A Manager's Guide to EVMS

What executives and managers must know about the new Earned Value Management System FAR implementation guidance.

A shirt-sleeve analysis of how managers make decisions based on information and reports generated through an Earned Value Management System.

An Earned Value Management System is simply a sound, logical, practical way to manage a project. It is a management planning tool for integrating a project's scope, schedule, and cost elements into a baseline against which performance and accomplishments can be measured. The System generates variance reports from which managers can evaluate progress and status, forecast project impacts, and take any necessary corrective action. Before managers can meaningfully employ earned value tools, they must have an understanding of the strengths and weaknesses inherent in the methodology. Knowing where to exert effort (and where additional effort makes little difference in the usefulness of the earned value reporting process) is critical. Further a manager's working knowledge of EVMS must be strong enough for the manager to effectively interface with the end customer, understand the customer's requirements and expectations, and manage those requirements and expectations.

Compressed to essence, this is a management course. It emphasizes the need for information in order to make decisions. Managers decry the dearth of good information when making decisions. An EVMS provides information but does not prescribe action or solutions. It provides information from which managers can make better, more informed decisions to ensure that the project is completed, on time, with the best quality and at the lowest cost.

We look forward to your participation.

A Manager's Guide to EVMS Course Curriculum

Introduction and Overview
1. Earned Value Management Systems Defined When EVMS is Required The Purpose of an EVMS
2. What the New FAR Requirements Mean
Planning: The Components of an EVMS
1. Effectiveness of Well-Crafted Proposals Defining & Utilizing an Effective Work Breakdown Structure Negotiating the Contract and EVMS Components Understanding the Importance of the Contract Baseline Integration of Program, Contract, and Financial Management Information Cost Realism Technical Content The Key Players - Creating an Effective EVMS Team
2. Agency Oversight - How Agencies Will Evaluate and Monitor Performance
Planning: Setting Up the Contract
1. Utilizing the Cost Accounting System Understanding the Importance of Detailed Cost Accounting in Line with the Work Breakdown Structure Effectively Managing Cost Accounts from Start to Finish
2. Managing Contract Changes - What Drives the Bottom Line for Both the Agency and the Contractor
Organizing
1. Agency EVM Policies, Initiatives and Requirements ANSI and EIA Standards, International Standards, Other Standards Agency Authorities
2. Flexibility in Procedures Within Standards and Guidelines
Directing
1. Managing Resources - Creating the Effective Team Project Management Best Practices Training and Communicating - What Managers Must Know About the Requirements Compliance - Managing to the Requirements Managing by Exception - Knowing the Allowable Exceptions
2. Quality and Productivity - Ensuring Effective Deliverables
Coordinating
1. Work Scope - Maintaining Scope in an Environment of Constant Change Schedules - Managing Schedule and Variance Issues Costs - Getting the Appropriate Data That You Need Technical Performance
2. Goals Integration - Delivering What is Promised
Reporting
1. Establishing and Negotiating Reporting Requirements - Know the Requirements You Can Manage Understanding the Basics of EVMS Reporting Understanding the Limitations of EVMS Reporting Managing with EVMS - What is Required and What Your Customer Expects
2. Integration of EVMS with Other Management Reporting - the Often Discussed but Rarely Implemented Practice
Managing with EVMS
1. Understanding the EVMS Data - What the Reports Mean Utilizing Appropriate Performance Indexes Understanding Schedule and Cost Indexes
2. Analyzing Variances and Taking Corrective Action - Timely Reaction and Mitigation
Compliance With the New Rules
Conclusion: Guidance for Managers

The Course Faculty

Terry A. Carlson
Terry Carlson is a Principal in the Consulting Practice of KTE Consulting, a Washington, DC area firm. His practice entails advising clients on the application and interpretation of rules, regulations, guidelines, and cost accounting standards applicable to government contractors. Mr. Carlson also provides advice on the development and deployment of strategic and tactical systems to assist contractors to successfully perform the functions of program management, risk management, and contract administration at program and corporate levels.

For 20 years, Terry was President of his own firm, T.A. Carlson & Company, providing consulting services to the contracting community. Prior to establishing his own firm, he was a Professor of Financial Management at the Defense Systems Management College. Mr. Carlson served as an assistant professor of accounting at Villanova University, where he taught courses in accounting and management information systems.

Terry has also served as a Staff Finance Consultant for a major defense contractor, where he assisted in proposal preparation, developing divisional budgets, and responding to Defense Contract Audit Agency queries. He also served as an auditor with the Defense Contract Audit Agency where he was responsible for evaluating contractor submissions to ensure that they were prepared in accordance with applicable regulations and standards.

Chad T. Braley
Chad Braley is a Principal at Capital Edge Consulting Inc., specializing in government contract services. Chad works primarily with government contractors, providing cost accounting services, business process reengineering, contract administration support, program management best practices, ERP implementation support, and other consulting services in a wide range of industries, including manufacturing, professional services, nonprofit, insurance, construction, and information technology. He has supported his clients in successfully defending allegations of both Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) noncompliance. Chad has extensive experience in indirect rate development, cost allowability and allocability, uncompensated overtime, proposal and estimating support, audit support, labor rate development, risk management, and FAR and CAS applicability, compliance, and interpretation. Chad has taught many courses for nationally recognized government contracting education firms as well as for individual clients.