EVM Europe Cómo imponer EVM a los Directores de Proyecto (sin que pongan excusas;-) November 24, Valencia
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1 EVM Eurpe 2011 Nvember 24, Valencia Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) Jse Barat, PMP jse.barat@pmpeple.es
2 Jse Barat Cnsulting, training and tls in Prject Management PMPeple (Managing Directr) ITMPlatfrm (Cnsulting Directr) PM-IB (funder, Vice-President) Talaia, OpenPPM (Cnsultant) Prject Manager (PMP, PgMP*) Instructr, cach Speaker, authr Ls 7 Hábits del DP Eficaz * In prcess f certificatin EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 2
3 Adpting EVM in a Cnsulting Cmpany My 3 attempts n impsing EVM t Prject Managers: 1. EVM nice t have Thank yu very much but we dn t really need t learn this new big thing 2. Yu already wrte in prse T much excel data t maintain, I m srry 3. Use EVM nly if yu need t cntrl cst Management wants yu t cntrl yur prject csts. They dn t tell hw. My advice: Every time yu need t cntrl cst in yur prject, use EVM. I will nt accept any excuse n tling: My advice is that yu use yur Prject Management Infrmatin System. Yu als have Micrsft Prject, pen surce tls, etc. This is yur respnsibility. My lessns learned: 1. Managers want PMs t cntrl prject csts 2. PMs need EVM, but many dn t knw 3. The wrst enemy f EVM is Excel EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 3
4 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 4 Attempt #1: Nice t have EVM was such a cl thing First ntice abut ANSI standard EVM thanks t PMBOK when I gt my PMP in 2003 Budget at Cmpletin (BAC) Schedule at Cmpletin (SAC) Planned Value (PV) Earned Value (EV) Actual Cst (AC) Cst AC EV PV Time EAC BAC SAC remaining funds remaining wrk CPI = 0,8 : prject is prducing 80c fr invested SPI = 0,75 : prject is prgressing at 75% cmpared t plan TCPI = 1,2 : prject needs t prduce 1,20 fr invested in rder t end n budget Befre EVM, when a spnsr asked hw the prject was ging, I used t say: Well, it culd be wrse; I think we are prgressing, mre r less After getting familiar with EVM, my answers sunded like this: The prject is prducing 80 cents fr eur invested, prgressing 75% cmpared t plan, but we need t prduce 1,20 fr invested in rder t end n budget. Definitely, I had imprved!
5 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 5 Attempt #2: Yu already wrte in prse Gd Practice: Mnitr just at the Cntrl Accunt level A very simple case study: Yu are the PM f a prject f 6 mnths schedule. Yu have 4 cntrl accunts t mnitr Yu are cnducting a fllw-up meeting n April the 30 th Smebdy ask yu the big questin: Hw is the prject ging? S yu need t reprt prject perfrmance Prject Cntrl Accunt 1 Cntrl Accunt 2 Cntrl Accunt 3 Cntrl Accunt 4 Jan Feb Mar Apr May Jun April 30th Data date April the 30 th means nthing
6 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 6 Attempt #2: Yu already wrte in prse Since the beginning, yu have planned duratins and csts estimatins (if yu prefer, yu can manage wrking hurs as yur cst magnitude) Since the beginning, yu can have a representatin f BAC ver time During executin, yu register actual wrk Case study: BAC= 6000 h ( ) Wrk Scheduled by end f April = 4000 h ( ) Actual Wrk by end f April = 3700 h ( ) Cst AC PV Time BAC SAC Prject Jan Feb Mar Apr May Jun 6000 / 4000 / 3700 (*) Cntrl Accunt 1 Cntrl Accunt 2 Cntrl Accunt 3 Cntrl Accunt 4 (*) BAC / Planned Wrk / Actual Wrk April 30th We have spent 300 hurs less than planned. Seems gd but yu still dn t knw 1500 / 1500 / / 1500 / / 1000 / / 0 / 0
7 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 7 Attempt #2: Yu already wrte in prse Fr each Cntrl Accunt, yu register the % f wrk cmpleted The 3 pints Planned-Actual-Cmplete is all what yu need t get: Variance at this pint Variance frecast in the end Cst Case study: Prject Jan Feb Mar Apr May Jun 6000 / 4000 / 3700 / 3500 (*) Cntrl Accunt 1 Cntrl Accunt 2 Cntrl Accunt 3 Cntrl Accunt 4 Status reprt (58% cmpleted): 3% f ver budget (200 hurs) 8% f delay (10 days) Frecast reprt 6% f ver budget (343 hurs) 14% f delay (17 days) AC / / / (100%) / / / 500 (33%) / / / (75%) / 0 / 0 / 0 (0%) EV PV Time BAC SAC (*) BAC / Planned Wrk / Actual Wrk / % Cmplete April 30th Planned-Actual-Cmplete tell us hw is the prject ging and hw is ging t end EVM is the accepted standard methd (ANSI 748) t quantify prject perfrmance
8 Attempt #2: Yu already wrte in prse Attempt #2 recipe: 1. Chse the right cst magnitude (hurs?) 2. Frget the jargn, acrnyms and frmulas If smebdy ask, direct t the Wikipedia 3. At the beginning, calculate: Budget decmpsitin in Cntrl Accunts BAC cnsumptin ver timeframe 4. At each fllw-up, register: Planned Wrk Actual Wrk % Cmplete EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 8
9 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 9 Attempt #2: The flaw Adpting EVM myself: A prject in Rme Nice chart! Thank yu, but
10 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 10 Attempt #2: The flaw They (and I) said: T much excel data EXPENSES I gt frustrated myself What was I ding wrng? Right tl? FEES PV (FEES) EV (FEES)
11 Attempt #3: Trying with Micrsft Prject A very simple case study: Yu hire a bricklayer t build a 4 side fence in yur backyard. Each side is built in sequence, ne after the ther. He charges by the hur, 200 a day. Each side takes him ne day f wrk. He starts wrking n 12/09/2011. Yu budgeted 800. At the end f the 3 rd day (14/09/2011): He has cmpleted side 1 (cst 200 ) and side 2 (cst 275 ) Side 3 is 50% cmplete (cst 200 ) Hw much are yu ging t pay in the end? S1 S2 S4 S3 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 11
12 Attempt #3: The Fence exercise (wrap-up) EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 12
13 Attempt #3: The Fence exercise (wrap-up) EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 13
14 Attempt #3: EVM in Micrsft Prject Yu can see EVM data in view Task Sheet, table Earned Value Befre that, yu need t: Assign resurces t tasks Enter standard rates fr each resurce Register Actual Wrk + update pending Wrk fr each task EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 14
15 Attempt #3: EVM in Micrsft Prject step-by-step 1. Create a new prject with 2 task in sequence: A (5 d) y B (2 d) 2. Assign resurce R1 t task A, and resurce R2 t task B, standard rate 1 /h 3. Set Prject Start Date: September the 22 nd, 2008 EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 15
16 Attempt #3: EVM in Micrsft Prject step-by-step EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 16
17 Attempt #3: EVM in Micrsft Prject step-by-step 4. Set the baseline Check updates in view Tracking Gantt Check updates in view Resurce Usage > Baseline Wrk rw 5. Enter Actual Wrk fr task A: 8 hurs day 22, 8 hurs day 23, 0 hurs day 24 See hw task A is extended ne mre day (nw A and B are bth delayed fr 1 day) See hw Baseline Wrk des nt change 6. Enter 0 hurs fr Wrk f task A day 29 (delay disappears) 7. Enter 8 hurs fr Actual Wrk f task A fr days 25 and Set Status Date September 28, check that: Task A is 100% cmplete The prject is under budget (CV = +8 ) The prject is n schedule (SV = 0) EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 17
18 Attempt #3: EVM in Micrsft Prject step-by-step EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 18
19 Attempt #3: EVM in Micrsft Prject (wrap-up) Cst Unit = Usage Unit = wrk/time/resurce/task resurce time task time task wrk resurce wrk Wrk = Planned hurs fr a resurce/task (nging replanning) Changing Wrk means re-planning: Hw many hurs d we need t cmplete? When? Tasks are by default effrt driven: Prject will tend t keep the effrt cnstant (persn-hurs) Cst = Wrk * Standard Rate Actual Wrk = data entry Actual Cst = Actual Wrk * Standard Rate EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 19
20 Attempt #3: EVM in Micrsft Prject (wrap-up) Setting the baseline Baseline Cst = Cst Baseline Wrk = Wrk PV S-curve = Baseline Cst ver time At the task level PV = Baseline Cst until Status Date AC = Actual Cst until Status Date EV = Baseline Cst * (Actual Wrk until status date) / Wrk Cst and Actual Cst depends n standard rate (may change) Baseline Cst depends n the riginal standard rate Updating Actual Wrk Advice: Always update Actual Wrk entering hurs in Resurce Usage r Task Usage views When yu enter Actual Wrk Prject autmatically re-plan Wrk t date = Actual Wrk t date Prject will tend t keep the effrt cnstant (this is gd, yu can verride it) Changing Wrk means re-planning (Hw many hurs d we need t cmplete? When?) EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 20
21 Attempt #3: Trying with an pen surce tl EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 21
22 Attempt #3: Trying with an pen surce tl EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 22
23 Attempt #3: Trying with an pen surce tl EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 23
24 Cmpelling Prject Managers t use EVM (and make n excuses ;-) EVM Eurpe 2011 Cóm impner EVM a ls Directres de Pryect (sin que pngan excusas;-) 24 Lessn learned #1: Managers always want PM t cntrl prject csts Lessn learned #2: PMs need EVM, but many f them dn t knw it Lessn learned #3: The wrst enemy f EVM is Excel Attempts t impse EVM 1. Lk at thse beautiful cncepts, definitins, frmulas, charts Wuldn t it be nice t use EVM? Excuses given 1. Please, give me a break! dn t need t learn abut all thse new acrnyms EV, AC, PV, CPI, SPI, CV, SV, SV(t) 2. Frget abut all EVM jargn: Yu are nt aware yu already wrte in prse 2. My average prject takes nly 3 mnths. I dn t have the time fr s much extra wrk t keep all that EVM data, fr Gd sake! 3. Use EVM nly when yu need t cntrl cst in yur prject. If yu dn t want t use Excel, yu can use a prper tl like Micrsft Prject, OpenPPM, etc. 3.
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