Kristen Kehrer from NASA's KSC Integration Office presented on earned value management (EVM). EVM measures work accomplished in terms of hours or dollars earned using different methods like level of effort or percent complete. It allows calculating cost and schedule variances to identify issues and develop corrective actions. An earned value management system (EVMS) standardizes planning, measuring, and integrating cost, schedule, and technical performance. When required, suppliers must comply with ANSI EIA-748 guidelines for their internal EVM processes.
Project Controls Expo 13th Nov 2013 - "Integrating Risk and Earned Value Mana...Project Controls Expo
o The Background
o Risk Management – A summary
o Earned Value Management – A summary
o Overall EVM Process
o Integra9ng the two disciplines
o Reasons for NOT implemen9ng EVM and the counter argument
o PMB and Beyond
o Hints and Tips
o Summary
Symposium 2016 : CONF. 401 Jonathan Shriqui EVM: Go Beyond the NumbersPMI-Montréal
The purpose of Earned Value Management (EVM) is to integrate a common rigour of project performance management. Execution is everything with EVM. It requires nothing less than a complete commitment by senior management to fully ingrain a business wide culture of EVM. Do it right, and you will reap invaluable data from and for your project teams. Do it wrong, and it will send you into an abyss of disarray. Proper execution does not guarantee perfect program performance. Rather, it will give you invaluable insight into your schedule and budget. Being ahead of schedule and under budget may have the same negative impacts as the opposite unless you can effectively manage to answer the most daunting question of all: Why? Please join me as we Go Beyond the Numbers of EVM. We will briefly review the basic foundations of EVM (SPI, CPI, etc.) before we seek to not only understand what the data is telling us, but more importantly, how can we use it to our benefit.
BIOGRAPHY
Jonathan Shriqui has over a decade of financial management experience acquired from General Electric & Lockheed Martin on large scale programs. His Earned Value Management (EVM) acumen was refined when he joined Lockheed Martin, in 2007, as part of the successful capture team for the frigate modernization program (HCM/FELEX CSI) for the Canadian Navy. In 2012, he transitioned to the Navy’s arctic patrol program (AOPS) where the EVM reporting requirement demanded a weekly delivery cycle. Since 2015, as part of the BMT Clarity management consultancy, he provides insights and recommendations to the Department of National Defense for the AOPS and Canadian Surface Combatant (CSC) programs. Jonathan has earned his PMP and Six Sigma Black Belt credentials and is currently working towards completing his Canadian Risk Management (CRM) designation.
Project Controls Expo, 13th Nov 2013 - "EVM for the Rest of Us" By Javier Slo...Project Controls Expo
Agenda
o Earned Value Management Fears and Hopes
o Critical Success Factors to EVM
o Elements of EVM
o Transitioning from Compliance to Standard Business Prac?ce
o Recap and questions
Every tool, process, and practice has a dark side. Knowing these is a Critical Success Factor to the integration of EVM and Agile at the desired Maturity Level.
Both Earned Value Management and Agile have Dark Sides. Things that are not talked about in public.
But when they are Integrated, each provides a solution for the problems of the other.
Assess current and desired Maturity for Agile and EVM is the starting point for integrating these two processes.
Track Project Performance - Earned Value ManagementBaroness PM
Earned Value Management (EVM) is a project management methodology used to track project performance as well as forecast future performance. This presentation will walk you through the calculations for EVM as well as performance reporting
Project Controls Expo 13th Nov 2013 - "Integrating Risk and Earned Value Mana...Project Controls Expo
o The Background
o Risk Management – A summary
o Earned Value Management – A summary
o Overall EVM Process
o Integra9ng the two disciplines
o Reasons for NOT implemen9ng EVM and the counter argument
o PMB and Beyond
o Hints and Tips
o Summary
Symposium 2016 : CONF. 401 Jonathan Shriqui EVM: Go Beyond the NumbersPMI-Montréal
The purpose of Earned Value Management (EVM) is to integrate a common rigour of project performance management. Execution is everything with EVM. It requires nothing less than a complete commitment by senior management to fully ingrain a business wide culture of EVM. Do it right, and you will reap invaluable data from and for your project teams. Do it wrong, and it will send you into an abyss of disarray. Proper execution does not guarantee perfect program performance. Rather, it will give you invaluable insight into your schedule and budget. Being ahead of schedule and under budget may have the same negative impacts as the opposite unless you can effectively manage to answer the most daunting question of all: Why? Please join me as we Go Beyond the Numbers of EVM. We will briefly review the basic foundations of EVM (SPI, CPI, etc.) before we seek to not only understand what the data is telling us, but more importantly, how can we use it to our benefit.
BIOGRAPHY
Jonathan Shriqui has over a decade of financial management experience acquired from General Electric & Lockheed Martin on large scale programs. His Earned Value Management (EVM) acumen was refined when he joined Lockheed Martin, in 2007, as part of the successful capture team for the frigate modernization program (HCM/FELEX CSI) for the Canadian Navy. In 2012, he transitioned to the Navy’s arctic patrol program (AOPS) where the EVM reporting requirement demanded a weekly delivery cycle. Since 2015, as part of the BMT Clarity management consultancy, he provides insights and recommendations to the Department of National Defense for the AOPS and Canadian Surface Combatant (CSC) programs. Jonathan has earned his PMP and Six Sigma Black Belt credentials and is currently working towards completing his Canadian Risk Management (CRM) designation.
Project Controls Expo, 13th Nov 2013 - "EVM for the Rest of Us" By Javier Slo...Project Controls Expo
Agenda
o Earned Value Management Fears and Hopes
o Critical Success Factors to EVM
o Elements of EVM
o Transitioning from Compliance to Standard Business Prac?ce
o Recap and questions
Every tool, process, and practice has a dark side. Knowing these is a Critical Success Factor to the integration of EVM and Agile at the desired Maturity Level.
Both Earned Value Management and Agile have Dark Sides. Things that are not talked about in public.
But when they are Integrated, each provides a solution for the problems of the other.
Assess current and desired Maturity for Agile and EVM is the starting point for integrating these two processes.
Track Project Performance - Earned Value ManagementBaroness PM
Earned Value Management (EVM) is a project management methodology used to track project performance as well as forecast future performance. This presentation will walk you through the calculations for EVM as well as performance reporting
Culture Check on using Earned Value in OrganizationGhassan Kabbara
Organizations failing to implement Earned Value need to under that Technology is only a tool at their disposal. Processes/Procedures and the Culture are paramount to a successful Earned Value Program.
Earned value management (EVM) is a methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
It is a commonly used method of performance measurement for projects.
It integrates the scope baseline with the cost baseline, along with the schedule baseline, to form the performance baseline, which helps the project management team assess and measure project performance and progress
By Er.Nikhil Raj, Senior Planning Enginner, Navig Solution Pvt Ltd
Earned Value AnalysisTracking Project ProgressWh.docxsagarlesley
Earned Value Analysis
Tracking Project Progress
What Is Earned Value?The dollar amount you planned to spend for the work actually completed
Earned Value is the budgeted cost of the work that has actually been performed/completed
Earned Value = Budgeted Cost of the Work Performed (BCWP)
What Is Earned Value Analysis (EVA)?
EVA enables the project progress to be tracked in terms of:
The work that has actually been completed
--- Compared To ---
The work that was scheduled to be completed
Why Is Earned Value Analysis Important?EVA enables the project team to know:If the project is ahead of, or behind schedule
How far the project is ahead of, or behind schedule
If the project is over or under budget
How much the project is over or under budget
Why Is Earned Value Analysis Important?EVA enables the team to address the project’s triple constraints earlier rather than later Scope – re-prioritize/reduce requirements
--- and/or ---
Schedule – adjust the timeline
--- and/or ---
Cost – request additional funding
The Components of Earned Value Analysis WBS – Work Breakdown StructureIdentifies products to be delivered by the project Products or sub-products should be broken down to what can be completed in 80 hours (“80-hour rule”), when applicable
Provides the basis for Distinct products or sub-products – which help to provideValid estimates – which enableTracking earned value / project progress
The Components of Earned Value Analysis Earned Value (EV) ---- or BCWPThe budgeted cost of the work actually performed How much work was actually completed
Planned Value (PV) ---- or BCWSThe budgeted cost of the work scheduled to be performed How much work should have been completed
Actual Cost (AC) ------- or ACWPThe actual cost of the work performedHow much money has been actually spent
The Components of Earned Value AnalysisBudget at Completion (BAC)Dollar amount originally budgeted to complete the project
Estimate at Completion (EAC)Estimate of dollar amount needed to complete the project
Variance at Completion (VAC)Estimate of the dollar amount projected above or below budget
Schedule at Completion (SAC)Projection of the time needed to complete the project
The Components of Earned Value Analysis
Schedule Variance (SV)The work completed vs. the work planned to be completed
SV = (Earned Value – Planned Value)
Tells us if the project is ahead of, or behind schedule
Negative value means the project is behind schedule
The Components of Earned ValueSchedule Performance Index (SPI)Utilized to forecast how long it will take to complete the project
SPI = (Earned Value / Planned Value)
Tells us if the project is ahead of, or behind schedule
Less than 1.00 means the project is behind schedule
The Components of Earned Value
Cost Variance (CV)What we planned to spend on the work completed vs. what was actually spent on the work completed
CV = (Earned Value – Actual Cost)
Tells us if the project is over or under budget ...
Culture Check on using Earned Value in OrganizationGhassan Kabbara
Organizations failing to implement Earned Value need to under that Technology is only a tool at their disposal. Processes/Procedures and the Culture are paramount to a successful Earned Value Program.
Earned value management (EVM) is a methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
It is a commonly used method of performance measurement for projects.
It integrates the scope baseline with the cost baseline, along with the schedule baseline, to form the performance baseline, which helps the project management team assess and measure project performance and progress
By Er.Nikhil Raj, Senior Planning Enginner, Navig Solution Pvt Ltd
Earned Value AnalysisTracking Project ProgressWh.docxsagarlesley
Earned Value Analysis
Tracking Project Progress
What Is Earned Value?The dollar amount you planned to spend for the work actually completed
Earned Value is the budgeted cost of the work that has actually been performed/completed
Earned Value = Budgeted Cost of the Work Performed (BCWP)
What Is Earned Value Analysis (EVA)?
EVA enables the project progress to be tracked in terms of:
The work that has actually been completed
--- Compared To ---
The work that was scheduled to be completed
Why Is Earned Value Analysis Important?EVA enables the project team to know:If the project is ahead of, or behind schedule
How far the project is ahead of, or behind schedule
If the project is over or under budget
How much the project is over or under budget
Why Is Earned Value Analysis Important?EVA enables the team to address the project’s triple constraints earlier rather than later Scope – re-prioritize/reduce requirements
--- and/or ---
Schedule – adjust the timeline
--- and/or ---
Cost – request additional funding
The Components of Earned Value Analysis WBS – Work Breakdown StructureIdentifies products to be delivered by the project Products or sub-products should be broken down to what can be completed in 80 hours (“80-hour rule”), when applicable
Provides the basis for Distinct products or sub-products – which help to provideValid estimates – which enableTracking earned value / project progress
The Components of Earned Value Analysis Earned Value (EV) ---- or BCWPThe budgeted cost of the work actually performed How much work was actually completed
Planned Value (PV) ---- or BCWSThe budgeted cost of the work scheduled to be performed How much work should have been completed
Actual Cost (AC) ------- or ACWPThe actual cost of the work performedHow much money has been actually spent
The Components of Earned Value AnalysisBudget at Completion (BAC)Dollar amount originally budgeted to complete the project
Estimate at Completion (EAC)Estimate of dollar amount needed to complete the project
Variance at Completion (VAC)Estimate of the dollar amount projected above or below budget
Schedule at Completion (SAC)Projection of the time needed to complete the project
The Components of Earned Value Analysis
Schedule Variance (SV)The work completed vs. the work planned to be completed
SV = (Earned Value – Planned Value)
Tells us if the project is ahead of, or behind schedule
Negative value means the project is behind schedule
The Components of Earned ValueSchedule Performance Index (SPI)Utilized to forecast how long it will take to complete the project
SPI = (Earned Value / Planned Value)
Tells us if the project is ahead of, or behind schedule
Less than 1.00 means the project is behind schedule
The Components of Earned Value
Cost Variance (CV)What we planned to spend on the work completed vs. what was actually spent on the work completed
CV = (Earned Value – Actual Cost)
Tells us if the project is over or under budget ...
Building RAG with self-deployed Milvus vector database and Snowpark Container...Zilliz
This talk will give hands-on advice on building RAG applications with an open-source Milvus database deployed as a docker container. We will also introduce the integration of Milvus with Snowpark Container Services.
Goodbye Windows 11: Make Way for Nitrux Linux 3.5.0!SOFTTECHHUB
As the digital landscape continually evolves, operating systems play a critical role in shaping user experiences and productivity. The launch of Nitrux Linux 3.5.0 marks a significant milestone, offering a robust alternative to traditional systems such as Windows 11. This article delves into the essence of Nitrux Linux 3.5.0, exploring its unique features, advantages, and how it stands as a compelling choice for both casual users and tech enthusiasts.
Climate Impact of Software Testing at Nordic Testing DaysKari Kakkonen
My slides at Nordic Testing Days 6.6.2024
Climate impact / sustainability of software testing discussed on the talk. ICT and testing must carry their part of global responsibility to help with the climat warming. We can minimize the carbon footprint but we can also have a carbon handprint, a positive impact on the climate. Quality characteristics can be added with sustainability, and then measured continuously. Test environments can be used less, and in smaller scale and on demand. Test techniques can be used in optimizing or minimizing number of tests. Test automation can be used to speed up testing.
Why You Should Replace Windows 11 with Nitrux Linux 3.5.0 for enhanced perfor...SOFTTECHHUB
The choice of an operating system plays a pivotal role in shaping our computing experience. For decades, Microsoft's Windows has dominated the market, offering a familiar and widely adopted platform for personal and professional use. However, as technological advancements continue to push the boundaries of innovation, alternative operating systems have emerged, challenging the status quo and offering users a fresh perspective on computing.
One such alternative that has garnered significant attention and acclaim is Nitrux Linux 3.5.0, a sleek, powerful, and user-friendly Linux distribution that promises to redefine the way we interact with our devices. With its focus on performance, security, and customization, Nitrux Linux presents a compelling case for those seeking to break free from the constraints of proprietary software and embrace the freedom and flexibility of open-source computing.
UiPath Test Automation using UiPath Test Suite series, part 5DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 5. In this session, we will cover CI/CD with devops.
Topics covered:
CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
Speaker:
Lyndsey Byblow, Test Suite Sales Engineer @ UiPath, Inc.
Sudheer Mechineni, Head of Application Frameworks, Standard Chartered Bank
Discover how Standard Chartered Bank harnessed the power of Neo4j to transform complex data access challenges into a dynamic, scalable graph database solution. This keynote will cover their journey from initial adoption to deploying a fully automated, enterprise-grade causal cluster, highlighting key strategies for modelling organisational changes and ensuring robust disaster recovery. Learn how these innovations have not only enhanced Standard Chartered Bank’s data infrastructure but also positioned them as pioneers in the banking sector’s adoption of graph technology.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
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GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...Neo4j
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This keynote will reveal how Deloitte leverages Neo4j’s graph power for groundbreaking digital twin solutions, achieving a staggering 100x performance boost. Discover the essential role knowledge graphs play in successful generative AI implementations. Plus, get an exclusive look at an innovative Neo4j + Generative AI solution Deloitte is developing in-house.
Unlocking Productivity: Leveraging the Potential of Copilot in Microsoft 365, a presentation by Christoforos Vlachos, Senior Solutions Manager – Modern Workplace, Uni Systems
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Communications Mining Series - Zero to Hero - Session 1DianaGray10
This session provides introduction to UiPath Communication Mining, importance and platform overview. You will acquire a good understand of the phases in Communication Mining as we go over the platform with you. Topics covered:
• Communication Mining Overview
• Why is it important?
• How can it help today’s business and the benefits
• Phases in Communication Mining
• Demo on Platform overview
• Q/A
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However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
1. Sam Padgett presenting for
Kristen Kehrer
KSC Integration Office
321-867-3691
Kristen.C.Kehrer@nasa.gov
2. What are the differences among EV, EVM,
and an EVMS?
EVM Budget vs. Funds
Resources and current initiatives within
NASA
3. Value of work accomplished expressed in terms of
hours or dollars
Calculated using an EV method assigned to a
work package, e.g.
Level Of Effort (LOE) - value is earned based on the
plan; appropriate for work scope with no defined
products
% Complete – value is earned based on quantifiable
measure of progress
0/100 – all value is earned upon completion; appropriate
for tasks that start and complete within one month
50/50 – half of the value is earned when the task is
started and the other half when complete; appropriate
for tasks that span two months with equal work in each
Milestones – value is earned when milestones are
complete
4. Jan Feb Mar Apr EV Method
WBS # WBS Description 09 09 09 09 Budget
292360.09.02.04.14.02 Hazardous Gas Detection 5,500 9,500 6,800 2,400 24,200 None
System
292360.09.02.04.14.02.A Fire & Leak Detector 3,300 3,300 0/100
Bracket and Stand
Fabrication
292360.09.02.04.14.02.B Distribution Box Wiring 2,200 2,200 4,400 50/50
292360.09.02.04.14.02.C Terminal Distributor 7,300 7,300 0/100
Fabrication
292360.09.02.04.14.02.D Cable Fabrication 6,800 2,400 9,200 % Comp
5. We are at the end of Jan-09, and this is where we are
We started the Fire & Leak Detector Bracket and Stand Fabrication
but didn’t finish
We started the Distribution Box Wiring but didn’t finish
We started and finished the Terminal Distributor Fabrication
What is my EV?
Jan Feb Mar Apr EV
WBS Description 09 09 09 09 Jan-09 EV Method
Hazardous Gas Detection System 5,500 9,500 6,800 2,400 9,500 None
Fire & Leak Detector Bracket and 3,300 0 0/100
Stand Fabrication
Distribution Box Wiring 2,200 2,200 2,200 50/50
Terminal Distributor Fabrication 7,300 7,300 0/100
Cable Fabrication 6,800 2,400 0 % Comp
6.
7. Utilizing this new measure (EV) in project
management decision making to:
Calculate cost and schedule variances
Schedule Variance (SV) = EV – Plan (PV, BCWS, or S)
Cost Variance = EV – Actuals (AC, ACWP, or A)
Identify significant cost and schedule variances and
their drivers
Develop corrective action plans to get back on
track
Forecast future cost and schedule performance
Summarize the data to support management needs
EVM is both performance measurement (i.e.,
what is the program status) and performance
management (i.e., what we can do about it)
8. Spend Plan vs. Actual OR Budget vs. Actuals
900
800
800
700
700 Project Budget
600
Dollars
600 Actual Cost to Date
500
500
400
400
300
300
200
200
100
100
0
0
J F M A M J J A S O N D
Time
9. Estimate At
Completion
(EAC)
$K
2,750
Reporting Cut-Off Date
Total Budgeted Cost
} Projected
Overrun
Budget At
2,500 Completion
(BAC)
2,250 Actuals
}
2,000 Plan
Projected
1,750
} CV Slippage
1,500
SV
1,250
1,000
750 EV
500
250
Time (Mos.)
9
10. We are at the end of Mar-09, and this is where we are
We finished the Fire & Leak Detector Bracket and Stand
Fabrication
We are still not finished with Distribution Box Wiring
We finished the Terminal Distributor Fab.
We fabricated 6 of 10 cables*
The actual costs are as follows:
Jan-09 = $9,000
Feb-09 = $4,000
Mar-09 = $10,000
How am I doing and where will I end up?
* Assume cables are of equal complexity
11. Our budget through Mar-09 for the Hazardous Gas
Detection System was $21,800
We spent $23,000, so we are overrunning our plan
by $1,200
$35,000
$30,000 Spending Variance = $-1,200
$25,000
$20,000
$15,000 PV
$10,000 AC
BAC
$5,000
$-
Jan-09 Feb-09 Mar-09 Apr-09
13. The project manager is anticipating that the most likely
scenario is that the remaining work will be finished with
the same efficiency as the past and is predicting to
overrun cost by $6,182. In a best case scenario, the
remaining work will be completed on cost, and the
project will overrun by $4,680.
The project manager evaluated the remaining work and
thinks that the remaining 4 cables will be fabricated and
the distribution box wiring will be completed in April-
09. The Haz Gas Detection System will finish on
schedule.*
Using traditional cost management, the cost variance is
significantly understated and no assessment of
schedule can be made.
* SV goes to zero when work is completed
14.
15. An organization’s internal management systems for
planning and control, including processes for:
Planning all authorized work scope to completion
Assigning authority and responsibility at the work performance
level
Integrating cost, schedule, and technical aspects of the work
into a detailed baseline plan
Measuring progress objectively (earned value) at the work
performance level
Accumulating and assigning actual costs
Analyzing variances from plans
Summarizing and reporting performance data to higher levels
of management for action
Forecasting achievement of milestones and completion of
contract events
Forecasting final contract costs and
Maintaining a baseline in a disciplined fashion and
incorporating revisions in a timely manner
16. Every company or government agency uses some form
of business planning and control systems for
management purposes
When a project is deemed critical, the customer
requires more rigor in the supplier’s internal planning
and control systems to ensure performance data and
forecasts are valid, accurate, and timely.
The EVMS guidelines have been published as an
American National Standards Institute/Electronic
Industries Alliance standard ANSI/EIA-748, Earned Value
Management Systems
The guidelines are broad enough to allow for common sense
application
Most of the basic principles of an EVMS are already inherent in
good business practices and program management
Suppliers required to produce EV data are required to
be in compliance with, or validated against, ANSI EIA-
748
17. Define authorized work Record direct costs from the accounting system
Identify the Project’s Organization Structure Summarize direct costs into the WBS
Integrate cost and schedule systems Summarize direct costs into the Organizational
structure
Identify the organization responsible for Record indirect costs
overhead costs Identify unit costs, equivalent unit costs or lot
Integrate the WBS and Organizational structure costs
to create control accounts Accurate material planning and control
Sequentially schedule the work Generate monthly cost and schedule variance
Identify interim measures of progress data at control accounts
Explain significant variances
Establish time-phased budgets
Identify and explain indirect cost variances
Identify significant cost elements in the budget
Summarize data through the WBS and
Identify discrete work packages Organization
Sum work packages and planning packages to a Implement management actions as a result of
control account EVM analysis
Identify and control Level of Effort Revise Estimates based on data
Establish overhead budgets Incorporate authorized changes in a timely
manner
Identify Management Reserve and Undistributed Reconcile budgets with prior budgets
Budgets Control retroactive changes
Reconcile target cost goal with the sum of all Prevent all but authorized budget changes
internal budgets Document changes
18. The EVMS Process Overview
Define the Work Performance Measurement
Baseline (PMB)
Plan the Work
Quantify & Measure
Earned Value
Work the plan
Collect Results
Change
Measure Work In Process
Control
Analyze Variances
Implement
External Internal
Corrective
Changes
Changes Actions
18
19. Scope
PLAN
Schedule Budget
Budget vs. Funds
19
20. What is Budget? What are Funds?
Budget is created as an aid to the Funding is process of supplying
management process money to the project
Cannot be spent Known by many names such as
• A number written on a piece of money, funding limits (obligations),
paper (an objective) actuals
• A representation of work Total costs for entire project
• A planning vehicle • Experienced cost for work
• A temporary element for performed – actuals or ACWP
project control • Expenditures & estimates of
future spending for remaining
project elements
Can be planned - BCWS Estimate To Complete (ETC)
Can be earned - BCWP
BAC Estimate At Complete (EAC)
20
21. Budget
Budgeted Cost for Work Scheduled (BCWS)
Time phased budget spread of required resources for the entire task
Assigned (budgeted) value of the work (at any level; WP, CA, IPT, Project)
Forms the Performance Measurement Baseline (PMB)
Budget At Completion (BAC)
Budgetary number representing ALL authorized work
Cannot change without a change to scope/technical content, i.e.
requirements change
Funding
Estimate To Complete (ETC)
Funding required to complete remaining work
When added to ACWP, it results in the EAC
Estimate At Completion (EAC)
Funding number representing ALL the money that will be spent
Can (and will) change without a commensurate change to technical
content
21
22. Project LCCE = Initial Project Budget Baseline
1. Technical Baseline • Performance
Initial Project
Objectives or
Funding Profile
Parameters (e.g.,
(PPBE process)
weight, thrust)
• Project WBS (Commitment /
• CARDe Obligation)
2. Schedule Baseline
• Schedule Objectives
(e.g., IOC, FOC) $
• IMS
Initial Project
• Critical Path
Budget Baseline
• Risk
The time phased
expected costs based
3. Cost Baseline • Cost estimating methods:
on initial cost estimate
• Parametric
100
• Historical
40 • Engineering (Bottom up)
60 • Considerations:
15 • TRLs
• Learning curves
25
• Production rates
30 • Risk, etc. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
30 • Resources include: work
TIME
force (Govt/Support
Contractor, Material, Travel, 22
ODC, Etc.
23. MANAGEMENT RESERVE FINANCIAL RESERVE
Part of the PBB Held outside the PBB
Budget set aside for Intended to cover
management control project-level overruns
purposes (i.e., for the
known-unknowns) Typically held by
Typically belongs to the controller or exec
project manager management
Ceases to exist at end of
program
23
24. In EVM terminology, NASA Unallocated Future Expense (UFE) is considered
a Financial Reserve (funding) and not Management Reserve (Budget)
NASA EVM Project
CONGRESS
PROGRAM
& OMB
OFFICE
Agency
Baseline Management
Commitment Baseline -
PROGRAM
UFE
UFE AUW
UFE Management
Reserve
AUTHORIZED Project
AUTHORIZED Undistributed Budget
Budget Base
PMB
Distributed
Budget
Key:
Held Back Funds/Funding Commitment Agreement
Held Back Funds/Funding Management Agreement Chambers/Gibby
07/2010
Not Strictly “Budget,” but should be inviolate
Budget 24
25. NASA EVMS Website at http://evm.nasa.gov/
EVM Focal Point at each Center, Headquarters
Mission Directorates, and Headquarters Mission
Support Offices
Implementation Handbooks
Integrated Baseline Review (IBR) Toolkit
Schedule Management Handbook
Work Breakdown Structure (WBS) Handbook
26. APPEL
EVM Overview
Understanding EVM
Beyond EVM Basics: Baseline Control, Risk Considerations and
Performance Indicators
Advanced EVM Topics: Recognizing EVM and Scheduling Gaming, Abuse
and Data Manipulation
Integrating Cost and Schedule
Online SATERN EVM Courses
EVMS Overview
Control Account Manager (CAM) Discussion
IBR
Scheduling Virtual Learning Lab
Center-level resources
DCMA Representative for EVMS
27. Agency EVM Capability Project
Work scope entails developing a common Agency process
that can be used by all NASA projects
Data Requirements Document (DRD) Guide for
contracts and projects with EVM requirements
EVM Working Group Quarterly Meetings
28.
29. “Management 101” “EVM 101”
• Organize • Develop WBS
• Assign responsibilities
• Authorize work
• Plan • Plan, schedule, and budget work
• Coordinate • Integrate project management
functions and scope, cost, and
schedule
• Direct • Analyze performance data and use
for management decisions
• Control • Maintain validity of integrated cost,
schedule, and technical performance
data
29
30. EVM Myth EVM Fact
• Government Requirement • Standard Business Practice
Management Tool
• Burdensome process • Tailorable process based on project
size, complexity, & risk
• “Bean Counter” exercise • “Owned” by entire Management
Team
• Costly to implement • Can be costly NOT to implement
– (Overruns, Project Cancellations)
• Too Much Data • Data can be summarized for reporting
30
Editor's Notes
Work Package (WP). Detailed jobs, or material items, identified by the supplier for accomplishing work required. A work package has the following characteristics:(a) It represents units of work at levels where work is performed.(b) It is clearly distinguished from all other work packages.(c) It is assigned to a single organizational element.(d) It has scheduled start and completion dates and, as applicable, interim milestones, which are representative of physical accomplishment.(e) It has a budget or assigned value expressed in terms of dollars, man-hours, or other measurable units.(f) Its duration is limited to a relatively short span of time or it is subdivided by discrete value milestones to facilitate the objective measurement of work performed or it is level-of-effort. (g) It is integrated with detailed engineering, manufacturing, or other schedules.
Hazardous Gas Detection System – None, because this is a control accountFire & Leak Detector Bracket and Stand Fabrication – 0/100 since this task is Planned to start and complete in one monthDistribution Box Wiring –50/50 Terminal Distributor Fabrication – 0/100 because this task is planned to start and complete in one monthCable Fabrication - % Complete based on number of cables fabricated
Schedule Variance: I planned to get this much done (PV) but I really got this much done (EV)Cost Variance: For the work that I completed, I planned for it to cost this much (EV) but it really cost this much (AC).Lots of other indicators that can be calculated using EV:Cost Performance Index (CPI) = EV/ACSchedule Performance Index (SPI) = EV/PV
Every company or government agency uses some form of business planning and control systems for management purposesIt works with other company systems to meet all of an organization’s day-to-day management needs
Discuss the difference between the two based on the chart above.
Discuss how the chart shows the funding needs and how the three components on the left give you that baseline.