Original Date: 02/26/2001
Revision Date: 01/18/2007
Information : Earned Value Management
Up-front planning yields downstream benefits. This philosophy is the basis behind General Dynamics Armament Systems’ Earned Value Management. The system is being used in various development programs to better meet cost and delivery schedules.
General Dynamics Armament Systems (GDAS) implemented Earned Value Management (EVM) across a number of its development programs to better meet cost and delivery schedules. By using this system, the company can realize benefits associated with early awareness of cost and schedule variances and then take the appropriate corrective actions. EVM is process compliant with government/industry guidelines (ANSI/EIA-748-1998).
EVM is a control system that integrates a program’s scope, schedule, and cost objectives into a managed, baseline plan. The system helps ensure the application of common terminology and methodology to enable management interaction. Unlike many cost and schedule analysis systems, EVM provides an objective measure of how much work has been accomplished based on the planned value of the work for a specified time period. The system also measures program accomplishments as well as resources used, and is scalable for small to large programs. Software tools used for augmentation include Microframe Program Manager for financial processes; Winsight for analysis processes; and either OpenPlan or Microsoft Project for schedule processes. GDAS also provides training to its program managers, control managers, and system users.
GDAS is a strong believer in the adage that up-front planning yields downstream benefits. Through EVM, the company identified a $1.5 million procurement cost variance in advance of material procurement on one program. A second program realized underruns in excess of 2% (98% complete) through disciplined compliance to EVM planning and measurement. On a third program, early planning identified manpower conflicts in time to resolve and satisfy needs for award fee events ($1.5 million pool).
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