Linking cost of quality (COQ) with department of defense (DoD) contractors earned value management system (EVMS) cost reduction efforts

Earned Value Management System (EVMS) is a requirement for many U.S. Department of Defense (DoD) contractors. The American National Standards Institute/Electronic Industries Alliance (ANSI/EIA) 748 Standard EVMS is mandated by DoD instruction (DoDI) 5000.02, requiring all U.S. government contractors to use EVMS for projects greater than or equal to 20 million dollars. For DoD contractors subject to EVMS requirements, cost of compliance is significant. Congress and DoD continue to struggle with identifying waste in EVMS compliance costs and executing effective cost saving initiatives. This thesis primarily focuses on identifying the disconnect between the current and correct understanding of EVMS value and non-value added costs. The paper offers an understanding of the real EVMS value and non-value added costs as a starting point for linking cost of quality (COQ) with EVMS compliance cost reduction efforts.