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©Humphreys & Associates, Inc. 1979-2009

3111 N. Tustin Avenue, Suite 250Orange, CA 92865

(714) 685-1730 (Phone)(714) 685-1734 (Fax)

Email: [email protected]://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.

All rights reserved.

Humphreys & Associates, Inc.


Presented byGary Humphreys

ofHUMPHREYS & ASSOCIATES, INC.

Daytona Beach, FLFebruary 24-25, 2009

Establishing A Performance Measurement Baseline

(PMB)


The Earned Value Process

• Identify short tasks

• Schedule each task

• Assign a budget to each task

• Measure progress of the tasks

0046


Work Definition

WBS DICTIONARY

Work Breakdown Structure

0091

WBS Index


Electronics system

Prime mission equipment Training

Program management

Hardware Software System integration

Equipment Facilities System engineering

Project .management

Statement of work

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5452

Statement Of Work (SOW)/

WBS Matrix

©Humphreys & Associates, Inc. 1979-2009 0093

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 understandingchanges in scope


Responsibility Assignment Matrix and Control Account Structure

Account

Control Account

StatorAssembly

RotorAssembly

CaseAssembly

FanAssembly

Full ScaleFan Rig

MinorFan Rig

Fan Compressor Turbine

Engine Training

ContractContract Work Breakdown Structure

Man

ufac

turi

ng

Des

ign

Com

pany

Tes

t

Dual SpoolCompressor Rig

Eng

inee

ring

Work Packages

Planning Packages

Mechanical Design

Analytical Design

Drafting and Checking

Control Account

Control Account

Control Account

Control Account

Control Account


Organization Structure Considerations

WorkloadExpertiseAvailability of contractorsScope of workEconomic environment

0101


Control AccountA tool established by or for the owner to monitor the cost and schedule performance of a managerially significant element of the work.

0104


Assure development of an achievable initial project planDocument assumptions, original scope, and planProvide basis for meaningful analysis and trending

Why Have A Schedule Baseline?


Schedule Integration “Schedules Must Tier”

Total Program Level• Customer• Senior management• Program Office

Intermediate Level• Customer• Program Office• Functional management• Control Account Managers

Detail Program Level• Program Office• Functional management• Control account Managers

Item 1 2 3 4 5 6 7Control Account 14Control Account 15Control Account 16Control Account 17Control Account 18

Control Account 16 WP No. 1WP No. 2WP No. 3WP No. 4WP No. 5

0151

Contract/ProgramSchedule

Major eventor FunctionalOrganization

MilestoneSchedule

Control Account and

Work PackageSchedules

Start Stop


Target Price

Performance Measurement

Baseline

Target Profit

Budget Base

Management Reserve

Control Account Budgets

Summary Level

Planning Packages

For Known Effort

Withheld For

Unknowns

UndistributedBudget


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


Provide A Time-Phased Budget

0146

$

$

$ $ $

For each WBS element


By Providing A Time-PhasedBudget for Each Control Account

0147

Task

1

2

3

Total

Schedule Resources

$

$

$

$

$

$

$

$

Control Account


Elements Of The Base And Baseline

0157

Distributed Budget(Control Account)

Distributed Budget(Control Account)

DiscreteWork Packages

DiscreteWork Packages

ApportionedEffort

ApportionedEffort

Level ofEffort

Level ofEffort

PlanningPackagesPlanningPackages


Three Classifications Of Work Measurement

1 . Discrete effort2 . Apportioned effort3 . Level Of Effort (LOE)

0165


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

Work Packages

0168


Work Packages

0169

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


Discrete WorkMeasurement Techniques

Incremental milestones50/50 method0/100 methodEquivalent unitsUnits completePercent complete

0174


Incremental Milestone---Planning

1 42 3

Milestone

1234

Totals

Budget

3001,2001,200

6003,300

0175


Incremental Milestone---Status

43

Milestone

1234

Totals

Budget

3001,2001,200

6003,300

0176

Earned Value

3001,200

00

1,500


Month January February March April Total

1,500 2,000 2,200 1,000 6,700

$150,000 $200,000 $220,000 $100,000 $670,000

Budget Feet

Budget @ $100 per foot

Units Complete---Planning

0184


Units Complete---Status

Month January February March April Total

BudgetFeet

1,500 2,000 2,200 1,000 6,700

Budget@ $100per foot

$150,000 $200,000 $220,000 $100,000 $670,000

QuantityInstalled 1,000 2,000 2,000 1,700 6,700

$100,000 $200,000 $200,000 $170,000 $670,000

0185

Earned @ $100 per foot


Percent CompleteMonth January February March April

Budget 150 185 250 200

Date

BAC785

3 25

Status of work depends upon individual evaluationof work accomplished

0186


Typical Work Activities For Planning Classification

Design drawingsTest specificationsMaterial parts listComponent testFabrication operationPrinted circuit card design

0170

DISCRETE EFFORT


Example Of Apportioned EffortInspection estimated as 10% of related

production Control Account

ProductionControlAccount

200500100

800

InspectionControlAccount

205010

80

ProductionControlAccount

150450150

750

InspectionControlAccount

154515

75

JuneJulyAug

Total

Budget Earned

0193


The Major Resource Questions

Is the project achievable within the time and resource constraints?

Is the project being planned to use resources efficiently?

©Humphreys & Associates, Inc. 1979-2009TIME

BUDGET

CONTRACTTARGET COST

(CTC)

CONTRACTTARGET

PRICE (CTP)REQUIRED FUNDINGPROFILE *

0119

Funds vs. Budget

DOLLARS


Funds vs. ACWP + ETC

TIME

ACTUALS

REVISED FUNDINGFORECAST

CURRENTAUTHORIZED

FUNDING

TIME NOW EAC

ETC

EARNEDVALUE

BUDGET

DOLLARS


Funding Profiles vs. Performance Trend Lines

TIME

EARNEDVALUE

TIME NOW

ETC

BUDGET

ACTUALS

FUNDINGPROFILE

EAC

DOLLARS


Rolling Wave Planning

0200

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

Control Account Time Phased Plan

9 Months All Future Periods

WP No. 1

WP No. 2

WP No. 3Planning Package(s)

Remaining Budget, Schedule& WorkScopeTime Now


Rolling Wave Planning

0201

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

Control Account Time Phased Plan

All Future Periods

WP No. 1

WP No. 2

WP No. 3

Planning Package(s)Remaining Budget, Schedule

& WorkScope

3Months

Time Now

WP No. 4

3Months

6Months


Detailed Planning Becomes Budget When Formally Authorized

0159

Control AccountAuthorization

Contract


Work Authorization And Release

WBS orientationTraceability/hierarchyResponsibility assignmentScope of workScheduleBudgetCharge number

0160


CONTROL ACCOUNT WORK AUTHORIZATION Revision Number: OriginalIssue 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

Schedule (baseline): Start CompletionOriginal: 02/09/Year 1 09/04/Year 1

Revised: __________ __________

Elements Of CostAmount authorized

Prior authorization Current authorization Total BudgetDirect labor hours..............……Contract help hours...........…...

Total hours...............Direct labor $..........................Contract help $........................ Material $.................................Subcontract $...........................Other direct costs $................

Total $...................... - 0 -

- 0 -- 0 -

- 0 -

$ $$

864864

864864

10627

10627

10627

10627

Work statement (including applicable reference documents) (Indicate schedule dates for each item, unless noted above)

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).

SAMPLESAMPLE(continue on reverse side)

Release authority Performance commitmentName Date Name. Date

Page 1 of ___


Subsystem Integration

0120

Organization Level

Scheduling Budgeting

Technical Description/

Work Authorization

Performance Measurement

Program DivisionContract

(milestone) Contract ContractContract

Performance Report (CPR)

Reporting Program Manager

Program Master

Schedule

WAD & Budget Data

Sales Order

Control Account

Responsible/Performing

Manager

Intermediate Schedule &

CAP

Work Authorization

Document (WAD)

Functional Performance Report (FPR)

Work Package

Performing Employee

Control Account

Plan (CAP)

CAM Performance

Report

WBS Level

Contract Performance Report (CPR)

Control Account

Plan (CAP)

WAD & Budget Data

Control Account

Plan (CAP)


Summarize Costs

$ $ $

$$$ $

$ $ORGANIZATION

WBS

0217


Plan Ahead For Orderly Data Collection

Identify needed dataDetermine level of detailDetermine source of each data itemDefine data identification codesDesign formsDesign and write proceduresTrain personnel

0218


Change control andthe Performance

Measurement Baseline

0329


Effect Of Changes

0330

$ Changes

New Baseline

Original Baseline

New BudgetAt

Completion

Original BudgetAt

Completion

Time


120

120

-

-

-

-

45

30

30

105

120

120

45

30

30

225

10

10

5

-

-

15

110

110

40

30

30

210

10

10

-

-

-

10120

Date DescriptionContractTargetCost (CTC)

AuthorizedUnpriced

Work(AUW)

CBB ManagementReserve PMB Undistributed

BudgetDistributed

Budget

1/14

1/31

2/5

2/15

2/23

2/28

ABC Contract

January Summary

Contract Change No. 001P.O. Letter-AdditionalManagement Reports

February Summary

P.O. Letter-Motor Redesign

0338

Budget Baseline Log

-

100

100

40

30

30

200


AvoidChanges to budgets of completed work

Transfer of work without budget or budget without work

Reopening completed tasks

0335


1. Organization & Start up

2. Assessment

3. Design

4. Documentation

5. Training

6. Implementation

7. Review & Validation

Q 1 Q 2 Q 3 Q 4

0351

Implementation Schedule


$ $

TIME

CONTRACT TARGET COST

ReportingCutoffDate

Thank you for your participation0567

The End of InstructionEAC

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BCWS

BCWP

ACWP

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Humphreys.gary