Control Account Manager Short Course

A short course on being an Earned Value Management Control Account Manager. What is you role, to whom are you accountable, what does you CAM Notebook look like, what role does EVM play in your weekly management activities, what are the sources of information needed to manage the Control Account, what is your weekly and monthly business rhythm, a quick look at Risk Management, and what's beyond this short course?

1. CONTROL ACCOUNT
MANAGER
SHORT COURSE
6/18/12 –Short Overview of being a CAM
1

2. Learning Objectives for this course
Surviving the first 60 days of being a CAM
LO: 1What is your role as a Control Account Manager?
LO: 2What are you accountable for as the CAM?
LO: 3What is in your CAM Notebook and how do you use this
information on a weekly basis?
LO: 4What role does Earned Value play in your weekly
management activities?
LO: 5Where are the sources of information you need to manage
your Control Accounts?
LO: 6What are yourweekly and monthly business rhythms?
LO: 7A quick look at Risk Management
LO: 8What’s beyond this Short Course-toward Validation interviews
2

3. Skills needed to survive the 1st60 days as a Control
Account Manager (CAM)
¨What does it mean to be a CAM?
¨As a CAM, what are you accountable for?
¨Concept of Earned Value Management?
¨What are your weekly management activities?
¨What is your role in getting the CPR out the door?

4. The Control Account Manager says its name –
theManager of Control Accounts.
But what does that really mean? It means you’re
accountable for the performance of the work
contained in the Control Account.
You’re the go to person from delivering the
outcomes from that work.
You are the Managerof the Control Account.
What is your role as a CAM?
LO: 1
4

5. Control Account Manager has …
Responsibility to …
¨Manage the cost, schedule, and technical performance of the Control Account work activities.
¨Provide performance and forecasting data related to the Control Account.
¨Review and approve all work assignments, documents, and commitments involving the Control Account work activities.
Authority to …
¨Approve the Control Account authorization documents
¨Approve the Control Account budget notices
¨Determine the work schedule and prioritizes the work for each Work Authorization
¨Approve hours charged to the Work Authorizations
¨Identify potential technical, schedule, and cost risks and enters them to the Risk Register
Accountability …
¨To Program Manager for Control Account Performance.
¨For complete the Control Account scope of work within the resources authorized.
¨For achieving the technical performance goals for the defined scope of work.
¨For achieving technical quality
¨For assuring the reported Earned Value is based on Quantifiable Backup Data (QBD)
¨For mitigating technical, schedule, and cost risks
LO: 1
5

6. 6
As a CAM, you are in charge ofthe outcomes
from the Control Account work efforts.
You’ll need lots of support from others, functional teams,
subcontractors, other CAMs, internal and external resources.
But in the end, you are accountable for the success of the
Control Account
LO: 1

7. If you’re the Control Account Managerof your
Control Account, what is it that you’re actually a
manager of?
The Control Account of course.
But what does that mean?
The Control Account
LO: 1
7

8. Program Performance
Management Team
Program Organization
8
LO: 1

9. A Control Account and its children?
LO: 1
9

10. Where your Control Account lives
10
LO: 1

11. The Control Account is the …
11
¨Intersection of WBS and OBS
¤WBS element –The deliverables
¤Control Account Manager (CAM) –accountable for those
deliverables
¨Key control point for …
¤Schedule, time-phased budget –BCWS
¤Actual cost accumulation –ACWP (in this case actuals are at
the Work Package Level
¤Earned value determination –BCWP
¤Variance analysis (cost& schedule) –for submission in the
CPR
¤Corrective action –to get the CA back to GREEN
¤Estimate At Completion (EAC) –for the remaining work
LO: 1

12. Where Control Accounts Come From
12
Work Breakdown Structure (WBS)
Organization Breakdown Structure (OBS)
12345678
A
B
C
D
E
F
Control Account
LO: 1
Where scope,
schedule, and
cost are planned
and managed

13. Where CA Budgets Come From
13
Summary Planning Packages
Management
Reserve
Undistributed Budget
Work Packages
LO: 1

14. 3 Baselines in your Control Account
14
Cost
Baseline
Schedule
Baseline
Technical
Baseline
Perform
Functional
Analysis
Determine
Scope and
Approach
Develop
Technical
Logic
Develop
Technical
Baseline
Develop
WBS
Define
Activities
Estimate
Time
Durations
Sequence
Activities
Finalize
Schedule
Identify
Apportioned
Milestones
Determine
Resource
Requirement
Prepare
Cost
Estimate
Resource
Load
Schedule
Finalize
Apportioned
Milestones
Determine
Funding
Constraints
Approve
PMB
LO: 3

15. Work Package Types
15
¨Discrete –the work performed produces tangible
outcomes through the consumption of hours and dollars
¨Apportioned Effort –the work performed is in
proportionto the work somewhere else. You probably
don’t have any of these.
¨Level of Effort –the work performed is from the
passage of time. Surveillance, oversight, watching
things.
¨Planning –work is not defined in detail, but budget is
assigned. You don’t have nay of these, maybe in the
next CLINs.
LO: 1

16. What’s a CLIN?
16
¨Contract Line Item Number
¨A check bookwith money, a Statement Of Work,
and the list of deliverables.
¨There are 2 CLINs
¤CLIN1 –Ebola
¤CLIN5 –Marburg
¨Each CLIN (1 and 5) have a Statement of Work,
which you should have and also have read in detail
to know what you are accountable for.
LO: 1

17. Work Package
17
¨The Work Package says its name it is aPackage of
Work.
¨Tasks (activities) in the Work Package produce a
single outcome from this package of work.
¨The Work Package has a finite duration, weeks to
maybe a few months.
¨Performance is recorded at the Work Package level
for Earned Value, but measurement is taken at the
activity level.
LO: 1

18. As a CAM your primary accountability is for the
outcomes of your Control Account.
Within the Control Account, there are several
items that come along with those outcomes.
The Program Controls elements of the Control
Account are also in your area of accountability.
What are you accountable for?
LO: 2
18

19. Connecting all the Dots
19
Risk
SOW
Cost
WBS
IMP/IMS
TPM
PMBNamed Deliverables
defined in the WBS.
Budgetsfor the work at
the Work Package.
Performanceattached to
each critical deliverable in
the WBSand identified in
each Work Packagein the
IMS.
The Productsand Processes
that produce the
deliverablesin a “well
structured” decomposition
in the WBS.
IMScontaining the
Work, Budget, Risk
mitigation plans,
define in the
Integrated Master
Schedule to
measure maturity.
Technical and Programmatic
RisksConnected to the WBS.
LO: 2

20. Core Elements of your Control Account
20
Work Break Down Structure
Schedule the Work
Budget Spreads (BCWS)
MR
Performance MeasurementBaselineContract Budget Base (CBB)§SOW
§WBS
§OBS
§RAM
§IMS
§WAD
§CAP
§WP
§PP
+
LO: 2

21. Connecting the Dots starts with the
Control Account Plan (CAP)
21
Program Work Authorization Directive (WAD)
LO: 2

22. Control Account
The intersection of the WBS and OBS
Connecting more Dots between work,
organization, and performance measurement
22
WBS
OBS
BCWS3025501030
BCWP3022
ACWP2627
BCWS3025501030
BCWP3022
ACWP2627
IncrementalCumulative
LO: 2

23. Building the Performance Measurement
Baseline (PMB) from Cost and Schedule
23
Integrated Master Schedule
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
Cost and Materiel Baseline
QuarterQuarterQuarterQuarterQuarter
§CAP contains Budget, Hours, Staff, deliverables,
spread by month, quarter.
§PMB contains Work Packages, BCWS, EV methods,
sequenced in the proper order.
The integration of the IMS and the Cost Baseline is 2
of the 3 elements of the PMB. The cost spreads by
quarter currently in place are spread to the Work
Packages in the IMS and the BCWS baselined for
performance measurement
SOW Sub #
SOW Sub #SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
SOW Sub #
LO: 2

24. When we come back, we’ll open your CAM notebook and
use it for the source of questions and training.
Let’s Take a 5 Minute BreakDay 1

25. The CAM Notebook contains all the information
needed to manage the Control Account, orhas
references to the location of this information.
The CAM makes use of this information on a
weekly basis, for the monthly reporting, and for
the knowingwhere the Control Account are at all
times.
In the CAMing business surprisesare usually
unpleasant surprises.
What is in your CAM Notebook?
LO: 3
25

26. NOTTHATNOTEBOOK
the
Control Account Manager
Notebook
üA notebook containing
all the information you
need to manage your
Control Accounts
üMuch of the information
is electronic, but you
should have hardcopies
with you as well.
üThe DCMA and
customer expects you to
know this information.26
LO: 3

27. Your CAM Notebook is
the starting point for all
the items you’re
accountable for.
Keep it with you at all times
LO: 3
27

28. The CAM Notebook
28
¨The repository for technical, cost, and schedule information to manage the work activities of the Control Account(s):
¤A description of the work (WBS), with clear statements of authorization (WAD) from the customer thru the contractor organization to the CAM’s immediate manager then the CAM to expend resources to perform the tasks.
¤A detailed time phased plan (IMS) to accomplish the work with a logical interconnect series of activities leading to work completion.
¤A detailed time phased budget (PMB) indicating the amount and type of resources necessary to complete the work indicating both units of resources, e.g., hours and dollars.
¤Performance results (EV) indicating technical progress, schedule status, and resources consumed over time to perform the tasks.
¤An estimate of the completion (EAC) date and total resources to be consumed at task completion.
LO: 3

29. Why should you care about this?
29
¨The CAM Notebook gives a clear picture of whether the control account’s technical scope, schedule , risk and resources are integrated –play together –make sense.
¨The CAM Notebook, when understood by the CAM, brings both parties to a clear mutual understanding of all aspects of the task.
¨The CAM Notebook ensures a foundation of information for continuity if the CAM reassigned or not available for some reason
¨The CAM Notebook documents what is going on and enables a third party to be convinced that all aspects of the task are being considered and harmonized and reasonably managed now and with an eye on the future.

30. Your CAM Notebook Contains …
1.Formulas and Acronyms
2.Common Process Chart
3.Work Breakdown
Structure (WBS)
4.Responsibility Assignment
Matrix (RAM)
5.Statement of Work
(SOW)
6.WBS Dictionary
7.Basis of Estimate (BOE)
8.Control Account Plans
(CAP)
9.Earned Value
Performance Reports
10.Schedules
¤Master
¤Intermediate
¤Detailed
11.Staffing Plan
12.System Reports
13.Variance Reports
14.Program Directives (PD)
15.Quantifiable Backup
Data (QBD)
16.Subcontractor Data
30
LO: 3

31. Key Document Relationships
31

32. Statement of Work (SOW)
32
¨Vertical Traceability
¤The contract SOW describes the work to be performed and traceable to the WBS and WBS Dictionary.
¤The SOW will be traceable directly to the IMP by coding or SOW paragraph reference number or be traceable indirectly to the IMP by using the WBS coding.
¤The Work Authorization Document (WAD) for work activities traceable to the SOW.
¨Completeness
¤The entire SOW work description should be included in the Master Plan and the WADs.
¨Within Scope
¤All work described in the WADs should be included in the SOW.

33. WBS Dictionary
33
¨The Work Breakdown Structure (WBS) and WBS Dictionary
are critical documents which provide structure to program
documentation and further technical detail concerning the
contract work to be performed
¤The contract WBS is the detailed product tree of the work to be
performed to execute the contract SOW
¤The contract WBS is an extension of the program WBS provided
by the customer which in turn follows the guidance in MIL-STD-
881A
¤The WBS dictionary is a description of the WBS elements and
should be more detailed than the SOW
¨The WBS number is traceable to the IMS activities and is
included in Work Authorization Document (WAD), and the
Control Account Plan (CAP).

34. Work Authorization Document (WAD)
¨The official document from the program manager authorizing the CAM to plan and execute the work task. It should be signed by the program manager, the CAM and usually the business manager.
¨The following elements are in the WAD:
¤Control account number and title
¤WBS element number with name
¤IMS reference
¤Description of Work/Scope of
Work
¤Control Account period of
performance
¤Budget in hours and/or dollars
¤PM and CAM signatures and
others per the command media
¨Description of Work trace
¤The WAD Description of Work
should be traceable to the
SOW/SOO and the WBS
Dictionary –it should not be “cut
and paste” extract
¤The Description of work should
be more detailed and specific
than the WBS Dictionary.
¤Each Description of Work should
be unique so that work between
WADs can be differentiated
¨Signatures –PM and CAM signatures should be evident and signed before period of performance begins
34

35. Control Account Plan (CAP)
35
¨The Control Account Plan (CAP) lays out the work packages and planning packages with time phased resources necessary to accomplish all the work in the WAD Description of Work
¤The resource category, e.g., labor, material, subcontract, should be indicated
¤The earned value technique, e.g., percent complete, LOE, should be stated.
¤Planning Packages should be properly coded and resources time phased.
¨The CAP contents are traced to other CAM Notebook contents
¤Total budget agrees with WAD
¤Start date of earliest work package and end date of latest work package/planning package agrees with the WAD and IMS.

36. Basis of Estimate (BOE)
36
¨Basis of Estimate (BOE) provides detailed estimating methodology for the Control Account Plan budgeted value and/or the last Comprehensive Estimate At Completion (CEAC)
¤The BOE is time phased in hours and dollars if labor, and dollars if non-labor.
¤Month to month wide variations in resources estimated should be explained and should be supported by similarly varying IMS activities.
¤Hours converted to equivalent person months using the accounting calendar to determine the number of staff charging to provide an accurate staffing profile
¤Period of performance agrees with the CAP
¤Detailed cost justification and estimates sum to totals presented for the Control Account.

37. IMS Review
37
¨Logical connectivity
¤Critical Path : Start to Finish
¤Predecessor and Successor relationship
¤Horizontal and Vertical Traceability
¨Schedule Transparency
¤Visibility and Accuracy
¤Schedule Effectiveness
¨Schedule Maintenance Process
¨Resourced Schedule
¤Traceable to control accounts
¨Integration between Prime and Major Subs
¤Integration of interfaces tied points
¤Scheduling tools compatibility
¨Integration between IMS and Supplemental Schedule

38. Performance Report
38
¨Compare the Budget at Completion to the control account budget in the WAD and CAP
¨Examine the report for data causing reason for concern and/or not logical
¤Cumulative budget (BCWS) greater than Budget at Completion (BAC)
¤Cumulative earned value (BCWP) greater than BAC
¤Cumulative actual costs (ACWP) greater that estimate at completion
¤Negative current month and cumulative values
¤Unusual and widely varying cost performance index (CPI), schedule performance index (SPI) and to-complete cost performance index (TCPI)
¤Also look for significant differences between the CPI and the TCPI
¨It is of particular concern if the following is noted
¤BCWP and BCWS values with no actual costs recorded
¤Conversely actual costs recorded with no BCWS and BCWP
¤Inconsistency between cumulative dollar and % cost variance and variance at completion, e.g., cumulative CV of -18% and VAC of -2%

39. Risk Management
39
¨Examine risk and opportunity documentation
¤Identify control account risks tracked at program level.
¤Identify other risks CAM tracked at the control account
level.
¤Locate and evaluate
retirement plans.
¤Look for inclusion for risk
related schedule activities
and budgeted work
packages.

40. ANSI-748-B is applicable to all FAR/DFARS
programs greater than $20M and requires a
validated Earned Value Management System for
programs greater than $50M.
This program is greater than $50M, so Earned
Value Management and the use of the Earned
Value Management System is mandatory.
Earned Value Management
LO: 4
40

41. What is Earned Value Management?
41
üMeasures actual progress to
plan using units meaningful
to the decision makers.
üProvides visibility to
physical percent complete
on fine grained boundaries.
üProvides visibility to future
performance given past
performance and risk
adjusted forecasting.
LO: 4

42. The Foundation of Earned Value
LO: 4
42

43. PastPresentFuture
What is the “to go” plan?
How is it resourced?
When will we finish?
What will it cost in the end?
How can we control the trend?
How do we adjust for risk?
The Core Purpose of EVM
LO: 4
43
Are we on schedule?
Are we on cost?
What are the significant variances?
What is the trend to date?
What risk have been reduced or
added?

44. 44
MeasuresPastPresentFutureMeasures
What does SV and SPI
say?Are we on schedule?What is the "to go"
plan?
TCPI?
Critical pathanalysis
What does CV and
CPI say?Are we on cost?When will we finish?Probabilistic schedule
analysis
Over threshold?What are the
significant variances?How is it resourced?BCWS spreads
What does TCPI say?What is the trend to
date?
What will it cost when
we are done?
BCWS probabilistic
model
Trace probabilistic
programmatic and
technical risks to IMS
activities
What risk have been
reduced or added?
How can we control the
trends?
Physicalpercent
complete measures of
progress
How do we adjust for
risk?
Integrationon Risk
Register in the IMS

45. What Does Earned Value Tell Us?
Know where you are in
terms of accomplishment
as well as how much
you’ve spent
Know the final cost
and delivery date
with confidence
Drill down through the
data to where the
problem is
How can we
make informed
decisions?
LO: 4
45

46. The Alphabet Soup of Earned Value†
B C W S
B C W P
AC W P
The same work component is in all three Earned Value variables
† CPM–300: Principles of Earned Value Implementation, Lesson E: Developing the Performance Measurement Baseline, Dennis W.
White, IPMC 2002 Fall Conference, Professional Education Program.
LO: 4
46

47. The S-Curve of Earned Value
47

48. LO: 4
48
Project
Execution
Project
Planning
Actual
Schedule
Status Update
Actual
Costs
GL, Time
Planned
Schedule
IMS
Planned
Costs
BCWS
Monitor &
Control
EVM Reporting
Program Status
Analyze
Managerial
Analysis
Performance
Financial
Analysis
Trend & Variance

49. ANSI–748-B 32 Guidelines
49
LO: 4

50. EVM is Performance Management†
50
Performance
ManagementANSI–748–B Framework
§Establish Product
Requirements
§Measure progress toward
deliverables
§Use 0/100 or apportioned
milestones
§Never use ACWP=BCWP
as progress measure
§Integrate requirements
and quality with plan
§Integrate risk
management with plan
§Establish probabilistic cost
and schedule estimates
† from Performance Based Earned Value, Paul Solomon, IEEE Computer Society, John Wiley & Sons, November 2006
LO: 4

51. Next comes the collection of data and its use in your
weekly business rhythm. Where is this data, how can you
get it, and when you get it, what can you do with it?
Let’s Take a 5 Minute BreakDay 1

52. Where do you get the information you need to
manage your Control Account and its Work
Packages?
The first source –the document of record –the
Performance Measurement Baseline (PMB) held
in the Earned Value Engine –Safran Project and
Proteous.
Other sources are in a variety of databases and
file cabinets.
Sources of Information You’ll Need
LO: 5
52

53. Information for your CAM Notebook
53
¨Safran and Proteus hold the Document of Record
for all Control Account cost and schedule
information.
¤BOE, CAP, WAD, EV Reports, Schedules, CPRs,
performance to date, and Variance Reports.
¨WBS Dictionary is maintained by Program Planning
and Controls.
¨SOW and other contract documents available from
Program Management Office (PMO).
¨Quantifiable Backup Data developed through your
own development and use of Work Packages.

54. The Control Account Manager is accountable for
the performance of the work in the Control
Account.
The cost, schedule, and technical performance
are assessed weekly and reported monthly to
the customer.
Business Rhythm
LO: 6
54

55. Three Core Elements of the PMB
55
¨Evaluation of the
performance
measurement baseline:
¤Scope, schedule, and
resources.
¤Identification of inherent
risk during execution.
¨Is a joint assessment of
the PMB.
¨Documented results and
startup of the
“Integrated Baseline
Management” processes.
Technical Baseline
Schedule Baseline
Cost Baseline
Integrated
Baseline
using the
PMB
LO: 6

56. Dependencies between measures
56
LO: 6

57. Flow of Data in the EVMS
57
LO: 6

58. Weekly reporting of progress to planis the primary responsibility of the CAM, along
with managing the corrective actions needed from that reporting to keep the Control
Account GREEN.
Managing your Control Account is all about taking corrective actions as early as
possible.
Monthly Business Rhythm58
LO: 6

59. Success is about managing variances
59
¨Budget
¨Schedule
¨Technical performance
¨Resource conflicts
¨Subcontractors
¨All these, and more, are in the CAM role, with
support and help from the PM and Functional
Manager
LO: 6

60. Monthly Business Rhythm
60
LO: 6

61. Let’s Start with the End in Mind
Successful Program Management Means…
¾No surprises in cost and schedule
for Work Packages open and
under way.
¾Forecasts of future cost and
schedule have a credible
confidence level matched by the
actual cost and schedule
performance.
¾All cost and schedule values are
risk adjusted.
¾Measures of Physical Percent Complete used for all deliverables.
¾Updates to Physical Percent Complete, cost and schedule impacts
done every Thursday for the life of the program
LO: 6

62. Each week all the CAMs come together to compare their progress to
plan, determine any dependencies, report risks and their handling,
and confirm that the deliverables they are accountable for will arrive
on or around the planned dates.
Plan of the Week62

63. All Programs Are
Lost
One
Week At A Time
LO: 6

64. The Plan of the Week (PoW)
64
¨The Plan of the Week(PoW) is the framework for planning the
work and working the plan.
¨The PoW is derived from the Integrated Master Schedule (IMS).
¨Coming dueitems for the 30/60/90 look head(moving window)
are extracted from the IMS for each CAM to discuss. These
include the planned starts and planned finished during the
period.
¨This report is produced on the Thursday prior to the weekly
Program Review.
¨Each CAM discusses those coming dueitems and speaks to the
confidence that they will completed on or beforethe due date –
either started or finished.
¨With this information, the CAMs can then have a conversation
among themselves of the commitmentsneeded for the
interdependencies between their planned work.
LO: 6

65. 65
Extracting Coming Duefrom the IMS
CAMPlannedStartPlannedFinishDependency
CAM #
1
What should start
this period?
What should finish
this period?
Who am I
dependent on?
CAM #
2
………
…………
LO: 6

66. 66
The Script for the one hour status review meeting
¾The status review script is like a
story script.
¾It tells the participants what
their role is in this story.
¾There can be improv, but you
have to follow to the story line
or the reader gets confused.
What’s our story line?
¾What work must start in the next period to stay on schedule?
¾What work must finish in the next period to stay on
schedule?
¾What is the cost for this work that keeps us in budget?
¾How do we know the produced outcomes meet the needed
results?
LO: 6

67. 67
The First 15 Minutes
¾The previous Thursday, after the IMS status by PP&C, the Plan
of the Week extract will be forwarded to the CAMs.
¾The HFV Program Manager reviews the collective coming due
data and provides a summary of the high points, major risks,
and discussion topics for the remainder of the meeting.
¾During the first 15 minutes of the PoW meeting the PM will
report the activities scheduled for the coming weeks that
require senior management action.
¾If there are items planned for the week that are not on the
coming due list, they will be noted and added AFTER the first
15 minute phase of the meeting.
LO: 6

68. 68
The Second 15 Minutes
¾After the PoW items have been reviewed by the PM, the
CAMs confirm they have all the information they need for the
next 3 weeks.
¾And any additions, changes, or deletes made, we can move to
“new business,” which will include items that:
•Did not complete when promised and are therefore late
•Have been rescheduled for the coming period and are therefore late to
plan
•Have been moved to future date through a change control approval
process
•Have not started as planned and are therefore candidates for being
late
¾Items not completed as promised will be called out for
corrective action.
LO: 6

69. 69
Last 30 Minutes
¾Each CAM will walk through the coming dueitems and
confirm that the dependenciesrequired for success for their
deliverables or completion items are in place.
•Planned to start in the next 3 weeks
•Planned to finish in the next 3 weeks
¾External dependenciesare confirmed and agreed to
•Each CAM will confirm with other CAMs owning that external
dependency that the required items will be available when needed.
•If not, then the supplying CAM must state when that item will be
available.
¾Wrap up concurrencebetween the CAMs
•All CAMs and the PM concur that the planned start and planned finish
items will take place on or before the planned date.
LO: 6

70. Progress to Plan reporting is guided by
DI–MGMT–81466A
70
¨The CPR consists of five formats
¤Format 1 –Work Breakdown Structure
¤Format 2 –Organizational Categories
¤Format 3 –Baseline
¤Format 4 –Staffing
¤Format 5 –Explanations & Problem Analyses
¨Uses of CPR Data
¤Integrated Cost & Schedule EVM Data
¤Identify the cost and schedule impact of actual and potential problems
¤Provide valid, timely program status info for higher management
¨The CPR provides timely, reliable summary–level data with
which to access current and projected contract performance.
LO: 6

71. The Earned Value Relationships –Focus on
Percent Complete
71
LO: 6

72. §Lack of predictive
variance analysis.
§Untimely and unrealistic
Latest Revised Estimates
(LRE).
§Progress not monitored
in a regular and
consistent manner.
§Lack of vertical and
horizontal traceability
cost and schedule data
for corrective action.
§Lack of internal
surveillance and controls.
§Managerial actions not
demonstrated using
Earned Value.
§Inattention to budgetary
responsibilities.
§Work authorizations that
are not always followed.
§Issues with Budget and
Data reconciliation.
§Lack of an Integrated
Management System.
§Baseline fluctuations and
frequent replanning.
§Current period and
retroactive changes.
§Improper use of
Management Reserve.
§EV techniques that do
not reflect actual
performance.
The Program Train Wreck Starts When There is…
72
Mary K. Evans Picture Library

73. 73
Unpleasant Surprises
You’re over budget
You’re behind schedule
The stuff you’re building doesn’t work
This can be true, but you can’t be surprised
LO: 6

74. 74Day1
END

75. With the data, the business rhythm, and the knowledge of
the status of your Control Accounts, you can start
performing the role of a Control Account Manager.
Let’s Take a 5 Minute BreakDay 1

76. Managing a Control Account requires a steady rhythm of six processes. Steps any
step, get out of synch on the rhythm results in distribution of the flow of progress.
Sustaining the rhythm starts with weekly status of the Control Account, with credible
data from actual performance of your work activities.
Business Rhythm of the CAM76
LO: 6

77. 77
LO: 6

78. Address each activity with a Cost, Schedule, and
Technical Performance answer
What are your Deliverablesfor the period of performance?
CostScheduleTechnical Performance
üBudget to WBS
elements down to
the Control Account.
üBetter–budget to
the Work Package
and Activity level.
üIntermediateand
final deliverables.
üIncremental
accomplishments.
üLay out logical flow
of deliverables.
üMeasures of
Effectiveness (MoE).
üMeasures of
Performance (MoP).
üPerformance upper
and lower limits.
üIncreasing maturity
measures.
78
LO: 6

79. Address each activity with a Cost, Schedule, and
Technical Performance answer
What Workdo you do to produce the deliverables?
CostScheduleTechnical Performance
üWork packageswith
BCWS spreads.
üWork packages with
durations and
resource
requirements.
üOutcomes of each
work package
üUnitof measure for
success of each
outcome
79
LO: 6

80. Address each activity with a Cost, Schedule, and
Technical Performance answer
Did you Executethework starting and finishing on time?
CostScheduleTechnical Performance
üPerformance Upper
and lower variance
limits foreach
Control Account.
üForecasting for CA,
WBS, deliverables
WITHvariance.
üDuration
performance upper
and lower limits
üMeasures of
Effectiveness (MoE)
üMeasures of
Performance (MoP)
üTechnical
Performance
Measures (TPM)
üRisk measures for
eachperformance
item
80
LO: 6

81. Address each activity with a Cost, Schedule, and
Technical Performance answer
Didyou performWorkin the proper sequence?
CostScheduleTechnical Performance
üBCWSprofile
üCost demand curves
üCFSR profiles
üVertical integration
comes FIRST
üHorizontal
integration comes
SECOND
üFocus on value flow
of the deliverables
üWork Packages
produce 100/0
compliance with
performance
measures
üTasks in WP0/100
completion criteria
81
LO: 6

82. Address each activity with a Cost, Schedule, and
Technical Performance answer
Did you Performthe Work in the planned sequence?
CostScheduleTechnical Performance
üWork authorization
through charge
numbers.
üWork authorization
through Work
Package start/ end.
üMeasure perform in
units meaningful to
the decision makers.
82
LO: 6

83. Address each activity with a Cost, Schedule, and
Technical Performance answer
Do you have credible Measuresas Physical Percent Complete?
CostScheduleTechnical Performance
üEarned Value
üProbabilistic cost
forecasting
üRisk adjusted ETC
and EAC in
monetary units
üEarned Value
üProbabilistic
schedule forecasting
üRisk adjusted ETC
and EAC in time units
üTangible evidence
ofprogress
üPre-planned
measures of
Effectiveness and
Performance
83
LO: 6

84. Remember, the World Is A Stochastic Process
$
Cost Driver (Weight)
Cost = a + bXc
Cost
Estimate
Historical data point
Cost estimating relationship
Standard percent error boundsTechnical Uncertainty
Combined Cost Modeling and
Technical Uncertainty
Cost Modeling Uncertainty
stochastic/stəˈkastik/ processes are time
varying random process found in every
aspect of a project.
84
LO: 6

85. Time to put our Short Course learning to work. Let’s take out your CAM notebook
and walk through some of its contents for the weekly CAM meeting and the month
end CPR.
Now Let’s Take Out Our CAM Notebooks85
LO: 6

86. Success Factors for the CAM Meeting
86
¨Know your IMS COLD.
¤This means you can speak to your IMS without looking
¤You know your deliverables, their dates, and the
confidence you’ll make that date.
¨Know your dependencies
¤What are you waiting to receive?
¤What are you sending?
¨Know your top 5 risks
¤What are your mitigations?
LO: 6

87. Month End Status
87
¨Weekly status rolled into the monthly status
¨Variances provided for analysis
¨Variance reports written for CPR Format 5
¤Kevin, Liviu, and Esther will help you here
¨Verification that your budgets, plans, and
performance are the way you want them to be
¨Any changes submitted through a Baseline Change
Request (BCR) for updates to the Integrated Master
Schedule (IMS).
¨Monthly report submitted to the government.
LO: 6

88. Risk Management is how Adults Manage Projects
-Tim Lister Emeritus Fellow, IBM
Quick Look At Risk Management88
LO: 7

89. Risk Management Model
89
Key Elements§Risk IdentificationWhatcan go wrong?
§Risk AnalysisHow big is the risk?
§Risk Mitigation PlanningWhatwill you do about them?
§Risk Mitigation Plan ImplementationHow is the planned risk mitigation being implemented?
§Risk TrackingHoware things going?
LO: 7

90. What is a Risk?
90
¨Risk has three components
¤A future risk root cause.
nWhat’s the source of the risk so you can address it with a
handling plan?
¤A probability (likelihood) of the future risk root cause
occurring.
nWhat are the chances the risk will occur, so you can judge
the priority of having to handle it?
¤The probabilistic consequence (or effect) of the future
occurrence.
nwhat is the variances on the undesirable outcomes from the
risk?
LO: 7

91. The First Understanding

92. DoD Risk Management Guide

93. DoD RM Handbook Objective

94. Context of Risk Management

95. Risk versus Issues versus Opportunities
95
¨Risks: yet to happen
¤Future consequences
¤Can be “closed” only after successful mitigation
¤through avoiding, controlling, transferring, or
¤assuming the risk
¨Issues: current problems and/or challenges
¤Real-time consequences
¤Can be closed within 30-60-90 days windows
¨Opportunities: yet to happen
¤Future potentially desirable situation or circumstance
¤Process for managing similar to risk process
LO: 7

96. Human failings inhibit risk management
96
¨Status quo bias
¤Strong bias toward alternatives that perpetuate the
status quo
nMore choices = increased attraction to status quo
¨Confirming evidence bias
¤We seek out information that supports our existing point
of view while avoiding information that contradicts it
¤Underlying factors
nTendency to be engaged more by things we like than dislike
nTendency to subconsciously decide what we want to do
before we figure out why
LO: 7

97. Human failings inhibit risk management
97
¨Anchoring bias
¤We tend to give disproportionate weight to the first
information we receive
nMost common anchor: a past event or trend
¤Underlying factors
nInitial impressions, estimates, or data “anchor” subsequent thoughts
and judgments
¨Sunk cost bias
¤We tend to make choices in a way that justifies past choices
nAllowing old investments of time/money to influence new decisions
¤Underlying factors
nFailure to admit to past mistakes; failure to recognize previous
investments as “unrecoverable”
LO: 7

98. With this Short Course, you’ll be ready to start
your role as a CAM, with full support of Program
Planning & Controls plus other CAMs.
But in September of 2012, AVI must submit a
data package to the DCMA showing compliance
with the 32 Guidelines of ANSI-748-B, and you
data will be in that package.
Then in late January, 2013, DCMA will come on
site and interviewyou about your job as a CAM.
Beyond this Short Course98
LO: 8

99. 99
It is not an interrogation but it may feel like one
LO: 8

100. 1.Your Control Accounts are within tolerance for schedule and
budget, and their products meet their desired specifications –
that is they work as planned, AND
2.You can demonstrate to the DCMA and DCAA you are following
all the rules and regulations while performing the work in #1.
At this time, there are two measures of success for you as a CAM…
üIf you are successful at #1 but not at #2, you’ve failed as a CAM.
üIf you are successful at #2 but not at #1, the DCMA and DCAA
don’t really care. The customer does of course.
LO: 8

101. DCMA / DCAA CAM Interview Topics
101
TopicInformationfrom the interview
OrganizingWho is doing the work?
SchedulingWhen are we doing the work?
Work and Budget
Authorization
How much money dowe need to do the planned work
and have some in reserve?
Managerial AnalysisHow do we measure our progress,variances, and
corrective actions?
Change ManagementHow do we make official changes to our plans
Material ManagementHow do we keep track of materials?
Subcontract
ManagementHow do we manage our subcontractorsfor their work?
General ManagementHow do we inform management of our progress, risks
to our progress, and plans for our future progress?
LO: 8

102. CAM Interview Questions
¨Can you show how you fit in
the organization?
¨How many Control Accounts
you are responsible for?
¨What is the total value of
these Control Accounts?
¨Is any of your work on the
critical path?
¨How do you communicate
schedule information?
¨How do you assure your
schedules are aligned with
other CAMs?
102
OrganizingScheduling
LO: 8

103. CAM Interview Questions
¨Can you speak to the risks of
achieving your work within
budget?
¨How are you authorized to
start work?
¨Define a Work Package.
¨What portion of your work is
LOE?
¨Can you show how EV is taken
in the same way as budgets
are planned?
¨How do you determine EV for
WIP?
¨What reports to do receive for cost and schedule status?
¨What are you variance thresholds?
¨When do you prepare variance reports?
¨Do you have any samples?
¨Do you develop corrective action plans?
¨How do you follow thorough with these?
¨What is you EAC?
¨How often is your EAC revised?
103
Budget and Work AuthorizationManagerial Analysis
LO: 8

104. CAM Interview Questions
¨What is the process for
making changes to your
budgets?
¨Have you had any budget
transfers between Control
Accounts and Management
Reserve?
¨How are material budgets
planned?
¨What EV techniques are you
using for material?
¨How do you track material
when deliveries are late?
¨How are EACs calculated for
your material?
104
Change IncorporationMaterial Management
LO: 8

105. CAM Interview Questions
¨Are you responsible for any
subcontracts?
¨How do you take Earned
Value for your subcontracts?
¨Does the subcontract effort
support key milestones?
¨Are these subcontractor
milestones integrated in the
schedule?
¨How often do you require
your subcontractors to update their EAC?
¨How often do you
communicate and use Earned
Value metrics, EACs, and
variance impacts?
¨Do you know if you are on the
critical path?
¨If so, how do you plan on
managing your work to not be
late, or get off the critical
path?
105
Subcontract ManagementGeneral Management
LO: 8