Agenda   • Company Introductions   • Acumen & ARES G2 Partnership   • Delivering Value through our Partnership           –...
Acumen: Proven Project Analytics       Passion and dedication to       helping to improve the                             ...
Acumen DNA                  acumen s1 > s5                                        acumen DNA                • Schedule Bas...
ARES Software                                                                         Extensive industry-wide    ARES Sof...
Worldwide Clients           Over 5,000 users at ~250 customers around the world.           Bolivia                     Chi...
Only Complete Solutions Provider              Integrated Project Management5/8/2012            © 2011 ARES Software. All R...
The Acumen & ARES Software Partnership                Dr. Dan Patterson, PMP5/8/2012          © 2011 Acumen & ARES Softwar...
Acumen & ARES Software Partnership                                   CPM                                 Schedule         ...
Scenario Outline             • Create Schedule  P6/MSP             • Schedule Critique     Fuse             • Develop cost...
Schedule Critique                    Dr. Dan Patterson, PMP5/8/2012             © 2011 Acumen & ARES Software. All Rights ...
CPM Building Blocks       Project       Defines start or finish of the job                     Encapsulates the defined wo...
Sound Logic   •       Use of FS, FF, SF, SS links   •       SS links don’t account for durations   •       Lags hide sched...
Float Analysis   •       Average Float   •       Maximum Float   •       Float ratio (# of days float per day of work)   •...
Scorecarding                                                                      1                                       ...
Sound Planning Equals Project Success…                                100%                                                ...
Cost Management with PRISMG2                                Britt Creer5/8/2012            © 2011 Acumen & ARES Software. ...
Introducing PRISMG25/8/2012          © 2011 ARES Software. All Rights Reserved.   19
Introducing PRISMG2   • Reduce Risk & Detect Potential Problems   • View real-time cost tracking, variance analysis       ...
Value of Time-phased Budget       • A time-phased representation of the project execution plan         to determine:      ...
Performance Measurement Baseline       • Two typical methods used in developing a PMB           1. Cost loading schedule a...
Cost / Schedule Integration       Method 1 – Cost Loading a Schedule                                            8 May 2012...
Issues with Cost Loading a Schedule       • Difficult to match up based on granularity of estimate         vs. schedule   ...
Cost / Schedule Integration       Method 2 – Developing a “Time Phased Budget”                                            ...
Time-phased Budgets Advantages           Improvements Over Cost Loaded Schedules              Removes estimate/schedule g...
Coffee Break5/8/2012             © 2011 Acumen & ARES Software. All Rights Reserved.   27
Accurate Forecasting with PRISMG2                                 Britt Creer5/8/2012             © 2011 Acumen & ARES Sof...
5/8/2012   © 2011 ARES Software. All Rights Reserved.   29
Analysis and Forensics            Dr. Dan Patterson, PMP5/8/2012     © 2011 Acumen & ARES Software. All Rights Reserved.  ...
Metrics for Execution Baseline Compliance™   • Traditional measures include:           – Earned value: heavy time investme...
Compliance Scenarios                   Feb                               March                                April       ...
Compliance Metrics Group        Metric                             Jan-11   Feb-11   Mar-11   Apr-11   May-11   TOTAL Base...
Example Baseline Compliance™ Analysis  100%   90%   80%   70%   60%    50%    40%    30%    20%    10%      0%5/8/2012    ...
Wrap-up & Questions                     Dr. Dan Patterson, PMP                 dpatterson@projectacumen.com               ...
More Information:                   Fuse Trial & White Papers:                    www.projectacumen.com                   ...
Acumen & ARES: Simplified Cost & Schedule Integration
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Acumen & ARES: Simplified Cost & Schedule Integration

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Acumen & ARES delivered this presentation on the need to properly build, analyze and cost-load a schedule. Acumen gave a special sneak peek of Fuse 3.0 and 360.

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Acumen & ARES: Simplified Cost & Schedule Integration

  1. 1. Agenda • Company Introductions • Acumen & ARES G2 Partnership • Delivering Value through our Partnership – Schedule Validation – Cost Management from Estimating to Time-phased Budgets Coffee Break – Accurate Forecasting and Change Management – Analyzing your Data • Wrap & Questions5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 2
  2. 2. Acumen: Proven Project Analytics Passion and dedication to helping to improve the World Renowned practice of CPM scheduling Risk Assessment & analysis Workshops • 2o Year+ PPM legacy across multiple industries Oracle Accredited Training • Oracle, Deltek & Microsoft partner • Based in Austin, Texas Acumen Fuse • Global presence5/8/2012 3
  3. 3. Acumen DNA acumen s1 > s5 acumen DNA • Schedule Basis • Reflects latest scope/contractor updates Schedule is King… S1 • Critiqued Schedule Metrics: “Analytics leverage • Structurally sound, no contingency, S2 sound logic data in a particular functional process (or application) to enable • Risk-Adjusted Schedule • Estimate uncertainty, risk events context-specific insight that is S3 actionable” • Optimized Target Scenarios • Reduced hot spots, higher confidence S4 • Team Validated Scenario • Buy-in on mitigation plans S55/8/2012 4
  4. 4. ARES Software Extensive industry-wide ARES Software is a full-service global Project perspective (Oil & Gas, Mining & Metals, Energy, Management provider Construction, Aerospace, Defense) ARES products are used all over the world with over 250 commercial accounts with more than 5,000 user projects worldwide Proven ability to manage and sustain growth (e.g. hire qualified resources) $130M in revenue and Brazil growing Sao Paulo Excellent employee benefits program, including profit sharing 95% repeat business5/8/2012 © 2011 ARES Software. All Rights Reserved. 5
  5. 5. Worldwide Clients Over 5,000 users at ~250 customers around the world. Bolivia China Panama Suriname APEX Silver SNPTC-Shaw Minera Panama BHP Billiton Rio Tinto INDUSTRIES Brazil Peru Taiwan Vale Czech Republic Antamina CTCI • Aerospace Onca Puma Koch Glitsch Gold Fields Yanacocha UAE • Construction Canada Ghana Sama Contracting • Energy BP Exploration Newmont Gold Company Phillippines Canadian National Lycopodium FCF Minerals • Mining & Metals Resource Limited (CNRL) London Hospital Hungary Singapore • Nuclear EnCana Nexen Olajterv PEC Tech • Oil & Gas Shell Canada Iceland South Africa • Public Utilities Century Aluminum AngloAmerican Suncor Energy Syncrude (Alliance 21) HRV AngloPlatinum USA • Transportation Aurecon TransCanada Pipelines Indonesia Alyeska Pipeline Bateman Vale-Inco American Electric Power PEC Tech Eskom MEG Energy Petronas Bechtel IES Consulting Newmont Petrosea Carter-Burgess GoldFields Nalcor CH2MHill Lonmin Denver Regional Transit District Chile Italy Murray & Roberts Fluor Total Project Management ProjectLink Aker Solutions Kaiser-Hill RSV AngloAmerican NASA International Space Station Malaysia RSVENCO Barrick Gold Corporation Parsons Sasol Petroleum BHP Billiton Petronas Parsons Brinckerhoff SSP Codelco Port of Portland TMP (TWP-Matomo) Compania Minera Dona Ines Mexico TWP Portland General Electric de Collahuasi Instituto Mexicano del Petroleo U.S. Department of Energy Vhumbanani (DRA-TWP) Coprim Westinghouse Xstrata (services) Fluor Mongolia South Korea WGI JRI Centerra Gold Mongolia Minera los Pelambres SKEC Ivanhoe Mines Penta Sur * Representative Sample5/8/2012 © 2011 ARES Software. All Rights Reserved. 6
  6. 6. Only Complete Solutions Provider Integrated Project Management5/8/2012 © 2011 ARES Software. All Rights Reserved. 8
  7. 7. The Acumen & ARES Software Partnership Dr. Dan Patterson, PMP5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 9
  8. 8. Acumen & ARES Software Partnership CPM Schedule Acumen Fuse Ares Prism Platform G2 Integration launch date: October 18 2011 at Acumen Summit5/8/2012 10
  9. 9. Scenario Outline • Create Schedule P6/MSP • Schedule Critique Fuse • Develop cost estimate PrismG2 • Create time phased budget (integrate with schedule) • Update actuals; update forecast PrismG2 • Update changes • Analyze performance Fuse5/8/2012 11
  10. 10. Schedule Critique Dr. Dan Patterson, PMP5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 12
  11. 11. CPM Building Blocks Project Defines start or finish of the job Encapsulates the defined work Scheduling tools are Activities Defines duration for a given scope of an excellent means work of modeling these Logic Links Defines sequence of work moving parts. Calendars Defines when an activity/resource can work But… Constraints Defines date overrides They do little for Resources Defines who/what is available to making sure the execute work building blocks are Resource Links the “executors” to their work Assignment used correctly….5/8/2012 13
  12. 12. Sound Logic • Use of FS, FF, SF, SS links • SS links don’t account for durations • Lags hide schedule detail • Leads cause reverse dates redundant • Circular logic between projects A • Out of sequence updates • Open start/finish: hidden open ends B • Logic Density™ • Logic Hotspot™ C • Redundancy Index™ New: Driving Logic analysis5/8/2012 14
  13. 13. Float Analysis • Average Float • Maximum Float • Float ratio (# of days float per day of work) • Float Map™5/8/2012 15
  14. 14. Scorecarding 1 6 • Metrics are useful but don’t give overall picture • Scorecarding: group individual metrics into single score • Schedule Quality Index™ • Scores can be either: – Activity based: number of activities that fail a test (less detailed, higher scores) – Metric based: number of metrics that fail a test (more detailed, lower scores) • Weight importance of metrics May 8,5/8/2012 16
  15. 15. Sound Planning Equals Project Success… 100% R² = 0.603 90% 80% 70% Finish Compliance Index™ 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% Schedule Quality Index™5/8/2012 17
  16. 16. Cost Management with PRISMG2 Britt Creer5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 18
  17. 17. Introducing PRISMG25/8/2012 © 2011 ARES Software. All Rights Reserved. 19
  18. 18. Introducing PRISMG2 • Reduce Risk & Detect Potential Problems • View real-time cost tracking, variance analysis and forecasting • Exceeds all Federal Government (ANSI 748) requirements for Earned Value Management • Built for the Enterprise ‒ Enterprise, Program, and Project reporting ‒ Multi-language, Multi-Currency, Remote Access, Dashboards ‒ Full integration to Oracle® Primavera P6, Microsoft ® Project, SAP®, Oracle EBS, & JD Edwards5/8/2012 © 2011 ARES Software. All Rights Reserved. 20
  19. 19. Value of Time-phased Budget • A time-phased representation of the project execution plan to determine: ‒ The feasibility of the plan ‒ The ability to predict project success ‒ Address resource funding requirements • A time-phased budget represents a Performance Measurement Baseline (PMB) • A tool to measure cost and schedule performance against the plan …. and prevent surprises! 8 May 2012 25/8/2012 21
  20. 20. Performance Measurement Baseline • Two typical methods used in developing a PMB 1. Cost loading schedule activities 2. Developing a “Time-phased Budget” 8 May 2012 25/8/2012 22
  21. 21. Cost / Schedule Integration Method 1 – Cost Loading a Schedule 8 May 2012 25/8/2012 23
  22. 22. Issues with Cost Loading a Schedule • Difficult to match up based on granularity of estimate vs. schedule • It is a very time-consuming process to setup ‒ Project must start with a schedule before budget can be established • It is a very time-consuming process to maintain • Difficult to manage intangibles – such as indirect costs • Difficult to manage cost changes • Difficult to manage contingency The costs exceed the benefits 8 May 2012 25/8/2012 24
  23. 23. Cost / Schedule Integration Method 2 – Developing a “Time Phased Budget” 8 May 2012 25/8/2012 25
  24. 24. Time-phased Budgets Advantages Improvements Over Cost Loaded Schedules  Removes estimate/schedule granularity issues  Quick and efficient setup  Much easier to maintain  Manage performance on Approved and Control Budgets  Efficient use of distribution curves for spreading costs  Addresses issue on how indirect costs are spread  Addresses issue on spreading of contingency  Easier to manage changes in scope and forecast Efficient and Effective PMB Development 8 May 2012 25/8/2012 26
  25. 25. Coffee Break5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 27
  26. 26. Accurate Forecasting with PRISMG2 Britt Creer5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 28
  27. 27. 5/8/2012 © 2011 ARES Software. All Rights Reserved. 29
  28. 28. Analysis and Forensics Dr. Dan Patterson, PMP5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 30
  29. 29. Metrics for Execution Baseline Compliance™ • Traditional measures include: – Earned value: heavy time investment to implement – Earned schedule: similar to EV – Percent complete: what does this really tell us? – Ahead/behind baseline: too granular a scale… • Baseline Compliance™ – Used to determine how close a schedule is planned and executed against it’s baseline – Measure of well the plan is being executed – More than just date comparison – Looks at period-compliance5/8/2012 31
  30. 30. Compliance Scenarios Feb March April BaselineExcellent Scenario 1: Started Early, Finished Early Scenario 2: Started Early, Finished On-Time Scenario 3: Started On- Time, Finished On-Time Scenario 4: Started On- Time, Finished Late Poor Scenario 5: Started Late, Finished Late5/8/2012 32
  31. 31. Compliance Metrics Group Metric Jan-11 Feb-11 Mar-11 Apr-11 May-11 TOTAL Baseline Scheduled/Baselined to Start 4 1 4 0 1 10 Scheduled/Baselined to Finish 2 1 4 0 3 10 Updated Start/ed 2 4 1 2 1 10 Schedule Finish/ed 1 3 1 3 2 10 Statistics Start/ed on Time 2 0 0 0 1 3 Start/ed Early 0 0 2 0 0 2 Start/ed Late 2 1 2 0 0 5 Finish/ed on Time 1 1 1 0 2 5 Finish/ed Early 0 0 1 0 1 2 Finish/ed Late 1 0 2 0 0 3 Start/ed on Time, Finish/ed Late 0 0 1 0 0 0 Compliance Start Variance 2 1 4 0 0 7 Cum Start Variance 2 3 7 7 7 Start Compliance 50% 0% 0% N/A 100% 30% Finish Variance 1 0 3 0 1 5 Cum Finish Variance 1 1 4 4 5 Finish Compliance 50% 100% 25% N/A 67% 50%5/8/2012 33
  32. 32. Example Baseline Compliance™ Analysis 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%5/8/2012 34
  33. 33. Wrap-up & Questions Dr. Dan Patterson, PMP dpatterson@projectacumen.com Britt Creer bmcreer@arescorporation.com5/8/2012 © 2011 Acumen & ARES Software. All Rights Reserved. 35
  34. 34. More Information: Fuse Trial & White Papers: www.projectacumen.com PrismG2 Information: www.arescorporation.com5/8/2012 36

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