REG NASA-LLIS-1562--2005 Lessons Learned Earned-Value Management.pdf

1、Lessons Learned Entry: 1562Lesson Info:a71 Lesson Number: 1562a71 Lesson Date: 2005-01-01a71 Submitting Organization: ARCa71 Submitted by: Ronald C. Winterlina71 Authored by: Ronald C. WinterlinSubject: Earned-Value Management Abstract: The Agency has aggressively committed to pursue performance tra

2、cking such as Earned Value Management (EVM). However, given the constraints of operating within the restrictions and limitations of a government agency, EVM can be very difficult and in some situations impossible to attain. The AATT Project made a serious attempt to implement EVM and both ATMSDI con

3、tractors reported monthly EVM status to the AATT Project Office. Additionally, the Project Office hired an EVM subject matter expert and attempted to track EVM utilizing in-house civil service labor plans and acturals. This was prior to implementation of an Agency-wide generic full cost accounting s

4、ystem. The AATT effort proved to be labor intensive and would have required creation of over 100 individual job order (account) numbers in the Ames financial system alone in order to accurately capture and track individual task level work plans and actuals. In fact, Ames financial management organiz

5、ation did not react favorably to the prospect of so many cost accounts for a number of reasons (additional workload being one). Without the necessary level of detail in collecting planned and actual expenses, Earned Value Management effectiveness becomes severely compromised. The AATT Project found

6、that the level of information gained did not justify the workload placed on the task leads and/or PIs or the AATT Systems Management Staff. The overall lesson learned is that if Earned Value is to be effective, Center and Agency foundations in terms of accounting systems, resources (both financial a

7、nd human), tools, and cultures need to be supportive and made fully available. Description of Driving Event: No specific triggering event or mandate here. The AATT Project management staff decided to make an effort on its own to develop an in-house EV system that would work with the required ATSDM c

8、ontractor EV information, as mandated by contact dollar value at the time. Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-NA Additional Key Words: AATT FAA Documentation Requirements Headquarters WBS Re-baseline Lesson(s) Learned: (Specific lessons

9、from the AATT Projects attempt at EVM) 1. Within the Control of the Project: a. Project formulation needs to start with a detailed project Work Breakdown Structure (WBS) to identify the work packages to be tracked. b. The WBS must be developed with as much detail as possible. It should not be constr

10、ained from the beginning based on the level of tracking capability or other accounting system restrictions. c. The level of tracking can be than the level of planning detail, not vice versa. d. Progress needs to be measured at levels low enough to provide accurate information, yet this may be at lev

11、els lower than currently planned. e. Activities, objectives, exit criteria, deliverables and performance measures need to be identified early and documented with as much detail as possible. One cannot measure progress if one does not know what they are trying to achieve. f. Each work package to be t

12、racked must have a separate funding cost account to enable the Actual Cost of Work Planned (ACWP) earned value metric to be calculated. g. Quantifiable, objective measures of work package progress are often better than subjective estimates of percent complete, yet they cost more to identify and regu

13、larly measure. 2. Outside the Controls of the Project: a. Project managers need to be provided with reliable labor and overhead rates for each civil servant employee working on the project in order to accurately capture civil servant costs. b. A projects earned value system should not have to accoun

14、t for or be held accountable for, organizational taxes or Center taxes, which do not directly contribute to the satisfaction of project objectives. c. Performing organizations must task both their in-house and out-of-house contractors within the work package structure such that the contractor expend

15、itures can be tracked to specific guidelines as they work. d. Frequency of re-base lining the plans is dependent upon outside influences such as availability and stability of resources provided versus planned. Congressional budget cuts, earmarks, etc. will force re-base lining. e. Frequency of re-ba

16、se lining may be dependent upon having stable requirements, many of which Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-may be provided from outside the project. For example, the AATT Project supports requirements of the FAA. The FAA often changes

17、these requirements, which then impact the AATT Project plans. Recommendation(s): (Actions Required from both within and outside the Project) 1. Most personnel on the project must be trained in both the generic earned value approach and how it is specifically to be applied within the project. They th

18、en have to actively participate.2. Cost account structures and the level of detail to be tracked must support the earned value management system.3. Each cost account should have a unique identifier to enable an accurate calculation of the actual cost of work performed (ACWP).4. Formulating an earned

19、 value management system needs to cover the entire project life cycle, not just the one-year horizon that is emphasized by the current financial metrics, as this leads to inefficient use of resources, contracting, and ultimately costs the project in performance.Earned Value Management can be a good

20、system for integrating cost and schedule management and if the objective measures are chosen well, EVM can also integrate technical management. But there is a cost for implementing this system. First, there will be a cost to the Agency and Centers to put the accounting foundation in place to support

21、 this system. Then there will be the training costs. Next, there will be a cost for projects to adapt their tracking systems to Earned Value Management. For some projects, this will not be too difficult. For others, their current structure may need a major redesign. Finally, there will be a cost for

22、 maintaining the system. There will likely need to be procedure changes and possibly more people to manage the system. Some of these changes also clash with the culture at some facilities, which will require encouragement from the entire management chain (executive, program/project, and supervisory)

23、 until it becomes a part of the culture. NASA may also wish to evaluate whether the full burden of EVM is appropriate for all projects or only for projects that meet certain specific criteria. Evidence of Recurrence Control Effectiveness: N/ADocuments Related to Lesson: NPR 7120.5Mission Directorate

24、(s): a71 Exploration SystemsProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-a71 Sciencea71 Aeronautics Researcha71 Space OperationsAdditional Key Phrase(s): a71 Financial Managementa71 Policy & Planninga71 Program and Project Managementa71 Risk Management/AssessmentAdditional Info: Approval Info: a71 Approval Organization: ARCProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-