Gap Analysis: Application to Earned Value Analysis
Research rept. 1 Oct 2007-30 Sep 2008
NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY
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Earned Value is regarded as a useful tool to monitor commercial and defense system acquisitions. This paper applies the theoretical foundations and systematics of Gap Analysis to improve Earned Value Management. As currently implemented, Earned Value inaccurately provides a higher value for the work performed. This preliminary research indicates that Earned Value calculations can be corrected. Value Analysis, properly defined and enacted, clarifies management strategies to facilitate appropriate investment decisions. The Department of Defenses traditional style of Gap Analysis can benefit from a broadly based methodology that combines value engineering and systems engineering. Value engineering improves the value of goods and services by being effective and efficient, while systems engineering focuses on the development and organization of complex systems. Both rely on functional approaches that are analytical by their means and methodical by their natures. Gap Analysis is an assessment methodology that compares a systems actual performance with its potential. Gap Analysis embodies both the notions of beginning and ending points as well as the path betwixt to achieve a desired capability. Combining value engineering with systems engineering offers a robust means to evaluate both the appropriate system requirements as well as the efficacy of fulfilling a stated mission objective given a set of alternatives. To facilitate such a success, the authors conjoined value engineering and systems engineering and built metrics and measures, ensuring the following 1 delivery of lowest life-cycle cost acquisitions consistent with required performance, 2 strict adherence to appropriate requirements, and 3 alignment of budgets with acquisition decisions.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies