PS-24 Successful Path to DCMA EVMS Validation
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1 IPMC 2012 PS-24 Successful Path to DCMA EVMS Validation Kevin Fisher Orbital Sciences Corporation , Kevin Fisher on LinkedIn December 11,
2 Learning Objectives Understand the Path that Orbital used to Achieve EVMS Validation from DCMA the First Time Through Determine if Orbital s Methodologies can Benefit your Organization's Validation Project and/or Continuous Improvements Efforts 2
3 Agenda Group Survey Understanding Contract Requirements Self Assessment and Customers Building People System Tools & Architecture Processes & Documentation Demonstrating Validation Review Preparation Validation Review Experience Decisions and Discussions Reflecting DCMA Observations Lessons Learned Questions 3
4 Group Survey Who is Responsible for Performing EVMS in their job? Do you Submit Customer Deliverables (IMS and/or CPR)? Does your Contract Require EVMS Compliance? Does your Company have an Accepted EVMS? Is Anyone in a Company Preparing for a Validation Review? Has Anyone Been on a Team that Supported a Validation Review? Did the Company Get Ready Before the Potential Award? 4
5 Contract Requirement for EVMS DoD Earned Value Management Implementation Guide 5
6 Self-Assessment and Customer Expectations 3 Operating Groups LSG 1998 Advance Agreement SSG Commercial APG Mix of Customers and Requirements Dulles Campus Heritage & Culture 6
7 PMI Conference (Nov08) Best Practices Joint NDIA/DCMA EVM Center Presentation 7
8 DCMA Watch List from PAV 1. PM, CAM ownership, inattention to budgetary responsibilities 2. Work authorization policies and procedures not always followed 3. Budget/data reconciliation issues 4. Lack of integrated management systems 5. Baseline fluctuations and frequent replanning 6. Current period and retroactive changes 7. Improper use of Management Reserve and Undistributed Budget 8. EV techniques not reflecting actual accomplishment 9. Untimely, unrealistic Latest Revised Estimates 10. Not monitoring progress in an integrated way 11. Zero budget work packages and control accounts 12. Lack of vertical and horizontal traceability (critical path) 13. Lack of critical subcontractor integration/oversight 14. Material performance and accounting misalignment 15. Not capturing and using cost and schedule data 16. Poor root cause and predictive variance analysis 17. Not tracking corrective actions to resolution 18. Managerial actions not demonstrated 19. Lack of checks & balances (internal controls) and surveillance 8
9 System Architecture APG System Architecture Alignment 9
10 People -Team Success Executives Program / Control Account Management Business Team Project Lead Program Control Planning / Scheduling Material Control Program Finance Business Systems / Cost Mgmt System Expert Contracts Technical Writing Supply Chain / Subcontract Mgmt Accounting Operations Compliance Consultants / 3 rd Party Reviews Internal Surveillance & Audit DCMA Contract Execution Surveillance Functional Management Prime Contractor / Customer Oversight 10
11 People Training & Support EVMS Training Functional Department Humphrey s Fundamentals Class CAM 15-Module Curriculum Supplemental / Special Topics Training Video-Based Mil-Std WBS Sample Program for Tools / Training New Program Kick-off Meeting Support One-on-One CAM / PMO Mentoring (External Support, Peer-to-Peer) Group Mentoring Sessions / Mock Interview Program CAM-Centric Tools ecam Notebook overlays Standard Directory Structure winsight with Custom Views / Filters EVMS System Description Walk-Down and Storyboards CAM / PMO Interview Guide for Customer EVMS / Baseline Reviews CAM / PMO On-Line Assessments and Certification CAM Transition Process for Knowledge / Execution Transfer Professional Development Planning & Scheduling Professional (PSP)- AACE Earned Value Professional (EVP)- AACE Project Management Professional (PMP)- PMI 11
12 System Tools Architecture Proposal Planning Cost Management Reporting Integrated Cost and Schedule Single point of data entry Data moves between system pairs Commercial Products and Custom Solutions Integrity Checks Any resource can produce incorrect data under the wrong circumstances Checks are scalable and continuously improving Consistency Our standard data flow is the nucleus for many of our processes. Similarity between program baseline, month-end processing, and baseline change processes. 12
13 Processes & Documentation Industry Publications were Primary References as Documentation was Developed - Numerous Documents Released by Government & Industry (DoD, NASA, NDIA.) 13
14 Processes & Documentation Management Control System Description CDM-controlled & Submitted to DCMA / DCAA Supported by Progressively More Detailed Operational Docs Process Guides Application Guides Desktop Instructions Business Operation Directives Templates and Instructional Forms Checklists Presentations Developed for Specific Events Training and Professional Development Integrates With Other Documents / Systems Disclosure Statement Cost Estimating System Operating Group and Corporate Policies ISO Documentation and Processes Audited Results and Processes DCMA / DCAA Customer Internal Surveillance Corporate Internal Audit PwC ISO Industry Representation and Presentations 14
15 The Validation Review Getting Ready and Data Drops 3 rd Party Assessment & Interviews Comprehensive Data Drop DCMA Used Data Miner Data Analysis Responses Cross Reference Checklist System Description Decomposed Mock Interviews for All Participants 15
16 The Validation Review Experience DCMA In-Brief & Exit-Brief DCAA Operates Concurrent Review Company Executive Commitment Statement Executives may be Interviewed on Mgmt Reporting Company In-Briefs Program Brief System Overview Business Systems / Data Flow Data Trace / Storyboard Manager / Functional Pre-Completed Interviews Program Manager Control Account Managers Business Manager Risk Manager Scheduling Material Subcontract Manager Accounting & Indirects VR Report / DRs / Contractor Response 16
17 The Long & Winding Road To Acceptance Orbital Followed the 24-Step Process with DCMA / DCAA In Conjunction with External Surveillance on Compliant Programs 4-Years to Our Destination Jan 2008 Kickoff Using Orion Program Jun 2009 Progress Assist Visit / DCAA Initiates Separate Review Mar 2010 Validation Review Canceled due to Orion Termination Jul 2010 F6 Program Termination Dec 2010 VR Notification with Angels as Demonstration Program Angels 6-month Suspension due to Funding / 6-weeks to Resume Apr rd Party Mock Review, DCAA Starts, DCMA Data Drop Jun 2011 Validation Review (2-weeks, 16 Personnel) Jul 2011 Initial Determination Report Received Aug 2011 Initial Determination Response Submitted with DR Actions Nov 2011 Discrepancy Report Actions Accepted Jan 2012 Letter-of-Acceptance / Advance Agreement 17
18 New DCMA Process DCMA is Emphasizing Contractor Preparation as Shown in Compliance Review Instruction Contractor Self- Assessment using DCMA Assessment Tools versus Progress Assist Visit (PAV) mil/39/index.cfm 18
19 Significant Decisions & DCMA Discussion Topics Resource Loaded, Schedule-Driven EVMS Process Requires Enhanced Skill Set within Planning / Scheduling Group Schedule Margin Tasks ACWP at the WP-level / Charge Number Proliferation Subcontractor UB & MR Treatment Consistency Subcontractor BAC and PO Reconciliation by CA MR used to Budget for changes below Contract Threshold Quantifiable Backup Data (QBD) and X/Y Determination Communication Methods Program Addendum, Program Directives & Business Directives Indirect Rate Management, Publication, Thresholds & Variance Analysis Variance Analysis Reports 19
20 DCMA Observations of Orbital Success Demonstrated Upper Management Commitment Attitude was Receptive & Cooperative Resulting in Effective Relationship Quick Responses During VR & Initial Determination Led to Accelerated Closure / Acceptance Modern, Automated Tools with Limited Manual Processes High Level of Data Integrity 20
21 Lessons Learned System Acceptance is a Big Investment Demonstration Program Customer will be Impacted Not a Part-Time Job Staff Properly & Run like a Project Hit Your Deadlines & Make Sure you Pass the 1 st Time Try to have Validation Applicable to All Contract Types (Development & Production) Consultants can be Important to Success but may give Conflicting Guidance Don t let the Debates Continue Pick a Path & Move Forward Prime Contractor Management They are Responsible to Provide Oversight but Don t Let Drive Decisions Supply Chain Flowdowns& Management Suppliers Require Significant Attention Need Experienced, Knowledgeable Personnel on Team Sub Data can Undermine System Validation IBRs & Internal /External Surveillance Needs to be Ready out of the Gate Expect Personnel Turnover in CAM & BusOps Engineers not Generally Receptive Consider Program Control Staff to Bridge Knowledge & System Interface Prepare to Tailor Internal EVMS Reqs for Commercial / FFP programs 21
22 Commit to Continuous Improvement Continuous Improvement and EVMS Maturation are Important Factors in Improving Efficiency, Effectiveness and Competitiveness Performed Repeatable Defined Quantitative Optimized Individual Program Analysis System Surveillance Surveillance Management EVMS Planning Across Programs Program Analysis System Surveillance Surveillance Management Enterprise(corporate/division) Application Program Analysis System Surveillance Quantitative EVMS Enterprise Decision-making with EV Continuous Process Management Innovation 22
23 Questions??? 23
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