Help for CAMs in doing their ETC with Indicators and Automated Forecast Assistance

November 7, 2014

Criteria number 27 for Earned Value Management systems states: “Develop estimates of cost at completion based on performance to date, commitment values for material, and estimates of future conditions. Compare this information with the performance measurement baseline to identify variances at completion important to company management and applicable customer reporting requirements including statements of funding requirements.”

A key part for the cost at completion, known as the Estimate at Completion (EAC), is the contractor’s latest revised estimate (LRE) to complete the program. The EAC is normally reviewed on a monthly basis by the Control Account Manager (CAM) or those responsible. The EAC is developed for projects as well as Control Accounts and Work Packages. The EAC for the project is the sum of the forecast of costs for all Control Accounts across the contract, as determined by the CAMs. The CAMs are the ones at the grass roots putting this estimate together.

The OPDEC IPM system’s LRE capability helps make CAMs’ estimates easier. Our LRE screen shows indicators and metrics to help the CAM reevaluate the costs associated with their accounts. Actuals, at either the control account or package level, are shown inception to date. The interface allows the CAM to assess the effort to complete to-go work (Estimate to Complete, ETC). This assessment can be done at either the Control Account Level or Work/Planning Package level, depending on the needs of the program. We’ve added functionality to help the CAM update the estimate to complete by giving them numerous reset capabilities and easy ways to align and move resources. Below is a brief video of how IPM helps the CAM with the LRE.

Below is list of these automated processes.

  • Reset Using Baseline (linear): Clears the ETC that is currently provided and replaces it with the resources/departments and values (labor hours and prime dollars) that were established during baseline for that package. It then linearly spreads the values over the current forecast POP.
  • Reset Using BCWR (linear): Clears the ETC that is currently provided and replaces it with the resources/departments and values (labor hours and prime dollars) of the budgeted cost of work remaining (BCWR). It then linearly spreads the values over the current forecast POP.
  • Reset using ETC: Clears the ETC that is currently provided and restores it to what it was before any changes were made.
  • Move All Resources: Allows movement of all resources left or right to a certain number of periods
  • Align All Resources Linearly: Spreads current ETC of all resources linearly across the current forecast POP

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