acumen & ares: simplified cost & schedule integration
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9/19/11 22
Agenda• Company Introductions• Acumen & ARES G2 Partnership• Delivering Value through our Partnership
– Schedule Validation– Cost Management from Estimating to Time-phased
Budgets
Coffee Break
– Accurate Forecasting and Change Management– Analyzing your Data
• Wrap & Questions
© 2011 Acumen & ARES Software. All Rights Reserved.
9/19/11 3
Acumen: Proven Project Analytics
Passion and dedication to
helping to improve the
practice of CPM scheduling
& analysis
• 2o Year+ PPM legacy
across multiple industries
• Oracle, Deltek &
Microsoft partner
• Based in Austin, Texas
• Global presence
World Renowned Risk Assessment
Workshops
Oracle Accredited Training
Acumen Fuse
9/19/11 4
Acumen DNA
acumen s1 > s5
S1
• Schedule Basis• Reflects latest scope/contractor updates
S2
• Critiqued Schedule• Structurally sound, no contingency,
sound logic
S3• Risk-Adjusted Schedule• Estimate uncertainty, risk events
S4• Optimized Target Scenarios• Reduced hot spots, higher confidence
S5• Team Validated Scenario• Buy-in on mitigation plans
Schedule is King…
Metrics: “Analytics leverage
data in a particular functional
process (or application) to enable
context-specific insight that is
actionable”
acumen DNA
9/19/11 5
BrazilSao Paulo
ARES Software is a full-service global Project Management provider
Extensive industry-wide perspective (Oil & Gas, Mining & Metals, Energy, Construction, Aerospace, Defense)
ARES products are used all over the world with over 250 commercial accounts with more than 5,000 user projects worldwide
Proven ability to manage and sustain growth (e.g. hire qualified resources)
$130M in revenue and growing
Excellent employee benefits program, including profit sharing
95% repeat business
ARES Software
© 2011 ARES Software. All Rights Reserved.
9/19/11 6
BrazilValeOnca Puma
USAAlyeska PipelineAmerican Electric PowerBechtelCarter-BurgessCH2MHillDenver Regional Transit DistrictFluorKaiser-HillNASA International Space StationParsonsParsons BrinckerhoffPort of PortlandPortland General ElectricU.S. Department of EnergyWestinghouseWGI
Singapore PEC Tech
CanadaBP ExplorationCanadian National Resource Limited (CNRL)London HospitalEnCana NexenShell CanadaSuncor EnergySyncrude (Alliance 21)TransCanada PipelinesVale-IncoMEG EnergyNewmontNalcor
ChileAker SolutionsAngloAmericanBarrick Gold CorporationBHP BillitonCodelcoCompania Minera Dona Ines de CollahuasiCoprimFluorJRIMinera los PelambresPenta Sur
ItalyTotal Project Management
MexicoInstituto Mexicano del Petroleo
MalaysiaPetronas
Czech RepublicKoch Glitsch
PeruAntamina Gold Fields Yanacocha
BoliviaAPEX Silver
IcelandCentury AluminumHRV
IndonesiaPEC TechPetronasPetrosea
GhanaNewmont Gold CompanyLycopodium
SurinameBHP Billiton
UAESama Contracting
South KoreaSKEC
HungaryOlajterv
MongoliaCenterra Gold MongoliaIvanhoe Mines
TaiwanCTCI
PanamaMinera Panama
PhillippinesFCF Minerals
* Representative Sample
South AfricaAngloAmericanAngloPlatinumAureconBatemanEskomIES ConsultingGoldFieldsLonminMurray & RobertsProjectLinkRSVRSVENCOSasol PetroleumSSPTMP (TWP-Matomo)TWPVhumbanani (DRA-TWP)Xstrata (services)
ChinaSNPTC-ShawRio Tinto INDUSTRIES
• Aerospace• Construction• Energy• Mining & Metals• Nuclear• Oil & Gas• Public Utilities• Transportation
Over 5,000 users at ~250 customers around the world.
Worldwide Clients
© 2011 ARES Software. All Rights Reserved.
9/19/11 8
Only Complete Solutions Provider
© 2011 ARES Software. All Rights Reserved.
Integrated Project Management
9/19/11 99
The Acumen & ARES Software Partnership
Dr. Dan Patterson, PMP
© 2011 Acumen & ARES Software. All Rights Reserved.
9/19/11 1010
Acumen & ARES Software Partnership
CPM Schedule
Ares Prism G2
Acumen Fuse Platform
Integration launch date: October 18 2011 at Acumen Summit
9/19/11 1111
Scenario Outline
P6/
MSP
• Create Schedule
Fuse
• Schedule Critique
PrismG2
• Develop cost estimate• Create time phased budget (integrate with schedule)
PrismG2
• Update actuals; update forecast• Update changes
Fuse
• Analyze performance
9/19/11 1212
Schedule Critique
Dr. Dan Patterson, PMP
© 2011 Acumen & ARES Software. All Rights Reserved.
9/19/11 1313
Scheduling tools are an
excellent means of
modeling these moving
parts.
But…They do little for
making sure the
building blocks are
used correctly….
CPM Building Blocks
Project Defines start or finish of the jobEncapsulates the defined work
Activities Defines duration for a given scope of work
Logic Links Defines sequence of work
Calendars Defines when an activity/resource can work
Constraints Defines date overrides
Resources Defines who/what is available to execute work
Resource Assignment
Links the “executors” to their work
9/19/11 1414
Sound Logic
• Use of FS, FF, SF, SS links• SS links don’t account for durations• Lags hide schedule detail• Leads cause reverse dates• Circular logic between projects• Out of sequence updates• Open start/finish: hidden open ends• Logic Density™• Logic Hotspot™• Redundancy Index™
A
B
C
redundant
New: Driving Logic analysis
9/19/11 1515
• Average Float• Maximum Float• Float ratio (# of days float per day of work)• Float Map™
Float Analysis
9/19/11 1616
• Metrics are useful but don’t give overall picture
• Scorecarding: group individual metrics into single score
• Schedule Quality Index™
• Scores can be either:– Activity based: number of activities that fail a test (less detailed,
higher scores)
– Metric based: number of metrics that fail a test (more detailed,
lower scores)
• Weight importance of metrics
April 10, 2023
16
Scorecarding
9/19/11 1717
Sound Planning Equals Project Success…
0% 10% 20% 30% 40% 50% 60% 70% 80%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
R² = 0.602996639659581
Schedule Quality Index™
Fini
sh C
ompl
ianc
e In
dex™
9/19/11 1818
Cost Management with PRISMG2
Britt Creer
© 2011 Acumen & ARES Software. All Rights Reserved.
9/19/11 19
Introducing PRISMG2
© 2011 ARES Software. All Rights Reserved.
9/19/11 20
Introducing PRISMG2
© 2011 ARES Software. All Rights Reserved.
• Reduce Risk & Detect Potential Problems
• View real-time cost tracking, variance analysis and forecasting
• Exceeds all Federal Government (ANSI 748) requirements for Earned Value Management
• Built for the Enterprise‒ Enterprise, Program, and Project reporting‒ Multi-language, Multi-Currency, Remote Access, Dashboards‒ Full integration to Oracle® Primavera P6, Microsoft ® Project, SAP®,
Oracle EBS, & JD Edwards
9/19/11 21
• A time-phased representation of the project execution plan to determine:‒ The feasibility of the plan
‒ The ability to predict project success
‒ Address resource funding requirements
• A time-phased budget represents a Performance Measurement Baseline (PMB)
• A tool to measure cost and schedule performance against the plan
…. and prevent surprises!
Value of Time-phased Budget
April 10, 2023 21
9/19/11 22
Performance Measurement Baseline
April 10, 2023 22
• Two typical methods used in developing a PMB
1. Cost loading schedule activities
2. Developing a “Time-phased Budget”
9/19/11 23
Method 1 – Cost Loading a Schedule
Cost / Schedule Integration
April 10, 2023 23
9/19/11 24
Issues with Cost Loading a Schedule
April 10, 2023 24
• Difficult to match up based on granularity of estimate vs. schedule
• It is a very time-consuming process to setup‒ Project must start with a schedule before budget can be established
• It is a very time-consuming process to maintain• Difficult to manage intangibles – such as indirect costs• Difficult to manage cost changes• Difficult to manage contingency
The costs exceed the benefits
9/19/11 25
Method 2 – Developing a “Time Phased Budget”
April 10, 2023 25
Cost / Schedule Integration
9/19/11 26
Time-phased Budgets Advantages
April 10, 2023 26
Removes estimate/schedule granularity issues Quick and efficient setup Much easier to maintain Manage performance on Approved and Control Budgets Efficient use of distribution curves for spreading costs Addresses issue on how indirect costs are spread Addresses issue on spreading of contingency Easier to manage changes in scope and forecast
Improvements Over Cost Loaded Schedules
Efficient and Effective PMB Development
9/19/11 2727
Coffee Break
© 2011 Acumen & ARES Software. All Rights Reserved.
9/19/11 2828
Accurate Forecasting with PRISMG2
© 2011 Acumen & ARES Software. All Rights Reserved.
Britt Creer
9/19/11 2929 © 2011 ARES Software. All Rights Reserved.
9/19/11 3030
Analysis and Forensics
© 2011 Acumen & ARES Software. All Rights Reserved.
Dr. Dan Patterson, PMP
9/19/11 3131
• Traditional measures include:– Earned value: heavy time investment to implement
– Earned schedule: similar to EV
– Percent complete: what does this really tell us?
– Ahead/behind baseline: too granular a scale…
• Baseline Compliance™– Used to determine how close a schedule is planned and
executed against it’s baseline
– Measure of well the plan is being executed
– More than just date comparison
– Looks at period-compliance
Metrics for Execution Baseline Compliance™
9/19/11 3232
Compliance Scenarios
Feb March April
Excellent
Scenario 2: Started Early, Finished On-Time
Scenario 1: Started Early, Finished Early
Scenario 3: Started On-Time, Finished On-Time
Scenario 4: Started On-Time, Finished Late
Scenario 5: Started Late, Finished Late
Baseline
Poor
9/19/11 3333
Compliance Metrics
Group Metric Jan-11 Feb-11 Mar-11 Apr-11 May-11 TOTAL
Baseline Scheduled/Baselined to Start 4 1 4 0 1 10
Scheduled/Baselined to Finish 2 1 4 0 3 10
Updated Schedule
Start/ed 2 4 1 2 1 10
Finish/ed 1 3 1 3 2 10
Statistics Start/ed on Time 2 0 0 0 1 3
Start/ed Early 0 0 2 0 0 2
Start/ed Late 2 1 2 0 0 5
Finish/ed on Time 1 1 1 0 2 5
Finish/ed Early 0 0 1 0 1 2
Finish/ed Late 1 0 2 0 0 3
Start/ed on Time, Finish/ed Late 0 0 1 0 0 0
Compliance Start Variance 2 1 4 0 0 7
Cum Start Variance 2 3 7 7 7
Start Compliance 50% 0% 0% N/A 100% 30%
Finish Variance 1 0 3 0 1 5
Cum Finish Variance 1 1 4 4 5
Finish Compliance 50% 100% 25% N/A 67% 50%
9/19/11 34341-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Example Baseline Compliance™ Analysis
9/19/11 3535
Wrap-up & Questions
© 2011 Acumen & ARES Software. All Rights Reserved.
Dr. Dan Patterson, PMPdpatterson@projectacumen.com
Britt Creerbmcreer@arescorporation.com
9/19/11 3636
More Information:Fuse Trial & White Papers:
www.projectacumen.com
PrismG2 Information:
www.arescorporation.com
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