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Earned Value Management theory and its application on practice at CERN and JINR. Dmitry KekelidzeSoftware EngineerJINR – LIT/ CERN - GS-AIS. Agenda. EVMS concepts NICA project EVM web-based application. What is EVM?. EVM is the project management tool. Are we there yet?

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Earned value management theory and its application on practice at cern and jinr

Earned Value Management theory

and

its application on practice

at CERN and JINR.

Dmitry KekelidzeSoftware EngineerJINR – LIT/ CERN - GS-AIS


Earned value management theory and its application on practice at cern and jinr

Agenda

  • EVMS concepts

  • NICA project

  • EVM web-based application


Earned value management theory and its application on practice at cern and jinr

What is EVM?

EVM is the project management tool...

Are we there yet?

How much longer before we’ve arrived?

What can we do about it?


Earned value management theory and its application on practice at cern and jinr

EVMis

  • performance measurement

  • how am I doing against my baseline plan?

  • performance management

  • what do I need to do to bring the project in on cost

  • and schedule?


Earned value management theory and its application on practice at cern and jinr

Example: making this presentation

  • Preparation

    • Research Topic

    • Decide on Structure

  • Make Slides

    • EVM Basics

    • EVM Advanced

    • NICA Intro

    • Conclusion

  • Finishing up

    • Trial Presentation

    • Implement Feedback


Earned value management theory and its application on practice at cern and jinr

Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

cost

Slides ready

Reshuffle

Dry run

time


Earned value management theory and its application on practice at cern and jinr

What is this mysterious Earned Value ?

What is an honest measure for what is achieved?


Earned value management theory and its application on practice at cern and jinr

Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

Slides ready

cost

Reshuffle

Dry run

time


Earned value management theory and its application on practice at cern and jinr

EVM Concepts

  • Main metrics :


Earned value management theory and its application on practice at cern and jinr

How is our project doing?

$

Budget

Planned Value

Cost

Actual Cost

Achievement

Earned Value

now

time

  • Are we ahead or behind schedule?

  • Are you getting value for money?

  • Did you spend money on the right things?


Earned value management theory and its application on practice at cern and jinr

What happens?

$

Planned Value

Actual Cost

Earned Value

now

time

Underspending but ...


Earned value management theory and its application on practice at cern and jinr

What happens ?

$

Planned Value

Earned Value

Actual Cost

now

time

Underspending but ...


Earned value management theory and its application on practice at cern and jinr

SV < 0

SV > 0

CV < 0

CV > 0

EVM Concepts

$

PMR Project Management Reserve

BAC: Budget At Complete

PV

AC

CV = EV – AC

Cost Variance

SV = EV – PV

Schedule Variance

EV

now

project start

project end

time


Earned value management theory and its application on practice at cern and jinr

Earned Value: Cheat Sheet


Earned value management theory and its application on practice at cern and jinr

Estimated Cost at Completion

$

EAC

now

time


Earned value management theory and its application on practice at cern and jinr

Benefits of EVM

  • Requires development of integrated baseline

    • Results in better project definition and planning

  • Early identification of trends and problems

  • Accurate picture of project status

    • Cost, schedule, and technical

    • segregation of schedule and cost variances

  • Projection of final costs

  • Project control by the team

    • Enables project manager to make informed decisions based on facts

  • Results in successful projects

    • On time, on cost


  • Earned value management theory and its application on practice at cern and jinr

    Example: software development

    Requirement

    100h

    Architecture

    100h

    Design

    100h

    Code

    200h

    Testing

    100h


    Earned value management theory and its application on practice at cern and jinr

    Example: execution plan


    Earned value management theory and its application on practice at cern and jinr

    PMBOK


    Earned value management theory and its application on practice at cern and jinr

    Terminology

    • WBS: Work Breakdown Structure, hierarchical list of all the activities to be performed to complete the project.

    • Workunits: The “Leaves” of the WBS tree. Activity small in size/duration, under responsibility of one person.

    • Workunits use Resources (money, people) to produce Deliverables


    Earned value management theory and its application on practice at cern and jinr

    Where can EVM be Applied?

    • EVM suitable for projects that have:

    • Clear definition of work scope

    • Project schedule range from a few months to many years

    • Small to very large cost


    Earned value management theory and its application on practice at cern and jinr

    What is a large-scale project?

    • Technically complex and demanding,

      • i.e. that cannot be fully specified in the front-end phase;

  • Long makespan: economic effects like inflation

  • Involving many contributors, contractors, suppliers...

    • i.e. many activities that are outsourced, result-oriented.


  • Earned value management theory and its application on practice at cern and jinr

    Agenda

    • EVMS concepts

    • NICA project

    • EVM web-based application


    Earned value management theory and its application on practice at cern and jinr

    NICA


    Earned value management theory and its application on practice at cern and jinr

    NICA

    Is NICA large-scale project?

    • Work planned for period from year 2012 till 2017

    • Estimated cost is more than 100M $

    • Tasks to complete:

      • General Infrastructure

      • Accelerator

      • MPD Detector

    • All the work have to be well coordinated


    Earned value management theory and its application on practice at cern and jinr

    LHC Accelerator and Detectors


    Earned value management theory and its application on practice at cern and jinr

    Project audit of 2001

    • 18% overspend announcement … only

    • Technical Coordinator → “the project is behind schedule”

    • Project Administrator → “the project is under-running”

    • LHC Team: not is position to demonstrate that the project could be completed within allocated budget!

    Member States asked the LHC Project Management to set up

    a formal Project Control System


    Earned value management theory and its application on practice at cern and jinr

    The key requirements

    • EVM-based project control system

    • Deliverable-oriented physical progress monitoring

    • Interfaced to accounting systems, to get accurate information on actual costs

    • Excel spreadsheets to interact with DBs

    • Web-based


    Earned value management theory and its application on practice at cern and jinr

    Why a D-O EVMS?

    An activity of the project

    Activity

    not started

    Progress 0%

    Activity

    half-way

    Progress 50%

    Activity

    almost done

    Progress 90%

    Activity

    completed?

    Progress 90%!

    90%-syndrome


    Earned value management theory and its application on practice at cern and jinr

    Outcome of EVM experience…

    • Re-established trust

      • Cost and Schedule Review Committee: ‘world class’

      • CERN management was formally congratulated by Member States

      • Further overruns were discussed in the context of proven project control.

    • Project culture at CERN and cost awareness of project engineers have improved.


    Earned value management theory and its application on practice at cern and jinr

    Agenda

    • EVMS concepts

    • NICA project

    • EVM web-based application


    Earned value management theory and its application on practice at cern and jinr

    Data Definition

    • Resources

      • Personnel

      • Material

    WBS

    Workunits

    Deliverables

    • Web interface

    • Excel files


    Earned value management theory and its application on practice at cern and jinr

    Collaborative tool

    Reminders for progress reporting


    Earned value management theory and its application on practice at cern and jinr

    Dynamic Reports

    • Crosstab to drill drownthrough the WBS structure (or other dimension…)

    • PV, EV, AC Chartsatevery WBS level


    Earned value management theory and its application on practice at cern and jinr

    Conclusion

    • Objectively measures performance of the project as it moves from project initiation through project closure.

    • Provides early warning of potential project adverse performance.

    • Shows Opportunity associated with positiveschedule variance.

    • Enables the management of risk associated with underwriting or insuring against negative schedule variance.

    • Provides a means to forecast future performance based upon past performance.


    Earned value management theory and its application on practice at cern and jinr

    Спасибо!

    [email protected]

    Questions?


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