WHAT CAN YOU DO WITH EVMS?
Now
that you're required to embrace EVMS, what can you do with it?
For a
fairly simple-minded management tool (costs, schedule, work performed),
you can actually do quite a bit with it:
It's
"project management for adults," as one person put it. It builds on
project management software, like MS Project and Primavera, to give you
a very good idea of how you're doing in terms of schedule and cost …
and whether you will complete the project over or under budget.
Agency
leaders, even non-quantitative types, get the idea very quickly. EVMS
results can be summarized visually with bulls-eye charts and trend
analyses. Projects that are over budget, behind schedule, or crash
diving into oblivion will be identifiable immediately.
For
government project managers, EVMS can quickly identify which work
packages in the Work Breakdown Structure are causing problems. It is
also a tool for monitoring contractor performance, and EVMS gives the
government mid-level manager some leverage: Shape up, contractor, or
top management will know you're a turkey because of the EVMS results.
On the
other hand, well-managed contracts look really good, and this can be a
competitive edge for winning new business. What's more, financial
executives in contracting firms love it: The project is tracked by the
value of work completed, and you have a pretty good idea of whether the
contract is profitable or headed for doom. For the increasingly popular
firm-fixed price contracts, the EVMS tool is crucial.
Of
course, good management doesn't happen through artificial intelligence.
It takes qualified managers--on both the government and contractor
sides--to use EVMS well. This means a carefully planned work scope,
Work Breakdown Structure, milestones, realistic metrics, and a
realistic cost baseline. Accurate data about the schedule, work
performed, and costs are needed on at least a monthly basis. What's
more, the bottom line is to use the EVMS results regularly to monitor
results and take corrective action. EVMS tools require smart and
experienced managers who are proactive.
For
Exhibit 300s, Circular A-11 requires agencies to use EVMS for DME
investments. So obviously, Section I.H. Funding Plan requires
considerable detail. But EVMS should also tie to the Acquisition Plan,
since major contractors are required to have/use an ANSI/EIA-748
compliant EVMS system. EVMS also is a tool for mitigating Project
Risks, and generally the project risk cost should be monitored in EVMS.
LINKS OF THE MONTH: OMB UPDATES
Go to http://www.feapmo.gov
for updates to
the Federal Enterprise Architecture. There are significant updates
applicable to Budget Year 2006.
Go to http://www.cio.gov/documents/fy2006.html
for guidance about preparing agency Exhibit 53s and 300s. You will also
find the draft FAR clause for major IT contractors.
