Integrating_SE_with_EVM - BEST PRACTICES Integrating...

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BEST PRACTICES± Integrating Systems Engineering± with Earned Value Management± P rogram managers (PMs) expect their supplier’s earned value manage- ment system (EVMS) to accurately report the pro- gram’s integrated cost, schedule, and technical performance. How- ever, EVM data will be reliable and accurate only if the right base measures of technical perfor- mance are selected and if progress is objectively assessed. If you are measuring the wrong things or not measuring the right way, then EVM may be more costly to administer and may pro- vide less management value. During my experience monitor- ing EVM on many programs, I often observed programs that were behind schedule in terms of validating requirements, com- pleting the preliminary design, meeting weight targets, or deliv- ering software releases that met the requirements baseline. Yet 100 percent of earned value was taken and reported, in compli- ance with the industry standard for EVMS, because the EV com- pletion criteria were not based on technical performance or Paul J. Solomon ± were not defined clearly and unambiguously. Further- more, during technical reviews, some of these adverse conditions were not described as problems or issues. They were classified as risks towards achieving subsequent ob- jectives. EVM can be more effective as a program management tool if it is integrated with technical performance and if the EVM processes are augmented with a rigorous sys- tems engineering process. The recommendations that follow are based on lessons learned from major programs and on observing the processes of major contractors and subcontractors. Guidance is provided for PMs to ensure that reported EV is a valid indicator of technical perfor- mance. Pre-contract and post-contract actions are rec- ommended to implement performance-based earned value that is quantitatively linked with: • Technical performance measurement (TPM) • Progress against requirements Solomon manages EVMS within the Northrop Grumman Corp., and is a visiting scientist at the Software Engineering Institute. He won the DoD David Packard Award with the team that wrote EVMS. He holds a bachelor’s degree and a master’s in business administration from Dartmouth College and is a project management professional (PMP). Defense AT&L: May-June 2004 42
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• Development maturity • Exit criteria of life cycle phases • Significant work packages and work products. Guidance for getting more value out of earned value is consistent with the Department of Defense (DoD) Risk Management Guide (Guide), the Interim Defense Acqui- sition Guidebook (IDAG), and with industry standards that have been adopted by the DoD: • Processes for Engineering a System (EIA 632) • Standard for Application and Management of the Sys- tems Engineering Process (IEEE 1220) • EVMS (ANSI/EIA-748-A-1998). Additional guidance is consistent with the Capability Ma-
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This note was uploaded on 11/22/2009 for the course ISE 627 taught by Professor Componation during the Fall '08 term at University of Alabama - Huntsville.

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Integrating_SE_with_EVM - BEST PRACTICES Integrating...

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