed to survive the 1st 60 days as a Control Account Manager (CAM) ¨ What does it mean to be a CAM? ¨ As a CAM, what are you accountable for? ¨ Concept of Earned Value Management? ¨ What are your weekly management activities? ¨ What is your role in getting the CPR out the door?
  • 4. The Control Account Manager says its name – the Manager of Control Accounts. But what does that really mean? It means you’re accountable for the performance of the work contained in the Control Account. You’re the go to person from delivering the outcomes from that work. You are the Manager of the Control Account. What is your role as a CAM? LO: 1 4
  • 5. Control Account Manager has … Responsibility to … ¨ Manage the cost, schedule, and technical performance of the Control Account work activities. ¨ Provide performance and forecasting data related to the Control Account. ¨ Review and approve all work assignments, documents, and commitments involving the Control Account work activities. Authority to … ¨ Approve the Control Account authorization documents ¨ Approve the Control Account budget notices ¨ Determine the work schedule and prioritizes the work for each Work Authorization ¨ Approve hours charged to the Work Authorizations ¨ Identify potential technical, schedule, and cost risks and enters them to the Risk Register Accountability … ¨ To Program Manager for Control Account Performance. ¨ For complete the Control Account scope of work within the resources authorized. ¨ For achieving the technical performance goals for the defined scope of work. ¨ For achieving technical quality ¨ For assuring the reported Earned Value is based on Quantifiable Backup Data (QBD) ¨ For mitigating technical, schedule, and cost risks LO: 1 5
  • 6. 6 As a CAM, you are in charge of the outcomes from the Control Account work efforts. You’ll need lots of support from others, functional teams, subcontractors, other CAMs, internal and external resources. But in the end, you are accountable for the success of the Control Account LO: 1
  • 7. If you’re the Control Account Manager of your Control Account, what is it that you’re actually a manager of? The Control Account of course. But what does that mean? The Control Account LO: 1 7
  • 9. A Control Account and its children? LO: 1 9
  • 10. Where your Control Account lives 10 LO: 1
  • 11. The Control Account is the … 11 ¨ Intersection of WBS and OBS ¤ WBS element – The deliverables ¤ Control Account Manager (CAM) – accountable for those deliverables ¨ Key control point for … ¤ Schedule, time-phased budget – BCWS ¤ Actual cost accumulation – ACWP (in this case actuals are at the Work Package Level ¤ Earned value determination – BCWP ¤ Variance analysis (cost& schedule) – for submission in the CPR ¤ Corrective action – to get the CA back to GREEN ¤ Estimate At Completion (EAC) – for the remaining work LO: 1
  • 12. Where Control Accounts Come From 12 Work Breakdown Structure (WBS) OrganizationBreakdownStructure(OBS) 1 2 3 4 5 6 7 8 ABCDEF Control Account LO: 1 Where scope, schedule, and cost are planned and managed
  • 13. Where CA Budgets Come From 13 Summary Planning Packages Management Reserve Undistributed Budget Work Packages LO: 1
  • 14. 3 Baselines in your Control Account 14 Cost Baseline Schedule Baseline Technical Baseline Perform Functional Analysis Determine Scope and Approach Develop Technical Logic Develop Technical Baseline Develop WBS Define Activities Estimate Time Durations Sequence Activities Finalize Schedule Identify Apportioned Milestones Determine Resource Requirement Prepare Cost Estimate Resource Load Schedule Finalize Apportioned Milestones Determine Funding Constraints Approve PMB LO: 3
  • 15. Work Package Types 15 ¨ Discrete – the work performed produces tangible outcomes through the consumption of hours and dollars ¨ Apportioned Effort – the work performed is in proportion to the work somewhere else. You probably don’t have any of these. ¨ Level of Effort – the work performed is from the passage of time. Surveillance, oversight, watching things. ¨ Planning – work is not defined in detail, but budget is assigned. You don’t have nay of these, maybe in the next CLINs. LO: 1
  • 16. What’s a CLIN? 16 ¨ Contract Line Item Number ¨ A check book with money, a Statement Of Work, and the list of deliverables. ¨ There are 2 CLINs ¤ CLIN1 – Ebola ¤ CLIN5 – Marburg ¨ Each CLIN (1 and 5) have a Statement of Work, which you should have and also have read in detail to know what you are accountable for. LO: 1
  • 17. Work Package 17 ¨ The Work Package says its name it is a Package of Work. ¨ Tasks (activities) in the Work Package produce a single outcome from this package of work. ¨ The Work Package has a finite duration, weeks to maybe a few months. ¨ Performance is recorded at the Work Package level for Earned Value, but measurement is taken at the activity level. LO: 1
  • 18. As a CAM your primary accountability is for the outcomes of your Control Account. Within the Control Account, there are several items that come along with those outcomes. The Program Controls elements of the Control Account are also in your area of accountability. What are you accountable for? LO: 2 18
  • 19. Connecting all the Dots 19 Risk SOW Cost WBS IMP/IMS TPM PMB Named Deliverables defined in the WBS. Budgets for the work at the Work Package. Performance attached to each critical deliverable in the WBS and identified in each Work Package in the IMS. The Products and Processes that produce the deliverables in a “well structured” decomposition in the WBS. IMS containing the Work, Budget, Risk mitigation plans, define in the Integrated Master Schedule to measure maturity. Technical and Programmatic Risks Connected to the WBS. LO: 2
  • 20. Core Elements of your Control Account 20 Work Break Down Structure Schedule the Work Budget Spreads (BCWS) MR Performance M easurement Baseline Contract Budget Base (CBB)§SOW §WBS §OBS §RAM §IMS §WAD §CAP §WP §PP + LO: 2
  • 21. Connecting the Dots starts with the Control Account Plan (CAP) 21 Program Work Authorization Directive (WAD) LO: 2
  • 22. Control Account The intersection of the WBS and OBS Connecting more Dots between work, organization, and performance measurement 22 WBS OBS BCWS 30 25 50 10 30 BCWP 30 22 ACWP 26 27 BCWS 30 25 50 10 30 BCWP 30 22 ACWP 26 27 Incremental Cumulative LO: 2
  • 23. Building the Performance Measurement Baseline (PMB) from Cost and Schedule 23 Integrated Master Schedule SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # Cost and Materiel Baseline Quarter Quarter Quarter Quarter Quarter § CAP contains Budget, Hours, Staff, deliverables, spread by month, quarter. § PMB contains Work Packages, BCWS, EV methods, sequenced in the proper order. The integration of the IMS and the Cost Baseline is 2 of the 3 elements of the PMB. The cost spreads by quarter currently in place are spread to the Work Packages in the IMS and the BCWS baselined for performance measurement SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # SOW Sub # LO: 2
  • 24. When we come back, we’ll open your CAM notebook and use it for the source of questions and training. Let’s Take a 5 Minute BreakDay 1
  • 25. The CAM Notebook contains all the information needed to manage the Control Account, or has references to the location of this information. The CAM makes use of this information on a weekly basis, for the monthly reporting, and for the knowing where the Control Account are at all times. In the CAMing business surprises are usually unpleasant surprises. What is in your CAM Notebook? LO: 3 25
  • 26. NOT THAT NOTEBOOK the Control Account Manager Notebook ü A notebook containing all the information you need to manage your Control Accounts ü Much of the information is electronic, but you should have hardcopies with you as well. ü The DCMA and customer expects you to know this information.26 LO: 3
  • 27. Your CAM Notebook is the starting point for all the items you’re accountable for. Keep it with you at all times LO: 3 27
  • 28. The CAM Notebook 28 ¨ The repository for technical, cost, and schedule information to manage the work activities of the Control Account(s): ¤ A description of the work (WBS), with clear statements of authorization (WAD) from the customer thru the contractor organization to the CAM’s immediate manager then the CAM to expend resources to perform the tasks. ¤ A detailed time phased plan (IMS) to accomplish the work with a logical interconnect series of activities leading to work completion. ¤ A detailed time phased budget (PMB) indicating the amount and type of resources necessary to complete the work indicating both units of resources, e.g., hours and dollars. ¤ Performance results (EV) indicating technical progress, schedule status, and resources consumed over time to perform the tasks. ¤ An estimate of the completion (EAC) date and total resources to be consumed at task completion. LO: 3
  • 29. Why should you care about this? 29 ¨ The CAM Notebook gives a clear picture of whether the control account’s technical scope, schedule , risk and resources are integrated –play together –make sense. ¨ The CAM Notebook, when understood by the CAM, brings both parties to a clear mutual understanding of all aspects of the task. ¨ The CAM Notebook ensures a foundation of information for continuity if the CAM reassigned or not available for some reason ¨ The CAM Notebook documents what is going on and enables a third party to be convinced that all aspects of the task are being considered and harmonized and reasonably managed now and with an eye on the future.
  • 30. Your CAM Notebook Contains … 1. Formulas and Acronyms 2. Common Process Chart 3. Work Breakdown Structure (WBS) 4. Responsibility Assignment Matrix (RAM) 5. Statement of Work (SOW) 6. WBS Dictionary 7. Basis of Estimate (BOE) 8. Control Account Plans (CAP) 9. Earned Value Performance Reports 10. Schedules ¤ Master ¤ Intermediate ¤ Detailed 11. Staffing Plan 12. System Reports 13. Variance Reports 14. Program Directives (PD) 15. Quantifiable Backup Data (QBD) 16. Subcontractor Data 30 LO: 3
  • 32. Statement of Work (SOW) 32 ¨ Vertical Traceability ¤ The contract SOW describes the work to be performed and traceable to the WBS and 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 (WAD) for work activities traceable to the SOW. ¨ Completeness ¤ The entire SOW work description should be included in the Master Plan and the WADs. ¨ Within Scope ¤ All work described in the WADs should be included in the SOW.
  • 33. WBS Dictionary 33 ¨ 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 traceable to the IMS activities and is included in Work Authorization Document (WAD), and the Control Account Plan (CAP).
  • 34. Work Authorization Document (WAD) ¨ The official document from the program manager authorizing the CAM to plan and execute the work task. It should be signed by the program manager, the CAM and usually the business manager. ¨ The following elements are in the WAD: ¤ 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 ¨ 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 34
  • 35. Control Account Plan (CAP) 35 ¨ The Control Account Plan (CAP) lays out the work packages and planning packages with time phased resources necessary to accomplish all the work in the WAD Description of Work ¤ The resource category, e.g., labor, material, subcontract, should be indicated ¤ The earned value technique, e.g., percent complete, LOE, should be stated. ¤ Planning Packages should be properly coded and resources time phased. ¨ The CAP contents are traced to other CAM Notebook contents ¤ Total budget agrees with WAD ¤ Start date of earliest work package and end date of latest work package/planning package agrees with the WAD and IMS.
  • 36. Basis of Estimate (BOE) 36 ¨ Basis of Estimate (BOE) provides detailed estimating methodology for the Control Account Plan budgeted value and/or the last Comprehensive Estimate At Completion (CEAC) ¤ The BOE is time phased in hours and dollars if labor, and dollars if non-labor. ¤ Month to month wide variations in resources estimated should be explained and should be supported by similarly varying IMS activities. ¤ Hours converted to equivalent person months using the accounting calendar to determine the number of staff charging to provide an accurate staffing profile ¤ Period of performance agrees with the CAP ¤ Detailed cost justification and estimates sum to totals presented for the Control Account.
  • 37. IMS Review 37 ¨ Logical connectivity ¤ Critical Path : Start to Finish ¤ Predecessor and Successor relationship ¤ Horizontal and Vertical Traceability ¨ Schedule Transparency ¤ Visibility and Accuracy ¤ Schedule Effectiveness ¨ Schedule Maintenance Process ¨ Resourced Schedule ¤ Traceable to control accounts ¨ Integration between Prime and Major Subs ¤ Integration of interfaces tied points ¤ Scheduling tools compatibility ¨ Integration between IMS and Supplemental Schedule
  • 38. Performance Report 38 ¨ Compare the Budget at Completion to the control account budget in the WAD and CAP ¨ Examine the report for data causing reason for concern and/or not logical ¤ 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%
  • 39. Risk Management 39 ¨ Examine risk and opportunity documentation ¤ Identify control account risks tracked at program level. ¤ Identify other risks CAM tracked at the control account level. ¤ Locate and evaluate retirement plans. ¤ Look for inclusion for risk related schedule activities and budgeted work packages.
  • 40. ANSI-748-B is applicable to all FAR/DFARS programs greater than $20M and requires a validated Earned Value Management System for programs greater than $50M. This program is greater than $50M, so Earned Value Management and the use of the Earned Value Management System is mandatory. Earned Value Management LO: 4 40
  • 41. What is Earned Value Management? 41 ü Measures actual progress to plan using units meaningful to the decision makers. ü Provides visibility to physical percent complete on fine grained boundaries. ü Provides visibility to future performance given past performance and risk adjusted forecasting. LO: 4
  • 42. The Foundation of Earned Value LO: 4 42
  • 43. Past Present Future What is the “to go” plan? How is it resourced? When will we finish? What will it cost in the end? How can we control the trend? How do we adjust for risk? The Core Purpose of EVM LO: 4 43 Are we on schedule? Are we on cost? What are the significant variances? What is the trend to date? What risk have been reduced or added?
  • 44. 44 Measures Past Present Future Measures What does SV and SPI say? Are we on schedule? What is the "to go" plan? TCPI? Critical path analysis What does CV and CPI say? Are we on cost? When will we finish? Probabilistic schedule analysis Over threshold? What are the significant variances? How is it resourced? BCWS spreads What does TCPI say? What is the trend to date? What will it cost when we are done? BCWS probabilistic model Trace probabilistic programmatic and technical risks to IMS activities What risk have been reduced or added? How can we control the trends? Physical percent complete measures of progress How do we adjust for risk? Integration on Risk Register in the IMS
  • 45. What Does Earned Value Tell Us? Know where you are in terms of accomplishment as well as how much you’ve spent 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? LO: 4 45
  • 46. The Alphabet 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. LO: 4 46
  • 47. The S-Curve of Earned Value 47
  • 48. LO: 4 48 Project Execution Project Planning Actual Schedule Status Update Actual Costs GL, Time Planned Schedule IMS Planned Costs BCWS Monitor & Control EVM Reporting Program Status Analyze Managerial Analysis Performance Financial Analysis Trend & Variance
  • 50. EVM is Performance Management† 50 Performance Management ANSI–748–B Framework § Establish Product Requirements § Measure progress toward deliverables § Use 0/100 or apportioned milestones § Never use ACWP=BCWP as progress measure § Integrate requirements and quality with plan § Integrate risk management with plan § Establish probabilistic cost and schedule estimates † from Performance Based Earned Value, Paul Solomon, IEEE Computer Society, John Wiley & Sons, November 2006 LO: 4
  • 51. Next comes the collection of data and its use in your weekly business rhythm. Where is this data, how can you get it, and when you get it, what can you do with it? Let’s Take a 5 Minute BreakDay 1
  • 52. Where do you get the information you need to manage your Control Account and its Work Packages? The first source – the document of record – the Performance Measurement Baseline (PMB) held in the Earned Value Engine – Safran Project and Proteous. Other sources are in a variety of databases and file cabinets. Sources of Information You’ll Need LO: 5 52
  • 53. Information for your CAM Notebook 53 ¨ Safran and Proteus hold the Document of Record for all Control Account cost and schedule information. ¤ BOE, CAP, WAD, EV Reports, Schedules, CPRs, performance to date, and Variance Reports. ¨ WBS Dictionary is maintained by Program Planning and Controls. ¨ SOW and other contract documents available from Program Management Office (PMO). ¨ Quantifiable Backup Data developed through your own development and use of Work Packages.
  • 54. The Control Account Manager is accountable for the performance of the work in the Control Account. The cost, schedule, and technical performance are assessed weekly and reported monthly to the customer. Business Rhythm LO: 6 54
  • 55. Three Core Elements of the PMB 55 ¨ Evaluation of the performance measurement baseline: ¤ Scope, schedule, and resources. ¤ Identification of inherent risk during execution. ¨ Is a joint assessment of the PMB. ¨ Documented results and startup of the “Integrated Baseline Management” processes. Technical Baseline ScheduleBaseline CostBaseline Integrated Baseline using the PMB LO: 6
  • 57. Flow of Data in the EVMS 57 LO: 6
  • 58. Weekly reporting of progress to plan is the primary responsibility of the CAM, along with managing the corrective actions needed from that reporting to keep the Control Account GREEN. Managing your Control Account is all about taking corrective actions as early as possible. Monthly Business Rhythm58 LO: 6
  • 59. Success is about managing variances 59 ¨ Budget ¨ Schedule ¨ Technical performance ¨ Resource conflicts ¨ Subcontractors ¨ All these, and more, are in the CAM role, with support and help from the PM and Functional Manager LO: 6
  • 61. Let’s Start with the End in Mind Successful Program Management Means… ¾ No surprises in cost and schedule for Work Packages open and under way. ¾ Forecasts of future cost and schedule have a credible confidence level matched by the actual cost and schedule performance. ¾ All cost and schedule values are risk adjusted. ¾ Measures of Physical Percent Complete used for all deliverables. ¾ Updates to Physical Percent Complete, cost and schedule impacts done every Thursday for the life of the program LO: 6
  • 62. Each week all the CAMs come together to compare their progress to plan, determine any dependencies, report risks and their handling, and confirm that the deliverables they are accountable for will arrive on or around the planned dates. Plan of the Week62
  • 64. The Plan of the Week (PoW) 64 ¨ The Plan of the Week (PoW) is the framework for planning the work and working the plan. ¨ The PoW is derived from the Integrated Master Schedule (IMS). ¨ Coming due items for the 30/60/90 look head (moving window) are extracted from the IMS for each CAM to discuss. These include the planned starts and planned finished during the period. ¨ This report is produced on the Thursday prior to the weekly Program Review. ¨ Each CAM discusses those coming due items and speaks to the confidence that they will completed on or before the due date – either started or finished. ¨ With this information, the CAMs can then have a conversation among themselves of the commitments needed for the interdependencies between their planned work. LO: 6
  • 65. 65 Extracting Coming Due from the IMS CAM Planned Start Planned Finish Dependency CAM # 1 What should start this period? What should finish this period? Who am I dependent on? CAM # 2 … … … … … … … LO: 6
  • 66. 66 The Script for the one hour status review meeting ¾ The status review script is like a story script. ¾ It tells the participants what their role is in this story. ¾ There can be improv, but you have to follow to the story line or the reader gets confused. What’s our story line? ¾ What work must start in the next period to stay on schedule? ¾ What work must finish in the next period to stay on schedule? ¾ What is the cost for this work that keeps us in budget? ¾ How do we know the produced outcomes meet the needed results? LO: 6
  • 67. 67 The First 15 Minutes ¾ The previous Thursday, after the IMS status by PP&C, the Plan of the Week extract will be forwarded to the CAMs. ¾ The HFV Program Manager reviews the collective coming due data and provides a summary of the high points, major risks, and discussion topics for the remainder of the meeting. ¾ During the first 15 minutes of the PoW meeting the PM will report the activities scheduled for the coming weeks that require senior management action. ¾ If there are items planned for the week that are not on the coming due list, they will be noted and added AFTER the first 15 minute phase of the meeting. LO: 6
  • 68. 68 The Second 15 Minutes ¾ After the PoW items have been reviewed by the PM, the CAMs confirm they have all the information they need for the next 3 weeks. ¾ And any additions, changes, or deletes made, we can move to “new business,” which will include items that: • Did not complete when promised and are therefore late • Have been rescheduled for the coming period and are therefore late to plan • Have been moved to future date through a change control approval process • Have not started as planned and are therefore candidates for being late ¾ Items not completed as promised will be called out for corrective action. LO: 6
  • 69. 69 Last 30 Minutes ¾ Each CAM will walk through the coming due items and confirm that the dependencies required for success for their deliverables or completion items are in place. • Planned to start in the next 3 weeks • Planned to finish in the next 3 weeks ¾ External dependencies are confirmed and agreed to • Each CAM will confirm with other CAMs owning that external dependency that the required items will be available when needed. • If not, then the supplying CAM must state when that item will be available. ¾ Wrap up concurrence between the CAMs • All CAMs and the PM concur that the planned start and planned finish items will take place on or before the planned date. LO: 6
  • 70. Progress to Plan reporting is guided by DI–MGMT–81466A70 ¨ The CPR consists of five formats ¤ Format 1 – Work Breakdown Structure ¤ Format 2 – Organizational Categories ¤ Format 3 – Baseline ¤ Format 4 – Staffing ¤ Format 5 – Explanations & Problem Analyses ¨ Uses of CPR Data ¤ Integrated Cost & Schedule EVM Data ¤ Identify the cost and schedule impact of actual and potential problems ¤ Provide valid, timely program status info for higher management ¨ The CPR provides timely, reliable summary–level data with which to access current and projected contract performance. LO: 6
  • 71. The Earned Value Relationships – Focus on Percent Complete 71 LO: 6
  • 72. § Lack of predictive variance analysis. § Untimely and unrealistic Latest Revised Estimates (LRE). § Progress not monitored in a regular and consistent manner. § Lack of vertical and horizontal traceability cost and schedule data for corrective action. § Lack of internal surveillance and controls. § Managerial actions not demonstrated using Earned Value. § Inattention to budgetary responsibilities. § Work authorizations that are not always followed. § Issues with Budget and Data reconciliation. § Lack of an Integrated Management System. § Baseline fluctuations and frequent replanning. § Current period and retroactive changes. § Improper use of Management Reserve. § EV techniques that do not reflect actual performance. The Program Train Wreck Starts When There is… 72 Mary K. Evans Picture Library
  • 73. 73 Unpleasant Surprises You’re over budget You’re behind schedule The stuff you’re building doesn’t work This can be true, but you can’t be surprised LO: 6
  • 75. With the data, the business rhythm, and the knowledge of the status of your Control Accounts, you can start performing the role of a Control Account Manager. Let’s Take a 5 Minute BreakDay 1
  • 76. Managing a Control Account requires a steady rhythm of six processes. Steps any step, get out of synch on the rhythm results in distribution of the flow of progress. Sustaining the rhythm starts with weekly status of the Control Account, with credible data from actual performance of your work activities. Business Rhythm of the CAM76 LO: 6
  • 78. Address each activity with a Cost, Schedule, and Technical Performance answer What are your Deliverables for the period of performance? Cost Schedule Technical Performance ü Budget to WBS elements down to the Control Account. ü Better – budget to the Work Package and Activity level. ü Intermediate and final deliverables. ü Incremental accomplishments. ü Lay out logical flow of deliverables. ü Measures of Effectiveness (MoE). ü Measures of Performance (MoP). ü Performance upper and lower limits. ü Increasing maturity measures. 78 LO: 6
  • 79. Address each activity with a Cost, Schedule, and Technical Performance answer What Work do you do to produce the deliverables? Cost Schedule Technical Performance ü Work packages with BCWS spreads. ü Work packages with durations and resource requirements. ü Outcomes of each work package ü Unit of measure for success of each outcome 79 LO: 6
  • 80. Address each activity with a Cost, Schedule, and Technical Performance answer Did you Execute the work starting and finishing on time? Cost Schedule Technical Performance ü Performance Upper and lower variance limits for each Control Account. ü Forecasting for CA, WBS, deliverables WITH variance. ü Duration performance upper and lower limits ü Measures of Effectiveness (MoE) ü Measures of Performance (MoP) ü Technical Performance Measures (TPM) ü Risk measures for each performance item 80 LO: 6
  • 81. Address each activity with a Cost, Schedule, and Technical Performance answer Did you perform Work in the proper sequence? Cost Schedule Technical Performance ü BCWS profile ü Cost demand curves ü CFSR profiles ü Vertical integration comes FIRST ü Horizontal integration comes SECOND ü Focus on value flow of the deliverables ü Work Packages produce 100/0 compliance with performance measures ü Tasks in WP 0/100 completion criteria 81 LO: 6
  • 82. Address each activity with a Cost, Schedule, and Technical Performance answer Did you Perform the Work in the planned sequence? Cost Schedule Technical Performance ü Work authorization through charge numbers. ü Work authorization through Work Package start / end. ü Measure perform in units meaningful to the decision makers. 82 LO: 6
  • 83. Address each activity with a Cost, Schedule, and Technical Performance answer Do you have credible Measures as Physical Percent Complete? Cost Schedule Technical Performance ü Earned Value ü Probabilistic cost forecasting ü Risk adjusted ETC and EAC in monetary units ü Earned Value ü Probabilistic schedule forecasting ü Risk adjusted ETC and EAC in time units ü Tangible evidence of progress ü Pre-planned measures of Effectiveness and Performance 83 LO: 6
  • 84. Remember, the World Is A Stochastic Process $ Cost Driver (Weight) Cost = a + bXc Cost Estimate Historical data point Cost estimating relationship Standard percent error boundsTechnical Uncertainty Combined Cost Modeling and Technical Uncertainty Cost Modeling Uncertainty stochastic/stəˈkastik/ processes are time varying random process found in every aspect of a project. 84 LO: 6
  • 85. Time to put our Short Course learning to work. Let’s take out your CAM notebook and walk through some of its contents for the weekly CAM meeting and the month end CPR. Now Let’s Take Out Our CAM Notebooks85 LO: 6
  • 86. Success Factors for the CAM Meeting 86 ¨ Know your IMS COLD. ¤ This means you can speak to your IMS without looking ¤ You know your deliverables, their dates, and the confidence you’ll make that date. ¨ Know your dependencies ¤ What are you waiting to receive? ¤ What are you sending? ¨ Know your top 5 risks ¤ What are your mitigations? LO: 6
  • 87. Month End Status 87 ¨ Weekly status rolled into the monthly status ¨ Variances provided for analysis ¨ Variance reports written for CPR Format 5 ¤ Kevin, Liviu, and Esther will help you here ¨ Verification that your budgets, plans, and performance are the way you want them to be ¨ Any changes submitted through a Baseline Change Request (BCR) for updates to the Integrated Master Schedule (IMS). ¨ Monthly report submitted to the government. LO: 6
  • 88. Risk Management is how Adults Manage Projects - Tim Lister Emeritus Fellow, IBM Quick Look At Risk Management88 LO: 7
  • 89. Risk Management Model 89 Key Elements § Risk Identification What can go wrong? § Risk Analysis How big is the risk? § Risk Mitigation Planning What will you do about them? § Risk Mitigation Plan Implementation How is the planned risk mitigation being implemented? § Risk Tracking How are things going? LO: 7
  • 90. What is a Risk? 90 ¨ Risk has three components ¤ A future risk root cause. n What’s the source of the risk so you can address it with a handling plan? ¤ A probability (likelihood) of the future risk root cause occurring. n What are the chances the risk will occur, so you can judge the priority of having to handle it? ¤ The probabilistic consequence (or effect) of the future occurrence. n what is the variances on the undesirable outcomes from the risk? LO: 7
  • 93. DoD RM Handbook Objective
  • 94. Context of Risk Management
  • 95. Risk versus Issues versus Opportunities 95 ¨ Risks: yet to happen ¤ Future consequences ¤ Can be “closed” only after successful mitigation ¤ through avoiding, controlling, transferring, or ¤ assuming the risk ¨ Issues: current problems and/or challenges ¤ Real-time consequences ¤ Can be closed within 30-60-90 days windows ¨ Opportunities: yet to happen ¤ Future potentially desirable situation or circumstance ¤ Process for managing similar to risk process LO: 7
  • 96. Human failings inhibit risk management 96 ¨ Status quo bias ¤ Strong bias toward alternatives that perpetuate the status quo n More choices = increased attraction to status quo ¨ Confirming evidence bias ¤ We seek out information that supports our existing point of view while avoiding information that contradicts it ¤ Underlying factors n Tendency to be engaged more by things we like than dislike n Tendency to subconsciously decide what we want to do before we figure out why LO: 7
  • 97. Human failings inhibit risk management 97 ¨ Anchoring bias ¤ We tend to give disproportionate weight to the first information we receive n Most common anchor: a past event or trend ¤ Underlying factors n Initial impressions, estimates, or data “anchor” subsequent thoughts and judgments ¨ Sunk cost bias ¤ We tend to make choices in a way that justifies past choices n Allowing old investments of time/money to influence new decisions ¤ Underlying factors n Failure to admit to past mistakes; failure to recognize previous investments as “unrecoverable” LO: 7
  • 98. With this Short Course, you’ll be ready to start your role as a CAM, with full support of Program Planning & Controls plus other CAMs. But in September of 2012, AVI must submit a data package to the DCMA showing compliance with the 32 Guidelines of ANSI-748-B, and you data will be in that package. Then in late January, 2013, DCMA will come on site and interview you about your job as a CAM. Beyond this Short Course98 LO: 8
  • 99. 99 It is not an interrogation but it may feel like one LO: 8
  • 100. 1. Your Control Accounts are within tolerance for schedule and budget, and their products meet their desired specifications – that is they work as planned, AND 2. You can demonstrate to the DCMA and DCAA you are following all the rules and regulations while performing the work in #1. At this time, there are two measures of success for you as a CAM… ü If you are successful at #1 but not at #2, you’ve failed as a CAM. ü If you are successful at #2 but not at #1, the DCMA and DCAA don’t really care. The customer does of course. LO: 8
  • 101. DCMA / DCAA CAM Interview Topics 101 Topic Information from the interview Organizing Who is doing the work? Scheduling When are we doing the work? Work and Budget Authorization How much money do we need to do the planned work and have some in reserve? Managerial Analysis How do we measure our progress, variances, and corrective actions? Change Management How do we make official changes to our plans Material Management How do we keep track of materials? Subcontract Management How do we manage our subcontractors for their work? General Management How do we inform management of our progress, risks to our progress, and plans for our future progress? LO: 8
  • 102. CAM Interview Questions ¨ Can you show how you fit in the organization? ¨ How many Control Accounts you are responsible for? ¨ What is the total value of these Control Accounts? ¨ Is any of your work on the critical path? ¨ How do you communicate schedule information? ¨ How do you assure your schedules are aligned with other CAMs? 102 Organizing Scheduling LO: 8
  • 103. CAM Interview Questions ¨ Can you speak to the risks of achieving your work within budget? ¨ How are you authorized to start work? ¨ Define a Work Package. ¨ What portion of your work is LOE? ¨ Can you show how EV is taken in the same way as budgets are planned? ¨ How do you determine EV for WIP? ¨ What reports to do receive for cost and schedule status? ¨ What are you variance thresholds? ¨ When do you prepare variance reports? ¨ Do you have any samples? ¨ Do you develop corrective action plans? ¨ How do you follow thorough with these? ¨ What is you EAC? ¨ How often is your EAC revised? 103 Budget and Work Authorization Managerial Analysis LO: 8
  • 104. CAM Interview Questions ¨ What is the process for making changes to your budgets? ¨ Have you had any budget transfers between Control Accounts and Management Reserve? ¨ How are material budgets planned? ¨ What EV techniques are you using for material? ¨ How do you track material when deliveries are late? ¨ How are EACs calculated for your material? 104 Change Incorporation Material Management LO: 8
  • 105. CAM Interview Questions ¨ Are you responsible for any subcontracts? ¨ How do you take Earned Value for your subcontracts? ¨ Does the subcontract effort support key milestones? ¨ Are these subcontractor milestones integrated in the schedule? ¨ How often do you require your subcontractors to update their EAC? ¨ How often do you communicate and use Earned Value metrics, EACs, and variance impacts? ¨ Do you know if you are on the critical path? ¨ If so, how do you plan on managing your work to not be late, or get off the critical path? 105 Subcontract Management General Management LO: 8