gennext evms

https://share.ps.net/fndr/EQS/Project%20Management%20Instant%20Oatmeal/default.aspx?CalendarDate=11%2F5%2F2010

GenNext25 July 2012

https://share.ps.net/fndr/EQS/Project%20Management%20Instant%20Oatmeal/default.aspx?CalendarDate=11/5/2010

https://share.ps.net/fndr/EQS/Project%20Management%20Instant%20Oatmeal/default.aspx?CalendarDate=11/5/2010

EVM Made Simpleby Forrest Kovach

Dell ServicesConfidential3

Earned Value Management Made Simple

“Earned Value Management has proven itself to be one of the most effective performance measurement and feedback tools for managing projects.” - PMI


It is called “Project Management with the Lights On” - PMI• Answers Questions:

– How effectively are we using our time?

– Are we currently over or under budget?

– What is the entire project likely to cost?

– Is the project anticipated to complete over or under budget?

• Pinpoints Difficulties

– Road Blocks

– The Magnitude of the Problem


• Drives Schedule Performance

– Poor performance indices drive inquires

– Inquires identify roadblocks

– Illuminating roadblocks leads to elimination of impasse or work around

– Keeping the project moving while time and charges are burning

• Drives Cost Performance

– Poor performance indices drive inquires

– Reviewing actuals against planned value

– Unassigned charges

It is called “Project Management with the Lights On” - PMI


Puts Pressure on Measurable Accomplishments

• What is measured gets done

• Quality comes first

• Performance comes next

• Plan is usually baselined against an aggregate parametric estimate


• Flying without instruments is dangerous

• Managing projects with out performance measurement is disastrous.

• Do not dismiss the EV measurement as inaccurate, any gauge is better than none.

It is instrumentation for Project Management


Project Actuals without EVM is Inconclusive• Actuals alone do not communicate how much work is

accomplished during the project.

• EVM is needed to measure performance objectively.

• Brief Timeline

– 1967, the Department of Defense established the Cost/Schedule Control Systems Criteria (C/SCSC).

– 1989, EVM is required for most Defense and NASA Acquisitions.› Added needed controls for cost plus contracts

– Construction industry adopts EVM.– 1999 Project Management Institute (PMI) creates the College of

Performance Management.

– 2002 EVM receives attention by publicly traded companies in response to the Sarbanes-Oxley Act.


Key EVMS Terms

• Planned Value (PV)

• Earned Value (EV)

• Actual Cost (AC)

• Schedule Variance = EV – PV (to date)

• Budget at Complete (BAC)

• Schedule Performance Index (SPI) = EV / PV

– Answers what % of the planned work was completed to date

– > 1 great

– < 1 below optimal


Key EMVS Terms

• Cost Performance Index (CPI) = EV / AC

– Answers how effectively are we using our resources?

– > 1 great

– < 1 below optimal

• Analytical Estimate at Complete (EAC)

– Uses CPI to forecast resource efficiency

– Uses SPI to forecast future schedule performance

– EAC = AC + ((BAC – EV) / (CPI * SPI))


Putting EVMS to Work

• Baselined Microsoft Project Plan (MPP) file

Unique ID NameBaseline Work

Resource Names

16514 Firewall 280h16515 Initial Assessment 40h Network Engineer[50%]16518 Routing on DMZ/MDMZ to Reach Client Firewalls 16h Network Engineer[50%]16526 Best Practices Configuration 24h Network Engineer[50%]16519 DMZ nats IP Re-Addressing Plan (When Servers are All Up) 56h Network Engineer[50%]16520 Software Upgrade 24h Network Engineer[50%]

16521 Configure Standard Access from Firewall Leverage Team Servers (Need MPLS connection, dedicated circuit to PTC)

32h Network Engineer[50%]

16522 Add TACACS Authentication 8h Network Engineer[50%]16523 Setup Firewall Logs 16h Network Engineer[50%]16524 Add Monitoring to Firewalls (Needs OPAS) 24h Network Engineer[50%]16525 Add Firewalls to Voyence (Backup Tool) 16h Network Engineer[50%]16527 Transition FWs to Firewall Leverage Team (After Go-Live) 40h Network - Transition SME16719 End User Computing (EUC) Onsite Design and Deployment 302h16720 EUC Design 172h16802 Build machine specific drivers into image 40h POC EUC16803 Operating System patches and updates 20h POC EUC[50%]16804 Package and script additional software packages (per) 20h POC EUC[50%]16805 Desktop look and feel (EUC Design Complete) 12h POC EUC[50%]16806 Run machine consistently 20h POC EUC[50%]16807 Test driver, office apps and OS integrity 20h POC EUC[50%]16808 Open and test additional applications 20h POC EUC[50%]16809 Replicate Test Image to distribution shares 20h POC EUC[50%]16754 EUC Deployment (PC's, Displays) 130h POC EUC[25%]


MPP Task Settings

• Fixed Work

• Duration increases will not increase estimated hours

• Assumes duration increases are due to delays

• Completed tasks earn baseline hours as actual hours when completed


MPP Setting for Project Summary Task


MPP Task Usage View


MPP Time Phased Data

• Status File

• View – Task Usage – Line 0

• Set Scale to Weeks or Months as Desired

• Right Click to Display both Base and Actual Work

• Actuals are earned by completing planned work

• We are using MPP Actual Work as Earned Value (EV)


Transfer Time Phased Data to Excel

Monday Week Start

28-Nov 5-Dec

12-Dec

19-Dec

26-Dec 2-Jan 9-Jan

16-Jan

23-Jan

30-Jan 6-Feb

13-Feb

20-Feb

27-Feb 5-Mar

12-Mar

19-Mar 26-Mar 2-Apr

Sunday Week End 4-Dec11-Dec

18-Dec

25-Dec 1-Jan 8-Jan

15-Jan

22-Jan

29-Jan 5-Feb

12-Feb

19-Feb

26-Feb 4-Mar

11-Mar

18-Mar

25-Mar 1-Apr 8-Apr

Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130hEV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h

• Create Matching Timescale in Spreadsheet

• Replace all h units with Blank so Excel will use the values as numbers


Get Actual Hours

• From PeopleSoft

• Other Sources for Offshore or Legacy Dell

• Combine Actual Hours

• From Financial Analyst

• Filter for Weekly Totals

• Team Must Record Weekly Time


PeopleSoft Data

ID Name Financial Depar DeptID Rpt Dt Quantity TRC PC Bus Unit Proj/Grt ActivityID

109767 PRSER01 Q18A12A00Z 5/1/2012 8.000000 RGR CORP PERMS00100 PROJMGMT




52260 GFISS01 B5A2A0000Z 5/2/2012 2.000000 RGR CORP PERMS00100 INFOASSUR







50176 PRSER01 Q18A12C50Z 5/1/2012 1.000000 RGR CORP PERMS00100 SERVICEDESK





90337 GMEND01 Q18C9C000Z 5/1/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK







112191 GFBUP01 QA8F00000Z 5/1/2012 4.000000 RGR CORP PERMS00100 PROJMGMT

112191 GFBUP01 QA8F00000Z 5/2/2012 4.000000 RGR CORP PERMS00100 PROJMGMT


Transfer Time Phased Data to Excel

• Input Actual Hours

• May need to combine several sources

Monday Week Start

28-Nov 5-Dec

12-Dec

19-Dec

26-Dec

2-Jan 9-Jan

16-Jan

23-Jan

30-Jan 6-Feb

13-Feb

20-Feb

27-Feb 5-Mar

12-Mar

19-Mar 26-Mar 2-Apr 9-Apr 16-Apr 23-Apr


18-Dec

25-Dec 1-Jan

8-Jan

15-Jan

22-Jan

29-Jan 5-Feb

12-Feb

19-Feb

26-Feb 4-Mar

11-Mar

18-Mar

25-Mar 1-Apr 8-Apr 15-Apr 22-Apr 29-Apr

Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130h 89h 145h 364hEV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h 78h 125h 341hActual hrs 1,265 187 187 188 202 239 178 213 236 261Base Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,638 1,817 1,957 2,118 2,236 2,354 2,484 2,573 2,718 3,082EV Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,627 1,795 1,925 2,078 2,185 2,291 2,410 2,489 2,614 2,955Actual Cum hrs 1,265 1,452 1,639 1,827 2,029 2,268 2,446 2,659 2,895 3,156SPI 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.99 0.99 0.98 0.98 0.98 0.97 0.97 0.97 0.96 0.96CPI 1.24 1.17 1.14 1.08 1.01 0.99 0.94 0.90 0.94SV hrs. 0 0 0 0 0 0 0 0 0 0 0 0 -11 -11 -11 -9 -11 -11 -11 -11 -20 -23EAC hrs. 8,441 8,919 9,230 9,77710,44810,73411,32811,79011,377VAC hrs. +is below budget 1,895 1,417 1,106 559 -112 -398 -992 -1,453 -1,041


Create Formulas for Analysis

• Base Cum = Base Cum Last Week + Base Hours Current Week

• EV Cum = EV Cum Last Week + EV Hours Current Week• Actual Cum = Actual Cum Last Week + Actual Hours Current

Week• SPI = Cum EV Hours / Cum Base Hours• CPI =Cum EV Hours / Cum Actual Hours• SV = Cum EV Hours - Cum Base Hours• EAC = Cum Actual + ((Cum Planed Hours- EV

Hours)/(SPI*CPI))• VAC = Cum Hours at Complete – EAC

Monday Week Start

28-Nov 5-Dec

12-Dec

19-Dec

26-Dec

2-Jan 9-Jan

16-Jan

23-Jan

30-Jan 6-Feb

13-Feb

20-Feb

27-Feb 5-Mar

12-Mar

19-Mar 26-Mar 2-Apr 9-Apr 16-Apr 23-Apr


18-Dec

25-Dec 1-Jan

8-Jan

15-Jan

22-Jan

29-Jan 5-Feb

12-Feb

19-Feb

26-Feb 4-Mar

11-Mar

18-Mar

25-Mar 1-Apr 8-Apr 15-Apr 22-Apr 29-Apr

Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130h 89h 145h 364hEV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h 78h 125h 341hActual hrs 1,265 187 187 188 202 239 178 213 236 261Base Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,638 1,817 1,957 2,118 2,236 2,354 2,484 2,573 2,718 3,082EV Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,627 1,795 1,925 2,078 2,185 2,291 2,410 2,489 2,614 2,955Actual Cum hrs 1,265 1,452 1,639 1,827 2,029 2,268 2,446 2,659 2,895 3,156SPI 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.99 0.99 0.98 0.98 0.98 0.97 0.97 0.97 0.96 0.96CPI 1.24 1.17 1.14 1.08 1.01 0.99 0.94 0.90 0.94SV hrs. 0 0 0 0 0 0 0 0 0 0 0 0 -11 -11 -11 -9 -11 -11 -11 -11 -20 -23EAC hrs. 8,441 8,919 9,230 9,77710,44810,73411,32811,79011,377VAC hrs. +is below budget 1,895 1,417 1,106 559 -112 -398 -992 -1,453 -1,041


Graph Result for Analog Communication


Conclusions

• Implement Weekly EVM on Projects

• Focus on Indices will Spot Concerns

• Concerns will Drive Performance

• An EVM Adherence Cycle will Increase Company:

– Performance

– Utilization

– Profits

– And crank out projects with more horsepower than ever!


Why EVMs and Metric Tools

• When SPI variances occur drill into Microsoft Data for Late tasks.

– Tasks baselined in the past with Start or Finish Variances

• When CPI variances occur review labor charge details where hours are charged and not earning as much Earned Value in Microsoft Project Tasks.

• Look for a common cause or theme to Identify and take corrective action

• Data is only data if it is not acted upon.


Questions?


Contact Information for Inquiries or Assistance

Forrest Kovach, MBA, PMP, MCTS-ProjectProject Management Senior AdvisorDell | Services office +1 972 577 4744cell +1 972 693 7706Dell Inc. Plano Campus, 2300 W. Plano Parkway, Plano, TX 75075

Thank you

gennext evms

Documents

pmi3 confidentialdell

project actuals

mpp actual work

planned work

actual work actuals

ev measurement

value pv

ev pv answers