evpm - Earned Value Project Management Colonel John Keesee...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Earned Value Project Management Colonel John Keesee 1 Objective To introduce and discuss the fundamentals of earned value project management of Work Breakdown Structures Work Program plans and schedules Program Earned value management systems Earned Cost and schedule variances Cost Estimates at completion Estimates 2 Scenario You have been tasked to be the project manager for an important project manager You have been directed to use an earned value management system value Time to market is critical for this development development 3 Work Breakdown Structure Identifies 100 % of the work to be accomplished accomplished WBS dictionary breaks the scope into measurable tasks measurable Each with an estimated value Each Responsibility for each task assigned to individuals or work teams individuals 4 Work Breakdown Structure Sp ace System Space V ehicle Launch Vehicle P ayload Spacecraft Grou nd Com m and, Con trol, Com m u n ication s an d Mission Eq u ip m en t Reen try veh icle In teg ration , Assem b ly, Test an d Ch eckou t 5 Project Master Schedule Detailed plan and schedule Detailed Identified dependencies between tasks Identified 18 months 18 Estimated resources for each task Estimated 10 units at $150K each 10 6 Project Master Schedule Task/Event Award Design Buy specifications Vendor quotes Purchase orders Receive materials Factory plans Tool design Tool fabrication Parts fabrication Assembly: sub and final Test & checkout Jan - Jun ^ ^ ^ ^ Jul - D ec Jan - Jun ^ ^ ^ ^ ^ ^ ^ ^ 7 Project Performance Display 1600000 1400000 1200000 1000000 BCWS BCWP ACWP 800000 600000 400000 200000 Ju ly il Ap r nu ar y Ja er ob O ct Ju ly il Ap r Ja n 0 8 Plan Review Before Go-Ahead CEO: CEO: “Time to market is critical. You have 12 months.” months.” “This looks gold-plated at $1.5M. You “This plated have $1.0M.” have “Go ahead, but come back to me with your progress in three months.” your 9 The Three Month Review Three units scheduled for completion Three Two units actually completed Two $300,000 budgeted at this point $300,000 $300,000 actually spent $300,000 Optimist PM: “A little behind schedule but right on the cost plan.” right 10 Earned Value System Requires a detailed, bottoms-up Requires up performance plan performance Performance measured against the plan Performance Provides forecast of final expected results based on data based 11 Earned Value Measurements 1. 2. 3. 4. 5. 6. 7. Work scheduled Budgeted cost of work scheduled (BCWS) Work performed Budgeted cost of work performed (BCWP) Actual cost of work performed (ACWP) Schedule variance (SV) = BCWP - BCWS Schedule Cost Variance (CV) = BCWP - ACWP Cost 12 New Project Performance Display 1200000 1000000 800000 BCWS BCWP ACWP 600000 400000 200000 De ce m be r ct ob er O Ju ly Ap ril Ja nu ar y 0 13 Estimate at Completion Cost efficiency CPI = BCWP/ACWP Cost Schedule efficiency SPI = BCWP/BCWS Schedule Estimate at completion Estimate BAC EAC1 = CPI BAC − BCWP EAC 2 = ACWP + CPI * SPI 14 Management Reserve Budgeted to provide the ability to adjust for uncertainty uncertainty Always accounted at the total project level Always Normally retained and controlled at the total project level project Must not be eliminated by negotiations Must 15 Summary Earned value management system provides a key link between the cost, schedule, and technical aspects of a project technical Provides an early and reliable prediction of future performance future 16 References Fleming, Quentin W. and Joel M. Koppelman, Earned Value Project Koppelman Management, PMI, Newtown Square, PA 2000 2000 Lewis, James P., Fundamentals of Project Management, AMACOM, NY 2002 Management 17 ...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online