Professional Documents
Culture Documents
What Is It ?
Why Do I Need It ?
How Do I Do It?
1
Today’s Situation
2
There’s Room For Improvement
3
Source:The Standish Group
How to answer the question:
“Have we done what we said we’d do?”
% complete estimating
% of Budget spent
% of work done
% of time elapsed
subjective, incomplete
draws false conclusions
4
Enter Earned Value Analysis
“Earned Value Analysis” is:
• an industry standard way to:
• measure a project’s progress,
• forecast its completion date and final cost, and
• provide schedule and budget variances along the
way.
5
What’s more Important?
6
EVA Integrates All Three
7
Earned Value needed because...
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Earned Value needed because...
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And One More Reason
Why You Need EVA
?
10
Because You Gotta !
These Set the Stage:
GPRA; 1993
FASA, Title V; 1994
Clinger-Cohen Act; 1996
11
OK, So What Is This Stuff?
12
So, Is This Stuff New ?
13
Examples of informal Earned Value Analysis
•Cost comparisons
Budget vs. Actual
14
How’s this project doing?
120000
100000
80000
Projected
60000
Actual
40000
20000
0
Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
15
Let’s Take A Look Under The Hood
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But First! - We gotta get organized
18
Proper WBS Design
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WBS Units are “Work Packages”
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Control Account Plans
23
Some New Terms
24
Earned Value Definitions
25
BCWS - Budgeted Cost of Work Scheduled
120000
100000
80000
60000 BCWS
40000
20000
Nov-03
Jan-03
Jun-03
Jul-03
Aug-03
Feb-03
Mar-03
Apr-03
May-03
Sep-03
Oct-03
Dec-03
26
Earned Value Definitions (cont.)
27
ACWP - Actual Cost of Work Performed
120000
100000
80000
56000 BCWP
60000
ACWP
49000
40000
20000
Nov-03
Jan-03
Jun-03
Jul-03
Aug-03
Dec-03
Mar-03
Apr-03
Sep-03
Oct-03
Feb-03
May-03
28
Earned Value Definitions (cont.)
29
BCWP - Budgeted Cost of Work Performed
120000
100000
80000
55000 BCWP
60000
49000 BCWS
40000
20000
Nov-03
Jan-03
Jun-03
Jul-03
May-03
Feb-03
Mar-03
Apr-03
Sep-03
Oct-03
Dec-03
Aug-03
30
The Whole Story
120000
100000
80000
56000 BCWS
60000 BCWP
55000
49000 ACWP
40000
20000
Nov-03
Jul-03
Jan-03
Jun-03
Feb-03
Mar-03
May-03
Aug-03
Sep-03
Oct-03
Dec-03
Apr-03
31
Some Derived Metrics
schedule
budget.
32
Schedule Variance & Cost Variance
33
Some More Derived Metrics
SPI: BCWP/BCWS
49,000/55,000 = 0.891
CPI: BCWP/ACWP
49,000/56000 = 0.875
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Making Projections
Once a project is 10% complete, the
overrun at completion will not be less
than the current overrun.
20000
Nov-03
Jul-03
Jan-03
Jun-03
Feb-03
Mar-03
May-03
Aug-03
Sep-03
Oct-03
Dec-03
Apr-03
37
Estimate to Complete
140000
120000 116,571
100000 102000
Today BCWS
80000
BCWP
60000
ACWP
40000
20000
0
-03 - 03
-03
-l 0
3
- 03 -03 -04 - 04
an ar ay
Ju ep o v an ar
J M M S N J M
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A New Criteria
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Value of Earned Value
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But How Do I Do All This Stuff ?
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Shortcomings of Earned Value
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Summary
EVA & EVMS will help reduce guesswork in:
Measuring performance
forecasting
Need to get beyond misleading measures of
progress.
Reasons to use EVA and EVMS:
Good project management practice
OMB requirement
Incorporate into contracts
46
Earned Value Resources
http://www.pmi.org/
http://www.acq.osd.mil/pm/
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Some “Compliant” Systems
Welcom “Cobra” http://www.welcom.com/
Schedulemaker http://www.schedulemaker.com/
Winsight http://www.cs-solutions.com
48
Earned Value Analysis
Questions/Discussion
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