1. Sam Padgett presenting for
Kristen Kehrer
KSC Integration Office
321-867-3691
Kristen.C.Kehrer@nasa.gov

2.  What are the differences among EV, EVM,
and an EVMS?
 EVM Budget vs. Funds
 Resources and current initiatives within
NASA

3.  Value of work accomplished expressed in terms of
hours or dollars
 Calculated using an EV method assigned to a
work package, e.g.
 Level Of Effort (LOE) - value is earned based on the
plan; appropriate for work scope with no defined
products
 % Complete – value is earned based on quantifiable
measure of progress
 0/100 – all value is earned upon completion; appropriate
for tasks that start and complete within one month
 50/50 – half of the value is earned when the task is
started and the other half when complete; appropriate
for tasks that span two months with equal work in each
 Milestones – value is earned when milestones are
complete

4. Jan Feb Mar Apr EV Method
WBS # WBS Description 09 09 09 09 Budget
292360.09.02.04.14.02 Hazardous Gas Detection 5,500 9,500 6,800 2,400 24,200 None
System
292360.09.02.04.14.02.A Fire & Leak Detector 3,300 3,300 0/100
Bracket and Stand
Fabrication
292360.09.02.04.14.02.B Distribution Box Wiring 2,200 2,200 4,400 50/50
292360.09.02.04.14.02.C Terminal Distributor 7,300 7,300 0/100
Fabrication
292360.09.02.04.14.02.D Cable Fabrication 6,800 2,400 9,200 % Comp

5.  We are at the end of Jan-09, and this is where we are
 We started the Fire & Leak Detector Bracket and Stand Fabrication
but didn’t finish
 We started the Distribution Box Wiring but didn’t finish
 We started and finished the Terminal Distributor Fabrication
 What is my EV?
Jan Feb Mar Apr EV
WBS Description 09 09 09 09 Jan-09 EV Method
Hazardous Gas Detection System 5,500 9,500 6,800 2,400 9,500 None
Fire & Leak Detector Bracket and 3,300 0 0/100
Stand Fabrication
Distribution Box Wiring 2,200 2,200 2,200 50/50
Terminal Distributor Fabrication 7,300 7,300 0/100
Cable Fabrication 6,800 2,400 0 % Comp

7.  Utilizing this new measure (EV) in project
management decision making to:
 Calculate cost and schedule variances
 Schedule Variance (SV) = EV – Plan (PV, BCWS, or S)
 Cost Variance = EV – Actuals (AC, ACWP, or A)
 Identify significant cost and schedule variances and
their drivers
 Develop corrective action plans to get back on
track
 Forecast future cost and schedule performance
 Summarize the data to support management needs
 EVM is both performance measurement (i.e.,
what is the program status) and performance
management (i.e., what we can do about it)

8. Spend Plan vs. Actual OR Budget vs. Actuals
900
800
800
700
700 Project Budget
600
Dollars
600 Actual Cost to Date
500
500
400
400
300
300
200
200
100
100
0
0
J F M A M J J A S O N D
Time

9. Estimate At
Completion
(EAC)
$K
2,750
Reporting Cut-Off Date
Total Budgeted Cost
} Projected
Overrun
Budget At
2,500 Completion
(BAC)
2,250 Actuals
}
2,000 Plan
Projected
1,750
} CV Slippage
1,500
SV
1,250
1,000
750 EV
500
250
Time (Mos.)
9

10.  We are at the end of Mar-09, and this is where we are
 We finished the Fire & Leak Detector Bracket and Stand
Fabrication
 We are still not finished with Distribution Box Wiring
 We finished the Terminal Distributor Fab.
 We fabricated 6 of 10 cables*
 The actual costs are as follows:
 Jan-09 = $9,000
 Feb-09 = $4,000
 Mar-09 = $10,000
 How am I doing and where will I end up?
* Assume cables are of equal complexity

11.  Our budget through Mar-09 for the Hazardous Gas
Detection System was $21,800
 We spent $23,000, so we are overrunning our plan
by $1,200
$35,000
$30,000 Spending Variance = $-1,200
$25,000
$20,000
$15,000 PV
$10,000 AC
BAC
$5,000
$-
Jan-09 Feb-09 Mar-09 Apr-09

12. $35,000
PV
$30,000
EV
Likely VAC = -$6,182
$25,000 AC
BAC
$20,000
EAC Schedule Variance
$15,000
= -$3,480
Cost Variance
$10,000
= $-4,680
$5,000
$-
Jan-09 Feb-09 Mar-09 Apr-09

13.  The project manager is anticipating that the most likely
scenario is that the remaining work will be finished with
the same efficiency as the past and is predicting to
overrun cost by $6,182. In a best case scenario, the
remaining work will be completed on cost, and the
project will overrun by $4,680.
 The project manager evaluated the remaining work and
thinks that the remaining 4 cables will be fabricated and
the distribution box wiring will be completed in April-
09. The Haz Gas Detection System will finish on
schedule.*
 Using traditional cost management, the cost variance is
significantly understated and no assessment of
schedule can be made.
* SV goes to zero when work is completed

15.  An organization’s internal management systems for
planning and control, including processes for:
 Planning all authorized work scope to completion
 Assigning authority and responsibility at the work performance
level
 Integrating cost, schedule, and technical aspects of the work
into a detailed baseline plan
 Measuring progress objectively (earned value) at the work
performance level
 Accumulating and assigning actual costs
 Analyzing variances from plans
 Summarizing and reporting performance data to higher levels
of management for action
 Forecasting achievement of milestones and completion of
contract events
 Forecasting final contract costs and
 Maintaining a baseline in a disciplined fashion and
incorporating revisions in a timely manner

16.  Every company or government agency uses some form
of business planning and control systems for
management purposes
 When a project is deemed critical, the customer
requires more rigor in the supplier’s internal planning
and control systems to ensure performance data and
forecasts are valid, accurate, and timely.
 The EVMS guidelines have been published as an
American National Standards Institute/Electronic
Industries Alliance standard ANSI/EIA-748, Earned Value
Management Systems
 The guidelines are broad enough to allow for common sense
application
 Most of the basic principles of an EVMS are already inherent in
good business practices and program management
 Suppliers required to produce EV data are required to
be in compliance with, or validated against, ANSI EIA-
748

17.  Define authorized work  Record direct costs from the accounting system
 Identify the Project’s Organization Structure  Summarize direct costs into the WBS
 Integrate cost and schedule systems  Summarize direct costs into the Organizational
structure
 Identify the organization responsible for  Record indirect costs
overhead costs  Identify unit costs, equivalent unit costs or lot
 Integrate the WBS and Organizational structure costs
to create control accounts  Accurate material planning and control
 Sequentially schedule the work  Generate monthly cost and schedule variance
 Identify interim measures of progress data at control accounts
 Explain significant variances
 Establish time-phased budgets
 Identify and explain indirect cost variances
 Identify significant cost elements in the budget
 Summarize data through the WBS and
 Identify discrete work packages Organization
 Sum work packages and planning packages to a  Implement management actions as a result of
control account EVM analysis
 Identify and control Level of Effort  Revise Estimates based on data
 Establish overhead budgets  Incorporate authorized changes in a timely
manner
 Identify Management Reserve and Undistributed  Reconcile budgets with prior budgets
Budgets  Control retroactive changes
 Reconcile target cost goal with the sum of all  Prevent all but authorized budget changes
internal budgets  Document changes

18. The EVMS Process Overview
Define the Work Performance Measurement
Baseline (PMB)
Plan the Work
Quantify & Measure
Earned Value
Work the plan
Collect Results
Change
Measure Work In Process
Control
Analyze Variances
Implement
External Internal
Corrective
Changes
Changes Actions
18

19. Scope
PLAN
Schedule Budget
Budget vs. Funds
19

20. What is Budget? What are Funds?
 Budget is created as an aid to the  Funding is process of supplying
management process money to the project
 Cannot be spent  Known by many names such as
• A number written on a piece of money, funding limits (obligations),
paper (an objective) actuals
• A representation of work  Total costs for entire project
• A planning vehicle • Experienced cost for work
• A temporary element for performed – actuals or ACWP
project control • Expenditures & estimates of
future spending for remaining
project elements
 Can be planned - BCWS  Estimate To Complete (ETC)
 Can be earned - BCWP
 BAC  Estimate At Complete (EAC)
20

21.  Budget
 Budgeted Cost for Work Scheduled (BCWS)
 Time phased budget spread of required resources for the entire task
 Assigned (budgeted) value of the work (at any level; WP, CA, IPT, Project)
 Forms the Performance Measurement Baseline (PMB)
 Budget At Completion (BAC)
 Budgetary number representing ALL authorized work
 Cannot change without a change to scope/technical content, i.e.
requirements change
 Funding
 Estimate To Complete (ETC)
 Funding required to complete remaining work
 When added to ACWP, it results in the EAC
 Estimate At Completion (EAC)
 Funding number representing ALL the money that will be spent
 Can (and will) change without a commensurate change to technical
content
21

22. Project LCCE = Initial Project Budget Baseline
1. Technical Baseline • Performance
Initial Project
Objectives or
Funding Profile
Parameters (e.g.,
(PPBE process)
weight, thrust)
• Project WBS (Commitment /
• CARDe Obligation)
2. Schedule Baseline
• Schedule Objectives
(e.g., IOC, FOC) $
• IMS
Initial Project
• Critical Path
Budget Baseline
• Risk
The time phased
expected costs based
3. Cost Baseline • Cost estimating methods:
on initial cost estimate
• Parametric
100
• Historical
40 • Engineering (Bottom up)
60 • Considerations:
15 • TRLs
• Learning curves
25
• Production rates
30 • Risk, etc. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
30 • Resources include: work
TIME
force (Govt/Support
Contractor, Material, Travel, 22
ODC, Etc.

23. MANAGEMENT RESERVE FINANCIAL RESERVE
 Part of the PBB  Held outside the PBB
 Budget set aside for  Intended to cover
management control project-level overruns
purposes (i.e., for the
known-unknowns)  Typically held by
 Typically belongs to the controller or exec
project manager management
 Ceases to exist at end of
program
23

24.  In EVM terminology, NASA Unallocated Future Expense (UFE) is considered
a Financial Reserve (funding) and not Management Reserve (Budget)
NASA EVM Project
CONGRESS
PROGRAM
& OMB
OFFICE
Agency
Baseline Management
Commitment Baseline -
PROGRAM
UFE
UFE AUW
UFE Management
Reserve
AUTHORIZED Project
AUTHORIZED Undistributed Budget
Budget Base
PMB
Distributed
Budget
Key:
Held Back Funds/Funding Commitment Agreement
Held Back Funds/Funding Management Agreement Chambers/Gibby
07/2010
Not Strictly “Budget,” but should be inviolate
Budget 24

25.  NASA EVMS Website at http://evm.nasa.gov/
 EVM Focal Point at each Center, Headquarters
Mission Directorates, and Headquarters Mission
Support Offices
 Implementation Handbooks
 Integrated Baseline Review (IBR) Toolkit
 Schedule Management Handbook
 Work Breakdown Structure (WBS) Handbook

26.  APPEL
 EVM Overview
 Understanding EVM
 Beyond EVM Basics: Baseline Control, Risk Considerations and
Performance Indicators
 Advanced EVM Topics: Recognizing EVM and Scheduling Gaming, Abuse
and Data Manipulation
 Integrating Cost and Schedule
 Online SATERN EVM Courses
 EVMS Overview
 Control Account Manager (CAM) Discussion
 IBR
 Scheduling Virtual Learning Lab
 Center-level resources
 DCMA Representative for EVMS

27.  Agency EVM Capability Project
 Work scope entails developing a common Agency process
that can be used by all NASA projects
 Data Requirements Document (DRD) Guide for
contracts and projects with EVM requirements
 EVM Working Group Quarterly Meetings

29. “Management 101” “EVM 101”
• Organize • Develop WBS
• Assign responsibilities
• Authorize work
• Plan • Plan, schedule, and budget work
• Coordinate • Integrate project management
functions and scope, cost, and
schedule
• Direct • Analyze performance data and use
for management decisions
• Control • Maintain validity of integrated cost,
schedule, and technical performance
data
29

30. EVM Myth EVM Fact
• Government Requirement • Standard Business Practice
Management Tool
• Burdensome process • Tailorable process based on project
size, complexity, & risk
• “Bean Counter” exercise • “Owned” by entire Management
Team
• Costly to implement • Can be costly NOT to implement
– (Overruns, Project Cancellations)
• Too Much Data • Data can be summarized for reporting
30