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    REG NASA-LLIS-1556-2005 Lessons Learned - Earned Value Management.pdf

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    REG NASA-LLIS-1556-2005 Lessons Learned - Earned Value Management.pdf

    1、Lessons Learned Entry: 1556Lesson Info:a71 Lesson Number: 1556a71 Lesson Date: 2005-01-01a71 Submitting Organization: ARCa71 Submitted by: Donald R. Mendozaa71 Authored by: Ronald C WinterlinSubject: Earned Value Management Abstract: The Agency has aggressively committed to pursue performance tracki

    2、ng 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 contra

    3、ctors 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 actuals. This was prior to implementation of an Agency-wide generic full cost accounting syste

    4、m. 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 organizatio

    5、n 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 that

    6、 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 and h

    7、uman), 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 con

    8、tractor EV information, as mandated by contract dollar value at the time. Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-Lesson(s) Learned: Specific lessons from the AATT Projects attempt at EVM: A. Within the Control of the Project: Project formula

    9、tion needs to start with a detailed project Work Breakdown Structure (WBS) to identify the work packages to be tracked. The WBS must be developed with as much detail as possible. It should not be constrained from the beginning based on the level of tracking capability or other accounting system rest

    10、rictions. The level of tracking can be less than the level of planning detail, not vice versa. Progress needs to be measured at levels low enough to provide accurate information, yet this may be at levels lower than currently planned. Activities, objectives, exit criteria, deliverables and performan

    11、ce 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. Each work package to be tracked must have a separate funding cost account to enable the Actual Cost of Work Planned (ACWP) earned

    12、value metric to be calculated. Quantifiable, objective measures of work package progress are often better than subjective estimates of percent complete, yet they cost more to identify and regularly measure. B. Outside the Control of the Project: Project managers need to be provided with reliable lab

    13、or and overhead rates for each civil servant employee working on the project in order to accurately capture civil servant costs. A projects earned value system should not have to account for, or be held accountable for, organizational taxes or Center taxes, which do not directly contribute to the sa

    14、tisfaction of project objectives. Performing organizations must task both their in-house and out-of-house contractors within the work package structure such that the contractor expenditures can be tracked to specific guidelines as they work. Frequency of re-base lining the plans is dependent upon ou

    15、tside influences such as availability and stability of resources provided versus planned. Congressional budget cuts, earmarks, etc. will force re-base lining. Frequency of re-base lining may be dependent upon having stable requirements, many of which may be provided from outside the project. For exa

    16、mple, the AATT Project supports requirements of the FAA. The FAA often changes these requirements, which then impact the AATT Project plans. Recommendation(s): Actions Required from both within and outside the Project: Provided by IHSNot for ResaleNo reproduction or networking permitted without lice

    17、nse from IHS-,-,- 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 then have to actively participate. Cost account structures and the level of detail to be tracked must support the earned value m

    18、anagement system. Each cost account should have a unique identifier to enable an accurate calculation of the actual cost of work performed (ACWP). Formulating an earned value management system needs to cover the entire project lifecycle, not just the “one year horizon” that is emphasized by the curr

    19、ent 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 system for integrating cost and schedule management and if the objective measures are chosen well, EVM can also integrate technica

    20、l 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 this system. Then there will be the training costs. Next, there will be a cost for projects to adapt their tracking systems to Ea

    21、rned 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 maintaining the system. There will likely need to be procedure changes and possibly more people to manage the system. Some of the

    22、se changes also clash with the culture at some facilities, which will require encouragement from the entire management chain (executive, program/project, and supervisory) until it becomes a part of the culture. NASA may also wish to evaluate whether the full burden of EVM is appropriate for all proj

    23、ects or only for projects that meet certain specific criteria. Evidence of Recurrence Control Effectiveness: N/ADocuments Related to Lesson: NPR 7120.5Mission Directorate(s): a71 Exploration Systemsa71 Sciencea71 Aeronautics Researcha71 Space OperationsAdditional Key Phrase(s): a71 Financial Managem

    24、enta71 Policy & PlanningProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-a71 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-,-,-


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