eviap conference lisbon portugal 2011

EVM Practice Business Solutions & Lessons Learned

Mohan Kondur BE(Honors), PGDIE (Ind Engg), MBA, PMP, PgMPUSA EVIAP Project Control & EVM Conference Lisbon,

PortugalNovember, 15th & 16th 2011 © 2011 All Rights Reserved

EVIAP Project Control & EVM Conference Lisbon, Portugal

November, 15th & 16th 2011 © 2011 All Rights Reserved

2

04/18/2023

EVM Practice - AGENDA

15 Min

IntroductionApproach Lessons

Learned Tool Artifacts

Q & ADemo

45 Min

Business Solutions & Lessons Learned

http://www.ambithus.com/

http://www.eviap.org/

http://www.microsoft.com/



3

04/18/2023

Who is Mohan Kondur- BS, MS, MBA, PMP, PgMP

Diverse Industry Sector Engagements Health Sector : United Health Group, Detroit Medical Center, BCBSM Auto / Manufacturing Sector: GM, Ford, Chrysler ,Delphi, GE, HMT (India) Finance / Banking Sector: Ford Credit, Comerica Bank , Allay Bank ( former GMAC)

35+ years in the field Program /Project Management, Business Management & Marketing, Industrial

Engineering

EVM Publication PMI CPM’s Quarterly News Letter “Measurable News” Summer 07 http://www.pmi-cpm.org/members/library/KondurFINAL.pdf

• Program Manager (Delivery , EPMO )

• EVM Customer &

• NOT an EVM Insider

http://www.pmi-cpm.org/members/library/KondurFINAL.pdf






4

Presentation Objective ( Share Lessons Learned / Best Practices)

Lessons Learned EVM Practice GuidelinesModel Enhancements (Thought Starters)Earned Schedule (Emerging Practice)

DEMO (time permitting)

Share

Parar !!

Organizational Transformation Internalize EVM into Project Management

EVM TransformationConfiança Parti

r



5

04/18/2023

Who is Prj Mgr? Executes EVM or Executed By EVM?

Key Differentiator.. EV Process Quality & Reliability

Executed?

Executes?






6

04/18/2023

Project Management Process Quality – An Imperative for EVM Practice

Initiating ProcessesPlanning ProcessesExecuting ProcessesMonitoring & Controlling ProcessesClosing Processes

Ensure end-to-end QUALITY

From Project Cradle

Initiating

ToProject Grave

Closing






7

04/18/2023

No Pain No Gain

SPI / CPI & Earned ScheduleTRACKING DUE

DILIGENCE

QUALITY IMPLEMENTATION &

PROCESS COMPLIANCE

Hitting EV Bulls Eye

Pain Killers Available






8

04/18/2023

SPI & CPI - 101

Current Used to beSPI EV / PV BCWP / BCWSCPI EV / AC BCWP / ACWP

Status indicators of Schedule & Cost

Binary by Definition. Either You are On-Track (SPI & CPI

= 1.0) Or You are NOT

Precision Metrics by Nature

Common Thread (or Handicap?) - Cost-Based Model






9

04/18/2023

Cost Model SPI/CPI – 3 Showstopper Issues

Issue # 1Financials & WBS are rarely integrated. Budgets are usually managed:

At a Contract / Engagement Level Rarely at a WBS Deliverable Level

Issue # 2Billing Rates: NOT internalized in WBS. Usually managed external to WBS Competition Sensitive Data Artificially Blended Rates

Issue # 3Typical PM Behavior / MindsetFocus on Schedule, NOT Cost






10

04/18/2023

Model Workaround

Hours Model

Cost Model

Baseline Effort Hours

Actual Effort Hours

Earned Hours

BCWS or PV

ACWP or AC

BCWP or EV

1

2

3

Determining EV Options to Calculate






11

04/18/2023

EV – Calculation – PMI Status Quo

Option Method EV Rule Remark

s

1 0 - 100 %= 100% of baseline if Task Completed = 0% of baseline for any other Status Same as

in PMBOK

20 – 50 -100%(aka 50-50)

= 100% of baseline if Task has Completed = 50% of baseline if Task has Started = 0% if Task has NOT Started

3 % Complete = % Work Complete * Baseline Thought Starters

4 ETC Forecast = Baseline – Remaining Work

All Options are Tool Supported; To Illustrate Option-4






12

04/18/2023

Option-4 ETC Forecast Method - Example

Determining Earned Value HoursEV Critical PV - Baseline Work, say 100CPI Critical AC - Actual Work, say 50

SPI CriticalETC - Remaining Work, say 70

EVA Critical EV - Earned Value 30

Schedule Driver “What is Remaining” to Complete

= 100 - 70






13

04/18/2023

EV Risks Corrected Model - Thought Starter

WBS Quality

EV Risks linked

to SPI/CPI

WBS

WBS QualityE

VA

Reli

ab

ilit

y






14

04/18/2023

Risks Corrected EVA = Standard EVA * WBS Quality

Risk Adjusted SPI / CPI

Overall WBS Risk Quality = Average of Scope, Cost , ScheduleLet us review WBS quality index an example

Standard SPI / CPI($$-based or Hours-Based)

2. Schedule Risk

Triple Constraint Risks

1. Scope Risk

3. Cost Risk




15

WBS Quality Index – EV Risks Measurement Example

Risk SourceQuality Weight

How Measured(Count # of Tasks)

% Tasks

in WBSQualityScore

Scope 1 / 3 All 10 Tasks Base-Lined 100% 33%

Schedule 1 / 3 Only 9 Tasks Estimated 90% 30%

Cost 1 / 3 Only 6 Tasks Resource-Assigned 60% 20%

Overall WBS % Quality ( = Risk) 83%



16

04/18/2023

Interpreting Risk Adjusted EVA

Schedule Quality 90%Scope Quality

100%Cost Quality 60%

Standard SPI / CPI Green SPI = 1.05 => Ahead of Schedule

Risk Adjusted SPI 0.87 = 1.05 * 83%Behind Schedule

Schedule is Really at Risk or 87% Confidence about an 1.05 SPI

Overall WBS Quality = 83%




17

EVA Custom Tool - MS Project Add-on – Just a Mouse Click

Consolidate & Rollup

Project

Program

SPI / CPI Tool

EVA Knowledge (or Mechanics)- Least ImportantPM Delivery Maturity & WBS Quality More Important

18



EVA Tool Artifacts Project SPI / CPI - Spreadsheets)

EVA Demo : Earned Value SPI / CPI vs. Baseline (All Tasks ) (Hours Based) - As of 2/9/2007

Quality : Overall (83%) Scope (71%), Schedule (100%) Cost(78%)

SPI

SPI

SPI

CPICPI CPI

Risk SPI

Risk SPI

Risk SPI

Risk CPIRisk CPI Risk CPI

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1/28/2007 2/4/2007 2/11/2007

SPI CPI Risk SPI Risk CPI






19

04/18/2023

Program Roll up - EVMs (SP/CPI)

Consolidated Demo Project : Schedule Performance Index (SPI) (Hours Based) - As of 4/29/2005

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

02/05/05 02/12/05 02/19/05 02/26/05 03/05/05 03/12/05 03/19/05 03/26/05 04/02/05 04/09/05 04/16/05 04/23/05 04/30/05

Demo_Project 1 - baselined Demo_Project 2 Demo_Project 3

Component Project-3 SPI Component Project-1 SPI

Program Rollup EV Status Date SPI CPI

Project - 1 08/04/06 0.92 0.78

Project - 3 08/04/06 1.15 0.99






20

04/18/2023

EVM Implementation Lessons Learned

Fortune 100 Implementation Not Just Theory






21

04/18/2023

EVM Lessons Learned – Environment

• Multi-Year Strategic Program • Multi-Supplier Autonomous

Projects• Program Governance

Framework • Outsourced Project

Management / PMO






22

04/18/2023

EVM Practice - Lessons Learned

1. Milestone Mindset - PM & Org Culture Block

2. Project Level Ownership Lack of Ownership

3. EV Reliability - WBS Quality GIGO

4. EVM Initiative Sustenance Keep it simple

5. Doctored WBS – Evergreen WYG WYA

6. Higher Band Risks Too good to be true

7. Program / Portfolio Rollup Not Actionable

8. Schedule / Cost Tracking EV Practice Critical






23

04/18/2023

Lesson # 1: Milestone / Date Mindset-PM / Organizational Culture Block

SPI / CPI fails whenever Projects communicate only through Milestones & Dates Resolutions: Ensure Deliverables-Oriented WBS Track Level of Effort (LoE) Hours Train, Educate & Mentor Project

Managers






24

04/18/2023

Lesson # 2 Project Level PM Ownership & Accountability

PM Ownership is Crucial

Resolution: Project PM generates & owns SPI / CPI

Resist temptation to generate EV Metrics by central PMO or a Project Coordinator






25

04/18/2023

Lesson # 3 EV Reliability – WBS Quality GIGO ( Garbage in Garbage Out)

Standard SPI / CPI does not factor in WBS Quality

Mitigation Approach: Risk-Adjusted SPI/CPI Model






26

04/18/2023

Lesson # 4 EVM Sustenance

Sustained EVM initiative requires Continuous Accommodation & Collaboration, especially in a Multi-Supplier Outsourced Projects & Stakeholders EnvironmentMitigation Approach: Keep it Simple & be Flexible






27

04/18/2023

Lesson # 5 Doctored WBS - WYGWYA

3 0 1 0 0 3 5 8 1437 40

649

265

13 4 0 3 2 1 2 1 10

100

200

300

400

500

600

700

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0

SPI

Fre

qu

en

cy

>1000 Data Points; > 40 Projects

3% 4% 91% 2%

WYGWYA .. What You Get is Whatever You Ask

Standard SPI

Risk-Adjusted SPI

Goal 1.0




28



Lesson # 6 Higher Band Lesson

Goal

0.60

0.70

0.80

0.90

1.00

1.10

Wk1 Wk2 Wk3 Wk4

Way Ahead

On Track

At Risk

Way Behind

Goal

Track being Ahead. But be Suspicious. Too Good to be True !!

0.95

Higher Band? Ahead ??




29



Lesson # 7 Program Rollup EVM

Project Level Analysis, Ownership & Accountability is Crucial

Program WBS

Project-1 WBS

Project-2WBS

Project-3WBS …

Project Structure

Program / Portfolio Structure

AND / OR

SPI-1 SPI-2 SPI-3

SPI-RollupSPI / CPI

Program Rollup • Practically Useless. NOT ACTIONABLE• Usually Great for Boardroom Color Management






30

04/18/2023

Lesson # 8 Schedule / Cost Tracking is EVM Critical

Heavy Cost .. Enterprise Technology Low Cost .. Project / Excel Macros Choose whatever means ..

EV Metrics does not Care EVM Practice Cares

Just Ensure Quality Tracking Process

TRACKING FOUNDATIONAL PILLAR




31

Any Project Plan becomes obsolete the moment finalized Unless Tracked

Tracking Mandatory to Mitigate Project Schedule / Cost Obsolescence Risks

Requires Tight Rope Quality Walk



32

04/18/2023

Project Schedule / Cost Tracking: Top Challenges

HOW TO:

Track Without High Costs?

Maximize Team Collaboration?

Support Organizational Metrics

Initiatives?

Minimize ADMIN Drudgery?

Avoid System Choke (Month End, Week

End)?

Simplify Technology and Be User

Friendly?






33

04/18/2023

Market Scan: Tracking Solutions State

Many Options - Windows, WEB, Others. Typical Outcomes : High Cost ($$ / ) , Hidden / Training

Costs, HighTech Gold-Plated / Over-Featured Unproven. Yet to see evidence of effective

implementationTypical Rollout Experiences ( MS Project Server , Planview)• Never-ending Mega Projects in themselves • Hardly Meet Business Expectations• Significant time wasted on chasing tool issues &

diverted away from managing / resolving Core Delivery & Project Issues






34

04/18/2023

LoE Project Tracking – EV Practice Critical

Estimates To Complete (ETC) - Schedule Critical Actual Effort - Cost Critical Periodic Tracking (ETC & Actual) - EV Practice Critical

Electronic LoE Timesheets Tool

Periodic LoE Tracking Cycle

TOOL SUPPORT (MS Project Platform)






35

04/18/2023

Tracking is EV critical

Logistics & How Tracked: EVM Does NOT Care about Tracking Logistics EVM Does Require Quality Tracking Due

diligence

Tracking Solutions Cost Impact: Heavy Cost: Enterprise Technology Solutions Low Cost: Project Centric Solutions (MSP /

Excel Macros)






36

04/18/2023

Conclusion ( Conclusao )

Priorities for Successful EVM Practice

2. EVM Domain EVM Implementation / Adoption / internalized in PM HIGH

PRIORITYEVM ISO Stds LOW PRIORITY. May follow after PMI releases PM

ISO Stds for PM

1. Project Management (PM) Domain Ensure : Quality Planning Process BackboneInternalize : EVM into Project Control Practices

•PM Delivery Maturity & Magic is MORE Crucial•Tracking is a MUST






37

04/18/2023

Thank You, Obrigados !!

Q & A Tool DEMO

On-line now, if time permits

Off-line later, if required




eviap conference lisbon portugal 2011

Documents

evm practice6

epmo evm customer

schedule tracking

wbs deliverable level

financials wbs

cost model spicpi

track spi cpi

business management