Original Date: 04/07/1997
Revision Date: 04/14/2003

Rock Island Arsenal (RIA) is implementing an Earned Value Management System (EVMS) across all operations and product lines to realize the benefits associated with early awareness of cost and schedule variances. Certification by the AMC to DODI 5000.2 Cost/Schedule Control System Criteria is expected in June 1997 for its project management process for the XM-35 program.

The initiative for this effort was a realization that the increased expense of a more detailed cost accounting system would provide the return on investment and the tighter controls demanded by today's competitive environment. Most programs under the previous system were over cost and behind schedule in spite of controls. The M1A2 program is using the new system and is on target for schedule and cost because technical risks surface earlier under this system. Monthly program reviews are in effect, and progress of all aspects of program planning and execution are tracked. EVMS is a forcing function for timely detection and resolution of cost and schedule variances. EVMS is less costly to implement than the previous system $200K versus an estimated $1M for a major acquisition program.

Microframe Software is used for RIA’s EVMS, and training has been conducted for program managers, control managers, and system users. Monthly reporting packages and in-depth software training are also provided. The key to timely resolution of variances lies in the team concept, where Project Work Teams consisting of process planners, material planners, and fund comptrollers work together on situations that are made visible by the EVMS. By designing the EVMS to meet DODI 5000.2, a capability exists that may mean the difference in competitive awards of work packages.

For more information see the Point of Contact for this survey.