Earned Value Management System Description

Project Organization and Preliminary PlanningSection 1Project Organization and Preliminary Planning1.1 PROJECT STRUCTURE1.1.1Objective [Guide 1, 2, 3 {2.1a, b, c}]The projects has developed a Project Execution Plan (PEP) to organize and manage the project’sscope of work. Key project organization components of the PEP associated with EVMS are the WorkBreakdown Structure (WBS), the Organizational Breakdown Structure (OBS), and the ResponsibilityAssignment Matrix (RAM).1.1.2Project Execution Plan [Guide 3 {2.1c}]The Project Execution Plan (PEP) is the primary vehicle that correlates project objectives with a planfor accomplishment. It also serves as the agreement between DOE and the project director/deputyproject director on how the project will proceed.Among the principle elements, a project execution plan describes the responsibilities of the projectand DOE organizations involved in the project, defines roles and restates the mission need, provides ageneral overview of the project, and outlines cost and schedule data. The major elements required in aDOE project’s Project Execution Plan are stated in DOE Order 413.3 and DOE Manual 413.3-1.The Project Execution Plan is developed by the Federal Project Director, with input from the projectdirector/deputy project director. After obtaining concurrence from the Stanford Site Office (SSO), thePEP is formally approved by DOE headquarters. The Project Execution Plan is under configurationcontrol.1.1.3Work Breakdown Structure [Guide 1 {2.1a}]The Work Breakdown Structure (WBS) is a product-oriented, hierarchical depiction of all workelements required to accomplish the entire work scope of the project. Each descending level is asubdivision of the work above, with increasingly detailed definition/division of the work. The WBS isthe structure for integrating the scope, schedule, and budget for all project work. It is used as aframework for assigning and defining work, schedule development, estimating and budgeting,managing funds, and controlling changes. The WBS is used by management throughout the lifecycleof a project to identify, assign, and track the project’s total work scope. Each element is assigned a1

LCLS Earned Value Management System Descriptionunique code to identify it in all project documents. The WBS is detailed in the PEP, or attached as anappendix.1.1.4Work Breakdown Structure Dictionary [Guide 1 {2.1a}]The project has developed a WBS dictionary. The WBS dictionary is a set of specific definitions thatdescribe the scope of each work element identified in the WBS. It defines each element to at least thecontrol account level in terms of the content of the work to be performed.1.1.5Organizational Breakdown Structure [Guide 2 {2.1b}]The Organizational Breakdown Structure (OBS) is a project organization framework for identificationof accountability, responsibility, management, and approvals of all authorized work scope. It is adirect representation and description of the hierarchy and organizations that will provide resources toplan and perform work identified in the WBS. The OBS helps management focus on establishing themost efficient organization, by taking into consideration availability and capability of managementand technical staff, including subcontractors, to achieve project objectives. The organizationalbreakdown structure for each project is found in the PEP.1.1.6Responsibility Assignment Matrix [Guide 3, 5 {2.1c, e}]The Responsibility Assignment Matrix (RAM) is an element of the project that integrates theorganizational breakdown structure with the work breakdown structure. This integration identifieskey control points at the intersections of the WBS and OBS. Control accounts are then created atthese key control points and they facilitate the linkage between the planning, scheduling, budgeting,work authorization, cost accumulation, and performance measurement processes. The controlaccounts are determined by the scope of the management tasks. A single control account manager(CAM) is assigned to one or more these control accounts and is responsible for the planning andcontrol within their control account(s) and the identification, analysis, and reporting of significantvariances that may occur during project execution. Using the RAM and OBS, the project is able toidentify the person/organization responsible and accountable for every element of the WBS andStatement of Work (SOW).1.2 PROJECT SCHEDULE1.2.1Objective [Guide 6, 7 {2.2a, b}]The project schedule is used to plan and control the interdependencies of all the activities needed toexecute the project. The project employs a scheduling tool that maintains the target schedule,supporting control milestones in the baseline, and the current schedule used to accumulate and reportcurrent schedule status.2

Project Organization and Preliminary Planning1.2.2Schedule Development [Guide 6, 7 {2.2a, b}]The development of the project schedule is the responsibility of the entire project team and mayinvolve multiple iterations in order to reach a workable plan for accomplishing the work scope.Technical leads from the various disciplines participate in these early iterations to identify theconstraints and interfaces. The control account managers expand these schedules into the detailneeded to identify the activities that will be performed in executing their assigned control accountresponsibilities. Project schedule details may evolve over time in a “rolling wave.” At the projectoutset, the details of the future schedule are generalized and the associated activities are of longerdurations, but in sufficient enough detail to allow the definition of the project critical path. As theproject moves through time and as activities are more clearly defined, new activities with shorterdurations are added. The scheduling system consists of baseline, current, and supplemental schedules.BASELINEThe baseline schedule contains the list of control milestones that are generally negotiated with theDOE and are identified in the Project Execution Plan. The project director/deputy project director hassupplemented these milestones with other events in a hierarchical structure deemed sufficientlyimportant to be in the baseline. The logic and activity relationships are established in the baselineschedule such that they support the timely accomplishment of the control milestones. The baselineschedule is assembled by the project management team. The project director/deputy project directorhas the responsibility to ensure that all parts of the baseline schedule properly mesh and phase witheach other. The baseline schedule should be consistent with constraints imposed externally, internally,by resource limitations or in the context of other projects at SLAC.The baseline schedule is approved and fixed consistent with DOE Order 413.3. The baseline scheduleconstitutes the official plan against which schedule performance is measured and reported to DOE,SLAC management, and project management. The baseline schedule is maintained underconfiguration management and may not be revised without proper authorization as detailed in theBaseline Change Control Thresholds table documented in the PEP.CURRENTThe current schedule is used to manage all project activities and is developed by logically networkingthe project activities. The schedule is an integrated, network-logic-based schedule. This networkapproach provides the ability to relate the project’s time-phased activities in their logical sequenceusing predecessor-successor relationships and timing. The current schedule also enables thedetermination of the critical path and an evaluation of the effects of the current schedule performancestatus on activities and milestones scheduled to be accomplished in the future. The current scheduleincludes detailed input from all control account managers, and provides the ability to relate activitiesand milestones between different levels of schedules. The current schedule includes all projectmilestones identified in the baseline schedule.3

LCLS Earned Value Management System DescriptionThe current schedule employs the approved baseline schedule to relate progress. The current scheduleshows the actual status of the project or program at the current point in time by reflecting the workperformed and the milestones accomplished. It is used by the project management team for analysis,including issue identification and resolution.SUPPLEMENTALThe project team may employ supplemental schedules that are not part of the baseline schedulehierarchy. They are often used for day-to-day operational planning and management, and as the namesuggests, supplement the baseline and current schedules, but are not under configuration control.1.3 PLANNING AND BUDGETING1.3.1Objective [Guide 8, 9, 15 {2.2c, d, j}]Planning and budgeting establish the time-phased budget used to measure project performance.1.3.2Performance Measurement Baseline [Guide 8, 9, 15{2.2c, d, j}]The performance measurement baseline (PMB) is the time-phased budget plan used to measureproject performance. In earned value management, the assignment or allocation of budgets toscheduled segments of work produces a plan against which actual performance is compared.The performance measurement baseline is finalized with Critical Decision-2 (CD2), ApprovePerformance Baseline. Figure 1-1 presents the DOE acquisition management development cycle. Therelationship of individual work tasks to the time-phased resources necessary to accomplish them isestablished at the control account level. As practical and meaningful, all control accounts and relatedwork packages should be planned, at least at a summary level, to the end of the project. It isanticipated that planning packages will be used in areas of the project where necessary. Any controlaccounts that cannot be established in the initial planning effort should identify the approach bywhich planning packages are detailed into work packages.The performance measurement baseline is the summation of the time-phased budgets for all of thecontrol accounts and summary-level planning packages, plus applicable indirect budgets and anyundistributed budget. The performance measurement baseline is a representation of current programplans. Proper maintenance of the baseline will prevent performance measurement against an outdatedor unauthorized plan.4

Project Organization and Preliminary PlanningFigure 1-1. DOE Acquisition Management System1.3.3Control Accounts [Guide 3, 5, 18 {2.1c, e, 2.3c}]A control account is a management control point at which budgets (resource plans) and actual costsare accumulated and compared to earned value for management control purposes. A control accountis a natural management point for planning and control since it represents the work assigned to oneresponsible organizational element for one WBS element.Within the financial accounting system, cost collection is performed at the control account level.Control accounts roll up into summary level accounts, which in turn roll up to an overall projectsummary account. No charges are directly charged or recorded at any summary level account.Accounts are called project IDs in the SLAC accounting system and are commonly referred to ascharge numbers. Multiple charge numbers, representing individual work packages, m

Systems (ANSI/EIA-748-A, January, 2006). The ANSI/EIA-748-A standard is an industry best practice as well as the official DOE and federal government standard for EVMS. Appendix A provides a crosswalk between the 32 ANSI/EIA-748-A guidelines and the SLAC EVMS. The SLAC EVMS is a key component