Lab-Wide Earned Value Management System Project Core Team Meeting

1. Lab-Wide Earned Value Management System ProjectCore Team Meeting February 11, 2009 Dean A. Hoffer/Elaine McCluskey

2. Agenda • Status of EVMS document revision reviews [Elaine/All] • Variance Thresholds • Discussions with Jim Wrisley and Peter Garbincius [Dean/Elaine] • Results of testing [Bill/Suzanne] • ETC/EAC Process [Dean/All] • Development of mechanics with Deltek consultant • Discuss the administrative process and what triggers updating the ETC “Significant Change” • Further discussion on Management Reserve/Contingency [All] • Risk in ANSI Intent Guide and System Description (Elaine) • Action Items Lab-Wide EVMS Project Core Team Meeting

3. Variance Thresholds • Jim Wrisley Discussion • Should have separate thresholds for reporting to customer. Could be same % but a higher $ value. Level to be agreed with customer and then document that in PMP. • Suggested that the format of the variance thresholds (% and $) is spelled out in EVMS documents, but that the actual numbers could vary from project to project, so the project can make a recommendation and the PMG is to approve the thresholds and then it is documented in the project’s PMP. Then if it is determined that the thresholds need to be changed to better support managing the project, the PMG can make that change and the PMP updated Lab-Wide EVMS Project Core Team Meeting

4. Variance Thresholds • Peter Garbincius Discussion • There should be specific variance thresholds included in the EVMS documents that is the standard default, but each project can recommend a change from that standard and request approval from the PMG. If changes are approved then it is documented in the project’s PMP. • For management reporting there still should be a visual yellow threshold to indicate something to watch or start asking questions on. Suggested it could be half way to what triggers a VAR to be generated. Lab-Wide EVMS Project Core Team Meeting

5. Variance Thresholds Lab-Wide EVMS Project Core Team Meeting

6. ETC/EAC Process • Deltek Consultant • Rachel Moen worked with both NOvA and DECam people to develop process for entering ETC in to the scheduling tool and bringing into Cobra and have it show on the CPR. • Desktop instructions were created for going from OP to Cobra and for MSP to Cobra. • Discuss the administrative process and what triggers updating the ETC (what is significant and where is it defined?) Lab-Wide EVMS Project Core Team Meeting

7. Management Reserve/Contingency From Marc’s Email • DOE EVMS "Gold Card" from DOE G 413.3-10 dated 5/6/08 • Contingency = held by DOE & based on technical and programmatic risks • MR = management reserve (held by contractor based on contractor risks) Lab-Wide EVMS Project Core Team Meeting

8. Management Reserve/Contingency (continued) • MANAGEMENT RESERVE - Contractors should be encouraged to establish a challenging PMB. However, it must be understood that there will be risk events within the contractor’s defined scope of work. A proper balance of challenge versus risks and managing risks can be the key to project success. Many of these risk events may happen and the contractor should be allowed to have a budget reserve that they can use to better plan future work. This budget reserve or MR should not be used to budget newly directed work scope. • DOE CONTINGENCY - In establishing the TPC, DOE should account for technical and programmatic risks. It is important to account for these technical and programmatic risks by establishing a DOE contingency which would be used for providing additional budget should the need arise. Lab-Wide EVMS Project Core Team Meeting

9. Risk in ANSI Intent Guide(action item from last week) • Wrisley said our Risk section in system description didn’t relate specifically to EVMS. Risk is not mentioned in ANSI 748 specifically. • ANSI Intent Guide mentions risk under these Guidelines: • Intent Guideline 14 • Identify and control management reserve (MR) and undistributed budget. Management reserve is budget for work scope that will arise during the course of the project, but cannot be identified in advance. Because management reserve is budget that is not as yet tied to work, it does not form part of the performance measurement baseline. The management reserve budget should be commensurate with the level of risks identified by the project and/or withheld for management control purposes. • Intent Guideline 22 • On at least a monthly basis, generate schedule variance and cost variance data that provide visibility into root causes and establish actions to achieve project completion…. However, analysis should be performed at the most meaningful level of the WBS, which may be determined by risk, critical path, technical performance metrics, or utilization of thresholds. • Intent Guideline 26 • Assess management actions and modify them as required to achieve project objectives… Objective evidence found in …Risk management data and similar metrics. • Intent Guideline 27 • Develop revised estimates of cost at completion based on performance to date…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. Lab-Wide EVMS Project Core Team Meeting

10. Risk – what to do • Intent Guide says risk should relate to • Establishing management reserve (not contingency) • Analyzing variances to determine root causes and documenting this • Taking corrective actions based on risk management data and documenting this in risk documents and VAR corrective action log • Updating risks and taking them into account when performing ETC/EAC • Believe we agree with this (MR?), but need to rewrite risk section to convey this. • Anyone willing to take this on? Lab-Wide EVMS Project Core Team Meeting

11. Action Items Lab-Wide EVMS Project Core Team Meeting