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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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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?

How much longer before we’ve arrived?

What can we do about it?


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?


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


Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

cost

Slides ready

Reshuffle

Dry run

time


What is this mysterious Earned Value ?

What is an honest measure for what is achieved?


Project: making the presentation

Research

Presentation template

Start slides

EVM Basics

EVM Advanced

Agenda

Conclusion

NICA Intro

Slides ready

cost

Reshuffle

Dry run

time


EVM Concepts

  • Main metrics :


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?


What happens?

$

Planned Value

Actual Cost

Earned Value

now

time

Underspending but ...


What happens ?

$

Planned Value

Earned Value

Actual Cost

now

time

Underspending but ...


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




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


  • Example: software development

    Requirement

    100h

    Architecture

    100h

    Design

    100h

    Code

    200h

    Testing

    100h




    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


    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


    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.


  • Agenda

    • EVMS concepts

    • NICA project

    • EVM web-based application



    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



    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


    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


    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


    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.


    Agenda

    • EVMS concepts

    • NICA project

    • EVM web-based application


    Data Definition

    • Resources

      • Personnel

      • Material

    WBS

    Workunits

    Deliverables

    • Web interface

    • Excel files


    Collaborative tool

    Reminders for progress reporting


    Dynamic Reports

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

    • PV, EV, AC Chartsatevery WBS level


    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.


    Спасибо!

    [email protected]

    Questions?


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