2611 - Earned Value Management

Question 1

While the __________ identifies the work to be done, the _________ identifies the people who will do the work

Answer 1

• Work Breakdown Structure (WBS)

* Organizational Breakdown Structure (OBS)

Question 2

What is a tool that allows both Government and contractor Program Managers (PMs) to have visibility into technical, cost, and schedule planning, performance, and progress on their contracts.

Answer 2

Earned Value Management (EVM)

Question 3

___________-= BCWP – ACWP

Answer 3

Cost Variance

Question 4

____________= BCWP – BCWS

Answer 4

Schedule Variance

Question 5

______________-= BCWP/ACWP

Answer 5

Cost Performance Index

Question 6

___________= BCWP/BCWS

Answer 6

Schedule Performance Index

Question 7

Contracts of _____ or more require a formal EVM system validation

Answer 7

$50M

Question 8

___________________is an integrated management system; coordinates work scope, schedule, and budget goals, and objectively measures progress towards these goals.

Answer 8

Earned Value Management (EVM)

Question 9

The___________________________________ is the only organization recognized by DoD to perform EVMS Validation.

Answer 9

Defense Contract Management Agency (DCMA)

Question 10

The __________________________is responsible for conducting audit reviews of the contractor’s accounting system policies, procedures, and activities.

Answer 10

Defense Contract Audit Agency (DCAA)

Question 11

For contract’s awarded prior to July 1, 2012, the __________________is a contractually required report, prepared by the contractor, containing performance information derived from the internal EVMS.

Answer 11

Contract Performance Report (CPR)

Question 12

For contracts awarded after July 1, 2012 the _______________________ has replaced the Contractor performance reports and and Integrated Master Schedule (IMS) contractual requirements.

Answer 12

Integrated Program Management Report (IPMR)

Question 13

There are _____ formats for the integrated program management report (IPMR)

Answer 13

7

Question 14

______________ indicates how much over or under budget the project is.

Answer 14

Cost Variance (CV)

Question 15

________________indicates how much ahead or behind schedule the project is.

Answer 15

Schedule Variance

Question 16

________________________measures how efficiently the contractor is performing the work based on the original planned budget.

Answer 16

Cost Performance Index (CPI)

Question 17

What are the three basic elements of performance measurement

Answer 17

• Cost performance
• Schedule considerations
• Accomplishment of technical performance requirements

Question 18

The___________________________ is the sum of the time-phased BCWS for all work, planning, and summary level packages.

Answer 18

Performance Measurement Baseline (PMB)

Question 19

The ____________________ is the contractor’s time-phased plan for accomplishing the work on the contract. It establishes the scope, schedule, and budget targets for the program.

Answer 19

Performance Measurement Baseline (PMB)

Question 20

Performance Measurement Baseline (PMB) development follows a 3 step process:

Answer 20

• Define the work (WBS)
• Schedule the work
• Allocate budgets

Question 21

_______________are management points for planning and control since they represent the work assigned to one responsible organizational element on one program WBS.

Answer 21

Control accounts

Question 22

What are the different methods to measure performance against the Performance Measurement Baseline.

Answer 22

• 0-100 Method: Once job is finished, value is earned (short duration)
• 50/50 Method: Earn 50% when start, earn 50% when completed
• Value Milestone Method: Assign budgets to milestones and earn as each milestone is reached
• Completed or Equivalent Unit Method: Count units being fabricated or completed operations that go into a unit
• Planning Package (Rolling Wave): Lock in budgets prior to beginning work.

Question 23

For the EVM accounting system the PM must be able to account for both labor and ___________ costs

Answer 23

Material

Question 24

What are the two aspects of Labor cost?

Answer 24

• Performance: Did we use more hours than planned to accomplish the work?
• Rates: Did the work cost us more than planned?

Question 25

What are the two aspects of Material cost?

Answer 25

Price: Did the material we used cost more than we planned?

• Usage: Did we use more materials than planned?

Question 26

The _______________________ is a formal review conducted jointly between the government and the contractor to assess the validity of control account budgets, resources, and time phasing. It is mandatory for all EVM contracts

Answer 26

The Integrated Baseline Review (IBR)

Question 27

DCMA performs two major types of EVMS surveillance:

Answer 27

• System Surveillance

* Program / Contract Surveillance

Question 28

Who are the Key DCMA players involved in the surveillance

Answer 28

 EVM Monitor – Inspects to ensure system compliance and monitors metrics to evaluate contract performance
 Administrative Contracting Officer (ACO) – Approves contractor’s EVMS system and ensures contractual EVMS requirements are met
 Program Integrator (PI) (ACAT I/II Programs)- Leads a multi-functional Program Support Team (PST). Takes input from EVM Monitor, ACO and other functional experts (e.g. Quality, Manufacturing, Supply Chain) to provide “insightful analysis” based on all inputs including EVM analysis if contractually required

Question 29

The 32 EVMS guidelines in _______________provide a framework to evaluate the adequacy of a contractor’s EVM system.

Answer 29

ANSI/EIA-748