Eviap Conference Lisbon Portugal 2011
Transcript of Eviap Conference Lisbon Portugal 2011
EVM Practice Business Solutions & Lessons Learned
Mohan Kondur BE(Honors), PGDIE (Ind Engg), MBA, PMP, PgMPUSA EVIAP Project Control & EVM Conference Lisbon,
PortugalNovember, 15th & 16th 2011 © 2011 All Rights Reserved
EVIAP Project Control & EVM Conference Lisbon, Portugal
November, 15th & 16th 2011 © 2011 All Rights Reserved
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EVM Practice - AGENDA
15 Min
IntroductionApproach Lessons
Learned Tool Artifacts
Q & ADemo
45 Min
Business Solutions & Lessons Learned
EVIAP Project Control & EVM Conference Lisbon, Portugal
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Who is Mohan Kondur- BS, MS, MBA, PMP, PgMP
Diverse Industry Sector Engagements Health Sector : United Health Group, Detroit Medical Center, BCBSM Auto / Manufacturing Sector: GM, Ford, Chrysler ,Delphi, GE, HMT (India) Finance / Banking Sector: Ford Credit, Comerica Bank , Allay Bank ( former GMAC)
35+ years in the field Program /Project Management, Business Management & Marketing, Industrial
Engineering
EVM Publication PMI CPM’s Quarterly News Letter “Measurable News” Summer 07 http://www.pmi-cpm.org/members/library/KondurFINAL.pdf
• Program Manager (Delivery , EPMO )
• EVM Customer &
• NOT an EVM Insider
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Presentation Objective ( Share Lessons Learned / Best Practices)
Lessons Learned EVM Practice GuidelinesModel Enhancements (Thought Starters)Earned Schedule (Emerging Practice)
DEMO (time permitting)
Share
Parar !!
Organizational Transformation Internalize EVM into Project Management
EVM TransformationConfiança Parti
r
EVIAP Project Control & EVM Conference Lisbon, Portugal
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Who is Prj Mgr? Executes EVM or Executed By EVM?
Key Differentiator.. EV Process Quality & Reliability
Executed?
Executes?
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Project Management Process Quality – An Imperative for EVM Practice
Initiating ProcessesPlanning ProcessesExecuting ProcessesMonitoring & Controlling ProcessesClosing Processes
Ensure end-to-end QUALITY
From Project Cradle
Initiating
ToProject Grave
Closing
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No Pain No Gain
SPI / CPI & Earned ScheduleTRACKING DUE
DILIGENCE
QUALITY IMPLEMENTATION &
PROCESS COMPLIANCE
Hitting EV Bulls Eye
Pain Killers Available
EVIAP Project Control & EVM Conference Lisbon, Portugal
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SPI & CPI - 101
Current Used to beSPI EV / PV BCWP / BCWSCPI EV / AC BCWP / ACWP
Status indicators of Schedule & Cost
Binary by Definition. Either You are On-Track (SPI & CPI
= 1.0) Or You are NOT
Precision Metrics by Nature
Common Thread (or Handicap?) - Cost-Based Model
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Cost Model SPI/CPI – 3 Showstopper Issues
Issue # 1Financials & WBS are rarely integrated. Budgets are usually managed:
At a Contract / Engagement Level Rarely at a WBS Deliverable Level
Issue # 2Billing Rates: NOT internalized in WBS. Usually managed external to WBS Competition Sensitive Data Artificially Blended Rates
Issue # 3Typical PM Behavior / MindsetFocus on Schedule, NOT Cost
EVIAP Project Control & EVM Conference Lisbon, Portugal
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Model Workaround
Hours Model
Cost Model
Baseline Effort Hours
Actual Effort Hours
Earned Hours
BCWS or PV
ACWP or AC
BCWP or EV
1
2
3
Determining EV Options to Calculate
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EV – Calculation – PMI Status Quo
Option Method EV Rule Remark
s
1 0 - 100 %= 100% of baseline if Task Completed = 0% of baseline for any other Status Same as
in PMBOK
20 – 50 -100%(aka 50-50)
= 100% of baseline if Task has Completed = 50% of baseline if Task has Started = 0% if Task has NOT Started
3 % Complete = % Work Complete * Baseline Thought Starters
4 ETC Forecast = Baseline – Remaining Work
All Options are Tool Supported; To Illustrate Option-4
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Option-4 ETC Forecast Method - Example
Determining Earned Value HoursEV Critical PV - Baseline Work, say 100CPI Critical AC - Actual Work, say 50
SPI CriticalETC - Remaining Work, say 70
EVA Critical EV - Earned Value 30
Schedule Driver “What is Remaining” to Complete
= 100 - 70
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EV Risks Corrected Model - Thought Starter
WBS Quality
EV Risks linked
to SPI/CPI
WBS
WBS QualityE
VA
Reli
ab
ilit
y
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Risks Corrected EVA = Standard EVA * WBS Quality
Risk Adjusted SPI / CPI
Overall WBS Risk Quality = Average of Scope, Cost , ScheduleLet us review WBS quality index an example
Standard SPI / CPI($$-based or Hours-Based)
2. Schedule Risk
Triple Constraint Risks
1. Scope Risk
3. Cost Risk
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WBS Quality Index – EV Risks Measurement Example
Risk SourceQuality Weight
How Measured(Count # of Tasks)
% Tasks
in WBSQualityScore
Scope 1 / 3 All 10 Tasks Base-Lined 100% 33%
Schedule 1 / 3 Only 9 Tasks Estimated 90% 30%
Cost 1 / 3 Only 6 Tasks Resource-Assigned 60% 20%
Overall WBS % Quality ( = Risk) 83%
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Interpreting Risk Adjusted EVA
Schedule Quality 90%Scope Quality
100%Cost Quality 60%
Standard SPI / CPI Green SPI = 1.05 => Ahead of Schedule
Risk Adjusted SPI 0.87 = 1.05 * 83%Behind Schedule
Schedule is Really at Risk or 87% Confidence about an 1.05 SPI
Overall WBS Quality = 83%
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EVA Custom Tool - MS Project Add-on – Just a Mouse Click
Consolidate & Rollup
Project
Program
SPI / CPI Tool
EVA Knowledge (or Mechanics)- Least ImportantPM Delivery Maturity & WBS Quality More Important
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EVIAP Project Control & EVM Conference Lisbon, Portugal
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EVA Tool Artifacts Project SPI / CPI - Spreadsheets)
EVA Demo : Earned Value SPI / CPI vs. Baseline (All Tasks ) (Hours Based) - As of 2/9/2007
Quality : Overall (83%) Scope (71%), Schedule (100%) Cost(78%)
SPI
SPI
SPI
CPICPI CPI
Risk SPI
Risk SPI
Risk SPI
Risk CPIRisk CPI Risk CPI
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1/28/2007 2/4/2007 2/11/2007
SPI CPI Risk SPI Risk CPI
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Program Roll up - EVMs (SP/CPI)
Consolidated Demo Project : Schedule Performance Index (SPI) (Hours Based) - As of 4/29/2005
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
02/05/05 02/12/05 02/19/05 02/26/05 03/05/05 03/12/05 03/19/05 03/26/05 04/02/05 04/09/05 04/16/05 04/23/05 04/30/05
Demo_Project 1 - baselined Demo_Project 2 Demo_Project 3
Component Project-3 SPI Component Project-1 SPI
Program Rollup EV Status Date SPI CPI
Project - 1 08/04/06 0.92 0.78
Project - 3 08/04/06 1.15 0.99
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EVM Implementation Lessons Learned
Fortune 100 Implementation Not Just Theory
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EVM Lessons Learned – Environment
• Multi-Year Strategic Program • Multi-Supplier Autonomous
Projects• Program Governance
Framework • Outsourced Project
Management / PMO
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EVM Practice - Lessons Learned
1. Milestone Mindset - PM & Org Culture Block
2. Project Level Ownership Lack of Ownership
3. EV Reliability - WBS Quality GIGO
4. EVM Initiative Sustenance Keep it simple
5. Doctored WBS – Evergreen WYG WYA
6. Higher Band Risks Too good to be true
7. Program / Portfolio Rollup Not Actionable
8. Schedule / Cost Tracking EV Practice Critical
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Lesson # 1: Milestone / Date Mindset-PM / Organizational Culture Block
SPI / CPI fails whenever Projects communicate only through Milestones & Dates Resolutions: Ensure Deliverables-Oriented WBS Track Level of Effort (LoE) Hours Train, Educate & Mentor Project
Managers
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Lesson # 2 Project Level PM Ownership & Accountability
PM Ownership is Crucial
Resolution: Project PM generates & owns SPI / CPI
Resist temptation to generate EV Metrics by central PMO or a Project Coordinator
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Lesson # 3 EV Reliability – WBS Quality GIGO ( Garbage in Garbage Out)
Standard SPI / CPI does not factor in WBS Quality
Mitigation Approach: Risk-Adjusted SPI/CPI Model
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Lesson # 4 EVM Sustenance
Sustained EVM initiative requires Continuous Accommodation & Collaboration, especially in a Multi-Supplier Outsourced Projects & Stakeholders EnvironmentMitigation Approach: Keep it Simple & be Flexible
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Lesson # 5 Doctored WBS - WYGWYA
3 0 1 0 0 3 5 8 1437 40
649
265
13 4 0 3 2 1 2 1 10
100
200
300
400
500
600
700
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0
SPI
Fre
qu
en
cy
>1000 Data Points; > 40 Projects
3% 4% 91% 2%
WYGWYA .. What You Get is Whatever You Ask
Standard SPI
Risk-Adjusted SPI
Goal 1.0
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EVIAP Project Control & EVM Conference Lisbon, Portugal
November, 15th & 16th 2011 © 2011 All Rights Reserved
Lesson # 6 Higher Band Lesson
Goal
0.60
0.70
0.80
0.90
1.00
1.10
Wk1 Wk2 Wk3 Wk4
Way Ahead
On Track
At Risk
Way Behind
Goal
Track being Ahead. But be Suspicious. Too Good to be True !!
0.95
Higher Band? Ahead ??
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EVIAP Project Control & EVM Conference Lisbon, Portugal
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Lesson # 7 Program Rollup EVM
Project Level Analysis, Ownership & Accountability is Crucial
Program WBS
Project-1 WBS
Project-2WBS
Project-3WBS …
Project Structure
Program / Portfolio Structure
AND / OR
SPI-1 SPI-2 SPI-3
SPI-RollupSPI / CPI
Program Rollup • Practically Useless. NOT ACTIONABLE• Usually Great for Boardroom Color Management
EVIAP Project Control & EVM Conference Lisbon, Portugal
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Lesson # 8 Schedule / Cost Tracking is EVM Critical
Heavy Cost .. Enterprise Technology Low Cost .. Project / Excel Macros Choose whatever means ..
EV Metrics does not Care EVM Practice Cares
Just Ensure Quality Tracking Process
TRACKING FOUNDATIONAL PILLAR
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Any Project Plan becomes obsolete the moment finalized Unless Tracked
Tracking Mandatory to Mitigate Project Schedule / Cost Obsolescence Risks
Requires Tight Rope Quality Walk
EVIAP Project Control & EVM Conference Lisbon, Portugal
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Project Schedule / Cost Tracking: Top Challenges
HOW TO:
Track Without High Costs?
Maximize Team Collaboration?
Support Organizational Metrics
Initiatives?
Minimize ADMIN Drudgery?
Avoid System Choke (Month End, Week
End)?
Simplify Technology and Be User
Friendly?
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Market Scan: Tracking Solutions State
Many Options - Windows, WEB, Others. Typical Outcomes : High Cost ($$ / ) , Hidden / Training
Costs, HighTech Gold-Plated / Over-Featured Unproven. Yet to see evidence of effective
implementationTypical Rollout Experiences ( MS Project Server , Planview)• Never-ending Mega Projects in themselves • Hardly Meet Business Expectations• Significant time wasted on chasing tool issues &
diverted away from managing / resolving Core Delivery & Project Issues
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LoE Project Tracking – EV Practice Critical
Estimates To Complete (ETC) - Schedule Critical Actual Effort - Cost Critical Periodic Tracking (ETC & Actual) - EV Practice Critical
Electronic LoE Timesheets Tool
Periodic LoE Tracking Cycle
TOOL SUPPORT (MS Project Platform)
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Tracking is EV critical
Logistics & How Tracked: EVM Does NOT Care about Tracking Logistics EVM Does Require Quality Tracking Due
diligence
Tracking Solutions Cost Impact: Heavy Cost: Enterprise Technology Solutions Low Cost: Project Centric Solutions (MSP /
Excel Macros)
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Conclusion ( Conclusao )
Priorities for Successful EVM Practice
2. EVM Domain EVM Implementation / Adoption / internalized in PM HIGH
PRIORITYEVM ISO Stds LOW PRIORITY. May follow after PMI releases PM
ISO Stds for PM
1. Project Management (PM) Domain Ensure : Quality Planning Process BackboneInternalize : EVM into Project Control Practices
•PM Delivery Maturity & Magic is MORE Crucial•Tracking is a MUST
EVIAP Project Control & EVM Conference Lisbon, Portugal
November, 15th & 16th 2011 © 2011 All Rights Reserved
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Thank You, Obrigados !!
Q & A Tool DEMO
On-line now, if time permits
Off-line later, if required