The document discusses establishing a performance measurement baseline (PMB) and the earned value process. It describes identifying and scheduling tasks, assigning budgets to tasks, and measuring task progress. It also covers work breakdown structures, work definition dictionaries, responsibility assignment matrices, control account structures, and the importance of integrated schedules.

1. Humphreys & Associates, Inc.
3111 N. Tustin Avenue, Suite 250
Orange, CA 92865
(714) 685-1730 (Phone)
(714) 685-1734 (Fax)
Email: humphreys@humphreys-assoc.com
http://www.humphreys-assoc.com
No portion of this material covered by the copyrights hereon may be
duplicated, reproduced, distributed, or copied in any form, or by any means
- graphic, electronic, or mechanical, including photocopying, recording,
taping, printing, or information and retrieval systems without written
permission of Humphreys & Associates, Inc.
The following material is copyrighted by Humphreys & Associates, Inc. 1979 – 2008.
Portions of the following material are also copyrighted by Arthur Andersen & Co. 1980 - 1981.
©Humphreys & Associates, Inc. 1979-2009 All rights reserved.

2. Establishing A
Performance Measurement Baseline
(PMB)
Presented by
Gary Humphreys
of
HUMPHREYS & ASSOCIATES, INC.
Daytona Beach, FL
February 24-25, 2009
©Humphreys & Associates, Inc. 1979-2009

3. The Earned Value Process
• Identify short tasks
• Schedule each task
• Assign a budget to each task
• Measure progress of the tasks
©Humphreys & Associates, Inc. 1979-2009 0046

4. Work Definition
WBS Index
Work Breakdown Structure
WBS DICTIONARY
©Humphreys & Associates, Inc. 1979-2009 0091

5. Statement Of Work Electronics
system
(SOW)/ Prime mission Program
WBS Matrix equipment Training management
Hardware Software System Equipment Facilities System Project .
integration engineering management
Paragraph
2.1.1
Paragraph
2.1
Paragraph
Paragraph 2.1.2
2.0
Paragraph
2.2
Paragraph
3.1.1
Paragraph
3.1
Paragraph
Statement Paragraph 3.1.2
of work 3.0
Paragraph
3.2.1
Paragraph
3.2
Paragraph
3.2.2
Paragraph
4.1.1
Paragraph
4.1
Paragraph
4.1.2
Paragraph
4.0
Paragraph
Paragraph 4.2.1
4.2
Paragraph
4.2.2
©Humphreys & Associates, Inc. 1979-2009 5452

6. Work Breakdown Structure
Dictionary
Documents the scope of each element
Is a valuable communication tool
Identifies closely related items that are
not included
Serves as a framework for understanding
changes in scope
©Humphreys & Associates, Inc. 1979-2009 0093

7. Responsibility Assignment Matrix and Control Account Structure
Contract Work Breakdown Structure
Contract
Engine Training
Fan Compressor Turbine
Fan Full Scale Minor Dual Spool
Assembly Fan Rig Fan Rig Compressor Rig
Test
Case Rotor Stator
Assembly Assembly Assembly
Engineering
Company
Control
Design
Mechanical Control
Design Account Account
Analytical Control
Design Account Account Work
Manufacturing
Packages
Drafting and Control Control Control
Checking Account Account Account Planning
Packages
©Humphreys & Associates, Inc. 1979-2009 0106

8. Organization Structure Considerations
Workload
Expertise
Availability of contractors
Scope of work
Economic environment
©Humphreys & Associates, Inc. 1979-2009 0101

9. Control Account
A tool established by or for
the owner to monitor the cost
and schedule performance of
a managerially significant
element of the work.
©Humphreys & Associates, Inc. 1979-2009 0104

10. Why Have A Schedule Baseline?
Assure development of an achievable
initial project plan
Document assumptions, original scope,
and plan
Provide basis for meaningful analysis
and trending
1336
©Humphreys & Associates, Inc. 1979-2009

11. Schedule Integration “Schedules Must Tier”
Contract/
Total Program Level
Program
• Customer
• Senior management Schedule
• Program Office
Item 1 2 3 4 5 6 7
Intermediate Level Control Account 14 Major event
• Customer or Functional
Control Account 15
• Program Office
Control Account 16 Organization
• Functional management
Control Account 17 Milestone
• Control Account Managers
Control Account 18 Schedule
Detail Program Level Control Start Stop
Account 16
• Program Office WP No. 1 Control
• Functional management WP No. 2 Account and
• Control account Managers WP No. 3 Work Package
WP No. 4 Schedules
WP No. 5
©Humphreys & Associates, Inc. 1979-2009 0151

12. Target
Price
Target Budget
Profit Base
For Performance Withheld
Known Measurement Management
Reserve For
Effort Baseline
Unknowns
Control Summary
Undistributed Account Level
Budget Budgets Planning
Packages
0622
©Humphreys & Associates, Inc. 1979-2009

13. Planning And Budgeting:
Establishing The Performance
Measurement Baseline
Identify management reserves
Allocate resources to scheduled tasks
Identify performance measurement
methods
Time-phase the resources (budget plan)
0621
©Humphreys & Associates, Inc. 1979-2009

14. Provide A Time-Phased Budget
$
$
$ $ $
For each WBS element
©Humphreys & Associates, Inc. 1979-2009 0146

15. By Providing A Time-Phased
Budget for Each Control Account
Control Account
Task Schedule Resources
1 $ $
2 $ $
3 $ $
Total $ $
©Humphreys & Associates, Inc. 1979-2009 0147

16. Elements Of The Base And Baseline
Distributed Budget
Distributed Budget
(Control Account)
(Control Account)
Discrete
Discrete Apportioned
Apportioned Level of
Level of Planning
Planning
Work Packages
Work Packages Effort
Effort Effort
Effort Packages
Packages
©Humphreys & Associates, Inc. 1979-2009 0157

17. Three Classifications Of
Work Measurement
1 . Discrete effort
2 . Apportioned effort
3 . Level Of Effort (LOE)
©Humphreys & Associates, Inc. 1979-2009 0165

18. Work Packages
It represents units of work at levels where work is
performed
It is clearly distinguished from all other Work Packages
It is assignable to a single organizational element and
Control Account
It has scheduled start and completion dates and, as
applicable, interim milestones all of which are
representative of physical accomplishment
©Humphreys & Associates, Inc. 1979-2009 0168

19. Work Packages
It has a budget or assigned value expressed in
terms of dollars, hours or other measurable units
It’s duration is limited to a relatively short span of
time or it is subdivided by discrete milestones to
facilitate the objective measurement of work
performed
It is integrated with detailed engineering,
manufacturing, or other schedules
©Humphreys & Associates, Inc. 1979-2009 0169

20. Discrete Work
Measurement Techniques
Incremental milestones
50/50 method
0/100 method
Equivalent units
Units complete
Percent complete
©Humphreys & Associates, Inc. 1979-2009 0174

21. Incremental Milestone---Planning
1 2 3 4
Milestone Budget
1 300
2 1,200
3 1,200
4 600
Totals 3,300
©Humphreys & Associates, Inc. 1979-2009 0175

22. Incremental Milestone---Status
3 4
Milestone Budget Earned Value
1 300 300
2 1,200 1,200
3 1,200 0
4 600 0
Totals 3,300 1,500
©Humphreys & Associates, Inc. 1979-2009 0176

23. Units Complete---Planning
Month January February March April Total
Budget
1,500 2,000 2,200 1,000 6,700
Feet
Budget
@ $100 $150,000 $200,000 $220,000 $100,000 $670,000
per foot
©Humphreys & Associates, Inc. 1979-2009 0184

24. Units Complete---Status
Month January February March April Total
Budget 1,500 2,000 2,200 1,000 6,700
Feet
Budget
@ $100 $150,000 $200,000 $220,000 $100,000 $670,000
per foot
Quantity
1,000 2,000 2,000 1,700 6,700
Installed
Earned
@ $100 $100,000 $200,000 $200,000 $170,000 $670,000
per foot
©Humphreys & Associates, Inc. 1979-2009 0185

25. Percent Complete
Month January February March April BAC
Budget 150 185 250 200 785
Date 3 25
Status of work depends upon individual evaluation
of work accomplished
©Humphreys & Associates, Inc. 1979-2009 0186

26. Typical Work Activities For Planning Classification
DISCRETE EFFORT
Design drawings
Test specifications
Material parts list
Component test
Fabrication operation
Printed circuit card design
©Humphreys & Associates, Inc. 1979-2009 0170

27. Example Of Apportioned Effort
Inspection estimated as 10% of related
production Control Account
Budget Earned
Production Inspection Production Inspection
Control Control Control Control
Account Account Account Account
June 200 20 150 15
July 500 50 450 45
Aug 100 10 150 15
Total 800 80 750 75
©Humphreys & Associates, Inc. 1979-2009 0193

28. The Major Resource Questions
Is the project achievable within the
time and resource constraints?
Is the project being planned to use
resources efficiently?
1309
©Humphreys & Associates, Inc. 1979-2009

29. Funds vs. Budget CONTRACT
TARGET
REQUIRED FUNDING PRICE (CTP)
D PROFILE *
O
L CONTRACT
L TARGET COST
A (CTC)
BUDGET
R
S
TIME
©Humphreys & Associates, Inc. 1979-2009 0119

30. Funds vs. ACWP + ETC
REVISED FUNDING
FORECAST EAC
TIME NOW
CURRENT
D AUTHORIZED
O FUNDING
L ETC
L
A
R BUDGET
EARNED
S VALUE
ACTUALS
©Humphreys & Associates, Inc. 1979-2009 TIME 0154

31. Funding Profiles vs. Performance Trend Lines
EAC
TIME NOW
FUNDING
D PROFILE
O ETC
L ACTUALS
L
A
R BUDGET
S
EARNED
VALUE
©Humphreys & Associates, Inc. 1979-2009
TIME 8126

32. Rolling Wave Planning
A M J J A S O N D J F M A M J J A S O N D J F M A M J
9 Months All Future Periods
Control Account Time Phased Plan
WP No. 1
WP No. 2
WP No. 3
Planning Package(s) & Work
Time Now Remaining Budget, Schedule Scope
©Humphreys & Associates, Inc. 1979-2009 0200

33. Rolling Wave Planning
A M J J A S O N D J F M A M J J A S O N D J F M A M J
3 6 3 All Future Periods
Months Months Months
Control Account Time Phased Plan
WP No. 1
WP No. 2
WP No. 3
Planning Package(s) & Work
Remaining Budget, Schedule Scope
Time Now
WP No. 4
©Humphreys & Associates, Inc. 1979-2009 0201

34. Detailed Planning Becomes Budget
When Formally Authorized
Control Account Contract
Authorization
©Humphreys & Associates, Inc. 1979-2009 0159

35. Work Authorization And Release
WBS orientation
Traceability/hierarchy
Responsibility assignment
Scope of work
Schedule
Budget
Charge number
©Humphreys & Associates, Inc. 1979-2009 0160

36. CONTROL ACCOUNT WORK AUTHORIZATION Revision Number: Original
Issue Date: 2/1/year 1
Control account number: 1.4.2 Title: System test plan/procedures Responsible organization: 4000
Program name: Mor Ded Contract. number 1234-5678
Work statement (including applicable reference Schedule (baseline): Start Completion
documents) Original: 02/09/Year 1 09/04/Year 1
(Indicate schedule dates for each item, unless
Revised: __________ __________
noted above)
Amount authorized
Elements Of Cost Prior authorization Current authorization Total Budget
Direct labor hours..............…… -0- 864 864
Contract help hours...........…...
Total hours............... -0- 864 864
Direct labor $.......................... -0- 10627 10627
Contract help $........................
Material $.................................
Subcontract $...........................
Other direct costs $................
Total $...................... $ -0- $ 10627 $ 10627
Update test plans & procedures to reflect changes in test equipment, simulation equipment. System
design and testing methods.
(In accordance with Contract Data Requirements List items ADOB & ADOC).
SAMPLE
(continue on reverse side)
Release authority Performance commitment
Name Date Name. Date
©Humphreys & Associates, Inc. 1979-2009 Page 1 of ___
0161

37. Subsystem Integration
Technical
Organization Description/ Performance
WBS Level Scheduling Budgeting
Level Work Measurement
Authorization
Contract Contract
Program Division Contract Contract Performance
(milestone) Report (CPR)
Program WAD & Contract
Program Sales
Reporting Master Budget Performance
Manager Order Report (CPR)
Schedule Data
Responsible/ Intermediate WAD & Work Functional
Control Authorization
Performing Schedule & Budget
Document Performance
Account Manager CAP Data Report (FPR)
(WAD)
Control Control Control CAM
Work Performing Account Account Account
Plan Performance
Package Employee Plan Plan
(CAP) (CAP) (CAP) Report
©Humphreys & Associates, Inc. 1979-2009 0120

38. WBS
Summarize Costs
$ $
ORGANIZATION
$ $ $
$ $
$ $
©Humphreys & Associates, Inc. 1979-2009 0217

39. Plan Ahead For Orderly Data Collection
Identify needed data
Determine level of detail
Determine source of each data item
Define data identification codes
Design forms
Design and write procedures
Train personnel
©Humphreys & Associates, Inc. 1979-2009 0218

40. Change control and
the Performance
Measurement Baseline
©Humphreys & Associates, Inc. 1979-2009 0329

41. Effect Of Changes
New Budget
At
Completion
New Baseline
$ Changes
Original Budget
At
Completion
Original Baseline
Time
©Humphreys & Associates, Inc. 1979-2009 0330

42. Budget Baseline Log
Contract Authorized
Target Unpriced Management Undistributed Distributed
Date Description Cost Work CBB Reserve
PMB Budget Budget
(CTC) (AUW)
1/14 ABC Contract 120 - 120 10 110 10 100
1/31 January Summary 120 - 120 10 110 10 100
2/5 Contract Change No. 001 - 45 45 5 40 - 40
P.O. Letter-Additional
2/15 Management Reports - 30 30 - 30 - 30
2/23 P.O. Letter-Motor Redesign - 30 30 - 30 - 30
2/28 February Summary 120 105 225 15 210 10 200
©Humphreys & Associates, Inc. 1979-2009 0338

43. Avoid
Changes to budgets of completed work
Transfer of work without budget or
budget without work
Reopening completed tasks
©Humphreys & Associates, Inc. 1979-2009 0335

44. Implementation Schedule
Q 1 Q 2 Q 3 Q 4
1. Organization & Start up
2. Assessment
3. Design
4. Documentation
5. Training
6. Implementation
7. Review & Validation
©Humphreys & Associates, Inc. 1979-2009 0351

45. The End of Instruction
Reporting EAC
Cutoff
CONTRACT TARGET COST Date
BAC
ACWP
$ $
BCWS
BCWP
TIME
Thank you for your participation
©Humphreys & Associates, Inc. 1979-2009 0567