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NDIA ANSI EIA 748-A Standard for Earned Value Management Systems Intent Guide

The NDIA ANSI EIA 748 Intent Guide was created by the National Defense Industrial Association – Program Management System Committee to promote a clearer understanding of the ANSI/EIA748A. For each of the 32 earned value management guidelines this Guide provides: the value to management, an intent statement, typical attributes, and examples of objective evidence. The January 2005 version of the ANSI/EIA-748A intent guide adds an Appendix A which contains the 32 templates that are referenced in section 3.

National Defense Industrial Association (NDIA) Program Management Systems Committee (PMSC) ANSI/EIA-748-A Standard for Earned Value Management Systems Intent Guide

January 2005 Edition

© 2004-2005 National Defense Industrial Association (NDIA) Program Management Systems Committee (PMSC). NDIA PMSC ANSI/EIA-748-A Standard for Earned Value Management Systems Intent Guide January 2005 Edition

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............................................................................................ AND BUDGETING ..................................................................................1 INTENT GUIDE TO THE EVMS GUIDELINES ........................................2 2.................................................................................................... SCHEDULING................................. 29 Intent Guideline 25 .............................................. 30 Intent Guideline 26 .................................................................................................................27 Intent Guideline 22 ........................................................ 23 Intent Guideline 19 .......................................................... 10 Intent Guideline 9 .. 14 Intent Guideline 11 .................................................................................................................................. 19 Intent Guideline 15 ................................................................................................ 21 Intent Guideline 17 . 24 Intent Guideline 21 ......................................................................................... 5 Intent Guideline 4 ...................................................................3 Intent Guideline 1 .......................5 i January 2005 ..................... 8 Intent Guideline 7 ......................................................................................................................................................................... 6 Intent Guideline 5 .............. 12 Intent Guideline 10 ............................................................................8 Intent Guideline 6 .............................................................................................................................................................. 31 Intent Guideline 27 ......................................................................................................... 36 Intent Guideline 31 ............................................................................................3 2...................................................................................................................... 22 Intent Guideline 18 ................................................................................................. 4 Intent Guideline 3 ............................................................... 27 Intent Guideline 23 .............................................................................................. 35 Intent Guideline 30 ......................... 38 2.........................................................................................3 2...................................... 6 PLANNING.......................................................21 Intent Guideline 16 .................................................................................................................................................................. 23 Intent Guideline 20 ............ 9 Intent Guideline 8 ............................................1 ORGANIZATION ............................................................................................................................................................................................................................................................................................................................................................... 20 ACCOUNTING CONSIDERATIONS .................................................. 28 Intent Guideline 24 ............................................................................ 3 Intent Guideline 2 .......................4 2.. 16 Intent Guideline 12 ........................................................................... 17 Intent Guideline 14 ................................................................................. 16 Intent Guideline 13 ........................................................................................................ 32 REVISIONS AND DATA MAINTENANCE ......................NDIA PMSC ANSI/EIA-748-A Intent Guide CONTENTS 1 2 PURPOSE AND SCOPE.................................................................... 25 ANALYSIS AND MANAGEMENT REPORTS .........................................34 Intent Guideline 28 ........................................ 34 Intent Guideline 29 .......................................................................................................................................................................................... 37 Intent Guideline 32 .................................

..........40 EXAMPLE COMPLIANCE MAP ........................2 DEVELOPING A COMPLIANCE MAP TO THE EVMS GUIDELINES .....41 APPENDIX A COMPLIANCE MAP TEMPLATE ii January 2005 ...........................................................1 3.........................NDIA PMSC ANSI/EIA-748-A Intent Guide 3 EXAMPLE PROCESS DESCRIPTION COMPLIANCE MAP ...................40 3....

See Section 3 for an example. It is recommended for use in performing an initial compliance assessment and for performing implementation surveillance. Contractor business processes and system documentation be mapped and verified against the guideline intent. Likewise. The primary purpose of this document is to define in detail the management value and intent for each of the guidelines listed in Section 2 of the ANSI/EIA 748 standard. The compliance assessment is verified by a party independent from the documenting party. Section 3 in this document provides an example of a process description compliance map and Appendix A provides a compliance map template that can be used to help a company develop their own compliance map.NDIA PMSC ANSI/EIA-748-A Intent Guide 1 PURPOSE AND SCOPE This intent guide was created by the National Defense Industrial Association (NDIA) Program Management Systems Committee (PMSC) to provide additional insight into the earned value management system (EVMS) guidelines included in Section 2 of the ANSI/EIA-748-A Standard for Earned Value Management Systems. This guide is intended for use by either the government or contractor communities whenever the use of the ANSI/EIA 748 standard is required. 2. The customer must recognize this method as applicable for the compliance assessment verification to have meaning. To use this intent guide as the basis for a compliance assessment or for verifying a business process and system documentation complies with the ANSI/EIA 748 EVMS Guidelines. A contractor who needs to demonstrate that their system complies with the standard can use this intent document to develop a compliance map documenting how their business processes conform to the ANSI/EIA EVMS Guidelines. The objective of the compliance map is to demonstrate that a contractor has thought through each guideline and can describe how their business process complies with the guideline. typical attributes. the NDIA PMSC recommends that: 1. and objective evidence typical outputs described in this document as the basis for verifying compliance to the guidelines. 4. a customer or independent reviewer can use the intent. Section 2 in this intent document describes the typical attributes and objective evidence that can be used to demonstrate ANSI/EIA 748 EVMS Guidelines compliance. The verifying party is versed in the ANSI/EIA 748 EVMS Guidelines. Accompanying the management value and intent definitions is a list of typical attributes and a list of objective evidence typical outputs that can be used to verify compliance with a given guideline. typical attributes. and objective evidence typical outputs described in this document by the process owner. 3. Each intent guideline is numbered for reference purposes. 1 January 2005 .

and surveillance activity in making a management decision to perform a compliance assessment. EVMS scalability is viewed as a spectrum employing the principles of earned value management as fundamental to all programs and the EVMS Guidelines (ANSI/EIA 748 Section 2) as applicable to large complex and/or high risk programs allowing all programs regardless of size and complexity to realize the benefits of earned value management.6 in the ANSI/EIA 748 standard document. compliant business process and system documentation should be implemented on an organization basis instead of program by program. To be most effective. 2 January 2005 . The NDIA PMSC will review and assess the need for revisions to this guide every two years. Customers should consider past acceptance of compliance to the ANSI/EIA 748 EVMS Guidelines.NDIA PMSC ANSI/EIA-748-A Intent Guide 5. see Section 2. the NDIA PMSC Surveillance Guide can be used in combination with this intent guide for this purpose. business organization application policy. For definitions of common terms used in this intent guide. For on-going verification of continued compliance with the ANSI/EIA 748 EVMS Guidelines. This can be accomplished through EVMS scalability.

management and integrated product teams (IPT). WBS elements include a complete definition of work scope requirements. WBS is extended at a minimum to the control account level. scheduling. A WBS dictionary defines the work scope for each element in the WBS. Each item in the WBS is assigned a unique identifier. and reporting purposes that facilitates traceability and provides a control framework for management. documenting the hierarchy and description of the tasks to be performed and relationship to the product deliverables. Management Value The work breakdown structure (WBS) is used as the basic building block for the planning of all authorized work. It ensures the statement of work (SOW) is entirely captured and allows for the integration of technical. The WBS breaks down all authorized work scope into appropriate elements for planning. WBS dictionary (may or may not be used. A work breakdown structure (WBS). The WBS also facilitates communications as it establishes a common frame of reference for customers. work authorization. The WBS is a product-oriented division of project tasks depicting the breakdown of work scope for work authorization. and cost information. WBS contains all contract line items and end items. but a method to reconcile the statement of work to the WBS structure must be demonstrated). tailored for effective internal management control. The WBS must be extended to the level necessary for management action and control based on the complexity of the work. is commonly used in this process. Objective evidence may be found in these typical outputs: • • 3 January 2005 .NDIA PMSC ANSI/EIA-748-A Intent Guide 2 2. Intent Guideline 1 A WBS is a direct representation of the work scope in the project.1 INTENT GUIDE TO THE EVMS GUIDELINES Organization a) Define the authorized work elements for the program. WBS will evolve as the project requirements change. and management control. budgeting. Typical Attributes: • • • • • • Only one WBS is used per project and it contains all project work including revisions for authorized changes and modifications. cost accounting. tracking. WBS identifies all WBS elements specified for external reporting. Work breakdown structure (WBS). schedule. measuring progress. These identifiers can provide a structure for a hierarchical summation of costs and resources.

budgeting. the applicable subcontractor is identified and related to the appropriate WBS element(s) and/or organization charged with acquiring the subcontracted item. The OBS identifies the organization responsible for each segment of work. The OBS helps management focus on establishing the most efficient organization by taking into consideration availability and capability of management and technical staff. Management Value The organization breakdown structure (OBS) is an organization framework for identification of accountability. functions. including subcontracted and intra-organizational effort. scheduling. Organization breakdown structure (OBS). work authorization and cost accumulation processes with each other. accountability. This is called the control account (CA). including subcontractors. Objective evidence may be found in these typical outputs: • • c) Management Value The integration of planning. the program work breakdown structure and the program organizational structure. work authorization. budgeting. and collection of actual costs facilitating management analysis and corrective actions. scheduling. and cost accumulation management processes provides the capability for establishing the performance measurement baseline (PMB). to achieve the project objectives. Major subcontractors are integrated into the program structure. When effort is subcontracted. and as appropriate.NDIA PMSC ANSI/EIA-748-A Intent Guide b) Identify the program organizational structure including the major subcontractors responsible for accomplishing the authorized work. responsibility. An OBS is a direct representation of the hierarchy and description of the organizations established to provide resources to plan and perform the work tasks. OBS intersection with the WBS. Intent Guideline 2 Assign organizational responsibility for the project work. An OBS is used to facilitate the assignment of responsibility. or whatever organization units are used by the company for efficient execution of the program work efforts. and authority for all WBS tasks to be performed. and define the organizational elements in which work will be planned and controlled. management. and approvals of all authorized work scope. Provide for the integration of the company’s planning. Organization elements are work teams. The WBS and OBS 4 January 2005 . Typical Attributes: • • • All authorized work is assigned to organizational elements. The assignment of lower-level work segments to responsible managers provides a key control point for management purposes. identifying work progress.

Control account plans. Establishment of control accounts at the intersection of the WBS and OBS facilitates the linkage between the planning. cost accumulation. work authorization. Indirect costs are for common activities that cannot be identified specifically with a particular project or activity and should typically be budgeted and controlled separately at the functional or organization manager level. The control accounts should be determined by the scope of the management tasks. The work tasks are assigned to a WBS and OBS and are traceable to the scheduling system and the cost collection system. scheduling. Work authorization. authorization of work. budgets. intermediate and summary project plans that include schedules. Performance reports by WBS and OBS. intermediate. Intent Guideline 3 Integrate the technical. and cost elements of the project through detailed. Therefore. For example a cross-reference between the statement of work and the WBS. Responsibility assignment matrix (RAM). 5 January 2005 . and performance measurement processes. WBS and OBS. Typical Attributes Provide a logical framework that links the products of the management processes through common data elements. schedules tasks and performance measurement tasks. Objective evidence may be found in these typical outputs: • • • • • • • • Master. Statement of work. Identify the company organization or function responsible for controlling overhead (indirect costs). budgeting. and detail level schedules. d) Management Value Visibility into direct and indirect costs is essential for successful management of a project. schedule. and accumulation of costs consistent with the budget plan.NDIA PMSC ANSI/EIA-748-A Intent Guide allow summarization of cost data from the detail level through the WBS and OBS to the appropriate project level needed for management insight and control. it is important to have a documented process and organizations established specifically to manage and control indirect costs. detail schedules and control account plans. Manufacturing requirements planning (MRP) or enterprise requirements planning (ERP) operational schedules.

NDIA PMSC ANSI/EIA-748-A Intent Guide Intent Guideline 4 Clearly identify managers who are assigned responsibility and authority for controlling indirect costs including overhead. and performance measurement. and general administrative (G&A) costs. identifies element of cost (labor. and have the authority to approve expenditure of resources. includes a definition of the effort required. Chart of accounts. Typical Attributes: • • Indirect account structure and organizational assignment/authority level are clearly defined. Provide for integration of the program work breakdown structure and the program organizational structure in a manner that permits cost and schedule performance measurement by elements of either or both structures as needed. o Who is responsible within the organization for establishing overhead budgets and their authorities. and expense is controlled. Document the process for management and control of indirect costs. Intent Guideline 5 Integrate the WBS and OBS to facilitate schedule and cost performance measurement.) and identifies the resources required to do the job. Each control account is assigned a control account manager. Documented process clearly defines: o How overhead resources are assigned. Objective evidence may be found in these typical outputs: • • • Cost accounting standards (CAS) disclosure statement. This intersection results in designation of a focal point for management control. budgets are established. The control account manager is responsible for ensuring the accomplishment of work in his or her control account and is the focal point for management control. e) Management Value Integration of the WBS and OBS establishes the control account where the performance measurement necessary for project management is performed. etc. It is also the initiation point for work authorization. burden. The control account identifies the plan for work task accomplishment. the control account manager (CAM). Organizational chart. material. The control account is the point where the WBS tasks and OBS responsibility intersect. 6 January 2005 . It is defined as the point where a single functional organization or integrated product team has responsibility for work defined to a single WBS element. performance management.

Control account clearly identifies any supporting activities.NDIA PMSC ANSI/EIA-748-A Intent Guide Typical Attributes: • • • Single control account is visible at the intersection of the WBS and OBS. Responsibility assignment matrix (RAM). Objective evidence may be found in these typical outputs: • • 7 January 2005 . Control accounts. The performance elements of cost are evident.

accomplishment criteria. and to forecast completion dates for remaining work. but there must be horizontal and vertical integration through the framework of the WBS and OBS. Government development programs typically schedule the discrete authorized work through the use of a network. to ensure that the schedule supports the project objectives. and monitor progress of the work. and Budgeting a) Schedule the authorized work in a manner which describes the sequence of work and identifies significant task interdependencies required to meet the requirements of the program. statusing. Production programs typically schedule using an MRP or ERP tool employing a line of balance schedule that supports the project objectives. Typical Attributes: An integrated network scheduling system has the following characteristics: • • • Distinct tasks that can be summarized by WBS/OBS identifiers to track progress and measure performance.NDIA PMSC ANSI/EIA-748-A Intent Guide 2. and project decision points are identified and are being used to plan. schedule. allow managers to evaluate actual progress against the established baseline. and reflect a logical sequence of events. Management Value Scheduling authorized work facilitates effective planning. and cost aspects of the project results in the expected sequence of work. and/or decision point. and forecasting which is critical to the success of all projects. analyzing variances. Intent Guideline 6 The scheduling process documents and the resulting project schedule provides a logical sequence of work leading to a milestone. 8 January 2005 . The integration of the technical. No specific scheduling software is required.2 Planning. Scheduling. contractual events. Schedules add a timeline to the project plan to accomplish the technical scope. It is essential for monitoring progress. The longest path (typically called the critical path) represents the shortest project duration. include all key events. event. significant interdependencies are established that determine total work time and related longest path through the project. The schedule describes the sequence of discrete authorized work and their significant task interdependencies. The master schedule must agree with the project objectives. There is a clear definition of what constitutes commencement and completion of a task. The schedule reflects all the time phased discrete work to be accomplished that is traceable to the WBS and the statement of work. and through the creation of relationships among tasks. status. Critical target dates. and tracking corrective actions to ensure that all team members are working to the same project schedule. project milestones.

or planned order reports. A sufficient number of interim measures will be 9 January 2005 . or other indicators that will be used to measure progress.NDIA PMSC ANSI/EIA-748-A Intent Guide • The schedule describes the sequence of work through use of the significant interdependencies that are indicative of the actual way the work is accomplished and link key detail tasks with summary activities and milestones. • • • • • • • Objective evidence may be found in these typical outputs: • • • • b) Management Value Objective indicators enable measurement of work accomplished. The schedule network relationships can support the development of a critical path for development projects. events. Work authorization documents. technical performance goals. In a development environment. Task durations and estimates are meaningful and are relatively short (short duration tasks are preferred and should be reflective of the ability to manage). intermediate (if any). Intent Guideline 7 Identify objective interim measures within tasks to enable accurate performance assessment each month. milestones. and detailed schedules. MRP or ERP schedules. It enables the team to predict when milestones. Resource estimates from the budget plan are reasonable and are available to support the schedule. Meaningful performance metrics enable better management insight and decision making ensuring that maximum time is allowed for management action to keep the project on plan. thereby allowing accurate comparison to planned work. The baseline is reasonable to achieve project requirements as demonstrated through schedule analysis techniques. The baseline schedule is the basis for measuring performance. and program decision points can be expected to occur. These tasks will align with the objective interim measures within long work packages to enable accurate performance assessment. lower tier schedules must contain specific task start and finish dates that are based on physical accomplishment and are clearly integrated with program time constraints. The master schedule includes key program and contractual requirements. Longer tasks need objective interim measures to enable accurate performance assessments. Integrated schedules including master. The schedule provides current status and forecasts of completion dates for all discrete authorized work. Identify physical products. Control account plans which are detail schedules.

These measures are necessary to substantiate technical achievement against the schedule plan and justify progression to the next task. It represents the cumulative. at the control account level. Integrated schedules including master. The PMB should be in place as early as possible 10 January 2005 . time-phased. Objective evidence may be found in these typical outputs: • • • c) Management Value The time-phased performance measurement baseline that represents the planned scope of all authorized work and schedule provides the program manager a reference to assess project performance. The establishment. Control account plans (may be separate plans or detail schedules). MRP or ERP production planned order reports. Initial budgets established for performance measurement will be based on either internal management goals or the external customer negotiated target cost including estimates for authorized but undefinitized work. maintenance. On government contracts. This is called the performance measurement baseline (PMB). and detailed schedules. Intent Guideline 8 The assignment of budgets to scheduled segments of work produces a plan against which actual performance can be compared. Interim milestones and lower tier tasks serve as indicators of progress against which progress is monitored by the control account manager. if an over-target baseline is used for performance measurement reporting purposes. It is controlled and reconciled to the target cost plus authorized unpriced work less management reserve. and use of the PMB are indispensable to effective performance measurement. Accurate schedule status depends on the selection of objective measures of progress to indicate work completion. Budget for far-term efforts may be held in higher level accounts until an appropriate time for allocation at the control account level. Establish and maintain a time-phased budget baseline. A key feature of an interdependent schedule is that it establishes and maintains the relationship between technical achievement and progress statusing. budgeted cost for work scheduled. limiting the subjectivity of work accomplished.NDIA PMSC ANSI/EIA-748-A Intent Guide defined after the detailed schedule is established to ensure performance is measured as accurately as possible. prior notification must be provided to the customer. intermediate (if any). The performance measurement baseline is a key tenet of earned value management. against which program performance can be measured. Typical Attributes: • • Objective completion criteria are determined in advance and used to measure progress to determine achievement of milestones or other indicators. Interim measures will be based on the completion criteria developed for each increment of work to provide a basis for objectivity.

all the work will be planned by specific organizational elements to the control account level. with the remaining effort and budget planned in summary level planning packages or maintained in undistributed budget (UB). Until definitization. and performance measurement. The budget for this effort must be identified specifically to the work for which it is intended. Under these circumstances. is essential for each organization responsible for performing project effort. schedule or both). the detail work packages are planned as far in advance as practicable and planning packages are identified for the remaining work. Work should not commence until an initial detail plan is put in place. the contractor will give advance notification to 11 January 2005 . and/or adjusting variances (cost. Summary level planning packages may be utilized until the information needed for detail planning becomes available. situations may arise whereby available budgets for the remaining work are insufficient to ensure valid performance measurement. and any indirect costs for all authorized work. to the end of the contract. replanning in-process work. When that information is available. The PMB includes direct hours/dollars. For authorized. be time-phased. work control. its value periodically assessed.NDIA PMSC ANSI/EIA-748-A Intent Guide after project award or authorization to proceed (ATP). The resulting value is referred to as an overtarget baseline (OTB). unpriced work. the contractor will continually plan the near term work. Any control accounts that cannot be established in the initial planning effort have the critical defining event(s) necessary for planning identified and made an item of continuing management interest. Establishment of an over-target baseline may entail replanning future work. the contractor will plan and budget near-term effort in control accounts. a requirement may exist for the total budget allocated to work to exceed the recognized contract budget base (CBB). directly tied to an established scope of work. A thorough analysis of contract status is necessary before the implementation of an overtarget baseline. at least at a summary planning level. The maintenance of realistic budgets. The relationship of individual work tasks with the time-phased resources necessary to accomplish them is established at the control account level. The PMB represents the formal plan of each control account manager to accomplish all the work assigned in the amount of time allotted and within the amount of budget authorized. any budget remaining in undistributed budget will be planned and budgeted within control accounts as soon as practical. After definitization. Control accounts should be planned. The contractor must perform a detailed estimate of all costs necessary to complete the remaining effort. This allows the project to increase the amount of budget for the remaining work to a more realistic amount to adequately provide for reasonable budget objectives. The PMB is a vehicle for comparison of work accomplished with work scheduled. When it is clearly impractical to plan authorized work in control accounts. Eventually. budget and work will be identified to higher WBS or organizational levels for subdivision into control accounts at the earliest opportunity. If the difference between the estimated cost to complete and the remaining budget is significant. and controls established to ensure this budget is not used in performance of other work. During the life of a project. direct material dollars. other direct charges. Planning horizons can be used to establish reasonable control account level assignments of work and budget. and actual cost with value of work performed.

Customer notification of an over-target baseline. the new baseline becomes the basis for future performance measurement. Since control account budgets and schedules also establish the constraints required for baseline control.NDIA PMSC ANSI/EIA-748-A Intent Guide the appropriate parties of the need to increase the remaining budgets. Control account budgets reflect the planned resources to perform the requirements and can exceed the contract budget base when an over-target baseline is employed. Objective evidence may be found in these typical outputs: • • • • • • d) Management Value An essential part of project planning and establishing a performance measurement baseline is the establishment of budgets for all the work authorized. It is important to include all resources required to accomplish the work scope. material. PMB reflects the budget value for the work scope in control accounts and higher level summary planning accounts. Establish budgets for authorized work with identification of significant cost elements (labor. subcontract. It is important to ensure that both internal management and the customer have a common understanding of the over-target baseline’s impact on the performance metrics.) as needed for internal management and for control of subcontractors. and other direct costs). Identification of the budget cost elements documents the required resources and integrates work scope with the performing organization. Intent Guideline 9 Through a work authorization process. establish budgets for all authorized work and identify the work to be done by the responsible organizational elements. Control account plans. etc. material. The control accounts identify the appropriate cost elements (labor. Summary level planning packages. Work authorization document. Undistributed budget logs. Budgets and schedules are established and approved for all the authorized work at the control account level. time phased consistent with the integrated schedule. When the contractor and customer project managers are satisfied that the new baseline represents a reasonable plan for completing the contract. Performance measurement baseline. care must be exercised in the establishment of control account budgets 12 January 2005 . Typical Attributes: • • • PMB reflects the work scope.

hours or other measurable units.. In addition: 1. Control account/work package plans. Identification of any management reserves or undistributed budget. In general. Need to ensure objective measurement of progress by establishing shorter assessment periods.NDIA PMSC ANSI/EIA-748-A Intent Guide to ensure a viable scope/effort correlation and prevent inadvertent front-loading of the baseline. Budgets are identified by element of cost (i. The budget is based on detailed estimates of the amounts of labor. Rate structures to be applied to the control account resources. When establishing control accounts. Responsibility assignment matrix (dollarized). Differentiation is made between direct cost budgets and those which include indirect costs. Indirect budgets allocated to specific organizations having responsibility for controlling indirect costs. b. and other direct costs). Budgets may be stated either in dollars. Resource plan. Identifies control account budgets that can be summarized to organizational elements. Work authorization documents. 3. materials.e. Identifies the resources needed to accomplish the project and assigning resources to tasks listed in the integrated master schedule. Represents the complete project plan and budget. and other resources required to complete each task. It is necessary to use rates that will provide a valid performance measurement baseline. 2. Control account plans by element of cost. material and/or subcontract dollars. Typical Attributes: • Internal reports. Significant contract events that will be supported by completion of the effort within the control account. Internal reports. Each control account contains resources necessary to complete the assigned effort and budgets reflecting these resources. factors to consider include the: • • • • Natural flow of work at this management control point. direct labor dollars/hours. Budgets established at the control account level must be planned by element of cost. the budget process provides for the following: a. c. Show budgets for each control account and that these budgets are reconcilable to the budget values shown on the latest control account/work package plans and in the work authorization documents. • • • • Objective evidence may be found in these typical outputs: • • 13 January 2005 . Direct budgets allocated to organizations performing the planned work.

such as discrete milestones with preassigned budget values or completion percentages. hours. Where a control account cannot be planned in detail work packages. Responsibility assignment matrix (dollarized). establish budgets for this work in terms of dollars. there could be a single integrated product team responsible with multiple functional disciplines performing the scope of work. work-in-process measurement becomes more subjective. This approach provides meaningful product or management-oriented events for performance measurement. objective indicators of progress. Intent Guideline 10 Effort contained within a control account is distributed into either work packages or planning packages.NDIA PMSC ANSI/EIA-748-A Intent Guide • • • • • • Performance measurement baseline. Each work package will have the following characteristics: • • • It represents units of work at the level where work is performed. Where the entire control account is not subdivided into work packages. When work packages are relatively short. unless objective techniques. interim milestones. and should be natural subdivisions of control account effort resulting in a definable end product or event. As work package length increases. Work packages are single tasks assigned to a performing organization for completion. hours. • 14 January 2005 . or other measurable units. Work package descriptions must clearly distinguish one work package effort from another. A key feature from the standpoint of evaluating accomplishment is the desirability of having work packages that incorporate frequent. It is clearly distinguishable from all other work packages. Resourced schedules if resourced. e) Management Value Budgets established at the work package level identifying specific resource requirements in dollars. It has scheduled start and completion dates and. little or no assessment of work-in-progress is required. or in an integrated product team environment. identify the far term effort in larger planning packages for budget and scheduling purposes. or other measurable units provides the detail for effective execution of the baseline plan. Bills of materials (BOM). as applicable. It is assigned to a single organizational element. The resource is to be time-phased the way the detail work is to be accomplished. the work budget and schedule requirements are held in planning packages. To the extent it is practicable to identify the authorized work in discrete work packages. Resource plan if resources not contained in the control account plans. Undistributed budget logs. all of which are representative of physical accomplishment. subdivide them.

NDIA PMSC ANSI/EIA-748-A Intent Guide • • It has a budget or assigned value expressed in terms of dollars. labor hours. • Work for a given control account that cannot be planned in detail at the outset. A planning package is the logical aggregation of work within a control account. or material items. interim milestones. that can be identified and budgeted in early baseline planning. It is also the cost collection point that identifies the cost elements and factors contributing to cost and/or schedule variances. beyond the detail plan. or other schedules. or other schedules. will be divided into larger segments and placed into planning packages within the control account. have scheduled start and completion dates and. as applicable. have a budget or assigned value expressed in terms of dollars. and is integrated with detailed engineering. Control account plans divided into work packages and planning packages. labor hours. apportioned. or it is level of effort (LOE). or it is LOE. or other measurable units. or it is subdivided by discrete value milestones to facilitate the objective measurement techniques of work performed. Longer tasks need objective interim measures to enable accurate performance assessments. Timephased budgets assigned to planning packages must be supported by a specified scope of work and this relationship must be maintained when detailed planning of the effort occurs. Planning package plans must reflect the manner in which the work is to be performed. that will be divided into work packages at the earliest practical point in time. normally the far-term effort. This is the lowest level in the structure at which the comparison of actual costs to planned budgets and earned value are required. Planning packages are aggregates of future tasks and budgets. Control account schedules when used. They are assigned to a single organizational element. but can not yet be defined into discrete. duration is limited to a relatively short span of time. They are units of work at levels where work is performed and are clearly distinguishable from all other work packages. Its duration is limited to a relatively short span of time. Typical Attributes: • Control account plans (CAPs) represent the work assigned to one responsible organizational element on one program WBS element. • • Objective evidence may be found in these typical outputs: • • • 15 January 2005 . Control account time phased budgets. or level of effort work packages. manufacturing. or measurable units. Work packages represent detailed jobs. manufacturing. It is integrated with detailed engineering.

Planning package budget. Objective evidence may be found in these typical outputs: • • • Control account plan total budget. and scope of work and should realistically represent the work assigned and budgeted to the organizational units. Typical Attributes: Control account plans (CAPs) represent the work assigned to one responsible organizational element on one program work breakdown structure element. In all cases. At no time should a control account manager have a budget with no assigned scope of work. Intent Guideline 12 Each task on the project needs to be assessed using the best method to budget and measure its progress toward completion. the cost collection point that will identify the cost elements and factors contributing to cost and/or schedule performance. Level of effort is defined as having no measurable output or product at the work package level. Level of effort work packages should be separately identified from discrete effort work packages and apportioned effort work packages. the value of the budget assigned to individual work packages and planning packages within the control account must sum to the total value authorized for the control account. Only that effort which is unmeasurable or for which measurement is impracticable may be classified as level of effort. g) Management Value Meaningful product or management-oriented events are critical for performance measurement. Level of effort must be limited to those activities that are unable to be measured discretely to avoid distorting project performance data. the lowest level in the structure at which the comparison of actual costs to planned budgets and earned value are required. Work package budget. Intent Guideline 11 All control accounts must contain a budget. Identify and control level of effort activity by time-phased budgets established for this purpose. Management Value The integrity of the performance measurement baseline is maintained when the budget of the control account equals the sum of its work package and planning package budgets. schedule. Budgets for level of 16 January 2005 . When the budget of the control account equals the sum of its work package and planning package budgets it prevents duplicate recording of budgets.NDIA PMSC ANSI/EIA-748-A Intent Guide f) Provide that the sum of all work package budgets plus planning package budgets within a control account equals the control account budget. therefore. Measurement of level of effort (LOE) activity is impracticable and provides no visibility into actual performance. its use must be minimized.

the control account manager must ensure visibility into the earned value technique for measuring performance of the discrete effort. Control account plans identify level of effort work packages and budgets. because indirect costs account for a major portion of the cost of any project. Indirect costs are for common activities that cannot be identified specifically with a particular project or activity and should typically be budgeted and controlled separately at the functional or organization manager level. Typical Attributes Level of effort work packages contain tasks of a general or supportive nature which do not produce definite end products. or other direct costs. Reflect in the program budgets. Therefore. It is important to have an indirect budgeting and forecasting process. As such. • • Objective evidence may be found in these typical outputs: • h) Management Value Visibility into direct and indirect costs is essential for successful management of a project. When level of effort and discrete work packages are mixed within the same control account. Level of effort budgets should be separately substantiated and planned as direct labor. Intent Guideline 13 Establish indirect (overhead. material/subcontract. and G&A expense) budgets at the appropriate organizational level for each pool and sub-cost element. The earned value for level of effort work packages equals the time phased budget. must be separately evaluated from discrete work packages within the control account. Level of effort should be budgeted on a time-phased basis for control and reporting purposes. burden. and contain time-phased budgets for planning and control. Establish overhead budgets for each significant organizational component of the company for expenses which will become indirect costs. the budgetary control and management of this category of cost cannot be overlooked or minimized. the amounts in overhead pools that are planned to be allocated to the program as indirect costs. 17 January 2005 . it is important to have a documented process and organizations established specifically to manage and control indirect costs.NDIA PMSC ANSI/EIA-748-A Intent Guide effort activity must have a sound basis of estimate and be time phased to properly reflect when work will be accomplished. at the appropriate level. Indirect budgets on the project are established and planned with the established direct budgets consistent with the contractor’s accounting procedures. • • The amount of LOE activity will vary among performing organizations. but it must be held to the lowest practical level.

In order to assure that budget for newly authorized efforts remains tied to the associated scope during the initial planning process. Contractor’s overhead policies and procedures are generally described in the contractor’s system description and represent a rational. Forward pricing forecast (including sales forecast and business base projections). Indirect budget and performance reports. Organizational charts. CAS disclosure statement defines the content and processes of the contractor’s management of indirect costs and generally includes a definition of indirect expenses and overhead pools. Once the responsible organization(s) has been identified. indirect costs are costs which. This ensures budget and scope will not be transferred independently. traceable process. ensures consistent and proper accounting for direct and indirect costs that are applied to government contracts. Chart of accounts. if applicable. the budget will transfer from undistributed budget to the appropriate control account(s). • • • • Objective evidence may be found in these typical outputs: • • • • • • • • i) Management Value Project managers must realize the performance measurement baseline planning process contains risk and identify a management reserve contingency for unplanned activity within the project scope. Documented process for managing indirect costs. Identify management reserves and undistributed budget. direct costs are any cost that may be identified specifically with a particular cost objective. Organizational structure identifying ownership responsibility and authority levels. Indirect cost policies and procedures. Forward pricing forecasts identify projected overhead rates beyond current year. CAS disclosure statement. This facilitates the maintaining of budgets for work accomplished and provides effective performance measurement data for management. because of their incurrence for common or joint objectives. Cost accounting standards (CAS) established by the Cost Accounting Standards Board (CASB). 18 January 2005 .NDIA PMSC ANSI/EIA-748-A Intent Guide Typical Attributes: • Organization charts are generally contained within the contractor’s system description identifying personnel or organizations responsible for maintaining indirect costs. undistributed budget (UB) has been designated as the short term holding account. are not readily subject to treatment as direct costs.

because once it is distributed it ceases to be undistributed budget and instead is incorporated in its relevant control account. it does not form part of the performance measurement baseline. performance measurement baseline.NDIA PMSC ANSI/EIA-748-A Intent Guide Intent Guideline 14 Identify and control management reserve (MR) and undistributed budget. Undistributed budget accounts are to be cleared in a reasonably timely manner. and current value). monthly sources and uses to the control account. It is a transient amount. Objective evidence may be found in these typical outputs: • • 19 January 2005 . monthly sources and uses to the control account. but cannot be identified in advance. Project control logs (management reserve. monthly changes identifying contract modifications. It is recognized that some circumstances. o Undistributed budget (showing month end values. o Contract budget base (showing month end values. monthly changes from/to management reserve and undistributed budget. Because management reserve is budget that is not as yet tied to work. such as delays in contract direction will impact the timely assignment of undistributed budget to work packages. and contract budget base). The management reserve budget should be commensurate with the level of risks identified by the project and/or withheld for management control purposes. Contract performance reports (CPRs). normally within 90 days and prior to work starting. current value). Undistributed budget is budget that is applicable to specific project effort but has not yet been distributed to control accounts. Management reserve is budget for work scope that will arise during the course of the project. if applicable. Because undistributed budget is budget that is tied to work. Undistributed budget accounts are to be assigned to the performance measurement baseline when the work is established in the performance measurement baseline. current value). undistributed budget. • Monthly performance reports to verify starting and ending values are consistent with various logs. Typical Attributes: • Program control logs including: o Management reserve (showing month end values. current value). it does form part of the performance measurement baseline. o Performance measurement baseline (showing month end values.

o Undistributed budget (showing month end values. indirect budgets. performance measurement baseline. current value) reconciled to program target cost. Intent Guideline 15 Reconcile the project value (target cost plus authorized. undistributed budget. o Contract budget base (showing month end values. current value). current value).NDIA PMSC ANSI/EIA-748-A Intent Guide j) Provide that the program target cost goal is reconciled with the sum of all internal program budgets and management reserves. and contract budget base) reconciled to project target cost. The project target cost must be reconciled with the performance measurement baseline and management reserve. if applicable. o Performance measurement baseline (showing month end values. and undistributed budgets. Typical Attributes: • Program control logs including: o Management reserve (showing month end values. monthly sources and uses to the control account. Management Value A project baseline that reflects the common agreement between the two parties provides a common reference point for progress assessment. Contract performance reports (CPRs). Objective evidence may be found in these typical outputs: • • • 20 January 2005 . Internal report showing the summarization from cost account to the performance measurement baseline. It provides recognition of contractual requirements and precludes unauthorized changes to the performance measurement baseline. monthly sources and uses to the control account. unpriced work) with the sum of all control account budgets. monthly changes identifying contract modifications. monthly changes from/to management reserve and undistributed budget. • Contract and modification control logs identifying authorized target cost. management reserves. current value). Project control logs (management reserve.

Of particular interest is the accounting for material (at consumption. The basic requirement is to account for materials in a manner consistent with the way in which materials are budgeted. and other direct costs). Control account actual costs/general ledger reconciliation. summarize direct costs from control accounts into the work breakdown structure without allocation of a single control account to two or more work breakdown structure elements. receipt. and 21 January 2005 . Actual cost reported in the performance reports agrees with the costs recorded in the general books of account (accounting system) or can be explained as timing differences. A project cost-charging structure established in the accounting system ensures that actual costs collected are directly compared with associated budgets for that work.3 Accounting Considerations a) Record direct costs in a manner consistent with the budgets in a formal system controlled by the general books of account. Contractor’s process to ensure actual costs and performance are recorded in the same accounting period. Intent Guideline 16 Accumulate direct costs in the formal accounting system in a manner consistent with the way the related work is planned and budgeted.NDIA PMSC ANSI/EIA-748-A Intent Guide 2. or inventory release). Typical Attributes: • • Contractor’s accounting manual/procedures identifying the methodology of handling various actual costs. When a work breakdown structure is used. Actual costs are reported at the control account level at a minimum. inventory acceptance. and other costs and credits. indirect costs. Timing differences that may occur between accounting system and project performance reports must be reconcilable. Cost collection accounts mapped to the WBS. • • Objective evidence may be found in these typical outputs: • • b) Management Value Actual costs need to be available at all levels of the WBS to support project management with performance measurement data. Reconciliation of project costs with the accounting system. labor. depreciation and capitalization. Management Value Direct cost must be assigned to a project consistent with the budgets for effective performance management. Contractor’s cost accounting standards disclosure statement identifying treatment of direct costs (direct material.

WBS/cost collection mapping. WBS/cost collection mapping showing the relationship between charge numbers and control accounts and/or work packages. 22 January 2005 . When common costs are collected in separate control accounts for like items or services they are allocated to appropriate control accounts in each project. ensures performance measurement data integrity when summarized by WBS. Cost collection accounts mapped to the OBS. The program established cost charging structure will ensure that actual costs are collected so that direct comparison with associated budgets can be made at the appropriate WBS level(s).NDIA PMSC ANSI/EIA-748-A Intent Guide the WBS roll-up structure containing no division/allocation of lower-level cost to multiple higher-level WBS elements. WBS structure (roll-up scheme) showing hierarchy of WBS elements. and work packages. Objective evidence may be found in these typical outputs: • • • • c) Management Value Actual costs need to be available at all levels of the OBS to support project management with performance measurement data. WBS structure (roll-up scheme). Intent Guideline 17 A work order/job order/task code charge number structure must exist that uniquely identifies costs down to the control account level allowing for accumulation and summarization of costs to higher levels. and the OBS roll-up structure containing no division/allocation of lower-level cost to multiple higher-level OBS elements. ensures performance measurement data integrity when summarized by OBS. Summarize direct costs from the control accounts into the contractor’s organizational elements without allocation of a single control account to two or more organizational elements. control accounts. and the WBS roll-up structure contains no division/allocation of lower-level cost to multiple higher-level WBS elements. Cost collection accounts map to the WBS. Cost collection account structure. Allowable costs collected within the control account by element of expense “roll-up” from the control account level through the WBS to the top level without being divided at any level among two or more higher-level elements. Monthly performance report. Typical Attributes: • • • • Cost collection account structure showing charge number hierarchy.

Therefore. Organization charts. The program established cost charging structure will ensure that actual costs are collected so that direct comparison with associated budgets can be made at the appropriate organizational level(s). Allocate them to the recorded direct costs per the documented procedure to assure that all projects benefiting from the indirect costs will receive their fair share. 23 January 2005 . with the exception that this one deals with OBS data summarization while the previous one dealt with WBS data summarization.e. Record all indirect costs which will be allocated to the project. OBS structure (roll-up scheme) showing the relationship of charge numbers to the OBS. This guideline and the one before it are identical. Intent Guideline 19 Record all indirect costs for the project in the accounting system. Responsibility assignment matrix showing the intersection of OBS organizations and WBS elements. Objective evidence may be found in these typical outputs: • • • • d) Management Value Visibility into direct and indirect costs is essential for successful management of a project. OBS structure (roll-up scheme). summarized) to multiple higher-level elements. which is the control account. it is important to have a documented process and organizations established specifically to manage and control indirect costs. Contract performance report (format 2 where required). When common costs are collected in separate control accounts for like items or services they are allocated to appropriate control accounts in each project.NDIA PMSC ANSI/EIA-748-A Intent Guide Intent Guideline 18 Allowable costs collected within the control account by element of expense “roll-up” from the control account level through the OBS to the top level without being divided at any level among two or more higher-level elements. Typical Attributes: • • • • Organization charts showing the contractor’s organizational hierarchal structure. In either case the intent is the same: actual cost collected at the control account level may not be rolled up (i. Responsibility assignment matrix. Indirect costs are for common activities that cannot be identified specifically with a particular project or activity and should typically be budgeted and controlled separately at the function or organization manager level..

allows the flexibility to plan. Where the work is budgeted by unit. WBS/cost collection mapping. WBS structure (roll-up scheme). or lot costs when needed. equivalent unit costs. or lot costs for purposes of measuring cost performance to plan. time-phased budgets/forecast established at same level as cost collection for comparison. Identifies management responsibility for controlling indirect staff and ability to influence indirect costs. 24 January 2005 . each unit’s cost is approximately equivalent to every other unit’s cost). Organization chart. and forecast in a more efficient way when there are multiple projects in the same production line.e. equivalent unit costs. all things being equal. equivalent unit. Identify unit costs. Intent Guideline 20 Identify unit costs. Identifies the allocation base and indirect cost pools by function element of cost. Cost accounting standards disclosure statement. Hierarchy scheme from point of allocation to WBS/OBS to total program level. Accounting procedures showing the responsible organization for incurring indirect cost corresponds to the level of management control and categorizes fixed and variable cost methods of control. Cost collection account structure. or lot costs. ensure that the accounting system produces actual unit. Typical Attributes: • Manufacturing requirements planning (MRP) project cost collection structure. or lot costs when needed. • • • • Objective evidence may be found in these typical outputs: • • • • e) Management Value A manufacturing accounting system capable of isolating unit and lot costs in a production environment. measure performance. on a “mature” production run.. equivalent units. Identifies the chargeable object for all cost centers. it is sufficient to establish “equivalent unit cost” (i. WBS structure (roll-up scheme). Identifies the responsible organization for budgeting and controlling indirect cost. When units are taken off the line in more or less a random order according to the delivery agreements of the different customers’ projects.NDIA PMSC ANSI/EIA-748-A Intent Guide Typical Attributes: • • Cost collection account structure. Cost accounting standards disclosure statement. WBS/cost collection mapping. as appropriate for the work being planned.

as well as distinguishing between recurring (e. Residual inventory provides visibility into excess material for the current deliverables available for replacement of failures in the current project or future projects having similar deliverables. Intent Guideline 21 Material accounting systems must adhere to these three characteristics: 1. travel and expense) costs. Cost performance measurement at the point in time most suitable for the category of material involved. but no earlier than the time of progress payments or actual receipt of material.g. When necessary. the use of estimated actual costs to ensure accurate performance measurement is required. or when material will be used within the same accounting period. 3.g. Expressed in terms of labor. other direct cost. 25 January 2005 . For EVMS. 2. ERP system supports the identification of unit costs. equivalent unit costs. production) and non-recurring (e. acceptable costing techniques (e. or lot cost when needed including differentiation of work in process. the material accounting system will provide for: Accurate cost accumulation and assignment of costs to control accounts in a manner consistent with the budgets using recognized. Project cost collection structure (MRP). acceptable. or lot costs when needed including differentiation of work in process. design.g. Full accountability of all material purchased for the project including the residual inventory.NDIA PMSC ANSI/EIA-748-A Intent Guide • Enterprise requirements planning (ERP) supports the identification of unit costs. or release to work in process that is consistent with the planned budget in the same accounting period that performance is claimed). costing techniques. indirect cost. Objective evidence may be found in these typical outputs: • • f) 1) 2) 3) Management Value Material items consumed in the production of project deliverables are accounted for and progress is measured at the point most closely aligned to the actual consumption. development. material usage. equivalent unit costs. The material accounting system provides full accountability and effective performance measurement of all material (including residual inventory) purchased for the project. performance recorded at receipt of material for high dollar material. material. Material costs must be accurately charged to control accounts using recognized.

e. Control account plans showing time-phased material budgets. Material system reports. Identify accountability for all material purchased for the program including material issues to control accounts. high/low material. The material system needs to account for various methods of charging material cost from inventory in accordance with cost accounting standards inventory costing methods. Performance reports. Control account plans. earned value claimed in same accounting period of actual cost. i. scrap quantity and disposition. material performance recorded no earlier than material receipt. or material consumption. • • Objective evidence may be found in these typical outputs: • • • 26 January 2005 . return of unused material. and last in first out (LIFO).. standard cost. first in first out (FIFO). earned value technique.NDIA PMSC ANSI/EIA-748-A Intent Guide Typical Attributes: • Performance reports showing material cost/schedule variances. weighted average. issue from inventory. and residual inventory. moving average.

generate schedule variance and cost variance data that provide visibility into root causes and establish actions to achieve project completion. Since the control account is the level at which performance measurement is performed. 27 January 2005 . Visibility into project performance helps the project manager to focus resources on those areas in need of attention. 1) 2) Management Value Earned value management system (EVMS) performance data that reconciles to the general books of account (accounting system) and provides for management control. which may be determined by risk. ensure traceability of project performance down to the control account. the accounting system. as a minimum. o Cost variance (CV). Typical Attributes: • Monthly performance report: o Budget. Accurate and reliable EVMS data supports management control needs by allowing the project manager to focus on those areas in need of attention. In order for control account manager’s to have full management control responsibility. However. This comparison provides the schedule variance. o Schedule variance (SV). the project manager must. and accounting efforts but also for the analysis effort as well. analysis should be performed at the most meaningful level of the WBS. they must be able to analyze the work performance and associated costs against the performance measurement baseline. scheduling. critical path. Intent Guideline 22 On at least a monthly basis. Since the control account is normally the lowest level at which management and control responsibility exists for specific WBS increments of work. earned value. to remain viable. periodic basis. Comparison of the amount of the budget earned and the actual (applied where appropriate) direct costs for the same work. the accounting system: Comparison of the amount of planned budget and the amount of budget earned for work accomplished. and actual costs (reconcilable with accounting system). must be accomplished on a regular. generate the following information at the control account and other levels as necessary for management control using actual cost data from. The second intent is to foster analyses and identification of root cause and resulting impacts at the control account level. it is the logical point for not only the planning. or reconcilable with. or be reconcilable with. budgeting. or utilization of thresholds. technical performance metrics.4 Analysis and Management Reports a) At least on a monthly basis.NDIA PMSC ANSI/EIA-748-A Intent Guide 2. All data analyzed must be from. This comparison provides the cost variance. The first intent of this criterion is to establish the fact that analysis.

NDIA PMSC ANSI/EIA-748-A Intent Guide

o Variance at completion (VAR); o Variance analysis narrative (root causes, impacts at completion, and management actions);

Summarized performance measurement data from control account (minimum) through WBS/OBS hierarchy to the program level. Monthly performance report (cost variance, schedule variance, and variance at completion analysis). Variance analysis data (root causes, impacts at completion, and management actions).
Identify, at least monthly, the significant differences between both planned and actual schedule performance and planned and actual cost performance, and provide the reasons for the variances in the detail needed by program management.

Objective evidence may be found in these typical outputs:
• •

b)

Management Value Analysis of deviations from plan for both schedule and cost at least monthly provides management at all levels the ability to rapidly and effectively implement corrective actions to accomplish the project objectives with an understanding of the project risk and the causes of the risk. Schedule variance does not indicate when a completed activity is a critical event or if delays in activity’s completion will affect the completion of the project. A scheduling system provides this data. It is predictive of the final outcome if future performance does not change. Cost variance is predictive of the final cost outcome if the future performance does not change. Comparison of schedule and associated cost impacts establishes an understanding of current project conditions. This understanding may help facilitate corrective actions as necessary. Intent Guideline 23 The purpose of this guideline is to ensure both a time-based schedule management analysis of significant scheduling differences and a budget based cost management analysis of significant performance management baseline variances occurs. Comparing the budget value of work completed to the budget value of work scheduled during a given period of time provides a valuable indication of schedule status in terms of dollars worth of work accomplished. This schedule variance (SV) may not, however, clearly indicate whether or not scheduled milestones are being met, since some work may have been performed out of sequence or ahead of schedule. Schedule variance does not indicate whether a completed activity is a critical event or if delays in an activity’s completion will affect the completion date of the project.

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A formal time-phased scheduling system, therefore, must provide the means of determining the status of specific activities, milestones, and critical events. Schedule analysis must address the time impact to the schedule plan when a significant variance exists. By addressing the time impact for each significant variance a true and representative impact to the schedule plan is quantified. A key concept required to support schedule analysis is to ensure that work is planned in discrete elements that reflect actual accomplishment. This ensures time-based schedule variances are ultimately reported. The analysis should identify potential schedule accomplishment and milestone problems. Typical Attributes:
• • •

Schedule (time-based) and cost (budget based) variances are identified at an actionable level. Cause and impact are identified in sufficient detail needed for project management. Corrective actions are assessed in a timely manner. Variance analyses (budget based schedule variances and cost variances). Management action plans. Updated schedule task completion and cost at completion forecasts. Project schedules and schedule analysis outputs.
Identify budgeted and applied (or actual) indirect costs at the level and frequency needed by management for effective control, along with the reasons for any significant variances.

Objective evidence may be found in these typical outputs:
• • • •

c)

Management Value Ongoing indirect cost analysis provides visibility into potential indirect cost overruns and the opportunity to develop and implement management action plans to meet project objectives. Intent Guideline 24 Indirect rate forecast and control is crucial to meeting project cost objectives. This guideline requires a monthly indirect analysis, at the level of assigned responsibility, comparing indirect budgets to indirect actual costs (with the stipulation that the cause of resultant variance be explained). The importance of analyzing indirect performance requires the exercise of maximum discipline in following indirect procedures. Typical Attributes:

Indirect variance analyses: o Budget to actual comparison by element of cost from management control point up through WBS/OBS to project level;

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o Variance thresholds by overhead category; o Responsible overhead manager identifies root cause (i.e. usage variance, change in business volume, or rate variance due to a change in direct base).

Indirect management action plans: o Corrective action plans identified to reduce or eliminate variance; o Performance metrics.

Objective evidence may be found in these typical outputs:
• • •

Indirect variance analyses. Indirect management action plans. Indirect updated schedule and cost forecasts.
Summarize the data elements and associated variances through the program organization and/or work breakdown structure to support management needs and any customer reporting specified in the project.

d)

Management Value Variances provide an understanding of conditions, allowing the project manager to properly allocate available resources to mitigate project risk. They also identify significant problem areas from all levels of the organization and project scope of work, derived from the same data sources. Variances provide valuable management information. Intent Guideline 25 Use the same data for internal management needs and for reporting to the customer. Since the WBS and the OBS exist as a formal and disciplined framework for a comprehensive roll-up of all data elements, they become the ideal framework for summarizing data from the control account level to the management reporting level. Typical Attributes:
• •

Variance analyses. Internal/external reporting thresholds and narrative analysis providing root cause, impact, corrective action. Schedule and cost performance reports. Schedule variance, cost variance, variance at complete from control account up through WBS/OBS reporting structure hierarchy to total program level. Management action plans. Corrective action plan/mitigation plan, task, milestones, exit criteria, schedules. Variance analyses. Schedule and cost performance reports. Management action plans.

Objective evidence may be found in these typical outputs:
• • •

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Updated schedule and cost forecasts.
Implement managerial action taken as the result of earned value information.

e)

Management Value Earned value information provides management with early insight into the extent of problems. Management action is required to mitigate the impacts on the project objectives. Intent Guideline 26 Assess management actions and modify them as required to achieve project objectives. Earned value data must be utilized by all levels of management for effective project execution. Because of this, the data produced by the earned value management system must be available to managers on a timely basis and must be of sufficient quality to ensure that effective management decisions can be made as a result of its analysis. The project’s internal reports and the reports forwarded to their customer must indicate the overall cost and schedule impacts of such problems on the project. Typical Attributes:
• • •

Follow-up of the implementation to see if what was planned actually got implemented. Reasonableness of the corrective action. Validity of the problem identified. To complete performance index (TCPI). Independent completion estimates. Risk management data and similar metrics. Management action plans and review briefings. Variance analyses.
Develop revised estimates of cost at completion based on performance to date, commitment values for material, and estimates of future conditions. Compare this information with the performance measurement baseline to identify variances at completion important to company management and any applicable customer reporting requirements including statements of funding requirements.

Objective evidence may be found in these typical outputs:
• • • • •

f)

Management Value Estimates at completion (EACs) based on predictive performance measures increase the probability that the project can be executed within the reported EAC. When EACs are analyzed at least monthly and updated as required, the robustness of the financial reporting requirements is enhanced, thereby reducing the potential for surprises. Monthly EAC reviews are essential for management decisions including the planning of project

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future funding requirements. Periodic comprehensive EAC assessment based on common program ground rules is beneficial for projecting future funding. Intent Guideline 27 On a monthly basis, the control account manager should review the status of the expended effort and the achievability of the forecast and significant changes briefed to program management. A comprehensive EAC is accomplished on a periodic basis using all available information to arrive at the best possible estimate at completion. This is done by: a. Evaluating performance to date efficiency achieved by performing organizations for completed work and comparing it to remaining budgets; b. Assessing commitment values for material to complete the remaining work; c. Estimating future conditions to derive the most accurate estimate at completion. Comparisons of this estimate to budgets for the associated effort must be made frequently enough for management to ensure project performance and resource availability will not be adversely impacted. Prudent maintenance of the control account level EAC by the control account manager ensures that the EAC reflects a valid projection of project costs. Typical Attributes:
• • • •

Timely and comprehensive assessments of the effort required for completing all work packages and planning packages in the control account plan. Control account manager updates the EAC to reflect changes in budget and/or integrated master schedule when there is material significance. Time-phased ETC based on an analysis of remaining tasks in the integrated master schedule and projected resource plan. Control account manager should generate the EAC at the work package and planning package level and then sort and summarize by WBS and OBS to the control account level. Contract performance report totals for the EAC should reconcile with the corresponding time-phased resource plan. EACs should consider all emerging risks and opportunities within the project’s risk register (or other similar database) which will impact the integrated master schedule and resource plan for the remainder of the work. EAC results are communicated to the customer in internal reports and in funding documents. Control account plans. Basis of estimates. Risk management plans (identification, mitigation, and opportunities). Operational metrics.

• •

Objective evidence may be found in these typical outputs:
• • • •

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January 2005

33 January 2005 . Estimates at completion.NDIA PMSC ANSI/EIA-748-A Intent Guide • • • Earned value metrics. Material and subcontractor performance data.

budget and authorization to proceed. dollars. Rate changes and economic price adjustments may also be made as appropriate. budget. program directive. In the directed effort prior to negotiation of a change. Incorporating changes will not arbitrarily eliminate existing cost and schedule variances. Work authorization documents authorizing new work scope. It should provide the rationale/justification. WBS (changes if applicable). For unpriced change orders. etc. Management Value Incorporating authorized changes in a timely manner maintains the integrity of the performance measurement baseline. delivery order. Typical Attributes: • Contractual change documents (external). engineering change order.g.) facilitating the change. Basis of estimate (if not yet negotiated).5 Revisions and Data Maintenance a) Incorporate authorized changes in a timely manner. etc. and timely manner.NDIA PMSC ANSI/EIA-748-A Intent Guide 2. and WBS dictionary (additions and/or deletions to scope). recording the effects of such changes in the budgets and schedules. if not already captured by the internal change request process. undistributed budget justification. estimate at completion. May take various forms. Change control logs including management reserve justification. schedule. change order. dollar amount and receiving WBS. Contractor’s internal earned value management system documentation (e. and schedule.). and contract budget base total. the contractor will develop its best estimate for planning and budgeting purposes for incorporation into the performance measurement baseline.) which transmit and authorize the change or addition to work. Adherence to this guideline ensures that budget. not to exceed letter. basic ordering agreement. approval process. contract modification. • • • • • 34 January 2005 . etc. (e. and work remain coupled. Statement of work (amendments or revisions).. letter to proceed from contracts or legal.g. work scope additions or deletions by integrated product team or WBS. performance measurement baseline dollar amount. dollar amount and receiving WBS. change request form. schedule. Intent Guideline 28 Incorporate the work scope for authorized changes into the performance measurement baseline in a documented. and thus its effectiveness as a baseline against which to manage and control performance. disciplined. changes to schedules.. base such revisions on the amount estimated and budgeted to the program organizations.

change request form. and detailed schedules showing revised work scope and duration. etc.. Change control logs (management reserve. duration. Management reports (contract performance reports or other applicable management reports) showing timely incorporation of new work scope. Budget revisions are traceable to authorized contractual targets and control account budgets. engineering change order. and detailed schedules. Objective evidence may be found in these typical outputs: • • • • • • • b) Management Value The integrity of the current performance measurement baseline can be verified by ensuring that budget revisions are reconciled. Master schedules. WBS. etc. Typical Attributes: • Contractual change documents (external). program directive. and schedule. Master schedules.. intermediate schedules (if any). Management reserve may be used for future unopened work when additional in scope work has been identified and replanning actions cannot be handled within the existing budgets and schedule constraints of the control accounts. and WBS dictionary. It should • 35 January 2005 . contract modification. delivery order. Contractor’s internal earned value management system documentation (e.g.g. etc.) which transmit and authorize the change or addition to work. changes to linkages. May take various forms. (e. Contractual change documents. Statement of work. Control account/work package/planning package plans. basic ordering agreement. undistributed budget.NDIA PMSC ANSI/EIA-748-A Intent Guide • • • Control account/work package/planning package plans showing revised work scope. not to exceed letter. budget and schedule. resources. Work authorization documents.) facilitating the change. letter to proceed from contracts or legal. intermediate schedules (if any). performance measurement baseline. Management reports (contract performance reports or other applicable management reports). change order. Intent Guideline 29 Budget changes are controlled and understood in terms of scope. Budget reflects current levels of authorized work. and budget. and contract budget base). Reconcile current budgets to prior budgets in terms of changes to the authorized work and internal replanning in the detail needed by management for effective control.

budget and authorization to proceed. • • • • • Objective evidence may be found in these typical outputs: • • c) Management Value Retroactive changes to the baseline may mask variance trends and prevent use of the performance data to project estimates of cost and schedule at completion. undistributed budget justification. Intent Guideline 30 Control retroactive adjustments (including those in the current period) to costs. changes revised work scope and duration. estimate at completion. Contractual change documents. or to improve the baseline integrity and accuracy of performance measurement data. dollars. Control retroactive changes to records pertaining to work performed that would change previously reported amounts for actual costs. intermediate schedules (if any).g. Statement of work (amendments or revisions). dollar amount and receiving WBS. customer-directed changes. making only routine accounting adjustments (e. effects of customer or management directed changes. duration. approval process. or data entry corrections. Control account/work package/planning package plans showing revised work scope. rate changes. undistributed budget. Change control logs (management reserve. earned value. if not already captured by the internal change request process. changes to linkages. Change control logs including management reserve justification. Master schedules. Retroactive budget adjustments may delay visibility of overall project 36 January 2005 . etc. • • Basis of estimate (if not yet negotiated). changes to schedules. or budgets. and WBS dictionary (additions and/or deletions to scope). Adjustments should be made only for correction of errors. schedule. definitization of unpriced change orders. and detailed schedules showing revised work scope and duration. and contract budget base total. Management reports (contract performance reports or other applicable management reports) showing timely incorporation of new work scope. WBS (changes if applicable). routine accounting adjustments.NDIA PMSC ANSI/EIA-748-A Intent Guide provide the rationale/justification. Work authorization documents authorizing new work scope. work scope additions or deletions by integrated product team or WBS. performance measurement baseline dollar amount. and economic price adjustments). performance measurement baseline. dollar amount and receiving WBS. etc. and contract budget base).) . and budget. This is necessary to ensure baseline integrity and accuracy of performance measurement data.

Intent Guideline 31 Prevent unauthorized revisions to the performance measurement baseline. Management reports. Earned value input source documents.NDIA PMSC ANSI/EIA-748-A Intent Guide variance from plan. Review the current dollarized time-phased baseline plan. • • • • • • Objective evidence may be found in these typical outputs: • • d) Management Value Changes made outside the authorized baseline control processes compromise the integrity of performance trend data and delay visibility into overall project variance from plan. Compare it to the previous period baseline plan to identify any differences and to verify all changes have been identified. Retroactive change control process including approval. Change control logs record change activity. and evidence of discipline and control. dates. Negative journal entries. 37 January 2005 . etc. Scheduling system reflects schedule inputs concerning times. Typical Attributes: • Change control process defines policy regarding retroactive changes that include conditions for use or prohibitions. When not a result of error corrections or routine accounting adjustments. it is identified as an over-target baseline. thus reducing the alternatives available to managers for project redirection or termination. durations. Current period data on format 1 and format 3 of contract performance report will reflect any retroactive changes and format 5 for related explanations. Any changes to the project must be approved and implemented following the baseline management control process. percentage complete. When the performance budget or schedule objectives exceed the project plan and are recognized in the performance measurement baseline. Negative or inappropriate amounts must have appropriate explanations. Change control logs. approvals and justifications. Typical Attributes: • Change control logs reflect changes to the performance measurement baseline or contract budget base. Prevent revisions to the program budget except for authorized changes. This control precludes the inadvertent implementation of a budget baseline greater than the project budget. thus reducing the alternatives available to managers for project redirection or termination. they have appropriate explanations.

2. Work authorization documents reflect authorized changes to budget. and detailed schedules reflect incorporation of latest authorized changes. This provides control account managers with valid control account plans against which to execute and measure performance. Objective evidence may be found in these typical outputs: • • • • • • e) Management Value By ensuring that budget and schedule revisions are documented and traceable. performance measurement baseline. Planning and authorization documents must be updated accordingly prior to the commencement of new work. Control account/work package/planning package plans. Management reports (contract performance reports or other applicable management reports) reflect changes to the contract budget base or additions on formats 1. and WBS dictionary. Statement of work. and 5 of the contract performance report if required. the integrity of the performance measurement baseline is maintained and can be verified. undistributed budget. Time-phased budget “run” reflects authorized changes to the budget. and contract budget base) reflect changes from the original contract budget base. and contract budget base). undistributed budget. Master schedules. Document changes to the performance measurement baseline. Work authorization documents. Authorized changes must be quickly recorded in the system and incorporated into all relevant planning. Change control logs (management reserve. intermediate schedules (if any). Intent Guideline 32 The performance measurement baseline should always reflect the most current plan for accomplishing the effort. Time-phased budget “run” reflects authorized changes to the budget. 3. performance measurement baseline. Control account/work package/planning package plans reflect updated schedule and budget plans for all authorized changes. Management reports (contract performance reports or other applicable management reports).NDIA PMSC ANSI/EIA-748-A Intent Guide • • • • Control account/work package/planning package plans reflect approved budget changes. Typical Attributes: • Change control logs (management reserve. and detailed schedules. Master schedules. • • • 38 January 2005 . intermediate schedules (if any). WBS.

WBS. intermediate schedules (if any). undistributed budget.NDIA PMSC ANSI/EIA-748-A Intent Guide • • • Statement of work. Management reports (contract performance reports or other applicable management reports) reflect incorporation of all authorized changes. Statement of work. and WBS dictionary. Objective evidence may be found in these typical outputs: • • • • • • 39 January 2005 . and detailed schedules. Management reports (contract performance reports or other applicable management reports). WBS. Work authorization documents. and WBS Dictionary. Master schedules. Review for incorporation of all authorized changes. performance measurement baseline. Change control logs (management reserve. Work authorization documents reflect incorporation of all authorized changes. Control account/work package/planning package plans. and contract budget base).

1 EXAMPLE PROCESS DESCRIPTION COMPLIANCE MAP Developing a Compliance Map to the EVMS Guidelines The purpose of this section and Appendix A is to provide an example and template that can be used as a starting point for a contractor who needs to develop a compliance map to the ANSI/EIA EVMS Guidelines for their business process. The compliance section for each guideline must be completed based on how the company does business. The example in this section uses guideline 1 to provide a sample description of how a company’s business process complies with the requirements of a given guideline. 40 January 2005 . Appendix A provides a compliance map template for the 32 guidelines that can be tailored to the contractor’s business environment.NDIA PMSC ANSI/EIA-748-A Intent Guide 3 3.

• • • The WBS must be created and maintained in ACME’s corporate EVM system. scheduling. A work breakdown structure (WBS). Each item in the WBS is assigned a unique identifier. The WBS breaks down all authorized work scope into appropriate elements for planning. A single WBS structure must be developed and maintained per project for the entire life of the project. and management control. budgeting. o Short description. The WBS structure includes fields to identify and include such details as a: o Unique WBS number for each WBS element. WBS contains all contract line items and end items. The WBS must be extended to the level necessary for management action and control based on the complexity of the work. Intent Guideline 1 A WBS is a direct representation of the work scope in the project. These identifiers can provide a structure for a hierarchical summation of costs and resources. is commonly used in this process. tailored for effective internal management control. work authorization. cost accounting. WBS elements include a complete definition of work scope requirements. A WBS dictionary defines the work scope for each element in the WBS. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance The development and maintenance of the WBS for each project is described in Section 2 of ACME corporation EVM system description. Work breakdown structure (WBS).1 Organization a. the requirements are as follows. Define the authorized work elements for the program. WBS is extended at a minimum to the control account level. Typical Attributes: • • • • • • • • Only one WBS is used per project and it contains all project work including revisions for authorized changes and modifications. WBS dictionary (may or may not be used. documenting the hierarchy and description of the tasks to be performed and relationship to the product deliverables. 41 January 2005 . WBS will evolve as the project requirements change. but a method to reconcile the statement of work to the WBS structure must be demonstrated). measuring progress. Each project must comply with the requirements described in Section 2.2 Example Compliance Map The ACME Corporation EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. WBS identifies all WBS elements specified for external reporting.NDIA PMSC ANSI/EIA-748-A Intent Guide 3. In summary. o Parent element identification (with the exception of the top WBS element).

Desk top instructions used by the project control team for entering and maintaining the WBS data in the ACME EVM system. Only the project control team members have the authorization to create or modify the WBS data. Related work to identify dependencies between elements of work. Desk top instructions used by the control account managers and IPT team members to enter and maintain the WBS Dictionary data. but is not limited to. Who is responsible for what is also noted. WBS Dictionary. It is also used to verify all WBS elements have an entry in the WBS Dictionary and the work scope details are clear and specific. This description includes. before the performance measurement baseline is set. Assumptions or limitations. Maintaining the WBS. Related documents or other materials that are required for the work team to successfully complete their assignment. Applicable process documents and desk top instructions are listed below. Only the project control team members and the assigned control account person have the authorization to modify the control accounts in the system. • • • Outputs available from the ACME EVM system for each project include: • • 42 January 2005 . o The lowest level in the WBS is the control account level (typically level 4 or 5 in the WBS structure depending on the needs of the project). Desk top instructions for entering and maintaining the control account data in the ACME EVM system. o Reporting level required for internal management and customer reporting purposes. The work breakdown structure. specific details such as: o o o o o o End result or expected work product. Risk factors. The project control team uses this process and related checklist to verify the WBS is complete and there is a one to one map between the WBS elements and the statement of work. • WBS Audit. This audit is conducted as part of the initial WBS development process.NDIA PMSC ANSI/EIA-748-A Intent Guide o Contract line item number for cross reference to the statement of work. • The WBS Dictionary online form must be used to describe the scope of work for all WBS elements. Maintaining Control Accounts. Maintaining the WBS Dictionary. and when any contract modifications impact the scope of work. Technical specifications.

NDIA PMSC ANSI/EIA-748-A Intent Guide Appendix A Process Description Compliance Map Template .

WBS dictionary (may or may not be used. cost accounting. measuring progress. WBS elements include a complete definition of work scope requirements.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. is commonly used in this process. but a method to reconcile the statement of work to the WBS structure must be demonstrated). and management control. Intent Guideline 1 A WBS is a direct representation of the work scope in the project. Each item in the WBS is assigned a unique identifier. Typical Attributes: • • • • • • • • Only one WBS is used per project and it contains all project work including revisions for authorized changes and modifications. WBS is extended at a minimum to the control account level. A work breakdown structure (WBS). The WBS breaks down all authorized work scope into appropriate elements for planning. WBS contains all contract line items and end items. scheduling. Work breakdown structure (WBS).1 Organization a) Define the authorized work elements for the program. A WBS dictionary defines the work scope for each element in the WBS. documenting the hierarchy and description of the tasks to be performed and relationship to the product deliverables. tailored for effective internal management control. budgeting. work authorization. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-1 January 2005 . The WBS must be extended to the level necessary for management action and control based on the complexity of the work. WBS will evolve as the project requirements change. These identifiers can provide a structure for a hierarchical summation of costs and resources. WBS identifies all WBS elements specified for external reporting.

including subcontracted and intraorganizational effort. OBS intersection with the WBS. accountability. Typical Attributes: • • • • • All authorized work is assigned to organizational elements. and define the organizational elements in which work will be planned and controlled. An OBS is used to facilitate the assignment of responsibility. and authority for all WBS tasks to be performed. functions. Organization elements are work teams. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-2 January 2005 . When effort is subcontracted. The OBS identifies the organization responsible for each segment of work.1 Organization b) Identify the program organizational structure including the major subcontractors responsible for accomplishing the authorized work. Intent Guideline 2 Assign organizational responsibility for the project work. Organization breakdown structure (OBS). The assignment of lower-level work segments to responsible managers provides a key control point for management purposes.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. This is called the control account (CA). An OBS is a direct representation of the hierarchy and description of the organizations established to provide resources to plan and perform the work tasks. the applicable subcontractor is identified and related to the appropriate WBS element(s) and/or organization charged with acquiring the subcontracted item. or whatever organization units are used by the company for efficient execution of the program work efforts. Major subcontractors are integrated into the program structure.

work authorization. Statement of work. scheduling. and performance measurement processes.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. detail schedules and control account plans. budgeting. cost accumulation. authorization of work. Responsibility assignment matrix (RAM). intermediate. Establishment of control accounts at the intersection of the WBS and OBS facilitates the linkage between the planning. The work tasks are assigned to a WBS and OBS and are traceable to the scheduling system and the cost collection system. and detail level schedules.1 Organization c) Provide for the integration of the company’s planning. Earned Value Management System Description Compliance A-3 January 2005 . and cost elements of the project through detailed. WBS and OBS. intermediate and summary project plans that include schedules. budgeting. Work authorization. The control accounts should be determined by the scope of the management tasks. schedules tasks and performance measurement tasks. work authorization and cost accumulation processes with each other. and accumulation of costs consistent with the budget plan. For example a cross-reference between the statement of work and the WBS. and as appropriate. the program work breakdown structure and the program organizational structure. scheduling. schedule. Objective evidence may be found in these typical outputs: • • • • • • • • Master. Performance reports by WBS and OBS. Intent Guideline 3 Integrate the technical. Manufacturing requirements planning (MRP) or enterprise requirements planning (ERP) operational schedules. budgets. Control account plans. Typical Attributes Provide a logical framework that links the products of the management processes through common data elements.

Documented process clearly defines: o How overhead resources are assigned. Chart of accounts. and general administrative (G&A) costs.1 Organization d) Identify the company organization or function responsible for controlling overhead (indirect costs). Cost accounting standards (CAS) disclosure statement. Organizational chart. o Who is responsible within the organization for establishing overhead budgets and their authorities. Intent Guideline 4 Clearly identify managers who are assigned responsibility and authority for controlling indirect costs including overhead. burden. Typical Attributes: • • Indirect account structure and organizational assignment/authority level are clearly defined.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Objective evidence may be found in these typical outputs: • • • Earned Value Management System Description Compliance A-4 January 2005 . Document the process for management and control of indirect costs. and expense is controlled. and have the authority to approve expenditure of resources. budgets are established.

Control accounts. material. and performance measurement. The control account is the point where the WBS tasks and OBS responsibility intersect. The control account identifies the plan for work task accomplishment. Each control account is assigned a control account manager. includes a definition of the effort required. Intent Guideline 5 Integrate the WBS and OBS to facilitate schedule and cost performance measurement. The performance elements of cost are evident. identifies element of cost (labor. Typical Attributes: • • • • • Single control account is visible at the intersection of the WBS and OBS. It is also the initiation point for work authorization. etc.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Responsibility assignment matrix (RAM). It is defined as the point where a single functional organization or integrated product team has responsibility for work defined to a single WBS element. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-5 January 2005 . performance management.) and identifies the resources required to do the job. The control account manager is responsible for ensuring the accomplishment of work in his or her control account and is the focal point for management control. Control account clearly identifies any supporting activities.1 Organization e) Provide for integration of the program work breakdown structure and the program organizational structure in a manner that permits cost and schedule performance measurement by elements of either or both structures as needed.

include all key events.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. The schedule reflects all the time phased discrete work to be accomplished that is traceable to the WBS and the statement of work. contractual events. and project decision points are identified and are being used to plan. event. No specific scheduling software is required.2 Planning. Typical Attributes: An integrated network scheduling system has the following characteristics: • • • • • • • Distinct tasks that can be summarized by WBS/OBS identifiers to track progress and measure performance. Government development programs typically schedule the discrete authorized work through the use of a network. Production programs typically schedule using an MRP or ERP tool employing a line of balance schedule that supports the project objectives. accomplishment criteria. It is essential for monitoring progress. The schedule describes the sequence of discrete authorized work and their significant task interdependencies. allow managers to evaluate actual progress against the established baseline. and tracking corrective actions to ensure that all team members are working to the same project schedule. but there must be horizontal and vertical integration through the framework of the WBS and OBS. A-6 January 2005 . and Budgeting a) Schedule the authorized work in a manner which describes the sequence of work and identifies significant task interdependencies required to meet the requirements of the program. The master schedule must agree with the project objectives. Resource estimates from the budget plan are reasonable and are available to support the schedule. to ensure that the schedule supports the project objectives. analyzing variances. Critical target dates. and monitor progress of the work. status. Longer tasks need objective interim measures to enable accurate performance assessments. Intent Guideline 6 The scheduling process documents and the resulting project schedule provides a logical sequence of work leading to a milestone. Schedules add a timeline to the project plan to accomplish the technical scope. project milestones. and reflect a logical sequence of events. and to forecast completion dates for remaining work. The schedule describes the sequence of work through use of the significant interdependencies that are indicative of the actual way the work is accomplished and link key detail tasks with summary activities and milestones. and/or decision point. Scheduling. There is a clear definition of what constitutes commencement and completion of a task. Task durations and estimates are meaningful and are relatively short (short duration tasks are preferred and should be reflective of the ability to manage).

NDIA PMSC ANSI/EIA-748-A Intent Guide • • • • The baseline is reasonable to achieve project requirements as demonstrated through schedule analysis techniques. MRP or ERP schedules. or planned order reports. The baseline schedule is the basis for measuring performance. Objective evidence may be found in these typical outputs: • • • • Earned Value Management System Description Compliance A-7 January 2005 . Integrated schedules including master. Control account plans which are detail schedules. intermediate (if any). and detailed schedules. Work authorization documents. The schedule provides current status and forecasts of completion dates for all discrete authorized work. The schedule network relationships can support the development of a critical path for development projects.

MRP or ERP production planned order reports. intermediate (if any). Intent Guideline 7 Identify objective interim measures within tasks to enable accurate performance assessment each month. Scheduling. These measures are necessary to substantiate technical achievement against the schedule plan and justify progression to the next task.2 Planning. Typical Attributes: • • Objective completion criteria are determined in advance and used to measure progress to determine achievement of milestones or other indicators. Integrated schedules including master. The master schedule includes key program and contractual requirements.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. and Budgeting b) Identify physical products. It enables the team to predict when milestones. Control account plans (may be separate plans or detail schedules). In a development environment. limiting the subjectivity of work accomplished. Objective evidence may be found in these typical outputs: • • • Earned Value Management System Description Compliance A-8 January 2005 . Interim measures will be based on the completion criteria developed for each increment of work to provide a basis for objectivity. and program decision points can be expected to occur. A key feature of an interdependent schedule is that it establishes and maintains the relationship between technical achievement and progress statusing. lower tier schedules must contain specific task start and finish dates that are based on physical accomplishment and are clearly integrated with program time constraints. A sufficient number of interim measures will be defined after the detailed schedule is established to ensure performance is measured as accurately as possible. technical performance goals. events. These tasks will align with the objective interim measures within long work packages to enable accurate performance assessment. Accurate schedule status depends on the selection of objective measures of progress to indicate work completion. and detailed schedules. Interim milestones and lower tier tasks serve as indicators of progress against which progress is monitored by the control account manager. or other indicators that will be used to measure progress. milestones.

maintenance. Scheduling. The budget for this effort must be identified specifically to the work for which it is intended. to the end of the contract. and any indirect costs for all authorized work. This is called the performance measurement baseline (PMB). and actual cost with value of work performed. unpriced work. The PMB should be in place as early as possible after project award or authorization to proceed (ATP). Planning horizons can be used to establish reasonable control account level assignments of work and budget. the contractor will plan and budget near-term effort in control accounts.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. budget and work will be identified to higher WBS or organizational levels for subdivision into control accounts at the earliest opportunity. all the work will be planned by specific organizational elements to the control account level.2 Planning. The establishment. direct material dollars. prior notification must be provided to the customer. with the remaining effort and budget planned in summary level planning packages or A-9 January 2005 . at least at a summary planning level. and controls established to ensure this budget is not used in performance of other work. Control accounts should be planned. be time-phased. The maintenance of realistic budgets. and Budgeting c) Establish and maintain a time-phased budget baseline. the detail work packages are planned as far in advance as practicable and planning packages are identified for the remaining work. at the control account level. For authorized. Eventually. When it is clearly impractical to plan authorized work in control accounts. Work should not commence until an initial detail plan is put in place. On government contracts. Initial budgets established for performance measurement will be based on either internal management goals or the external customer negotiated target cost including estimates for authorized but undefinitized work. The PMB is a vehicle for comparison of work accomplished with work scheduled. The PMB includes direct hours/dollars. its value periodically assessed. The PMB represents the formal plan of each control account manager to accomplish all the work assigned in the amount of time allotted and within the amount of budget authorized. When that information is available. Summary level planning packages may be utilized until the information needed for detail planning becomes available. The relationship of individual work tasks with the time-phased resources necessary to accomplish them is established at the control account level. directly tied to an established scope of work. is essential for each organization responsible for performing project effort. Any control accounts that cannot be established in the initial planning effort have the critical defining event(s) necessary for planning identified and made an item of continuing management interest. against which program performance can be measured. Budget for far-term efforts may be held in higher level accounts until an appropriate time for allocation at the control account level. Intent Guideline 8 The assignment of budgets to scheduled segments of work produces a plan against which actual performance can be compared. if an over-target baseline is used for performance measurement reporting purposes. other direct charges. and use of the PMB are indispensable to effective performance measurement.

During the life of a project. If the difference between the estimated cost to complete and the remaining budget is significant. The resulting value is referred to as an over-target baseline (OTB). the contractor will continually plan the near term work. Customer notification of an over-target baseline. After definitization. Undistributed budget logs.NDIA PMSC ANSI/EIA-748-A Intent Guide maintained in undistributed budget (UB). This allows the project to increase the amount of budget for the remaining work to a more realistic amount to adequately provide for reasonable budget objectives. any budget remaining in undistributed budget will be planned and budgeted within control accounts as soon as practical. Performance measurement baseline. PMB reflects the budget value for the work scope in control accounts and higher level summary planning accounts. and/or adjusting variances (cost. Objective evidence may be found in these typical outputs: • • • • • • Earned Value Management System Description Compliance A-10 January 2005 . replanning inprocess work. Until definitization. work control. a requirement may exist for the total budget allocated to work to exceed the recognized contract budget base (CBB). The contractor must perform a detailed estimate of all costs necessary to complete the remaining effort. It is important to ensure that both internal management and the customer have a common understanding of the over-target baseline’s impact on the performance metrics. schedule or both). Typical Attributes: • • • PMB reflects the work scope. Control account plans. Summary level planning packages. time phased consistent with the integrated schedule. the contractor will give advance notification to the appropriate parties of the need to increase the remaining budgets. Work authorization document. the new baseline becomes the basis for future performance measurement. Under these circumstances. Control account budgets reflect the planned resources to perform the requirements and can exceed the contract budget base when an over-target baseline is employed. A thorough analysis of contract status is necessary before the implementation of an over-target baseline. situations may arise whereby available budgets for the remaining work are insufficient to ensure valid performance measurement. When the contractor and customer project managers are satisfied that the new baseline represents a reasonable plan for completing the contract. and performance measurement. Establishment of an over-target baseline may entail replanning future work.

Direct budgets allocated to organizations performing the planned work. Significant contract events that will be supported by completion of the effort within the control account. In general. factors to consider include the: • • • • Natural flow of work at this management control point. It is important to include all resources required to accomplish the work scope. Since control account budgets and schedules also establish the constraints required for baseline control. c. subcontract.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Intent Guideline 9 Through a work authorization process. and A-11 January 2005 .. material and/or subcontract dollars. 2. Indirect budgets allocated to specific organizations having responsibility for controlling indirect costs. Represents the complete project plan and budget. materials. Budgets may be stated either in dollars. care must be exercised in the establishment of control account budgets to ensure a viable scope/effort correlation and prevent inadvertent front-loading of the baseline.) as needed for internal management and for control of subcontractors. hours or other measurable units. When establishing control accounts. Budgets and schedules are established and approved for all the authorized work at the control account level. Typical Attributes: • • • Internal reports. Scheduling. direct labor dollars/hours. and Budgeting d) Establish budgets for authorized work with identification of significant cost elements (labor. In addition: 1. Budgets established at the control account level must be planned by element of cost.e. The budget is based on detailed estimates of the amounts of labor. Show budgets for each control account and that these budgets are reconcilable to the budget values shown on the latest control account/work package plans and in the work authorization documents. Identification of any management reserves or undistributed budget. Rate structures to be applied to the control account resources. the budget process provides for the following: a. b. and other direct costs). and other direct costs). Need to ensure objective measurement of progress by establishing shorter assessment periods. The control accounts identify the appropriate cost elements (labor. material. etc. establish budgets for all authorized work and identify the work to be done by the responsible organizational elements. Control account/work package plans. Responsibility assignment matrix (dollarized). 3.2 Planning. It is necessary to use rates that will provide a valid performance measurement baseline. material. Each control account contains resources necessary to complete the assigned effort and budgets reflecting these resources. Budgets are identified by element of cost (i.

Differentiation is made between direct cost budgets and those which include indirect costs. Responsibility assignment matrix (dollarized). Undistributed budget logs. Identifies the resources needed to accomplish the project and assigning resources to tasks listed in the integrated master schedule. Resourced schedules if resourced.NDIA PMSC ANSI/EIA-748-A Intent Guide • • other resources required to complete each task. Internal reports. Performance measurement baseline. Resource plan if resources not contained in the control account plans. Resource plan. Bills of materials (BOM). Objective evidence may be found in these typical outputs: • • • • • • • • Earned Value Management System Description Compliance A-12 January 2005 . Control account plans by element of cost. Work authorization documents. Identifies control account budgets that can be summarized to organizational elements.

Scheduling.2 Planning. It is assigned to a single organizational element. all of which are representative of physical accomplishment. interim milestones. Each work package will have the following characteristics: • • • • • • • It represents units of work at the level where work is performed. subdivide them. As work package length increases. Planning packages are aggregates of future tasks and budgets. Its duration is limited to a relatively short span of time. establish budgets for this work in terms of dollars. will be divided into larger segments and placed into planning packages within the control account. such as discrete milestones with preassigned budget values or completion percentages. or other schedules. little or no assessment of work-in-progress is required. there could be a single integrated product team responsible with multiple functional disciplines performing the scope of work. or in an integrated product team environment. It is clearly distinguishable from all other work packages. Longer tasks need objective interim measures to enable accurate performance assessments. or it is level of effort (LOE).NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Where the entire control account is not subdivided into work packages. Work for a given control account that cannot be planned in detail at the outset. that will be divided into work packages at the earliest practical point in time. identify the far term effort in larger planning packages for budget and scheduling purposes. and should be natural subdivisions of control account effort resulting in a definable end product or event. and Budgeting e) To the extent it is practicable to identify the authorized work in discrete work packages. beyond the detail plan. hours. work-in-process measurement becomes more subjective. It is integrated with detailed engineering. Work packages are single tasks assigned to a performing organization for completion. as applicable. A-13 January 2005 . Intent Guideline 10 Effort contained within a control account is distributed into either work packages or planning packages. or other measurable units. Time-phased budgets assigned to planning packages must be supported by a specified scope of work and this relationship must be maintained when detailed planning of the effort occurs. manufacturing. It has a budget or assigned value expressed in terms of dollars. unless objective techniques. It has scheduled start and completion dates and. or measurable units. A key feature from the standpoint of evaluating accomplishment is the desirability of having work packages that incorporate frequent. Work package descriptions must clearly distinguish one work package effort from another. objective indicators of progress. When work packages are relatively short. labor hours.

Control account schedules when used. A planning package is the logical aggregation of work within a control account. They are assigned to a single organizational element. manufacturing. They are units of work at levels where work is performed and are clearly distinguishable from all other work packages. normally the far-term effort. labor hours. that can be identified and budgeted in early baseline planning. as applicable. Control account time phased budgets.NDIA PMSC ANSI/EIA-748-A Intent Guide Typical Attributes: • Control account plans (CAPs) represent the work assigned to one responsible organizational element on one program WBS element. and is integrated with detailed engineering. Planning package plans must reflect the manner in which the work is to be performed. apportioned. or it is LOE. • • Objective evidence may be found in these typical outputs: • • • Earned Value Management System Description Compliance A-14 January 2005 . This is the lowest level in the structure at which the comparison of actual costs to planned budgets and earned value are required. but can not yet be defined into discrete. or other measurable units. or it is subdivided by discrete value milestones to facilitate the objective measurement techniques of work performed. Control account plans divided into work packages and planning packages. Work packages represent detailed jobs. have scheduled start and completion dates and. or level of effort work packages. duration is limited to a relatively short span of time. or other schedules. interim milestones. or material items. It is also the cost collection point that identifies the cost elements and factors contributing to cost and/or schedule variances. have a budget or assigned value expressed in terms of dollars.

NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. In all cases. schedule. the lowest level in the structure at which the comparison of actual costs to planned budgets and earned value are required.2 Planning. Planning package budget. Work package budget. Earned Value Management System Description Compliance A-15 January 2005 . Scheduling. the cost collection point that will identify the cost elements and factors contributing to cost and/or schedule performance. and scope of work and should realistically represent the work assigned and budgeted to the organizational units. Objective evidence may be found in these typical outputs: • • • Control account plan total budget. the value of the budget assigned to individual work packages and planning packages within the control account must sum to the total value authorized for the control account. and Budgeting f) Provide that the sum of all work package budgets plus planning package budgets within a control account equals the control account budget. Typical Attributes: Control account plans (CAPs) represent the work assigned to one responsible organizational element on one program work breakdown structure element. At no time should a control account manager have a budget with no assigned scope of work. Intent Guideline 11 All control accounts must contain a budget.

Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-16 January 2005 . When level of effort and discrete work packages are mixed within the same control account. Budgets for level of effort activity must have a sound basis of estimate and be time phased to properly reflect when work will be accomplished. or other direct costs. • • • • • The amount of LOE activity will vary among performing organizations. Level of effort must be limited to those activities that are unable to be measured discretely to avoid distorting project performance data. Level of effort is defined as having no measurable output or product at the work package level. Typical Attributes Level of effort work packages contain tasks of a general or supportive nature which do not produce definite end products. Control account plans identify level of effort work packages and budgets. and contain time-phased budgets for planning and control. but it must be held to the lowest practical level. the control account manager must ensure visibility into the earned value technique for measuring performance of the discrete effort. Level of effort work packages should be separately identified from discrete effort work packages and apportioned effort work packages. must be separately evaluated from discrete work packages within the control account. Scheduling. Only that effort which is unmeasurable or for which measurement is impracticable may be classified as level of effort. Intent Guideline 12 Each task on the project needs to be assessed using the best method to budget and measure its progress toward completion. Level of effort should be budgeted on a timephased basis for control and reporting purposes. and Budgeting g) Identify and control level of effort activity by time-phased budgets established for this purpose. material/subcontract. Level of effort budgets should be separately substantiated and planned as direct labor.2 Planning. The earned value for level of effort work packages equals the time phased budget.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2.

are not readily subject to treatment as direct costs.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. because indirect costs account for a major portion of the cost of any project. CAS disclosure statement defines the content and processes of the contractor’s management of indirect costs and generally includes a definition of indirect expenses and overhead pools. traceable process. Organizational structure identifying ownership responsibility and authority levels. Forward pricing forecast (including sales forecast and business base projections). and G&A expense) budgets at the appropriate organizational level for each pool and sub-cost element. • • • • • • • • • • Objective evidence may be found in these typical outputs: A-17 January 2005 . at the appropriate level. Typical Attributes: • • • Organization charts are generally contained within the contractor’s system description identifying personnel or organizations responsible for maintaining indirect costs.2 Planning. As such. direct costs are any cost that may be identified specifically with a particular cost objective. It is important to have an indirect budgeting and forecasting process. the amounts in overhead pools that are planned to be allocated to the program as indirect costs. Organizational charts. Intent Guideline 13 Establish indirect (overhead. Indirect budgets on the project are established and planned with the established direct budgets consistent with the contractor’s accounting procedures. because of their incurrence for common or joint objectives. indirect costs are costs which. the budgetary control and management of this category of cost cannot be overlooked or minimized. ensures consistent and proper accounting for direct and indirect costs that are applied to government contracts. Reflect in the program budgets. burden. Contractor’s overhead policies and procedures are generally described in the contractor’s system description and represent a rational. and Budgeting h) Establish overhead budgets for each significant organizational component of the company for expenses which will become indirect costs. Indirect cost policies and procedures. Indirect budget and performance reports. if applicable. Cost accounting standards (CAS) established by the Cost Accounting Standards Board (CASB). Chart of accounts. CAS disclosure statement. Documented process for managing indirect costs. Forward pricing forecasts identify projected overhead rates beyond current year. Scheduling.

NDIA PMSC ANSI/EIA-748-A Intent Guide Earned Value Management System Description Compliance A-18 January 2005 .

it does form part of the performance measurement baseline. undistributed budget. performance measurement baseline. • Objective evidence may be found in these typical outputs: • • Earned Value Management System Description Compliance A-19 January 2005 .NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Monthly performance reports to verify starting and ending values are consistent with various logs. Undistributed budget is budget that is applicable to specific project effort but has not yet been distributed to control accounts. monthly sources and uses to the control account. Scheduling. monthly sources and uses to the control account. current value). The management reserve budget should be commensurate with the level of risks identified by the project and/or withheld for management control purposes. Typical Attributes: • Program control logs including: o Management reserve (showing month end values. and current value). Management reserve is budget for work scope that will arise during the course of the project. normally within 90 days and prior to work starting. current value). Intent Guideline 14 Identify and control management reserve (MR) and undistributed budget. current value). monthly changes identifying contract modifications. and contract budget base). if applicable. Undistributed budget accounts are to be assigned to the performance measurement baseline when the work is established in the performance measurement baseline. because once it is distributed it ceases to be undistributed budget and instead is incorporated in its relevant control account. It is a transient amount. Because undistributed budget is budget that is tied to work. Project control logs (management reserve. such as delays in contract direction will impact the timely assignment of undistributed budget to work packages. Because management reserve is budget that is not as yet tied to work. but cannot be identified in advance. o Contract budget base (showing month end values. o Performance measurement baseline (showing month end values. and Budgeting i) Identify management reserves and undistributed budget.2 Planning. it does not form part of the performance measurement baseline. It is recognized that some circumstances. Undistributed budget accounts are to be cleared in a reasonably timely manner. Contract performance reports (CPRs). o Undistributed budget (showing month end values. monthly changes from/to management reserve and undistributed budget.

unpriced work) with the sum of all control account budgets. monthly sources and uses to the control account. management reserves. o Contract budget base (showing month end values. if applicable.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Internal report showing the summarization from cost account to the performance measurement baseline. current value). current value). current value). and Budgeting j) Provide that the program target cost goal is reconciled with the sum of all internal program budgets and management reserves. Intent Guideline 15 Reconcile the project value (target cost plus authorized. Contract performance reports (CPRs). • • • • Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-20 January 2005 . and undistributed budgets. Typical Attributes: • Program control logs including: o Management reserve (showing month end values. Project control logs (management reserve. Contract and modification control logs identifying authorized target cost. monthly changes identifying contract modifications. monthly changes from/to management reserve and undistributed budget. o Performance measurement baseline (showing month end values. o Undistributed budget (showing month end values. Scheduling. current value) reconciled to program target cost.2 Planning. monthly sources and uses to the control account. undistributed budget. and contract budget base) reconciled to project target cost. performance measurement baseline. indirect budgets.

Contractor’s cost accounting standards disclosure statement identifying treatment of direct costs (direct material. Timing differences that may occur between accounting system and project performance reports must be reconcilable. Typical Attributes: • • • • Contractor’s accounting manual/procedures identifying the methodology of handling various actual costs.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. and other costs and credits. Intent Guideline 16 Accumulate direct costs in the formal accounting system in a manner consistent with the way the related work is planned and budgeted. or inventory release). Reconciliation of project costs with the accounting system. labor. Actual costs are reported at the control account level at a minimum.3 Accounting Considerations a) Record direct costs in a manner consistent with the budgets in a formal system controlled by the general books of account. Contractor’s process to ensure actual costs and performance are recorded in the same accounting period. Of particular interest is the accounting for material (at consumption. and other direct costs). Actual cost reported in the performance reports agrees with the costs recorded in the general books of account (accounting system) or can be explained as timing differences. receipt. The basic requirement is to account for materials in a manner consistent with the way in which materials are budgeted. Control account actual costs/general ledger reconciliation. depreciation and capitalization. inventory acceptance. Objective evidence may be found in these typical outputs: • • Earned Value Management System Description Compliance A-21 January 2005 . indirect costs.

control accounts. Cost collection accounts map to the WBS. Typical Attributes: • • • • Cost collection account structure showing charge number hierarchy. Intent Guideline 17 A work order/job order/task code charge number structure must exist that uniquely identifies costs down to the control account level allowing for accumulation and summarization of costs to higher levels. WBS/cost collection mapping. and the WBS roll-up structure contains no division/allocation of lower-level cost to multiple higherlevel WBS elements.3 Accounting Considerations b) When a work breakdown structure is used. and work packages. summarize direct costs from control accounts into the work breakdown structure without allocation of a single control account to two or more work breakdown structure elements. WBS structure (roll-up scheme). The program established cost charging structure will ensure that actual costs are collected so that direct comparison with associated budgets can be made at the appropriate WBS level(s). When common costs are collected in separate control accounts for like items or services they are allocated to appropriate control accounts in each project. WBS structure (roll-up scheme) showing hierarchy of WBS elements. Monthly performance report. Cost collection account structure. Allowable costs collected within the control account by element of expense “rollup” from the control account level through the WBS to the top level without being divided at any level among two or more higher-level elements. WBS/cost collection mapping showing the relationship between charge numbers and control accounts and/or work packages. Objective evidence may be found in these typical outputs: • • • • Earned Value Management System Description Compliance A-22 January 2005 .NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2.

This guideline and the one before it are identical. with the exception that this one deals with OBS data summarization while the previous one dealt with WBS data summarization. Contract performance report (format 2 where required).3 Accounting Considerations c) Summarize direct costs from the control accounts into the contractor’s organizational elements without allocation of a single control account to two or more organizational elements. Responsibility assignment matrix. OBS structure (roll-up scheme). Typical Attributes: • • • • Organization charts showing the contractor’s organizational hierarchal structure.. OBS structure (roll-up scheme) showing the relationship of charge numbers to the OBS. In either case the intent is the same: actual cost collected at the control account level may not be rolled up (i. Organization charts. Responsibility assignment matrix showing the intersection of OBS organizations and WBS elements. Intent Guideline 18 Allowable costs collected within the control account by element of expense “roll-up” from the control account level through the OBS to the top level without being divided at any level among two or more higher-level elements. which is the control account. Objective evidence may be found in these typical outputs: • • • • Earned Value Management System Description Compliance A-23 January 2005 .e. summarized) to multiple higher-level elements.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. When common costs are collected in separate control accounts for like items or services they are allocated to appropriate control accounts in each project. The program established cost charging structure will ensure that actual costs are collected so that direct comparison with associated budgets can be made at the appropriate organizational level(s).

Intent Guideline 19 Record all indirect costs for the project in the accounting system. Accounting procedures showing the responsible organization for incurring indirect cost corresponds to the level of management control and categorizes fixed and variable cost methods of control. Cost collection account structure. WBS structure (roll-up scheme). time-phased budgets/forecast established at same level as cost collection for comparison. Cost accounting standards disclosure statement.3 Accounting Considerations d) Record all indirect costs which will be allocated to the project. Identifies the chargeable object for all cost centers. WBS/cost collection mapping. Identifies management responsibility for controlling indirect staff and ability to influence indirect costs. Cost accounting standards disclosure statement. WBS structure (roll-up scheme). Objective evidence may be found in these typical outputs: • • • • Earned Value Management System Description Compliance A-24 January 2005 . Hierarchy scheme from point of allocation to WBS/OBS to total program level. Typical Attributes: • • • • • • Cost collection account structure. Identifies the allocation base and indirect cost pools by function element of cost. Organization chart. Identifies the responsible organization for budgeting and controlling indirect cost. WBS/cost collection mapping. Allocate them to the recorded direct costs per the documented procedure to assure that all projects benefiting from the indirect costs will receive their fair share.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2.

or lot cost when needed including differentiation of work in process. equivalent unit. each unit’s cost is approximately equivalent to every other unit’s cost). material. all things being equal. Intent Guideline 20 Identify unit costs. development.g.g. or lot costs when needed. indirect cost. it is sufficient to establish “equivalent unit cost” (i.e. design. Project cost collection structure (MRP). Expressed in terms of labor. equivalent unit costs. Where the work is budgeted by unit. travel and expense) costs. other direct cost.. Typical Attributes: • • Manufacturing requirements planning (MRP) project cost collection structure. as appropriate for the work being planned.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. production) and non-recurring (e. ERP system supports the identification of unit costs. equivalent unit costs. or lot costs. or lot costs when needed. equivalent unit costs. as well as distinguishing between recurring (e. Enterprise requirements planning (ERP) supports the identification of unit costs. Objective evidence may be found in these typical outputs: • • Earned Value Management System Description Compliance A-25 January 2005 . on a “mature” production run. or lot costs for purposes of measuring cost performance to plan. ensure that the accounting system produces actual unit.3 Accounting Considerations e) Identify unit costs. equivalent units. or lot costs when needed including differentiation of work in process. equivalent unit costs. When units are taken off the line in more or less a random order according to the delivery agreements of the different customers’ projects.

NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. earned value claimed in same accounting period of actual cost. Objective evidence may be found in these typical outputs: • • • A-26 January 2005 . return of unused material. When necessary. first in first out (FIFO). the material accounting system will provide for: 1) Accurate cost accumulation and assignment of costs to control accounts in a manner consistent with the budgets using recognized. Material costs must be accurately charged to control accounts using recognized. Typical Attributes: • • • Performance reports showing material cost/schedule variances. moving average. or release to work in process that is consistent with the planned budget in the same accounting period that performance is claimed). 2. and last in first out (LIFO).g. weighted average. issue from inventory. acceptable. the use of estimated actual costs to ensure accurate performance measurement is required. i. material usage. Identify accountability for all material purchased for the program including material issues to control accounts. high/low material.e. Intent Guideline 21 Material accounting systems must adhere to these three characteristics: 1. Control account plans showing time-phased material budgets. scrap quantity and disposition. Material system reports. material performance recorded no earlier than material receipt. 2) Cost performance measurement at the point in time most suitable for the category of material involved. acceptable costing techniques (e. and residual inventory. or when material will be used within the same accounting period. 3) Full accountability of all material purchased for the project including the residual inventory. 3. but no earlier than the time of progress payments or actual receipt of material. costing techniques. The material accounting system provides full accountability and effective performance measurement of all material (including residual inventory) purchased for the project. Control account plans. earned value technique.. performance recorded at receipt of material for high dollar material. or material consumption. The material system needs to account for various methods of charging material cost from inventory in accordance with cost accounting standards inventory costing methods.3 Accounting Considerations f) For EVMS. standard cost. Performance reports.

NDIA PMSC ANSI/EIA-748-A Intent Guide Earned Value Management System Description Compliance A-27 January 2005 .

Intent Guideline 22 On at least a monthly basis. budgeting. 2) Comparison of the amount of the budget earned and the actual (applied where appropriate) direct costs for the same work.4 Analysis and Management Reports a) At least on a monthly basis. as a minimum. they must be able to analyze the work performance and associated costs against the performance measurement baseline. This comparison provides the schedule variance. the project manager must. earned value. impacts at completion. scheduling. to remain viable. o Variance at completion (VAR). or utilization of thresholds. Accurate and reliable EVMS data supports management control needs by allowing the project manager to focus on those areas in need of attention. The first intent of this criterion is to establish the fact that analysis. and actual costs (reconcilable with accounting system).NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Since the control account is the level at which performance measurement is performed. ensure traceability of project performance down to the control account. Since the control account is normally the lowest level at which management and control responsibility exists for specific WBS increments of work. the accounting system: 1) Comparison of the amount of planned budget and the amount of budget earned for work accomplished. In order for control account manager’s to have full management control responsibility. it is the logical point for not only the planning. technical performance metrics. • A-28 January 2005 . which may be determined by risk. Summarized performance measurement data from control account (minimum) through WBS/OBS hierarchy to the program level. However. o Cost variance (CV). This comparison provides the cost variance. and accounting efforts but also for the analysis effort as well. Typical Attributes: • Monthly performance report: o Budget. and management actions). or reconcilable with. must be accomplished on a regular. generate the following information at the control account and other levels as necessary for management control using actual cost data from. o Variance analysis narrative (root causes. generate schedule variance and cost variance data that provide visibility into root causes and establish actions to achieve project completion. The second intent is to foster analyses and identification of root cause and resulting impacts at the control account level. periodic basis. the accounting system. or be reconcilable with. All data analyzed must be from. o Schedule variance (SV). critical path. analysis should be performed at the most meaningful level of the WBS.

Earned Value Management System Description Compliance A-29 January 2005 . and management actions). and variance at completion analysis). impacts at completion.NDIA PMSC ANSI/EIA-748-A Intent Guide Objective evidence may be found in these typical outputs: • • Monthly performance report (cost variance. Variance analysis data (root causes. schedule variance.

Variance analyses (budget based schedule variances and cost variances). therefore. The analysis should identify potential schedule accomplishment and milestone problems. Schedule analysis must address the time impact to the schedule plan when a significant variance exists. Cause and impact are identified in sufficient detail needed for project management. Management action plans. By addressing the time impact for each significant variance a true and representative impact to the schedule plan is quantified. the significant differences between both planned and actual schedule performance and planned and actual cost performance. A key concept required to support schedule analysis is to ensure that work is planned in discrete elements that reflect actual accomplishment. and provide the reasons for the variances in the detail needed by program management. since some work may have been performed out of sequence or ahead of schedule. milestones. A formal time-phased scheduling system. This schedule variance (SV) may not. Comparing the budget value of work completed to the budget value of work scheduled during a given period of time provides a valuable indication of schedule status in terms of dollars worth of work accomplished.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. must provide the means of determining the status of specific activities.4 Analysis and Management Reports b) Identify. however. Updated schedule task completion and cost at completion forecasts. clearly indicate whether or not scheduled milestones are being met. at least monthly. This ensures time-based schedule variances are ultimately reported. and critical events. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-30 January 2005 . Schedule variance does not indicate whether a completed activity is a critical event or if delays in an activity’s completion will affect the completion date of the project. Intent Guideline 23 The purpose of this guideline is to ensure both a time-based schedule management analysis of significant scheduling differences and a budget based cost management analysis of significant performance management baseline variances occurs. Corrective actions are assessed in a timely manner. Typical Attributes: • • • • • • • Schedule (time-based) and cost (budget based) variances are identified at an actionable level. Project schedules and schedule analysis outputs.

at the level of assigned responsibility.4 Analysis and Management Reports c) Identify budgeted and applied (or actual) indirect costs at the level and frequency needed by management for effective control. Typical Attributes: • Indirect variance analyses: o Budget to actual comparison by element of cost from management control point up through WBS/OBS to project level. change in business volume.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. o Variance thresholds by overhead category. • Objective evidence may be found in these typical outputs: • • • Earned Value Management System Description Compliance A-31 January 2005 . usage variance. o Responsible overhead manager identifies root cause (i. Indirect management action plans: o Corrective action plans identified to reduce or eliminate variance.e. comparing indirect budgets to indirect actual costs (with the stipulation that the cause of resultant variance be explained). Indirect updated schedule and cost forecasts. Intent Guideline 24 Indirect rate forecast and control is crucial to meeting project cost objectives. along with the reasons for any significant variances. Indirect management action plans. o Performance metrics. This guideline requires a monthly indirect analysis. The importance of analyzing indirect performance requires the exercise of maximum discipline in following indirect procedures. or rate variance due to a change in direct base). Indirect variance analyses.

corrective action. Typical Attributes: • • • Variance analyses. Updated schedule and cost forecasts. impact. Management action plans. Since the WBS and the OBS exist as a formal and disciplined framework for a comprehensive roll-up of all data elements. Corrective action plan/mitigation plan. task. Objective evidence may be found in these typical outputs: • • • • Earned Value Management System Description Compliance A-32 January 2005 . Schedule and cost performance reports. variance at complete from control account up through WBS/OBS reporting structure hierarchy to total program level. exit criteria. schedules. they become the ideal framework for summarizing data from the control account level to the management reporting level. Management action plans. Intent Guideline 25 Use the same data for internal management needs and for reporting to the customer.4 Analysis and Management Reports d) Summarize the data elements and associated variances through the program organization and/or work breakdown structure to support management needs and any customer reporting specified in the project. Internal/external reporting thresholds and narrative analysis providing root cause. Schedule and cost performance reports.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. cost variance. Schedule variance. milestones. Variance analyses.

Variance analyses. Reasonableness of the corrective action.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Earned value data must be utilized by all levels of management for effective project execution. Because of this. Validity of the problem identified. The project’s internal reports and the reports forwarded to their customer must indicate the overall cost and schedule impacts of such problems on the project. the data produced by the earned value management system must be available to managers on a timely basis and must be of sufficient quality to ensure that effective management decisions can be made as a result of its analysis. To complete performance index (TCPI).4 Analysis and Management Reports e) Implement managerial action taken as the result of earned value information. Objective evidence may be found in these typical outputs: Earned Value Management System Description Compliance A-33 January 2005 . Typical Attributes: • • • • • • • • Follow-up of the implementation to see if what was planned actually got implemented. Management action plans and review briefings. Independent completion estimates. Risk management data and similar metrics. Intent Guideline 26 Assess management actions and modify them as required to achieve project objectives.

EAC results are communicated to the customer in internal reports and in funding documents. Assessing commitment values for material to complete the remaining work. and estimates of future conditions. A-34 January 2005 . Intent Guideline 27 On a monthly basis. Estimating future conditions to derive the most accurate estimate at completion. Comparisons of this estimate to budgets for the associated effort must be made frequently enough for management to ensure project performance and resource availability will not be adversely impacted. Prudent maintenance of the control account level EAC by the control account manager ensures that the EAC reflects a valid projection of project costs. c. Time-phased ETC based on an analysis of remaining tasks in the integrated master schedule and projected resource plan. Control account manager should generate the EAC at the work package and planning package level and then sort and summarize by WBS and OBS to the control account level. Compare this information with the performance measurement baseline to identify variances at completion important to company management and any applicable customer reporting requirements including statements of funding requirements. Evaluating performance to date efficiency achieved by performing organizations for completed work and comparing it to remaining budgets. b. This is done by: a. commitment values for material. the control account manager should review the status of the expended effort and the achievability of the forecast and significant changes briefed to program management. Typical Attributes: • • • • • • • Timely and comprehensive assessments of the effort required for completing all work packages and planning packages in the control account plan. A comprehensive EAC is accomplished on a periodic basis using all available information to arrive at the best possible estimate at completion. Control account manager updates the EAC to reflect changes in budget and/or integrated master schedule when there is material significance. EACs should consider all emerging risks and opportunities within the project’s risk register (or other similar database) which will impact the integrated master schedule and resource plan for the remainder of the work.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Contract performance report totals for the EAC should reconcile with the corresponding time-phased resource plan.4 Analysis and Management Reports f) Develop revised estimates of cost at completion based on performance to date.

and opportunities).NDIA PMSC ANSI/EIA-748-A Intent Guide Objective evidence may be found in these typical outputs: • • • • • • • Control account plans. Earned Value Management System Description Compliance A-35 January 2005 . Material and subcontractor performance data. Basis of estimates. mitigation. Risk management plans (identification. Estimates at completion. Operational metrics. Earned value metrics.

g.g. duration. schedule. Change control logs including management reserve justification. budget. etc. Control account/work package/planning package plans showing revised work scope. recording the effects of such changes in the budgets and schedules. changes to linkages. It should provide the rationale/justification. change order. and contract budget base total. (e. disciplined.. Master schedules. Rate changes and economic price adjustments may also be made as appropriate. WBS (changes if applicable).5 Revisions and Data Maintenance a) Incorporate authorized changes in a timely manner. Incorporating changes will not arbitrarily eliminate existing cost and schedule variances. intermediate schedules (if any). engineering change order. dollars. Contractual change documents. performance • • • • • • • • Objective evidence may be found in these typical outputs: • • A-36 January 2005 . undistributed budget justification. etc. and timely manner. etc.) which transmit and authorize the change or addition to work. Intent Guideline 28 Incorporate the work scope for authorized changes into the performance measurement baseline in a documented. delivery order.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. etc. Statement of work (amendments or revisions)..). approval process. not to exceed letter. the contractor will develop its best estimate for planning and budgeting purposes for incorporation into the performance measurement baseline. May take various forms. Management reports (contract performance reports or other applicable management reports) showing timely incorporation of new work scope. change request form. Work authorization documents authorizing new work scope.) facilitating the change. program directive. budget and authorization to proceed. Adherence to this guideline ensures that budget. and detailed schedules showing revised work scope and duration. and schedule. For unpriced change orders. estimate at completion. In the directed effort prior to negotiation of a change. letter to proceed from contracts or legal. Typical Attributes: • Contractual change documents (external). dollar amount and receiving WBS. Basis of estimate (if not yet negotiated). contract modification. and WBS dictionary (additions and/or deletions to scope). work scope additions or deletions by integrated product team or WBS. and work remain coupled. performance measurement baseline dollar amount. if not already captured by the internal change request process. schedule. undistributed budget. Change control logs (management reserve. base such revisions on the amount estimated and budgeted to the program organizations. basic ordering agreement. dollar amount and receiving WBS. Contractor’s internal earned value management system documentation (e. and budget. changes to schedules.

Statement of work. Work authorization documents. Master schedules. intermediate schedules (if any). and contract budget base). Earned Value Management System Description Compliance A-37 January 2005 . Management reports (contract performance reports or other applicable management reports). and WBS dictionary. Control account/work package/planning package plans.NDIA PMSC ANSI/EIA-748-A Intent Guide • • • • • measurement baseline. WBS. and detailed schedules.

g. Management reserve may be used for future unopened work when additional in scope work has been identified and replanning actions cannot be handled within the existing budgets and schedule constraints of the control accounts. Statement of work (amendments or revisions). and WBS dictionary (additions and/or deletions to scope). not to exceed letter. changes revised work scope and duration. and budget. Work authorization documents authorizing new work scope. and contract budget base). May take various forms. Control account/work package/planning package plans showing revised work scope. basic ordering agreement. It should provide the rationale/justification. etc. budget and authorization to proceed. (e. dollar amount and receiving WBS. Change control logs (management reserve. and detailed schedules showing revised work scope and duration. performance measurement baseline dollar amount. Master schedules.5 Revisions and Data Maintenance b) Reconcile current budgets to prior budgets in terms of changes to the authorized work and internal replanning in the detail needed by management for effective control. • • • • • • • • Objective evidence may be found in these typical outputs: • • A-38 January 2005 . undistributed budget justification. intermediate schedules (if any). etc.g. etc. dollar amount and receiving WBS. engineering change order. estimate at completion. if not already captured by the internal change request process. delivery order. performance measurement baseline. Budget revisions are traceable to authorized contractual targets and control account budgets. and contract budget base total. Management reports (contract performance reports or other applicable management reports) showing timely incorporation of new work scope.) facilitating the change. budget and schedule. undistributed budget.) which transmit and authorize the change or addition to work. change request form. etc. program directive. change order. Contractual change documents. Change control logs including management reserve justification. WBS (changes if applicable). Basis of estimate (if not yet negotiated). Contractor’s internal earned value management system documentation (e.. letter to proceed from contracts or legal. duration. dollars. resources. and schedule. Typical Attributes: • Contractual change documents (external). contract modification. schedule. Intent Guideline 29 Budget changes are controlled and understood in terms of scope.. approval process.) . Budget reflects current levels of authorized work.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. work scope additions or deletions by integrated product team or WBS. changes to linkages. changes to schedules.

NDIA PMSC ANSI/EIA-748-A Intent Guide Earned Value Management System Description Compliance A-39 January 2005 .

routine accounting adjustments. Current period data on format 1 and format 3 of contract performance report will reflect any retroactive changes and format 5 for related explanations. they have appropriate explanations. and evidence of discipline and control. or budgets. making only routine accounting adjustments (e. thus reducing the alternatives available to managers for project redirection or termination.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2.g. Negative or inappropriate amounts must have appropriate explanations. Negative journal entries. earned value. Change control logs record change activity. Compare it to the previous period baseline plan to identify any differences and to verify all changes have been identified. Adjustments should be made only for correction of errors.5 Revisions and Data Maintenance c) Control retroactive changes to records pertaining to work performed that would change previously reported amounts for actual costs. Retroactive change control process including approval. effects of customer or management directed changes. Intent Guideline 30 Control retroactive adjustments (including those in the current period) to costs. Change control logs. Typical Attributes: • • • • • • • Change control process defines policy regarding retroactive changes that include conditions for use or prohibitions. rate changes. approvals and justifications. definitization of unpriced change orders. or data entry corrections. Management reports. percentage complete. or to improve the baseline integrity and accuracy of performance measurement data. This is necessary to ensure baseline integrity and accuracy of performance measurement data. Review the current dollarized time-phased baseline plan. When not a result of error corrections or routine accounting adjustments. and economic price adjustments). Objective evidence may be found in these typical outputs: • • Earned Value Management System Description Compliance A-40 January 2005 . durations. customer-directed changes. etc. Retroactive budget adjustments may delay visibility of overall project variance from plan. Earned value input source documents. dates. Scheduling system reflects schedule inputs concerning times.

Change control logs (management reserve. Control account/work package/planning package plans. Time-phased budget “run” reflects authorized changes to the budget. and detailed schedules. Work authorization documents reflect authorized changes to budget. WBS.5 Revisions and Data Maintenance d) Prevent revisions to the program budget except for authorized changes. Management reports (contract performance reports or other applicable management reports). This control precludes the inadvertent implementation of a budget baseline greater than the project budget. 2. and contract budget base).NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. and WBS dictionary. it is identified as an over-target baseline. Typical Attributes: • • • • • Change control logs reflect changes to the performance measurement baseline or contract budget base. Statement of work. Management reports (contract performance reports or other applicable management reports) reflect changes to the contract budget base or additions on formats 1. performance measurement baseline. Any changes to the project must be approved and implemented following the baseline management control process. undistributed budget. 3. Control account/work package/planning package plans reflect approved budget changes. Objective evidence may be found in these typical outputs: • • • • • • Earned Value Management System Description Compliance A-41 January 2005 . Master schedules. and 5 of the contract performance report if required. intermediate schedules (if any). Work authorization documents. Intent Guideline 31 Prevent unauthorized revisions to the performance measurement baseline. When the performance budget or schedule objectives exceed the project plan and are recognized in the performance measurement baseline.

Intent Guideline 32 The performance measurement baseline should always reflect the most current plan for accomplishing the effort. and WBS dictionary. Objective evidence may be found in these typical outputs: • • • • • • Earned Value Management System Description Compliance A-42 January 2005 . performance measurement baseline. WBS. Statement of work. Authorized changes must be quickly recorded in the system and incorporated into all relevant planning. and contract budget base) reflect changes from the original contract budget base. performance measurement baseline. Typical Attributes: • • • • • • • Change control logs (management reserve. Master schedules. Planning and authorization documents must be updated accordingly prior to the commencement of new work. undistributed budget. and contract budget base). Control account/work package/planning package plans. Work authorization documents reflect incorporation of all authorized changes. Management reports (contract performance reports or other applicable management reports). Work authorization documents. Control account/work package/planning package plans reflect updated schedule and budget plans for all authorized changes. intermediate schedules (if any). undistributed budget. WBS. Master schedules.5 Revisions and Data Maintenance e) Document changes to the performance measurement baseline. intermediate schedules (if any). Time-phased budget “run” reflects authorized changes to the budget. Statement of work. Management reports (contract performance reports or other applicable management reports) reflect incorporation of all authorized changes. and detailed schedules. Review for incorporation of all authorized changes. and detailed schedules reflect incorporation of latest authorized changes.NDIA PMSC ANSI/EIA-748-A Intent Guide Company or Organization Name EARNED VALUE MANAGEMENT SYSTEM PROCESS DESCRIPTION COMPLIANCE TO THE ANSI/EIA 748 STANDARD 2. Change control logs (management reserve. and WBS Dictionary.