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Earned Value Management theory and its application on practice at CERN and JINR. Dmitry Kekelidze Software Engineer JINR – 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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Presentation Transcript
slide1

Earned Value Management theory

and

its application on practice

at CERN and JINR.

Dmitry Kekelidze Software Engineer JINR – LIT/ CERN - GS-AIS

slide2

Agenda

  • EVMS concepts
  • NICA project
  • EVM web-based application
slide3

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?

slide4

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?
slide5

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
slide6

Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

cost

Slides ready

Reshuffle

Dry run

time

slide7

What is this mysterious Earned Value ?

What is an honest measure for what is achieved?

slide8

Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

Slides ready

cost

Reshuffle

Dry run

time

slide9

EVM Concepts

  • Main metrics :
slide10

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?
slide11

What happens?

$

Planned Value

Actual Cost

Earned Value

now

time

Underspending but ...

slide12

What happens ?

$

Planned Value

Earned Value

Actual Cost

now

time

Underspending but ...

slide13

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

slide16

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
slide17

Example: software development

Requirement

100h

Architecture

100h

Design

100h

Code

200h

Testing

100h

slide21

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
slide22

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
slide23

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.
slide24

Agenda

  • EVMS concepts
  • NICA project
  • EVM web-based application
slide26

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
slide28

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

slide29

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
slide30

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

slide31

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.
slide32

Agenda

  • EVMS concepts
  • NICA project
  • EVM web-based application
slide33

Data Definition

  • Resources
    • Personnel
    • Material

WBS

Workunits

Deliverables

  • Web interface
  • Excel files
slide34

Collaborative tool

Reminders for progress reporting

slide35

Dynamic Reports

  • Crosstab to drill drownthrough the WBS structure (or other dimension…)
  • PV, EV, AC Chartsatevery WBS level
slide36

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.
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