Transcript Earned Value Management theory and its application on practice at
Dmitry Kekelidze Software Engineer JINR – LIT/ CERN - GS-AIS
EVMS concepts NICA project EVM web-based application
EVM is the project management tool...
Are we there yet?
How much longer before we’ve arrived?
What can we do about it?
performance measurement
how am I doing against my baseline plan?
performance management
what do I need to do to bring the project in on cost and schedule?
• • Preparation
Research Topic Decide on Structure
• • • • Make Slides
EVM Basics EVM Advanced NICA Intro Conclusion
• • Finishing up
Trial Presentation Implement Feedback
cost Research Presentation template
Start slides
EVM Basics EVM Advanced Agenda Conclusion NICA Intro
Slides ready
Reshuffle Dry run time
What is an honest measure for what is achieved?
Research Presentation template
Start slides
EVM Basics EVM Advanced Agenda Conclusion NICA Intro cost
Slides ready
Reshuffle Dry run time
Main metrics :
PV
- Planned Value
EV
- Earned Value
AC
- Actual Cost The portion of work expected to be completed at a given date, times the authorized budget allocated to carry out that work The value of completed work expressed in terms of the budget assigned to that work The costs actually incurred and recorded in accomplishing the work performed
Budget Planned Value Cost Actual Cost now •Are we ahead or behind schedule?
•Are you getting value for money?
•Did you spend money on the right things?
Achievement Earned Value time
Underspending but ...
Planned Value now Actual Cost Earned Value time
Underspending but ...
now Planned Value Earned Value Actual Cost time
BAC
: Budget At Complete
PMR
Project Management Reserve project start
PV AC EV
now
CV = EV – AC
Cost Variance
SV = EV – PV
Schedule Variance project end SV < 0 SV > 0 CV < 0 CV > 0 time
Schedule Variance SV = EV–PV Schedule Performance Index Cost Variance SPI = EV/PV CV = EV-AC Cost Performance Index CPI = EV/AC Estimate At Completion To Complete Performance Index EAC = BAC / CPI TCPI BAC AC) = (BAC-EV)/(BAC In currency. Negative means delay < 1 means delay In currency. Negative means overcost.
< 1 means overcost Forecast final cost Can we catch up?
now time EAC
Requires development of integrated baseline
Results in better project definition and planning
Early identification of trends and problems Accurate picture of project status
Cost, schedule, and technical segregation of schedule and cost variances
Projection of final costs Project control by the team
Enables project manager to make informed decisions based on facts
Results in successful projects
On time, on cost
Requirement 100h Architecture 100h 100h Design 200h Code 100h Testing
Task
Requirements (100h)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Status at end of Month 5
S------F Complete, Spent 100h Architecture (100h) S----PF --F Complete, Spent 120h Design (100h) Code (200h) Testing (100h) PS-S-PF --F PS----S -----PF PS---PF Complete, Spent 125h 25% Complete, Spent 70h Not yet started
At the end of Month 5, what is?
Calculation
PV 100 + 100 + 100 + 200 EV AC BAC CV CPI SV SPI IEAC TCPI 100 + 100 + 100 + 50 100 + 120 + 125 + 70 100 + 100 + 100 + 200 + 100 350 - 415 350 / 415 350 - 500 35,000 / 50,000 600/0.84
(600-350)/(600-415)
Answer
500h 350h 415h 600h -65h 84% -150h 70% 711h 135%
WBS
: Work Breakdown Structure, hierarchical list of all the activities to be performed to complete the project.
Workunits
: The “Leaves” of the WBS tree. Activity small in size/duration, under responsibility of one person.
Workunits use
Resources
(money, people) to produce
Deliverables
EVM suitable for projects that have:
• Clear definition of work scope • Project schedule range from a few months to many years • Small to very large cost
• Technically complex and demanding, i.e. that cannot be fully specified in the front end phase; • Long makespan: economic effects like inflation • Involving many contributors, contractors, suppliers... i.e. many activities that are outsourced, result oriented.
EVMS concepts NICA project EVM web-based application
Is NICA large-scale project?
Work planned for period from year 2012 till 2017 Estimated cost is more than 100M $ Tasks to complete:
• General Infrastructure • Accelerator • MPD Detector
All the work have to be well coordinated
18% overspend
announcement … only Technical Coordinator →
“the project is behind schedule”
Project Administrator →
“the project is under-running”
LHC Team: not is position to demonstrate that the project could be completed within allocated budget!
Member States asked the LHC Project Management to set up a formal Project Control System
EVM-based
project control system
Deliverable-oriented
physical progress monitoring Interfaced to
accounting systems
, to get accurate information on actual costs Excel spreadsheets to interact with DBs
Web-based
An activity of the project
Activity not started Progress
0%
Activity half-way Progress
50%
Activity completed?
90%-syndrome
• • •
Re-established trust
Cost and Schedule Review Committee: ‘world class’ CERN management was formally congratulated by Member States Further overruns were discussed in the context of proven project control.
Project culture at CERN and cost awareness of project engineers have improved.
EVMS concepts NICA project EVM web-based application
WBS • Web interface • Excel files Workunits Resources Personnel Material Deliverables
Reminders for progress reporting
Crosstab to drill drown through the WBS structure (or other dimension…) PV, EV, AC Charts at every WBS level
Objectively measures performance of the project as it moves from project initiation through project closure.
Provides early warning of potential project adverse performance.
Shows Opportunity associated with positive schedule variance . Enables the management of risk associated with underwriting or insuring against negative schedule variance .
Provides a means to forecast future performance based upon past performance.