Eviap Conference Lisbon Portugal 2011

529 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
529
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Eviap Conference Lisbon Portugal 2011

  1. 1. EVM PracticeBusiness Solutions & Lessons LearnedMohan Kondur BE(Honors), PGDIE (Ind Engg), MBA, PMP, PgMP EVIAP Project Control & EVM Conference Lisbon, Portugal November, 15th & 16th 2011 © 2011 All Rights Reserved
  2. 2. EVM Practice - AGENDA Business Solutions & Lessons Learned2 Introduction 45 Min Approach Lessons Learned Tool Artifacts Q&A 15 Min Demo 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  3. 3. Who is Mohan Kondur- BS, MS, MBA, PMP, PgMP3 • Program Manager (Delivery , EPMO ) • EVM Customer & • NOT an EVM Insider Diverse Industry Sector Engagements  Health Sector : United Health Group, Detroit Medical Center, BCBSM  Auto / Manufacturing Sector: GM, Ford, Chrysler ,Delphi, GE, HMT (India)  Finance / Banking Sector: Ford Credit, Comerica Bank , Allay Bank ( former GMAC) 35+ years in the field  Program /Project Management, Business Management & Marketing, Industrial Engineering EVM Publication PMI CPM’s Quarterly News Letter “Measurable News” Summer 07  http://www.pmi-cpm.org/members/library/KondurFINAL.pdf 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  4. 4. Presentation Objective ( Share Lessons Learned / Best Practices) Share  Lessons Learned  EVM Practice Guidelines Model Enhancements (Thought Starters) Earned Schedule (Emerging Practice) DEMO (time permitting) Organizational Transformation Internalize EVM into Project Management EVM Transformation Partir ConfiançaParar !! 4
  5. 5. Who is Prj Mgr? Executes EVM or Executed By EVM?5 Executes? Executed?Key Differentiator.. EV Process Quality & Reliability 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  6. 6. Project Management Process Quality – An Imperative for EVM Practice6 Ensure end-to-end QUALITY Closing Initiating Initiating Processes Planning Processes Executing Processes Monitoring & Controlling Processes Closing ProcessesFrom ToProject Cradle Project Grave 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  7. 7. Hitting EV Bulls Eye7 No Pain No Gain SPI / CPI & Earned Schedule TRACKING DUE DILIGENCE QUALITY IMPLEMENTATION & PROCESS COMPLIANCE Pain Killers Available 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  8. 8. SPI & CPI - 1018  Status indicators of Schedule & Cost  Binary by Definition. Either  You are On-Track (SPI & CPI = 1.0)  Or You are NOT  Precision Metrics by Nature Current Used to be SPI EV / PV BCWP / BCWS CPI EV / AC BCWP / ACWPCommon Thread (or Handicap?) - Cost-Based Model 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  9. 9. Cost Model SPI/CPI – 3 Showstopper Issues9 Issue # 1 Financials & WBS are rarely integrated. Budgets are usually managed:  At a Contract / Engagement Level  Rarely at a WBS Deliverable Level Issue # 2 Billing Rates: NOT internalized in WBS. Usually managed external to WBS Competition Sensitive Data Artificially Blended Rates Issue # 3 Typical PM Behavior / Mindset Focus on Schedule, NOT Cost 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  10. 10. Model Workaround10 Cost Model Hours Model 1 BCWS or PV Baseline Effort Hours 2 ACWP or AC Actual Effort Hours Determining EV Options to Calculate 3 BCWP or EV Earned Hours 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  11. 11. EV – Calculation – PMI Status Quo11 Remark Option Method EV Rule s = 100% of baseline if Task Completed 1 0 - 100 % Same as = 0% of baseline for any other Status in = 100% of baseline if Task has Completed PMBOK 0 – 50 -100% 2 = 50% of baseline if Task has Started (aka 50-50) = 0% if Task has NOT Started 3 % Complete = % Work Complete * Baseline Thought Starters 4 ETC Forecast = Baseline – Remaining WorkAll Options are Tool Supported; To Illustrate Option-4 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  12. 12. Option-4 ETC Forecast Method - Example12 Determining Earned Value Hours PV - Baseline Work, say EV Critical 100 AC - Actual Work, say CPI Critical 50 ETC - Remaining Work, say SPI Critical 70 EVA Critical EV - Earned Value 30 = 100 - 70 Schedule Driver “What is Remaining” to Complete 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  13. 13. EV Risks Corrected Model - Thought Starter13 EV Risks linked to EVA Reliability WBS WBS Quality SPI/CPI WBS Quality 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  14. 14. Risks Corrected EVA = Standard EVA * WBS Quality14 Triple Constraint Risks1. Scope Risk 2. Schedule Risk 3. Cost RiskOverall WBS Risk Quality = Average of Scope, Cost , ScheduleLet us review WBS quality index an example 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  15. 15. WBS Quality Index – EV Risks Measurement Example % Quality How Measured Tasks Quality Risk Source Weight (Count # of Tasks) in WBS Score Scope 1/3 All 10 Tasks Base-Lined 100% 33% Schedule 1/3 Only 9 Tasks Estimated 90% 30% Cost 1/3 Only 6 Tasks Resource-Assigned 60% 20% Overall WBS % Quality ( = Risk) 83%15
  16. 16. Interpreting Risk Adjusted EVA16 Standard SPI / CPI Green SPI = 1.05 => Ahead of Schedule Schedule Quality 90% Scope Quality 100% Cost Quality 60% Risk Adjusted SPI 0.87 = 1.05 * 83% Overall WBS Quality = 83% Behind Schedule Schedule is Really at Risk or  87% Confidence about an 1.05 SPI 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  17. 17. EVA Custom Tool - MS Project Add-on – Just a Mouse ClickEVA Knowledge (or Mechanics)- Least ImportantPM Delivery Maturity & WBS Quality More Important Project Generate SPI / CPI Consolidate Tool Consolidate & Rollup Program 17
  18. 18. EVA Tool Artifacts Project SPI / CPI - Spreadsheets)18 EVA Demo : Earned Value SPI / CPI vs. Baseline (All Tasks ) (Hours Based) - As of 2/9/2007 Quality : Overall (83%) Scope (71%), Schedule (100%) Cost(78%)1.401.20 SPI1.00 CPI CPI CPI SPI Risk SPI0.80 Risk CPI Risk CPI SPI CPI Risk Risk SPI Risk SPI0.600.400.200.00 1/28/2007 2/4/2007 2/11/2007 SPI CPI Risk SPI Risk CPI EVIAP Project Control & EVM Conference Lisbon, Portugal November, 15th & 16th 2011 © 2011 All Rights Reserved
  19. 19. Program Roll up - EVMs (SP/CPI)19 Consolidated Demo Project : Schedule Performance Index (SPI) (Hours Based) - As of 4/29/2005 Component Project-3 SPI Component Project-1 SPI 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 02/05/05 02/12/05 02/19/05 02/26/05 03/05/05 03/12/05 03/19/05 03/26/05 04/02/05 04/09/05 04/16/05 04/23/05 04/30/05 Demo_Project 1 - ba seline d Demo_Project 2 Demo_Project 3 Program Rollup EV Status Date SPI CPI Project - 1 08/04/06 0.92 0.78 Project - 3 08/04/06 1.15 0.99 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  20. 20. EVM Implementation Lessons Learned20  Fortune 100 Implementation  Not Just Theory 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  21. 21. EVM Lessons Learned – Environment21• Multi-Year Strategic Program• Multi-Supplier Autonomous Projects• Program Governance Framework• Outsourced Project Management / PMO 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  22. 22. EVM Practice - Lessons Learned22 1. Milestone Mindset - PM & Org Culture Block 2. Project Level Ownership Lack of Ownership 3. EV Reliability - WBS Quality GIGO 4. EVM Initiative Sustenance Keep it simple 5. Doctored WBS – Evergreen WYG WYA 6. Higher Band Risks Too good to be true 7. Program / Portfolio Rollup Not Actionable 8. Schedule / Cost Tracking EV Practice Critical 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  23. 23. Lesson # 1: Milestone / Date Mindset-PM / Organizational Culture Block23 SPI / CPI fails whenever Projects communicate only through Milestones & Dates Resolutions:  Ensure Deliverables-Oriented WBS  Track Level of Effort (LoE) Hours  Train, Educate & Mentor Project Managers 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  24. 24. Lesson # 2 Project Level PM Ownership & Accountability24 PM Ownership is Crucial Resolution:  Project PM generates & owns SPI / CPI  Resist temptation to generate EV Metrics by central PMO or a Project Coordinator 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  25. 25. Lesson # 3 EV Reliability – WBS Quality GIGO ( Garbage in Garbage Out)25 Standard SPI / CPI does not factor in WBS Quality Mitigation Approach:  Risk-Adjusted SPI/CPI Model 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  26. 26. Lesson # 4 EVM Sustenance26 Sustained EVM initiative requires Continuous Accommodation & Collaboration, especially in a Multi-Supplier Outsourced Projects & Stakeholders Environment Mitigation Approach:  Keep it Simple & be Flexible 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  27. 27. Lesson # 5 Doctored WBS - WYGWYA27 3% 4% 91% 2% 700 649 600 Standard SPI 500 Goal 1.0 Frequency 400 Risk-Adjusted 300 SPI 265 200 100 37 40 3 0 1 0 0 3 5 8 14 13 4 0 3 2 1 2 1 1 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 >1000 Data Points; > 40 Projects SPI WYGWYA .. What You Get is Whatever You Ask 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  28. 28. Lesson # 6 Higher Band Lesson28 Track being Ahead. But be Suspicious. Too Good to be True !! Higher Band? Ahead ?? 1.10 Way Ahead 1.00 Goal Goal On Track 0.95 At Risk 0.90 Way Behind 0.80 0.70 0.60 Wk1 Wk2 Wk3 Wk4 EVIAP Project Control & EVM Conference Lisbon, Portugal November, 15th & 16th 2011 © 2011 All Rights Reserved
  29. 29. Lesson # 7 Program Rollup EVM29 Program Rollup • Practically Useless. NOT ACTIONABLE • Usually Great for Boardroom Color ManagementProject Level Analysis, Ownership & Accountability is Crucial Project AND / OR Program / Portfolio SPI / CPI Structure Structure Single SPI-Rollup WBS SPI-1 SPI-2 SPI-3 EVIAP Project Control & EVM Conference Lisbon, Portugal November, 15th & 16th 2011 © 2011 All Rights Reserved
  30. 30. Lesson # 8 Schedule / Cost Tracking is EVM Critical30  Heavy Cost .. Enterprise Technology  Low Cost .. Project / Excel Macros  Choose whatever means ..  EVMetrics does not Care  EVM Practice Cares  Just Ensure Quality Tracking Process TRACKING FOUNDATIONAL PILLAR 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  31. 31. Tracking Mandatory to Mitigate Project Schedule / Cost Obsolescence Risks Requires Tight Rope Quality Walk Any Project Plan becomes obsolete the moment finalized Unless Tracked 31
  32. 32. Project Schedule / Cost Tracking: Top Challenges32 HOW TO:  Track Without High Costs?  Maximize Team Collaboration?  Support Organizational Metrics Initiatives?  Minimize ADMIN Drudgery?  Avoid System Choke (Month End, Week End)?  Simplify Technology and Be User Friendly? 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  33. 33. Market Scan: Tracking Solutions State33 Many Options - Windows, WEB, Others. Typical Outcomes :  High Cost ($$ / ) , Hidden / Training Costs, HighTech  Gold-Plated / Over-Featured  Unproven. Yet to see evidence of effective implementationTypical Rollout Experiences ( MS Project Server , Planview)• Never-ending Mega Projects in themselves• Hardly Meet Business Expectations• Significant time wasted on chasing tool issues & diverted away from managing / resolving Core Delivery & Project Issues 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  34. 34. LoE Project Tracking – EV Practice Critical34 Estimates To Complete (ETC) - Schedule Critical Actual Effort - Cost Critical Periodic Tracking (ETC & Actual) - EV Practice Critical TOOL SUPPORT (MS Project Platform) Electronic LoE Timesheets Tool Periodic LoE Tracking Cycle Create Validate Apply 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  35. 35. Tracking is EV critical35 Logistics & How Tracked:  EVM Does NOT Care about Tracking Logistics  EVM Does Require Quality Tracking Due diligence Tracking Solutions Cost Impact:  Heavy Cost: Enterprise Technology Solutions  Low Cost: Project Centric Solutions (MSP / Excel Macros) 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  36. 36. Conclusion ( Conclusao )36 Priorities for Successful EVM Practice 1. Project Management (PM) Domain Ensure : Quality Planning Process Backbone Internalize : EVM into Project Control Practices2. EVM DomainEVM Implementation / Adoption / internalized in PM HIGH PRIORITYEVM ISO Stds LOW PRIORITY. May follow after PMI releases PM ISO Stds for PM •PM Delivery Maturity & Magic is MORE Crucial •Tracking is a MUST 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved
  37. 37. Thank You, Obrigados !!37  Q&A  Tool DEMO  On-line now, if time permits  Off-line later, if required 12/29/20 EVIAP Project Control & EVM Conference Lisbon, Portugal 11 November, 15th & 16th 2011 © 2011 All Rights Reserved

×