Projectscontrolusingearnedvaluetechnique 150712122255 Lva1 App6892

7/24/2019 Projectscontrolusingearnedvaluetechnique 150712122255 Lva1 App6892

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PROJECTS CONTROLGuide Lines for projects control implementation

using the earned value tools, and technique.



Missions…Support Projects/Programs managers on projects control using EVM to& echnique !or integrate management o! Projects Scope, ime, and

"ost.

Earned Value is neededbecause...o Preventing scope creep.o #mproving communication and visi$ilit% ith

sta'eholders.o Per!ormance trac'ing, and !orecastingo Ena$le measures !or di(erent t%pes o!

tas's.

o )oll up progress o! man% tas's into anoverall project status.

EVM can ansering manageme

that are critical to the success oproject, such as

o re e ahead o! or $ehind o 1o ecientl% are e usingo 3hen is the project li'el% to

completed0o re e under or over our $uo 1o ecientl% are e using

resources0

o 3hat is the remaining or'cost0

Successful projects are tere is a continuous i!prplannin# on one and$ and scedule control on te ote

V%S%ON& 'ana#e!ent (Li#ts ON



Earned Value Management +EVM-…EV' )e"elops and 'onitors (itin Plannin# * E+ecution Pas

5e% practice o! the project control process consist o! to pha

Establis a Perfor!ance'easure!ent ,aseline -P',

,ud#et Scedule

'easure and anaperfor!ance a#ainst t

1ctual Cost1

P

PV EV

"T%'E

CONTROL

COST

CONTROL



Earned Value Management +EVM-…#t7s a project management technique that7s required the !ormation o! #ntegrated 8aseline against hich Per!ormance can $e measured !or

duration o! the project.

EV' )e"elops and 'onitors Tree 2e/ di!ension for eac 3opac4a#e.



Esta$lishment o! a Per!ormance Measurement 8aseline

5irst

:; <ecompose ora managea$le le

Second

:2 <evelop the 8aSchedule

:4 Tird

Estimate the P8udget

:6 5our

<evelop the PeMeasurement 8

(,S 6 (or4 ,rea4do3n Structure

• <e?ne the Scope o! 3or'

• <ecompose <elivera$les into 3or'

Pac'age

• <ecompose to Managea$le @evel

ctivities

)e"elop te ,aseline Scedule

• <e?ne the Major Project Milestones

• @ogical )elations 8eteen ctivities, and

38S

• <evelop 8aseline ScheduleEsti!ate te Project ,ud#et

• Auantities Surve%

• <evelop "8S

• Estimated Material, @a$ors, and *on

@a$ors "ost

• <evelop 8aseline 8udget)e"elop te Perfor!ance 'easure!ent

,aseline

• ssign 8udget B)esourcesC to 8aseline

Schedule

• )esources @evelin & 8alancin



Esta$lish a Per!ormance Measurement 8aseline +PM8

)oes Planned Resource Consu!ption 'a4e Sense7

1. DEFINE THE WORK

2. SCHEDULE THE WORK

3. ALLOCATE BUDGETS

J 5 ' 1

8

R e s o u r c e s

9::

::

<::

=::

' J J

5ront Loaded

End Loa

Nor!al



EVM Per!ormance nal%sis and orecasting

5irst

:; "alculate he EV5e% dimension

Second

:2 "alculate the "ost Variances

:4 Tird

"alculate the 5e% Per!orman#ndicates

:6 5our

orecast at"ompletion ProStatus

Te EV' Tree 2e/ di!ension

• )ecord resource usage during project

eGecution

• H$jectivel% measure the ph%sical or'

progress

• "alculate " ctual "ost, and EV earned

value

Te Ti!e * Cost Variances

• Schedule Variance +SV-

• "ost Variance +"V-

• Variance at "omplete +V"-

Te Project 2e/ Perfor!ance %ndicates

• Schedule Per!ormance #ndeG +SP#-

• "ost Per!ormance #ndeG +"P#-

• o"omplete Per!ormance #ndeG +"P#-

5orecast at Co!pletion Project Status

• ime Estimate at "ompletion +E"t-

• Estimate at "ompletion +E"-

•Variance at "ompletion +V"-



Earned Value Management hree 5e% dime

Per!ormance measurement $aseline ..

,ud#et that is spread over . . .

ti!e$ to accomplish the scope o!or'and against hichprogress can $e measured

hen all or' has $een phased,cumulative 8"3S J 8"

Planned Value -PV&

)escribes o3 far alon# aproject is supposed to be at an/#i"en point in te projectscedule. Te autori0ed ,ud#etassi#ned to te 1cti"ities$ or(or4 ,rea4do3n structure

he planned +8udget- cost tocomplete the or' that has $eendone

Earned Value J ssigned 8udget !oreach or' tas' K the ph%sical or'progress

Earned Value -1C&

%s te "alue of 3or4 perfor!ede+pressed in ter!s of teappro"ed bud#et assi#ned totat 3or4 for an 1cti"it/ or (or4,rea4do3n Structure

he costs actrecorded in accper!ormed +8"3

time period

@a$orMaterial +Su$conHther, Equipmenetc.#ndirect "osts

1ctual Cost -1

%s an indicationresources tat e+pended to ac3or4 perfor!edti!e period.



Earned Value Management hree 5e% dimension



Schedule nal%sis and orecasting1o are e doing #ME ise0 … EV Vs. PV

N Value ... headO Value … 8ehind

EGample #! the project is 29 percent$ehind schedule, meaning that 29percent o! the planned or' has not

$een accomplished.

Scedule Variance -SV&

1re 3e aead or beind

scedule7

SV > EV 6 PV SV? > SV @ PV SP# ; ... headSP# Q ; … 8ehind

his SP# indicates that or' is $eingaccomplished percent ecienc%,usuall% used also !or compare various

projects per!ormance together.

Scedule Perfor!ance %nde+

Ao3 eBcientl/ are 3e usin# our

ti!e7

SP% > EV @ PV Rsing the SP# Planned Value pgenerate a rougthe project ilcurrent trends cohen it as orig

completed.

Ti!e Esti!at

(en are 3e l

3or47

E1Ct > -,1C

'ONTAS



"ost nal%sis and orecasting1o are e doing "HS ise0 … EV Vs. "

N Value ... Rnder8udget =Save>O Value … Hver8udget =*on)ecovera$le @oss>

"ost Variance +"V- is a measure o!cost per!ormance on 8udget. he

EVM "V is particularl% "ritical$ecause it indicate the relationship o!Ph%sical Per!ormance to the "ostSpend.

Cost Variance -CV&

1re 3e under or o"er bud#et7

CV > EV 6 1C CV? > CV @ EV

SP# ; ... Rnder8udget =Save>SP# Q ; … Hver8udget =*on)ecovera$le @oss>

#! e translate this into dollars, itould mean that Project has a cost

ecienc% o! :.GG orth o! or' !orever% dollar spent to date, usuall%used also !or compare variousprojects per!ormance together.

Cost Perfor!ance %nde+&

Ao3 eBcientl/ are 3e usin# our

resources7

CP% > EV @ 1C

he Estimate atells a manager project is li'el% per!ormance tren

Variance at C

(ill 3e nis

bud#et

V1C > ,1C 6 E1

Cost Esti!ate



Estimate at "omplete +E"-…Estimate at "omplete +E"- technique that7s depend on various !actocontract t%pe, and previous 'e% per!ormance indicates.

Rsuall% calculated ithin one o! the !olloing !ormulas.

E / "

E s t i m a t e / t " o m p l e t e

orecast !or E" 3or'Per!ormed at the 8udget )ate

E" J " N +8

orecast !or E" 3or'Per!ormed at the Present "P#

E"J8"/"umu

orecast !or E" 3or'"onsidering 8oth SP# & "P#

E"J"N=+8"EV



o"omplete Per!ormance #ndeG +"3hich can tell a manager the ecienc% that must $e achieved !or a pmeet a speci?ed endpoint such as the 8udget at "ompletion +8"-. that !or Project ET to achieve 8", per!ormance must improve !rom a:.I4 to a "P# o! ;.:F !or the remaining or'. o"omplete Per!ormance

#ndeG

1o ecientl% must e use

our remaining resources0



inal EVM rend nal%sis …)oes %t Gi"en Dou 1ll %nfor!ation Dou Need To 2no37

Ris4 1tCo!pl

Varian

CostVariance

J 5 ' 1

Ti!e

R e s o u r c e s

9::

::

<::

=::

Ti!e No3

1C(P-1ctualCost

,C(S-Planned Value

,C(P-EarnedValue

' J J 1

Scedule Slip

SceduleVariance

Management Rese!e

"

1ppro+. Ti!eVariance



inal EVM rend nal%sis =)EPH)>…

)oes %t Gi"en Dou 1ll %nfor!ation Dou Need To 2no37

1nal/sis



EGample

Proble!& project has a $udget o!U;:M and schedule !or ;: months. #tis assumed that the total $udget ill$e spent equall% each month until the;:th month is reached. !ter 2 monthsthe project manager ?nds that onl%9 o! the or' is ?nished and a total

o! U;M spent.

Te best 3a/ to understand an EV' e+a!ple isto sol"e it. PV J U2M

EV J U;:M K :.:9 J U:.9M

V J U;M

"V J EV" J :.9; J :.9M

"V J ;:: K +"V/EV- J ;::K+:.

overrun

SV J EVPV J :.92 J ;.9 months

SV J ;:: K +SV/PV- J ;::K+;.9/2- J

"P# J EV/" J :.9/; J :.9

SP# J EV/PV J :.9/2 J :.29

E" J 8"/"P# J ;:/:.9 J U2:M

E" J +8"EV- / "P# J +;::.9-/:.9 J

ime to compete J +;::.9-/:.29 J 4I

his project ill ta'e H@ U2:M

+4IN2- Months to complete.

Solution&



P) H*E "HMP@EE 1*5 WHR

uestions7Co!!ents7



*H3 …EVM #mplementation

LetFs Get S

Projectscontrolusingearnedvaluetechnique 150712122255 Lva1 App6892

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