Title: Using Earned Value Management System EVMS
1Using Earned Value Management System (EVMS)
- Briefing for ATC Engineering Test Division
(ACT-200) Managers and Leads
2Briefing Objectives
- What is a Project?
- What is a Program?
- What is Project Management?
- What is EVMS?
- Why do we need EVMS?
- How is EVMS Implemented?
- Who will implement it?
3Project Management Terms - IV
- Project -
- A temporary endeavor
- To create a unique product or service.
- Program -
- A group of related projects - e.g. DSR, VSCS,
URET, STARS, ...as part of NAS - Managed in a coordinated way - ACT-200
Coordinating - Usually include elements of ongoing operations
Complements of Project Management Institute
4Project Management Terms - I
- PM is the Application of Knowledge, Skills,
Tools, and Techniques to Project Activities to
Meet or Exceed Stakeholders Needs
Expectations. - Knowledge of general management practice
relevant application areas. - PM overlaps general management in many areas but
they are not synonymous - e.g DSR vs.
Division/Branch.
5Project Management Terms - II
- Work Breakdown Structure (WBS) A
deliverable-oriented grouping of project elements
which organizes and defines the total scope of
the project. Each descending level represents an
increasingly detailed definition of a project
component. Project components may be products or
services.
6Project Management Terms - III
- Work Package Lowest Level of the WBS that may
be Divided into Activities. - OBS An Organizational Chart Relating Work
Packages to Organization Units. - Responsibility Matrix Relates Organization
Structure to WBS Ensures that each Element of
the Projects Scope of is Assigned to a
Responsible Individual.
7Earned Value Management System (EVMS) - I
- EV - Tool for Measuring Project Performance
- Compares work actually accomplished to work
planned to determine if cost schedule
performance is as planned - EV is an Early Warning System
- Helps management make proactive decisions to keep
projects on course
8Earned Value Management System (EVMS) - II
- EV Integrates Cost, Scope Schedule measurements
- EV Involves Calculating 3 key values for each
activity - Budget - BCWS
- Actual Cost - ACWP
- Earned Value/Physical Progress - BCWP
- Basis for variance analysis
9Planning for EVMS - I
- Create a work breakdown structure
- Organize work into discrete work packages and
activities - Allocate a budget to each of the activities
- Develop a schedule and Assign resources to
accomplish each activity on the schedule - Be sure to include all work in the schedule
10Planning for EVMS - II
- Award performance credit for physical complete
using any of these methods - 0-100
- Short duration tasks lt 160 hours
- EV is Zero until activity is complete
- 50-100
- Duration less than 600 hours
- 50 at start of activity 50 at completion
11Planning for EVMS - III
- Interim milestone
- Duration less than 600 hours
- Based on completed milestone for task
- Level of Effort (LOE)
- Long duration consistent tasks
- Difficult to measure - no deliverables
- Measured by duration of time used e.g. 10 weeks
support is 50 complete at 5 weeks
12Tracking Analysis
- Each update cycle/Reporting Period
- Monthly or Bi-Monthly
- Obtain physical complete for each task
- Calculate EV for each task
- Sum up EV for all tasks as project EV
- Calculate actual expenditure for actual work
completed during the period - Compare the Cumulative EV to Actual expenditure
13Elements of EV Analysis - I
- Performance indices relate value of work
performed to dollar spent. e.g. CPI 0.65 means
that for every dollar spent, actual value of the
work performed is 0.65. - Cumulative CPI used to forecast project cost at
completion (also slide 17) - Cumulative SPI used to forecast project
completion date (also slide 17)
14Elements of EV Analysis - II
- Cost Variance - Difference between budgeted cost
of work scheduled actual cost of work performed - CV BCWP - ACWP
- Schedule Variance - Difference between budgeted
cost of work scheduled actual cost of work
performed - SV BCWP - BCWS
15Elements of EV Analysis - II
- SPI - BCWP/BCWS
- SPI gt 1.0, Project Schedule performing as
planned or better - SPI lt 1.0, Project not performing as planned -
needs help
16Elements of EV Analysis - III
- CPI - BCWP/ACWP
- CPI gt 1.0, Project Cost performing as planned or
better - CPI lt 1.0, Project Cost not performing as planned
- needs help - Over/Under Budget - CAC - BCWS
17Project Cost Schedule Forecast Methods
- Estimate at Completion (EAC) is total cost to
complete an activity, work package, or a project
expressed as - EAC Actuals-to-date Estimate to complete
(ETC) - Cost EAC - BAC/CPI
- Schedule EAC - BAC/SPI
18EV Reporting
- Interpret the results of the calculations -
Slides 8 - 11 - Take or recommend corrective action as necessary
19Conclusion
- EVMS provides management with an effective
- tool for program planning and control
- early warning system for program mgt.
- EV Integrates Cost, Quality, Schedule
objectives when appropriately implemented - Must a baseline for measurements, and control at
the start of project.
20References
- Project Management Institute (PMI), 1996. A Guide
to the Project Management Body of Knowledge (the
PMBOKTM Guide) - - Ray W. Stratton, 1999. Improving SPI and CPI
Calculations on LOE Heavy Programs, Proceedings
of the 30th Annual PMI Seminars Symposium - Fleming and Koppeman, 1996. Earned Value Project
Management.
21Thank you for Listening
- Pat A. Eigbe, PMP, -- Hi-Tec Systems
- x. 5-7857