PF EarnedValuePresentation

7/21/2019 PF EarnedValuePresentation

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What Is It ?

Why Do I Need It ?

How Do I Do It?

Earned Value Analysis


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Todays Situation

Need for accurate and consistent statusinforation

Nuerous co!le" #and interrelated$ !ro%ects &ro%ects with any W'S acti(ities Virtual o)ces

Di(erse and inte*rated anufacturin* !rocesses


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+

Theres ,oo -or I!ro(eent

./0 of !ro%ects are3(er 4ud*et'ehind schedule

520 of all !ro%ects 6nish at1780 of their initial 4ud*et

And soe9 after hu*ein(estents of tie andoney9 are si!ly ne(erco!leted


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;

0 co!leteestiatin* 0 of'ud*et s!ent 0 of

wor done 0 oftie ela!sed

su4%ecti(e9inco!lete

draws falseconclusions


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Analysis

=Earned Value Analysis> is an industry standard way to

easure a !ro%ects !ro*ress9forecast its co!letion date and 6nal cost9

and!ro(ide schedule and 4ud*et (ariances

alon* the way@

'y inte*ratin* three easureents9 it !ro(idesconsistent9 nuerical indicators with which youcan e(aluate and co!are !ro%ects@


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Whats Bore I!ortant?

Cnowin* where youare on schedule?

Cnowin* where youare on 4ud*et?

Cnowin* where youare on woracco!lished?


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.

EVA Inte*rates All Three

It co!ares the &ANNED aount ofwor with what has actually 4een3B&ETED9 to deterine if COST9

SCHEDULE, and WORK ACCOMPLISHEDare !ro*ressin* as !lanned@

Wor is =Earned> or credited as it is

co!leted@


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4ecause@@@

DiFerent easures of !ro*ress fordiFerent ty!es of tass

Need to =roll u!> !ro*ress of anytass into an o(erall !ro%ect status

Need for a unifor unit of

easure #dollars or worGhours$@


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4ecause@@@

&ro(ides an =Early Warnin*> si*nal for!ro!t correcti(e action@

'ad news does not a*e well@

Still tie to reco(er

Tiely re


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1/

And 3ne Bore

,easonWhy ou Need EVA

?


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'ecause It Bay 'e ,e


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3C9 So What Is This

StuF?


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So9 Is This StuF New ?

Its 4een around since the si"ties@

=ostKSchedule ontrol Systes

riteria>#KSS$

E l f I f l E d V l


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E"a!les of Inforal Earned ValueAnalysis

Its done inforally without realiLin* it@+/0 tie used9+/0 $$s!ent

So9 if +/0 of the wor is done9 I ust 4e3C ??

Sho! Moor estiates

ost co!arisons'ud*et (s@ Actual


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Hows This &ro%ect Doin*?

0

20000

40000

60000

80000

100000

120000

Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03

Proecte!

Actual


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1

ets Tae A oo nder TheHood


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G3r*aniLed

EVA wors 4est when wor isOco!artentaliLed@

o!artentaliLation is 4est achie(ed with

a wellG!lanned Wor 'readown Structure@

So9 how do I create a W'S for a reallyco!le" !ro%ect?


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&ro!er W'S Desi*n

3ne W'S !er !ro*ra Deli(era4leGoriented Wor not in the W'S is outGofGsco!e

Each descendin* le(el re!resents oredetail

-ull #and accurate$ de6nition is ey De6ned deli(era4le#s$

Tiefrae for deli(ery of !roductTotal cost #direct and indirect$ to deli(er!roduct

A S l W ' d


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A Sa!le Wor 'readownStructure

Ser(e &iLLas to ustoers

&ro(ide the&lace

oo the-ood

Ser(eustoers

/Ot+es0

oo theSauce

Bae theDou*h

'uild the &iLLa


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W'S nits are =Wor &aca*es>

owest le(el W'S eleents

Ha(e an acco!anyin* narrati(e

Ha(e three easura4le co!onents

Sco!e of wor to 4e acco!lishedTotal #direct and indirect$ cost

Tiefrae for co!letion


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ontrol Account &lans

A A& is essentially a Wor &aca*e with soeadded features

Assi*nent of res!onsi4ility 3r*aniLation

Indi(idualDi(ision #if necessary$ into lowerGle(el Wor

&aca*es@

Betrics for easurin* EV !erforance

Bilestones 0 co!lete 3ther

The su of the A&s constitutes the &erforance

Beasureent 'aseline


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Soe New Ters

&V P &lanned Value

A G Actual ost

EV P Earned Value


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Earned Value De6nitions

&V=&lanned Value>

P-anned cst ! t+e tta- amunt ! 12

sc+edu-ed t #e pe!med #% t+e mi-estnedate.


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2;

&V P &lanned Value or 'ud*eted ostof Wor Scheduled

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

"#$S

arne a ue e n ons


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arne a ue e n ons#cont@$

A =Actual ost of Wor &erfored>

Cst incued t accmp-is+ t+e 12 t+at +as

#een dne t date.


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2

AW& G Actual ost of Wor &erfored

4%000

&6000

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

"#$P

A#$P

arne a ue e n ons


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2.

arne a ue e n ons#cont@$

EVEarned (alue or 'ud*eted ost ofWor &erfored

T+e p-anned /nt actua-0 cst t cmp-ete t+e12 t+at +as #een dne.

EV


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EVG Earned Value or 'ud*eted ost ofWor &erfored

4%000

&&000

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

"#$P

"#$S


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&&000

4%000

&6000

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

"#$S

"#$P

A#$P

The Whole Story


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Soe Deri(ed Betrics

SV Schedule Variance #EVG&V$A co!arison of aount of wor !erforeddurin* a *i(en !eriod of tie to what wasscheduled to 4e !erfored@

A ne*ati(e (ariance eans the !ro%ect is4ehind schedule

V ost Variance #EVGA$A co!arison of the 4ud*eted cost of wor!erfored with actual cost@

A ne*ati(e (ariance eans the !ro%ect is o(er4ud*et@


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Schedule Variance Q ost Variance

Schedule Variance R EVG&V

;89///G 559///

SV R G 9///

ost Variance R EVGA

;89/// 59///

V R G .9///


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S&I Schedule &erforance Inde"S&IREVK&V

If S&I1 eans !ro%ect is 4ehind schedule

&I ost &erforance Inde" &IREVKA

If &I1 eans !ro%ect is o(er 4ud*et

SI ost Schedule Inde" #SIR&I "S&I$

The further SI is fro 1@/9 the less liely !ro%ect

reco(ery 4ecoes@

Soe Bore Deri(ed Betrics


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&erforance Betrics

S&I EVK&V

;89///K559/// R /@781

&I EVKA

;89///K5/// R /@7.5

SI S&I " &I

@781 " @7.5 R /@.7/


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Bain* &ro%ections

3nce a !ro%ect is 1/0 co!lete9 theo(errun at co!letion will not 4e lessthan the current o(errun@

3nce a !ro%ect is 2/0 co!lete9the &I does not (ary fro its current(alue 4y orethan 1/0@

The &I and S&I are statistically accurateindicators of 6nal cost results@

Source Defense Ac


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+5

102000

%0882

10386&

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

"#$S"#$P

A#$P

Bain* &ro%ections

Today


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102000

116,571

0

20000

40000

60000

80000

100000

120000

140000

"#$S"#$P

A#$P

Estiate to o!lete

Today


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+.

A New riteria

Actiities 3ean a-ue4 as t+e% ae cmp-eted.

T+e a-ue eaned is t+e W5S #udgeted cst !t+e actiit% cmp-eted t date.


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Value of Earned Value

Schedule Status,e!ortin*

ost Status ,e!ortin*-orecastin*


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?

With an Earned Value Bana*eent Syste

e


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;/

e


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Shortcoin*s of Earned Value

Uuantifyin*Keasurin* wor!ro*ress can 4e di)cult@

Tie re


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Suary

EVA Q EVBS will hel! reduce *uesswor in Beasurin* !erforance

forecastin*

Need to *et 4eyond isleadin* easuresof !ro*ress@

,easons to use EVA and EVBS :ood !ro%ect ana*eent !ractice

3B' re


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arne a ue,esources

htt!KKwww@!i@or*K

htt!KKwww@ac


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Earned Value Analysis

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PF EarnedValuePresentation

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