The First Steps in Implementing a Simplified Earned Value ... · The First Steps in Implementing a...
Transcript of The First Steps in Implementing a Simplified Earned Value ... · The First Steps in Implementing a...
The First Steps in Implementing a Simplified Earned Value
Management System
Dorothy Tiffany, CPA, PMPNASA/GSFC
2007 Joint ISPA/SCEA National Conference & Workshop
June 12-15, 2007
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
2
Why is EVM so hard to
implement?
Inadequate EVM
RequirementsDefinition
EVMSystem
Interface Deficiencies
Lack of Cost/Schedule/Scope
BaselineIntegration
Just-in-time Problem
Resolution
Insufficient Time forTraining
Inadequate Data and Tools to Analyze
Status and Forecast Issues
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
3
Insufficient Time forTraining
Lack of Cost/
Schedule/Scope Baseline
Integration
EVMSystem
Interface Deficiencies
Inadequate EVM
RequirementsDefinition
Just-in-timeProblem
Resolution
Why is EVM so hard to
implement?
Inadequate Data and Tools to Analyze Status
and Forecast Issues
No time for analysis
System Limitations
Processes developed from most complex project imaginable
Unrealistic cost and schedule
targets
Frequent replanningwith insufficient
understanding of impacts to data
integrity
Over reliance on COTS tools and
under appreciation of basic EVM
concepts
Cut back in staffing
Reliance on COTS to solve
the problem
Cut back in training funds
Lack of management emphasis on EVM analysis
Mission Impossible???
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
4
Does EVM really have to be
this hard to implement?
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
5
“Earned Value Project Management is not a difficult concept to understand or to employ. It is certainly not as complicated a process as some have made it to be over the years.”
Earned Value ProjectManagement, Third Edition
Quentin W. Fleming and Joel M. Koppelman
EVM
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
6No time for
analysis
System Limitations
Processes developed from most complex project imaginable
Unrealistic cost and schedule
targets Frequent replanningwith insufficient
understanding of impacts to data
integrity
Over reliance on COTS tools and
under appreciation of basic EVM
concepts
Cut back in staffing
Reliance on COTS to solve
the problem
Cut back in training funds
Lack of management emphasis on EVM analysis
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
7
Implementing Simplified EVM
• Don’t try to solve all the complex problems at once
• Incrementally implement EVM as project planning progresses
• Do a good job in analyzing the data that you do have
• Engage the various stakeholders that will benefit with successful EVM implementation
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
8
EVM First Steps Roadmap
• Define the Project Scope• Assign Work Responsibility• Schedule the Work• Allocate the Resources• Establish the Earned Value Project Baseline• Assess and Award Earned Value• Accumulate Actual Cost• Analyze the Resulting Data Carefully
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
9
Define the Project Scope
Work Breakdown Structure:
Sample Project
1.0Component
A
2.0Component
B
3.0Component
C
7.0Component
G
6.0Component
F
5.0Component
E
4.0Component
D
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
10
Assign Work Responsibility
WBS 7.0
WBS 6.0
WBS 5.0
WBS 4.0
WBS 3.0
WBS 2.0
WBS 1.0
Mission Assurance & Safety BranchComponent G
Engineering DivisionComponent F
Flight Software BranchComponent E
SATERN CorporationComponent D
Launch Vehicle ManufacturerComponent C
Acme CompanyComponent B
Systems Engineering OfficeComponent A
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
11
Plan ScheduleID Task Name
1 Component A
2 Component B
3 Component C
4 Component D
5 Component E
6 Component F
7 Component G
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovQuarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
12
Allocate the Resources
WBSBudget at Completion
1.0 Component A 1002.0 Component B 2003.0 Component C 1504.0 Component D 7005.0 Component E 5006.0 Component F 3007.0 Component G 200Total 2150
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
13
Establish the Earned Value Performance Baseline
Cumulative Plan
Jul Aug Sep Oct Nov Dec Jan FebAt
Completion1.0 Component A 100 100 100 100 100 100 100 100 1002.0 Component B 20 50 60 90 100 120 2003.0 Component C 0 1504.0 Component D 50 200 300 400 550 600 700 7005.0 Component E 50 100 200 250 400 500 5006.0 Component F 75 80 100 115 125 130 145 150 3007.0 Component G 25 40 55 70 90 100 135 145 200Total 200 270 525 735 975 1220 1480 1715 2150
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
14
Traditional Plan versus ActualThrough November
How is the project doing?
Plan Actual1.0 Component A 100 1102.0 Component B 60 553.0 Component C 0 04.0 Component D 400 3755.0 Component E 200 1556.0 Component F 125 1357.0 Component G 90 95Total 975 925
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
15
Assess the ProgressID Task Name
1 Component A
2 Component B
3 Component C
4 Component D
5 Component E
6 Component F
7 Component G
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Decr 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
16
Assess Percent Complete
Note: Percent complete status is based on milestone completion,technical judgment, and/or physical inspection.
WBSBudget at
Completion
November Percent
Complete1.0 Component A 100 100%2.0 Component B 200 25%3.0 Component C 150 0%4.0 Component D 700 30%5.0 Component E 500 25%6.0 Component F 300 30%7.0 Component G 200 50%
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
17
Assess and Award Earned Value
Note: Earned Value = BAC x Percent Complete
WBSBudget at
CompletionPercent
CompleteEarned Value
1.0 Component A 100 100% 1002.0 Component B 200 25% 503.0 Component C 150 0% 04.0 Component D 700 30% 2105.0 Component E 500 25% 1256.0 Component F 300 30% 907.0 Component G 200 50% 100
November
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
18
Accumulate Actual Cost
Still think the project is doing okay?
WBSBudget at
CompletionPercent
CompleteEarned Value
Actual Cost
1.0 Component A 100 100% 100 1102.0 Component B 200 25% 50 553.0 Component C 150 0% 0 04.0 Component D 700 30% 210 3755.0 Component E 500 25% 125 1556.0 Component F 300 30% 90 1357.0 Component G 200 50% 100 95Total 2150 675 925
November
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
19
WBSPlanned
ValueEarned Value
Actual Cost
Budget at Completion
1.0 Component A 100 100 110 1002.0 Component B 60 50 55 2003.0 Component C 0 0 0 1504.0 Component D 400 210 375 7005.0 Component E 200 125 155 5006.0 Component F 125 90 135 3007.0 Component G 90 100 95 200Total 975 675 925 2150
November
Analyze the Resulting Data Carefully
The project has gotten far less work done than planned for a lot more money than the work should have cost.
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
20
Simple Formulas Forecast Problems Based on Past Performance
Note: EAC = BAC or EAC = BAC(EV / AC) (EV / PV)
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
21
Is the Data Worth the Effort?
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com
22
Thank you.
Dorothy TiffanyNASA
Presented at the 2007 ISPA/SCEA Joint Annual International Conference and Workshop - www.iceaaonline.com