1. Q N U Earned Value Management They Say I have to Do It, But Why??? By Ursula Kuehn, PMP, EVP UQN and Associates

2. Q N U History of EVMS 1962-1965 PERT/Cost on Minuteman Missile 1965 USAF created CSPCS (35 criteria) 1967-1996 DOD issued C/SCSC (35 same criteria) 1996 DOD EVMS (NDIA initiative) (32 criteria) 1998 ANSI/EIA-Standard 748 (32 same criteria)

3. Q N U What Size of Project Requires EVMS? DoD requires on projects > $20M DoT requires on projects > $6M Dept. of Ed. requires on projects > $2M, with a lighter version for projects < $2M Do we see a trend?

4. Q N U 10 Easy Steps for EVMS on all Projects 1.Define the project scope via a WBS 2.Determine who will perform the work and what it might cost 3.Plan & schedule the defined work for the agreed upon scope 4.Determine points of management control 5.Authorize budgets for the baselined plan Adapted from Earned Value Management Project Management, Third Edition, Fleming and Koppelmen

5. Q N U 10 Easy Steps for EVMS on all Projects (continued) 6.Define metrics to measure performance of work within each control point 7.Record actual costs of the work 8.Measure control point performance and determine project performance 9.Forecast future performance 10.Manage changes to the agreed upon baseline

6. Q N U Step 1 Define the project scope via a Work Breakdown Structure

7. Q N U The WBS Ursula’s Pond HoleLinerWaterLivestockPlantsTest Pond Design Pond Project Management

8. Q N U Hole Move Earth Trees Plants Disposal Equipment Earth Removal Equipment Environmental Study Earth RemovalEarth Disposal Garden Take the Requirements Analysis to the Hole of the Pond

9. Q N U Water Water In Water Removal Water Circulates Take the Requirements Analysis to the Water of the Pond

10. Q N U Step 2 Determine who will perform the work and what it might cost

11. Q N U $113.85 $71.35 $2.50$68.85 $93.45 $23.45$45.00$25.00 $50.00 $42.50 $2.50 $140.45 $40.00 $7.50$107.95$25.00 $102.50 $17.50$60.00$25.00 $531.00 $30.00$90.00$411.00 $35.00 $136.95 $17.50$2.50$91.95$25.00 $240.20 $109.35$64.35 $25.00 $41.50 $2.50$106.85$2.50$61.85$2.50$39.00 Pond 1234 Plants 1234.5 Livestock 1234.6 Water 1234.4 Rock Border 1234.7 Liner 1234.3 Pump 1234.8 Hole 1234.2 Inspect Pond 1234.9 Design Pond 1234.1 Design Hole 1234.2.1 Dig Hole 1234.2.2 Inspect Hole 1234.2.3 Design Liner 1234.3.1 Buy Liner 1234.3.2 Install Liner 1234.3.3 Fill Pond 1234.4.2 Test Water 1234.4.3 Design Water 1234.4.1 Bog Plants 1234.5.3 Floating Plants 1234.5.4 Oxygenating Plants 1234.5.2 Design Plants 1234.5.1 Install Oxy. Plants 1234.5.2.2 Buy Oxy. Plants 1234.5.2.1 Buy Bog Plants 1234.5.3.1 Install Bog Plants 1234.5.3.2 Buy Floating Plants 1234.5.4.1 Install Floating Plants 1234.5.4.2 Fish 1234.6.1 Snails 1234.6.2 Buy Fish 1234.6.1.1 Install Fish 1234.6.1.2 Install Snails 1234.6.2.2 Buy Snails 1234.6.2.1 Build Waterfall 1234.7.3 Buy Rock 1234.7.1 Install Border 1234.7.2 Buy Pump 1234.8.2 Install Pump 1234.8.3 Design Pump 1234.8.1 Test Waterfall 1234.8.4 $1,743.55

12. Q N U Step 3 Plan & schedule the defined work for the agreed upon scope

13. Q N U Planning and Scheduling the Defined Work END Work Package G 24 22 0 1621 1520 1421 1421 2224 18 20 21 24 6 14 6 610 14 716 615 6 6 0 18 19 Work Package I Work Package H Work Package E Work Package F Work Package B Work Package C Work Package D Work Package A

14. Q N U Step 4 Determine points of management control

15. Q N U $113.85 $71.35 $2.50$68.85 $93.45 $23.45$45.00$25.00 $50.00 $42.50 $2.50 $140.45 $40.00 $7.50$107.95$25.00 $102.50 $17.50$60.00$25.00 $531.00 $30.00$90.00$411.00 $35.00 $136.95 $17.50$2.50$91.95$25.00 $240.20 $109.35$64.35 $25.00 $41.50 $2.50$106.85$2.50$61.85$2.50$39.00 Pond 1234 Plants 1234.5 Livestock 1234.6 Water 1234.4 Rock Border 1234.7 Liner 1234.3 Pump 1234.8 Hole 1234.2 Inspect Pond 1234.9 Design Pond 1234.1 Design Hole 1234.2.1 Dig Hole 1234.2.2 Inspect Hole 1234.2.3 Design Liner 1234.3.1 Buy Liner 1234.3.2 Install Liner 1234.3.3 Fill Pond 1234.4.2 Test Water 1234.4.3 Design Water 1234.4.1 Bog Plants 1234.5.3 Floating Plants 1234.5.4 Oxygenating Plants 1234.5.2 Design Plants 1234.5.1 Install Oxy. Plants 1234.5.2.2 Buy Oxy. Plants 1234.5.2.1 Buy Bog Plants 1234.5.3.1 Install Bog Plants 1234.5.3.2 Buy Floating Plants 1234.5.4.1 Install Floating Plants 1234.5.4.2 Fish 1234.6.1 Snails 1234.6.2 Buy Fish 1234.6.1.1 Install Fish 1234.6.1.2 Install Snails 1234.6.2.2 Buy Snails 1234.6.2.1 Build Waterfall 1234.7.3 Buy Rock 1234.7.1 Install Border 1234.7.2 Buy Pump 1234.8.2 Install Pump 1234.8.3 Design Pump 1234.8.1 Test Waterfall 1234.8.4 $1,743.55

16. Q N U Step 5 Authorize budgets for the baselined plan

17. Q N U Allocating the Budget Work Package G $3,000 24 22 END 0 1621 1520 1421 1421 2224 18 20 21 24 6 14 6 610 14 716 615 6 6 0 18 19 Work Package I $2,000 Work Package H $3,000 Work Package E $7,000 Work Package F $5,000 Work Package B $8,000 Work Package C $4,000 Work Package D $9,000 Work Package A $6,000

18. Q N U Baseline the Plan

19. Q N U Step 6 Define metrics to measure performance of work within each control point

20. Q N U How to Measure Progress Effort/(Effort + Remaining) Physical % Complete Weighted Milestones or Inchstones 50/50 Rule, 20/80 Rule, 0/100 Rule Others, all used to determine a % Complete

21. Q N U Step 7 Record actual costs of the work

22. Q N U Collecting Actual Cost (AC) Timesheets Invoices Other Expenses

23. Q N U Step 8 Measure performance and determine project performance

24. Q N U The Planned Value (PV) 24 22 END 0 1621 1520 1421 1421 2224 18 20 21 24 6 14 6 610 14 716 615 6 6 0 18 19 Task I $2,000 Task H $3,000 Task E $7,000 Task F $5,000 Task G $3,000 Task B $8,000 Task C $4,000 Task D $9,000 Task A $6,000

25. Q N U The PV Continued TaskTotal Task BudgetPlanned Value (PV) As of Day 10 A$6,000.00 B$8,000.00$4,000.00 C D$9,000.00$4,000.00 Project$47,000.00$18,000.00

26. Q N U The PV Continued Data Date

27. Q N U Earned Value (EV)

28. Q N U The EV Continued TaskTotal Task BudgetPlanned Value (PV) As of Day 10 %Comp%Comp Earned Value (EV) As of Day 10 A$6,000.00 100%$6,000.00 B$8,000.00$4,000.0025%$2,000.00 C$4,000.00 75%$3,000.00 D$9,000.00$4,000.0050%$4,500.00 Project$47,000.00$18,000.00$15,500.00

29. Q N U EV Analysis

30. Q N U Variances PositiveNegative SVAhead of scheduleBehind schedule CVUnder budgetOver budget

31. Q N U Cost Variance CV

32. Q N U Performance Indexes

33. Q N U EVA Examples PV = $45,000 EV = $35,000 AC = $40,000 SV = -$10,000 CV = -$5,000 SPI = 0.78 CPI = 0.86 PV = $145,000 EV = $135,000 AC = $140,000 SV = -$10,000 CV = -$5,000 SPI = 0.93 CPI = 0.96

34. Q N U.79.94.83.92.96 1.00.87.92.99.921.03.98 Pond 1234 Plants 1234.5 Livestock 1234.6 Water 1234.4 Rock Border 1234.7 Liner 1234.3 Pump 1234.8 Hole 1234.2 Inspect Pond 1234.9 Design Pond 1234.1 Design Hole 1234.2.1 Dig Hole 1234.2.2 Inspect Hole 1234.2.3 Design Liner 1234.3.1 Buy Liner 1234.3.2 Install Liner 1234.3.3 Fill Pond 1234.4.2 Test Water 1234.4.3 Design Water 1234.4.1 Bog Plants 1234.5.3 Floating Plants 1234.5.4 Oxygenating Plants 1234.5.2 Design Plants 1234.5.1 Install Oxy. Plants 1234.5.2.2 Buy Oxy. Plants 1234.5.2.1 Buy Bog Plants 1234.5.3.1 Install Bog Plants 1234.5.3.2 Buy Floating Plants 1234.5.4.1 Install Floating Plants 1234.5.4.2 Fish 1234.6.1 Snails 1234.6.2 Buy Fish 1234.6.1.1 Install Fish 1234.6.1.2 Install Snails 1234.6.2.2 Buy Snails 1234.6.2.1 Build Waterfall 1234.7.3 Buy Rock 1234.7.1 Install Border 1234.7.2 Buy Pump 1234.8.2 Install Pump 1234.8.3 Design Pump 1234.8.1 Test Waterfall 1234.8.4

35. Q N U Basing Your Stoplight on Your CPI

36. Q N U Step 9 Forecast future performance

37. Q N U The Estimate At Completion (EAC) Forecasts possible project outcome based on past performance –Calculating the EAC with just the CPI –Calculating the EAC with both the CPI and SPI Note: EAC always has the caveat “…if things do not change…”

38. Q N U Other Forecasting Formulas The estimate to complete (ETC) The variance at completion (VAC) The to-complete performance index (TCPI)

39. Q N U Step 10 Manage changes to the agreed upon baseline

40. Q N U The Change Control Process Establish a change control board (CCB) Require the use of change request forms Keep a change control log For each approved change, a new PMB is established

41. Q N U Conclusion Earned Value Management Is Project Management