Measure Earned Value Management

strategy meeting
 

Overview

Government contractors are required to manage and measure their IT projects using an Earned Value Management System (EVMS), per guidelines of ANSI-748, which lists 32 requirements for an EVMS. Many RFPs list EVM as a requirement, which means program managers are now being required to provide regular and consistent reports, so that the contracting agency can justify program and project expense.

There are three components to an EVM solution: cost data, schedule data, and EVM reports.  Microsoft Dynamics NAV for Government Contractors provides the required cost information. This cost information includes budgets, and all accounting costs such as direct costs, indirect costs, and material costs. With the built-in Dynamics NAV business intelligence and analytics reporting capabilities, companies can figure out project cost variance. Coupled with the project management capabilities offered by our EVM partners, companies can figure out schedule variance, indirect cost variance, and revised estimates of completion. Management can then take proper action to ensure that the project meets government customer expectations and requirements.

PVBS offers a complete EVM offering in association with some top Microsoft Project Solution Providers.  In conjunction with our partners, our government contractor customers can work with their agencies to ensure compliance with Earned Value Management Standards using Microsoft Office System tools.  Project Managers need to measure the health of their projects continuously throughout the project’s lifecycle, not just to ensure how it is performing to the budget, but also to reduce or eliminate any possible legal liability. Employed a sound EVM solution built on Microsoft Dynamics NAV and Microsoft Project Management Solutions can allow this to happen.

  • Coupled with partner offerings provides a fully integrated earned value management solution, built on the Microsoft Office System, which will help government  agencies to comply with ANSI-748 and the EVM mandates from the Office of Management and Budget (OMB).
  • Uses Microsoft Project Server to build and maintain project scope, cost and schedule baselines.
  • A data mart has been added to maintain trending and performance data, and the solution comes with ten pre-built standard EVM reports most commonly used in Government.
  • Configuration to Microsoft Project Professional and Project Server allows project managers to track and status projects using seven earned value progressing methods, and financials are integrated into the schedule at the summary/control account level from an existing finance system, using pre-built integration tools. This allows project managers can status the schedule (work) at the activity level in the WBS, yet post actual costs from the accounting system at the Cost Account Level (summary tasks).
  • Project Managers can now manage cost and schedule data, and all contract elements, within a single Microsoft Project schedule, all stored via Project Server in SQL Server database tables, for easy access, reporting, and audit.
An earned value management system (EVMS) is a set of best business practices, processes and tools for enterprise project planning and control. The process includes integration of scope, schedule, cost, a performance measurement baseline and earned value.
In 1999, the U.S. government granted responsibility for defining EVM to contractors, subject only to the 32-item ANSI/ EIA-748 criteria. Except for a few minor adjustments and clarifications, the ANSI standard widely defines EVM today.