benchmarking execution performance and earned value
DESCRIPTION
Determining historic PV, BAC, EAC and other EVM measures in order to benchmark for future projects is a valuable technique for ensuring realistic and achievable forecasts. Determining historic EV performance using prior similar projects validates those forecasts. Additionally, the value of benchmarking increases exponentially as the benchmark basis improves. From previous iterations of the schedule to a database of thousands of projects, EVM indicators have a strong correlation with execution performance over time.TRANSCRIPT
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Benchmarking Execution Performance and Earned Value
EVM World 2012 Conference
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Brad Arterbury, PMP
◦ About Me◦ MBA, Texas State University◦ Current member of PMI◦ Wide-ranging business expertise
◦ Role◦ Currently lead business development efforts:
◦ Information Technology◦ Aerospace and Defense◦ Government
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About Acumen
◦ Project management software company
◦ Insight into PM challenges and use of analytics to overcome them
◦ Core concepts◦ Project success requires a sound plan◦ Forecast accuracy requires risk consideration
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Benchmarking Defined
◦ To measure according to specified standards in order to compare with and improve one’s own product
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Benefits of Benchmarking
◦ Context given to project analysis and scoring
◦ Internal and external starting point
◦ Portfolio tracking
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Three Types of Benchmarking
◦ Intra-project Benchmarking◦ Compare ribbons or time phases within the same
project against one another
◦ Inter-project Benchmarking◦ Compare a single project against prior snapshots of
the same plan or similar past projects
◦ Cloud Benchmarking◦ Compare a single project against a database of
thousands of like projects
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Metric Requirements
◦ What are metrics?◦ Measurable, actionable criteria
◦ Schedule, Cost, Risk◦ Both quality and performance
◦ Industry Standards◦ Earned Value Management◦ DCMA 14-Point Assessment◦ GAO 10 Best Practices
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DCMA 14-Point Assessment
◦ A precursor to EVM analysis
◦ Metrics look at schedule quality primarily
◦ Provides some schedule performance feedback absent of cost data
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Fuse Schedule Index
◦ Nine different schedule checks combined with their proven thresholds
◦ Individually calculated and weighted before compilation
◦ For example, Logic Density should be between 2 and 4
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Tracking Execution Performance
◦ Percent Complete◦ Doesn’t account for effort or resources
◦ Baseline Compliance◦ Performance for start/finish by time phase
◦ Earned Schedule
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Importance of Earned Value
◦ Metrics for performance analysis of cost and schedule in one system
◦ Proven predictor of project success
◦ Established methodology for government contracts
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Benchmarking EVM
◦ In planning and execution, useful to benchmark EVM metrics
◦ Provides context‒ Validates baseline‒ Calibrates performance
◦ Benchmark against internal past and external past in parallel or vs. a rollup of thousands of projects
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Metric Analysis for Intra-Project Benchmarking
◦ Group data into ribbons by a common attribute
◦ Group data into time phases
◦ Apply customizable metrics for true project insight
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Intra-Project Benchmarking
◦ SV◦ SPI
◦ CV◦ CPI
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Inter-Project Benchmarking
◦ Understand variance on the same project over time
◦ Ensure integrity of baselines◦ Especially useful when applying EVM
◦ Insight into differences of similar projects
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Forensic Analysis
◦ Differences from baseline to status updates◦ Calendar◦ Milestones◦ Critical path
◦ Find causes of delay and cost overruns that are affecting execution performance
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Cloud Benchmarking
◦ Global Project database
◦ Access through Acumen Fuse
◦ Targeted benchmarking using standardized scoring
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Scoring
Fuse Schedule Index™ Fuse Logic Index™
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Probability of Success
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Planning = Execution Success
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%
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Fuse Schedule Index™
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Benchmarking Summary
◦ Tools for comparing project quality and performance
◦ Compare EV metrics, 14-Point Assessment metrics, GAO Scheduling Best Practices, and other metrics by project
◦ Schedule and Logic Quality in Acumen Cloud Benchmarking
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More Information
◦ White papers: www.projectacumen.com
◦ Software trial: www.projectacumen.com/trial
◦ Twitter: @projectacumen
◦ E-mail: [email protected]