files: 89

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rowid	image	timestamp	memento	first_capture	last_capture	current_status	text	mime	status	url	urlkey	digest	length	file_path
89		20111216065543	https://web.archive.org/web/20111216065543/http://www.defence.gov.au:80/dmo/esd/evm/Symp99.ppt	2011-12-16	2011-12-16	500	Developments, Achievements and Reforms Subhash Dang Director - EVM 16 Sept 1999 Background • EVM used in Australia for the last ten years • Used on all major capital equipment acquisitions • Standards and procedures were originally based on US DoD • Number of enhancements and developments undertaken to make EVM more effective. • Acquisition organisation going through major reforms Recent Innovations • Integrated Baseline Reviews (IBR) • Consultants Panel for EV services • Payment by Earned Value • Use of earned value data for Corporate level reviews of Defence projects (DARB) • National Standard on EVM • Review Methodology Reforms Integrated Baseline Review – Policy promulgated – IBR Handbook developed and being used by Projects and Contractors – Training by DAMS staff in place – Proving more ownership by Project Tech Staff – Replacing old Subsequent Appn Reviews (SAR) – Applicable to all new projects and existing projects Consultants Panel for EV Services • Professional Service Providers (PSP) Panel fully operational since Jul 98 • Used extensively for – Training – Studies – System Development – Special workshops – Analysis Support Progress Payment based on EV • A recent initiative • link to JPAC recommendations • EV as the “best estimate” of progress National Standard on EVM – Project approved by Standards Australia – Sub committee established – Development commenced – US Industry ANSI-748 would be used as the basis Reporting to DARB – High-level Project reporting pays a great deal of attention to EV reporting formats – Trend graphs particularly popular – Raises awareness and profile of EVM within DAO EV Payment Models • 100% earned value • mix of EV and milestones Preferred Model • Mixed milestone / EVP used for all contracts • Majority of the price (50-90%) to EVP • Remainder on achievement of milestones • Split varies according to project value, risk, complexity, duration • Offers benefits of both EV and Milestones • Contractors focus on achieving key milestones Advantages • Tangible use of EVM System • Eliminate duplication between company’s EVMS and invoicing systems • Satisfies ANAO • Assist in accurate Cash Flow Forecasting. • Separate presentation on Cash Flow Forecasting Payment by EV Can Work • Initial teething problems being resolved • Mobilisation Payment a key payment milestone • Verification encourages better analysis • DAMS-EVM just released a guidance paper on payment verification Review Methodology • Changed review practices (as used for BAe, RLM and Kaman) • Drivers of reform are: – resource constraints – increased partnering with contractors – change of emphasis from strict enforcement to working & workable management system • Interactive system development and review Enhancements • Shorter reviews with smaller teams - helping both sides • Contractors encouraged to have team members on the review - for better communication • Maximise the participation of Project staff, particularly resident team • Just 2 or 3 external “experts” Enhancements (2) • Use of “in country” resources for overseas reviews – resident team – posted staff – embassy/high commission personnel • Reduced reporting • Providing on-going advice to the Contractor towards implementation Defence Standards • Standards reflect the 1989 policy and procedures • Need to reflect current and proposed practices • Opportunity to amalgamate some of the standards Re-engineering EVM Criteria • Delete supporting functions • Delete LOE • Focus on contractual deliverables • Simplify the reporting elements • Revise thresholds Re-engineering (continued) • Leading the way • Easier to sell to Project Managers • Satisfies ANAO concerns • Payment by EV more meaningful EVM and Evolutionary Acquisition Contracts • EA projects are Software Dev. intensive • EVM quite appropriate • Tailored requirements developed and used on one Project • EVM and PSM quite complementary • Liaison with DSWAR for developing policy and procedures. Australian Innovations - Summary • EVM application continues to evolve • Directions in harmony with US approach • Now working top-down to encourage EVM use through DARB as well as bottom-up through contractor implementation & review	application/vnd.ms-powerpoint	200	http://www.defence.gov.au:80/dmo/esd/evm/Symp99.ppt	au,gov,defence)/dmo/esd/evm/symp99.ppt	ELNYFETIALWSKMQNJBH4NZHQIZMU2MJU	56376	domains/defence-gov-au/powerpoints/original/au-gov-defence-dmo-esd-evm-symp99-ppt-20111216065543.ppt