New RP 125R-23: Developing Work Packages and Planning Packages in Support of Performance Management
This recommended practice (RP) discusses control accounts (CAs) at a high level and describes the purpose, development, and management of both work packages (WP) and planning packages (PP) in support of performance management in any project or contract environment. This RP also discusses some basic background for work package design development and execution, which is based on the decomposition of project scope elements as defined in the statement of work (SOW). The RP’s recommendations apply to projects as described but can be used similarly for programs.
This RP provides guidance regarding the development and use of a project budget. This includes the use of control accounts that are subdivided into WPs as well as PPs. The RP presents typical examples for a WP. The RP also recommends that, to the extent practical, all work should be divided into work packages using dollars, hours, or other measurable units. Work packages are developed and used for engineering, procurement, installation, etc. If this is not feasible for far-term activities, planning packages should be created for budget and scheduling purposes.
Progress is compiled and summarized at the control account level, with the control accounts typically sub‐subdivided into smaller packages for measuring, analyzing, and reporting on the actual work completed. Budgets for near-term discrete work will be included through work packages in terms of monetary amounts or hours with far-term effort included in planning packages. The sum of the work packages and planning packages within a control account must equal the overall approved control account budget. Work package authorization should be obtained before work begins through a clearly defined process identifying the responsible manager, the time frame of the work package/control account, and the resources necessary to complete the work. This work package authorization is typically done via a work authorization document or similar document. This RP’s section on work package authorization includes an example of a work authorization document, which should be formatted following the organization’s guidance and procedures.
The intent of this RP is to document what most practitioners would consider to be good practices that can be relied on and would be recommended for use where application of the WPs and PPs in preparation of a performance measurement baseline (PMB) is required. The intended audience includes project managers, cost professionals, project controls professionals, and earned value practitioners who may develop and/or use the WPs and PPs as parts of the project or program planning process.
This RP is aligned with the Total Cost Management™ Framework, as well as the Electronics Industries Alliance (EIA) – 748 Earned Value Management Systems (EVMS) guidelines and serves to help readers understand the slight differences in how EVMS is successfully implemented in contracts using EIA-748 and common commercial practice contracts using EVMS.
Contributors:
Christopher W. Carson, CEP DRMP PSP FAACE (Primary Contributor)
Andrew Dick, PSP (Primary Contributor)
James L. Dozier, EVP (Primary Contributor)
Dan Melamed, CCP EVP FAACE (Primary Contributor)
Larry R. Dysert, CCP CEP DRMP FAACE Hon. Life
Luis O. Figueroa
Shoshanna Fraizinger, CCP FAACE
Donny Lai
Michael F. Marcell, EVP PSP
Babak Nikpour
Abbas Saifi, CCP EVP PSP
Abbas Shakourifar, PSP
Lance Stephenson, CCP FAACE Hon. Life
Rens van Arkel
Anton W. van der Steege, CCP
Dr. Stephen P. Warhoe, PE CCP CFCC FAACE Hon. Life
About Chris:
Christopher W. Carson, CEP DRMP PSP FAACE, is Enterprise Director of Program & Project Controls and Vice President for ARCADIS U.S., Inc., the leading global Engineering and PMCM firm. He has over 50 years’ experience in program/construction management, specializing in program/project controls disciplines of planning & scheduling, cost management, risk management, document control, and forensic analysis. His background includes educational, municipal, commercial, industrial, governmental, military, and medical projects, and other industries including facilities, infrastructure/transportation, water and wastewater treatment, and utilities, and environmental projects. Chris is a recognized thought leader in the industry and has presented over 750 industry sessions, authored or contributed to over 100 publications, and received several awards from AACE, such as the O.T. Zimmerman Founder’s Award and the Technical Excellence Award. He was selected as an AACE International Fellow in 2013. You can reach Chris at: chris.carson@arcadis.com
About Andrew:
Andrew Dick, PSP, is a Principal Claim Analyst/Project Controls – Technical Advisory at Arcadis U.S., Inc.. Andrew has over thirty years of progressive and diversified experience, having been responsible for many successful outcomes for projects and stakeholders alike. He has significant experience in the defence, transportation, oil and gas, mining, construction, engineering, and IT sectors, working on a diverse range of domestic and international projects for contractor, owner/operator, and joint venture clients. Andrew can be reached at: andrew.dick@arcadis.com
About Jim:
James L. Dozier, EVP is an EVM Cost/Schedule Program Controls Analyst at General Dynamics Information Technology. Jim is responsible for developing and maintaining all aspects of earned value management on multiple programs concurrently, ranging in values from $17 to $100 million per year using EVM principles and procedures. He was instrumental in these programs successfully passing multiple surveillances with minor or no findings. Jim has established and maintained EVM program PMBs in accordance with EIA-748, organizational processes and procedures, and other contract requirements. You may reach Jim at: jdozier999@aol.com
About Dan:
Dan Melamed, CCP EVP FAACE is a Program Analyst with the Department of Energy’s (DOE) Office of Environmental Management (EM), where he has organized, directed, and participated in environmental baseline reviews for a wide variety of sites across the EM Complex: most recently the EM Los Alamos Integrated Baseline Review as the organizer and co-lead.
He has also been involved in the earned value management system evaluation for new contractors for the EM program. Dan has served as the president for the AACE National Capital Section and is currently a member of the Technical Board of AACE International.
Prior to his work at the Department of Energy, Dan Melamed was a staff scientist at Brookhaven National Laboratory, where he did research on waste processing technologies and solar energy conversion. In addition to being a Certified Cost Professional and an Earned Value Professional, Dan Melamed has a Ph.D. in Chemistry from Princeton University. He is a member of AACE International, Sigma Xi the Scientific Honor Society, as well as the American Chemical Society. He is the author of over 20 peer-reviewed publications and one patent. Dan may be reached at: dan.melamed.dc@gmail.com
You can find the new RP here: 125R-22: Developing Work Packages and Planning Packages in Support of Performance Management