Presented to: NDIA PMSC By: Keith Kratzert Date: August 7, 2007 Federal Aviation Administration...

Presented to: NDIA PMSC

By: Keith Kratzert

Date: August 7, 2007

Federal AviationAdministrationImproving Program

Performance at FAA

2 2Federal AviationAdministration

Improving Program Performance at FAAAugust 7, 2007

EVM at FAA

• FAA goal is to manage entire program using EVMS in accordance with ANSI/EIA 748– Manage/measure all resources– Requires changes in behavior by all parties

• FAA EVM differs from legacy approach– Program level, not just contractors– All contractual effort measured, including FFP– Will not change existing contracts



EVM Objectives

FAA Program Performance Metrics are “Best in Class” (Government and Industry)

Green EVM Flag for all major programs assessed in FY05

(which have significant DME remaining)

Assess EVM for new major programs, establish targets and make progress

For all major programs, demonstrate EVM policy compliance and 50% of Program

Manager use of EVM

Expand Executive use of EVM in their decision making process

OMB-300 EVM Scoresare assessed all green

Baseline Program Performance Metrics to measure progress

(and see some evidence)

I

II

III

IV

V

VI



EVM Transformation – Goals for 2007

• Full EVM implementation by end of FY 07.

• EVM part of Program Managers toolkit.

• Full EVM reporting for all major investments.

• Use of EVM makes a major difference in ability of FAA programs to stay on track and within budget.

• Use of EVM contributes to FAA “NAS Modernization Program” being removed from the GAO High Risk List.



EVM Transformation – Goals for 2008

• Under Construction



Recent Accomplishments

• Expanded AMS standard program milestones– Mapped milestones to FAA standard WBS– Identified milestone decision authority– Recommended AMS changes to implement

• Developed a program level IBR guide– Recommended AMS changes to implement

• Established Portfolio/Program Performance Metrics (PPPM)– Piloting in one Service Unit now



Current Activities

• Proposed EVM surveillance, certification, and executive program performance reporting processes will be developed and implemented – FAA Flight Plan Goal for this year

• Certification• surveillance

– Based on NDIA guidelines– major contractor “Best Practices”



Pilot Program Reports

Financial Schedule Technical Resources ExternalProgram Manager

Program A

Program B

Program C

Program D



Summary and Supporting Metrics

G

Level 1 AMS Milestones

- Negative Deviations

G- Technical Variance At-Completion (TVAC)

G**- Value of remaining High Risks

G- Deployment

n/a- Test Results

Y- System Defects

G- Requirements Stability

Technical Metrics

Measure of technical metrics and milestones of work performed

Definition

PerformancePortfolio Metric

G


- Negative Deviations

G- Technical Variance At-Completion (TVAC)

G**- Value of remaining High Risks

G- Deployment

n/a- Test Results

Y- System Defects

G- Requirements Stability

Technical Metrics

Measure of technical metrics and milestones of work performed

Definition

PerformancePortfolio Metric

Flight Plan Acquisition Program Goals

G- Schedule

G- To-Complete Performance Index (TCPI)

G- Schedule Variance-At-Completion (SVAC) %

G- Cost Variance-At-completion (CVAC) %

G- Negative Deviations


G - Program Schedule Reserve

G- Schedule Performance Index (SPI)

G- Program Cost Reserve

G- Cost Performance Index (CPI)

EVM Metrics

Measure of schedule

performance of work

performed

Measure of cost

performance of work

performed

Definition

ScheduleCostPortfolio Metric


G- Schedule

G- To-Complete Performance Index (TCPI)

G- Schedule Variance-At-Completion (SVAC) %

G- Cost Variance-At-completion (CVAC) %

G- Negative Deviations


G - Program Schedule Reserve

G- Schedule Performance Index (SPI)

G- Program Cost Reserve

G- Cost Performance Index (CPI)

EVM Metrics

Measure of schedule

performance of work

performed

Measure of cost

performance of work

performed

Definition

ScheduleCostPortfolio Metric

G- Obligations


G- Cost

Assessment of External

Reviews

Y

G

Y

External Interest

- OMB

-GAO

- IG

External Reviews

G- Funding

G- FAA

G- Support Contractors

Y- Prime Contractor

Resource Metrics

Measure of current

funding and staffing

Definition

ResourcesPortfolio Metric

G- Obligations


G- Cost

Assessment of External

Reviews

Y

G

Y

External Interest

- OMB

-GAO

- IG

External Reviews

G- Funding

G- FAA

G- Support Contractors

Y- Prime Contractor

Resource Metrics

Measure of current

funding and staffing

Definition

ResourcesPortfolio Metric

Financial Schedule Technical Resources External Interest

ProgramManager

G G Y Y Y G



Civilian Agency/Industry Working Group

• Three meetings held to date– May 14, July 18, and August 6

• Charter developed and approved• Government and Industry co-chairs

– Government – Selected at the 8/6/07 meeting– Industry - PMSC Chair



FAA Contractor Meeting Sep 25, 2007

• Tentative Agenda– Transformation Progress Report– Portfolio/Program Performance Metrics– Program IBRs– EVM Certification– EVM Surveillance– GAO High Risk List



Summary Activities

• Expanding FAA EVM Council role to lead EVM Surveillance, program level IBR

• Collaborating with FAA CFO and ATO Finance to integrate EVM and financial management

• Assisting DOT EVM Policy and guidance formulation

Presented to: NDIA PMSC By: Keith Kratzert Date: August 7, 2007 Federal Aviation Administration...

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