Earned Value      A simple approach for     Product Based Planners                       David Willcox                    ...
Are you a fan or a sceptic?• Earned Value is an advanced Project progress monitoring  approach where you measure the work ...
Are you a Product Based Planner?• Identifying the Products to be delivered is a cornerstone of  methods such as PRINCE2• I...
Step 1    Normal Product Based Planning•   Identify the products, their flow etc.•   Estimate the effort to produce and qu...
Step 2      Add weighted Planned Value• Add 3 columns to your spreadsheet (you will an example in  a moment)   – PV = Valu...
Step 3How much value by Product Status?• My Product Inventory tracks the following statuses and my  suggested relative val...
The Project Products InventoryProject xxxxxx - Key Product Status as at              29/06/2012                           ...
Step 4   Add Sheet with some running totals• Sort the Inventory by baseline                                 FA Bas Date To...
The EV chart for use in reporting                                 Project xxxx - Earned Value via Products             120...
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Product Based Earned Value

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Earned Value - A simple approach for Product Based Planners

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Product Based Earned Value

  1. 1. Earned Value A simple approach for Product Based Planners David Willcox Senior Consultant IT Project Manager© PlanIT 2TCQ Ltd 1 http://www.planit2tcq.co.uk/
  2. 2. Are you a fan or a sceptic?• Earned Value is an advanced Project progress monitoring approach where you measure the work complete, the time taken and the costs incurred to see if a project is on track• In terms of usefulness it has divided option, some believe it should always be used because it is the only true way of measuring overall progress; some believe that the effort necessary to measure properly outweighs the benefits gained• I have never used it fully myself or seen it fully implemented despite being involved in some major programmes over the last 20 years• However, I suggest that good product based planners can gain some of the key benefits for little extra work• I have been testing the concept on a recent project and it seems to offer benefits including Project Board communication as people prefer a graph to a dry set of milestones (although I have used both in progress packs) © PlanIT 2TCQ Ltd 2 http://www.planit2tcq.co.uk/
  3. 3. Are you a Product Based Planner?• Identifying the Products to be delivered is a cornerstone of methods such as PRINCE2• It is an excellent planning approach which I always use• Even on its own, it is a way of measuring project progress• However, for a little extra effort, it can be used to measure a simplified Earned Value representation and give an even better view of progress• I will take you through step by step on a sample project and you can see the benefits © PlanIT 2TCQ Ltd 3 http://www.planit2tcq.co.uk/
  4. 4. Step 1 Normal Product Based Planning• Identify the products, their flow etc.• Estimate the effort to produce and quality assure• Build your plan• Produce a Product Inventory in Excel – Do not forget to include non“document”products – For documents, you record your baseline dates for production of a draft and for the document to be baselined following full quality review / signoff – For non documents I have still included a draft date approximately around 50% through the production cycle © PlanIT 2TCQ Ltd 4 http://www.planit2tcq.co.uk/
  5. 5. Step 2 Add weighted Planned Value• Add 3 columns to your spreadsheet (you will an example in a moment) – PV = Valuation of each product (relative factor) – EV% = % of the value of the product earned – EV = PV * EV%• PV needs a bit of thought, for simplicity I use a relative value of each product. It is a judgement call but I have used – 1 when in doubt – Reduced for some management products (but increased for PID as this is important) – Bigger values for important design docs, software to be used etc © PlanIT 2TCQ Ltd 5 http://www.planit2tcq.co.uk/
  6. 6. Step 3How much value by Product Status?• My Product Inventory tracks the following statuses and my suggested relative value – Not Started = 0% – Being Drafted = 20% – Draft Issued = 50% – Partially Approved = 70% – Approved = 100%• Some simple VLOOKUPS & you have an Earned Value for each product to be produced• 100% of ALL products approved is the total value of the project © PlanIT 2TCQ Ltd 6 http://www.planit2tcq.co.uk/
  7. 7. The Project Products InventoryProject xxxxxx - Key Product Status as at 29/06/2012 33.9 11.4 Draft Draft Draft Fully Fully Fully Issued Issued Issued Approve Approve Approve# Gate Name Status Base Fore Actual Base Fore Actual PV EV% EV1 1Q A-B Feasibility Delivery Approach Approved 15/05/12 15/05/12 16/05/12 16/05/12 1.0 100% 1.02 1Q A-B Gate B Investment Case Approved 25/05/12 25/05/12 31/05/12 08/06/12 0.5 100% 0.53 1Q A-B High Level Architecture Partially Approved 18/05/12 18/05/12 01/06/12 02/07/12 0.5 70% 0.4 Aligne Book / Trade4 3D B-C Descriptions Design Approved 01/06/12 01/06/12 15/06/12 22/06/12 3.0 100% 3.05 3D B-C Detailed Requirements Draft Issued 12/06/12 21/06/12 22/06/12 05/07/12 1.5 50% 0.86 3D B-C Process Map Partially Approved 12/06/12 15/06/12 22/06/12 03/07/12 1.5 70% 1.17 3D B-C Inventory of Build Items Partially Approved 15/06/12 22/06/12totals at top02/07/12 See 22/06/12 1.5 70% 1.1 Inventory of Process /8 3D B-C Procedures to amend Partially Approved 15/06/12 Product relative value of 22/06/12 22/06/12 02/07/12 1.0 70% 0.79 3D B-C Business Readiness Plan Partially Approved 15/06/12 3, it is fully approved so 15/06/12 22/06/12 29/06/12 0.5 70% 0.410 3D B-C Gate C Investment Case Partially Approved 21/06/12 21/06/12 100% of 3 = 3 EV is 26/06/12 06/07/12 0.5 70% 0.411 3D B-C Technical Architecture Design Draft Issued 15/06/12 27/06/12 27/06/12 09/07/12 0.5 50% 0.312 3D B-C Project Initiation Document Draft Issued 21/06/12 21/06/12 29/06/12 09/07/12 2.0 50% 1.013 4B C-D Test Plan Not Started 06/07/12 20/07/12 1.5 0% 0.0 Reports, Models all built & unit14 3D B-C tested Being Drafted 20/07/12 27/07/12 5.0 20% 1.0 Processes / Procedures all15 3D B-C updated & reviewed Not Started 27/07/12 03/08/12 2.0 0% 0.016 4B C-D Test Scripts Not Started 20/07/12 03/08/12 2.0 0% 0.017 5T C-D Go/No Go Checklist Not Started 20/08/12 28/08/12 1.0 0% 0.018 5T C-D Storm Plan Not Started 28/08/12 11/09/12 1.0 0% 0.019 5T C-D End of Test Report Not Started 11/09/12 14/09/12 3.0 0% 0.0 Implemented Reports, Models20 6I C-D etc Not Started 14/09/12 14/09/12 4.0 0% 0.021 7H C-D End of Project Report Not Started 05/11/12 12/11/12 0.2 0% 0.022 7H C-D Lessons Learnt Report Not Started 05/11/12 12/11/12 0.2 0% 0.0 © PlanIT 2TCQ Ltd 7 http://www.planit2tcq.co.uk/
  8. 8. Step 4 Add Sheet with some running totals• Sort the Inventory by baseline FA Bas Date Tot PV% Tot EV% 16/05/12 2.9% 2.9% product approved date 31/05/12 4.4% 01/06/12• Use the relative factors to show in 15/06/12 5.9% 14.7% a table % of PV over time leading 22/06/12 19.2% 22/06/12 to 100% 22/06/12 23.6% 28.0%• Spreadsheet calculates the 22/06/12 31.0% 22/06/12 32.4% 29.5% total“to date EV”as a by-product 26/06/12 33.9% of updating milestones for 27/06/12 35.4% 29/06/12 41.3% 33.5% tracking purposes as below and 20/07/12 45.7% while you are updating product 27/07/12 60.5% 03/08/12 66.4% status & forecasts, you enter the 03/08/12 72.3% EV% in the table for the date 28/08/12 75.2% 11/09/12 78.2% 14/09/12 87.0%Total EV showing at the moment is 11.35 for date 29/06/2012 14/09/12 98.8%which represents a percentage of 33.5% 12/11/12 99.4% 12/11/12 100.0% © PlanIT 2TCQ Ltd 8 http://www.planit2tcq.co.uk/
  9. 9. The EV chart for use in reporting Project xxxx - Earned Value via Products 120.0% As at 29/6 EV% for project is 33%. Planned to be 41%. Reason - struggling to get full approval of 100.0% some products produced as large number of approvers 80.0%% of Value Tot PV% 60.0% A lot of planned value when have implemented - only a little added Tot EV% during post implementation to 40.0% project closedown 33.5% 29.5% 20.0% 2.9% 0.0% 12 12 12 12 12 12 12 12 12 12 12 12 12 20 20 20 20 20 20 20 20 20 20 20 20 20 5/ 6/ 7/ 8/ 8/ 0/ 0/ 6/ 7/ 9/ 9/ 0/ 5/ /0 /0 /1 /0 /0 /0 /0 /1 /0 /0 /0 /0 /1 16 11 25 05 19 03 31 30 13 27 08 22 17 © PlanIT 2TCQ Ltd 9 http://www.planit2tcq.co.uk/

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