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Earned Value Management theory and its application on practice at CERN and JINR. PowerPoint Presentation
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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.

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Earned Value Management theory and its application on practice at CERN and JINR.

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  1. Earned Value Management theory and its application on practice at CERN and JINR. Dmitry Kekelidze Software Engineer JINR – LIT/ CERN - GS-AIS

  2. Agenda • EVMS concepts • NICA project • EVM web-based application

  3. 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?

  4. 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?

  5. 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

  6. Project: making the presentation Research Presentation template Start slides EVM Basics EVM Advanced Agenda Conclusion NICA Intro cost Slides ready Reshuffle Dry run time

  7. What is this mysterious Earned Value ? What is an honest measure for what is achieved?

  8. Project: making the presentation Research Presentation template Start slides EVM Basics EVM Advanced Agenda Conclusion NICA Intro Slides ready cost Reshuffle Dry run time

  9. EVM Concepts • Main metrics :

  10. 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?

  11. What happens? $ Planned Value Actual Cost Earned Value now time Underspending but ...

  12. What happens ? $ Planned Value Earned Value Actual Cost now time Underspending but ...

  13. 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

  14. Earned Value: Cheat Sheet

  15. Estimated Cost at Completion $ EAC now time

  16. 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

  17. Example: software development Requirement 100h Architecture 100h Design 100h Code 200h Testing 100h

  18. Example: execution plan

  19. PMBOK

  20. 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

  21. 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

  22. 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.

  23. Agenda • EVMS concepts • NICA project • EVM web-based application

  24. NICA

  25. 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

  26. LHC Accelerator and Detectors

  27. 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

  28. 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

  29. 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

  30. 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.

  31. Agenda • EVMS concepts • NICA project • EVM web-based application

  32. Data Definition • Resources • Personnel • Material WBS Workunits Deliverables • Web interface • Excel files

  33. Collaborative tool Reminders for progress reporting

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

  35. 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.

  36. Спасибо! Dmitry.Kekelidze@cern.ch Questions?