Project Controls Expo - 31st Oct 2012 - Applying Earned Value on Small and Large projects By David Birch
•
0 likes•363 views
1. Organisa@on(1-5) 2. Planning,SchedulingandBudge@ng(6-15) 3. ActualCosts(16-21) 4. AnalysisandRepor@ng(22-27) 5. ChangeManagement(28-32)
Recommended
More Related Content
Viewers also liked
Viewers also liked (12)
Similar to Project Controls Expo - 31st Oct 2012 - Applying Earned Value on Small and Large projects By David Birch
Similar to Project Controls Expo - 31st Oct 2012 - Applying Earned Value on Small and Large projects By David Birch (20)
More from Project Controls Expo
More from Project Controls Expo (20)
Recently uploaded
Recently uploaded (20)
Project Controls Expo - 31st Oct 2012 - Applying Earned Value on Small and Large projects By David Birch
- 1. Copyright @ 2011. All rights reserved Session A5 Applying Earned Value on Small and Large projects Project Controls Expo -‐ 31st Oct 2012 Twickenham Stadium, London Speaker – David Birch
- 2. Copyright @ 2011. All rights reserved About the Speaker § David Birch -‐ 35 years experience in the delivery of high profile UK and interna@onal projects and Programmes for world leading Engineering/Construc@on contractors. § 25 years of Project Controls and Opera@onal Management experience § Since 2008 responsible for the London 2012 Programme Controls group for CLM, the delivery partner to the Olympic Delivery Authority (ODA). § Previously, delivered projects numerous industry sectors including: ü UK & Interna@onal Oil and Gas ü UK Nuclear decommissioning and clean-‐up ü Conven@onal and Nuclear Energy ü Water ü Telecoms ü Industrial and Infrastructure
- 4. Copyright @ 2011. All rights reserved 1. Organisa@on (1-‐5) 2. Planning, Scheduling and Budge@ng (6-‐15) 3. Actual Costs (16-‐21) 4. Analysis and Repor@ng (22-‐27) 5. Change Management (28-‐32) EVM System (32 Criteria) Ge_ng the system right leads to: Informed, effec-ve management and decision making by knowing: • What has been achieved of the plan • What it has cost to achieve the planned work • If the work achieved is cos@ng more or less than was planned • If the project is ahead of or behind the planned schedule
- 5. Copyright @ 2011. All rights reserved 1. Define authorised work and resources via WBS/CWBS 2. Establish organisa@onal responsibility for work achievement via OBS 3. Ensure management subsystems support each other, the CWBS and the OBS 4. Who is responsible for overhead cost control 5. Integrate CWBS with OBS 1 -‐ OrganisaSon Project Value Level 2 WBS Elements £400m+ 45 £200m+ 30 £90m+ 25 £25m+ 15
- 6. Copyright @ 2011. All rights reserved 6. Schedule all Authorised Work logically 7. Iden@fy interim goals (milestones) by which to measure work achievement 8. Establish/Maintain at the Control Account Level, a Performance Measurement Baseline (PMB) 9. Establish budgets by element of cost 10. Establish budgets at the Work/Planning Package level 11. Sum of all Work Package + Planning Package Budgets = Control Account Budget 12. Separately iden@fy and control the use of LOE 13. Establish budgets for overhead costs 14. Iden@fy Management Reserves and Undistributed Budget separately 15. CBB = Budget at Complete + Management Reserves 2 – Planning, Scheduling and BudgeSng
- 7. Copyright @ 2011. All rights reserved 2 – Planning, Scheduling and BudgeSng Project Value Schedule Activities Key Milestones Duration £400m+ 25,000 60 4 years £200m+ 25,000 60 4 years £90m+ 10,000 40 3 years £25m+ 2,500 20 18 months
- 8. Copyright @ 2011. All rights reserved 3 – Actual Costs 16. Formally record all direct costs and establish budgets in a consistent and thus comparable manner 17. Prohibit mul@ple accoun@ng as direct costs are summarised through the WBS 18. Prohibit mul@ple accoun@ng as direct costs are summarised through the OBS 19. Record all allocable indirect costs 20. Iden@fy applicable unit costs 21. Establish an acceptable material accoun@ng system Project Value Project codes Purchase Orders £400m+ 48 152 £200m+ 34 88 £90m+ 70 144 £25m+ 55 34
- 9. Copyright @ 2011. All rights reserved 22. Iden@fy performance measurement data elements at the C/A level on a monthly basis 23. Iden@fy schedule and cost devia@ons on at least a monthly basis 24. Iden@fy overhead performance measurement data as needed 25. Sum performance measurement data elements through the CWBS and OBS 26. Iden@fy management response to variances 27. Develop EACs and compare to staffing plans, and the CBB 4 – Analysis and ReporSng Project Value Report Pages £400m+ 15 £200m+ 15 £90m+ 12 £25m+ 6
- 10. Copyright @ 2011. All rights reserved 28. Incorporate all authorised changes in a @mely manner 29. Reconcile original budgets with current budgets 30. Control retroac@ve changes to records 31. Only the Senior Manager or the Customer may revise the CBB 32. Document PMB changes 5 – Change Management Project Value Approved Changes £400m+ 290 £200m+ 234 £90m+ 119 £25m+ 105
- 11. Copyright @ 2011. All rights reserved Baseline • Fixed • Controlled throughChange Management • Reflected currentdelivery strategies • Aligned with contracts • High Level – ProjectMilestones and summarisedCostLoadedactivities Forecast • Dynamic • Reflectscontractorcurrentstatus & progress • Includesmitigation strategiesand trends • Takes accountof integration impacts • Forecasts outturn Change Control Fed from Trending process Trending Process Fed from forecast data and enabler for Risk mitigation Compare Inform Change Drive Dynamics of Cost and Schedule Data
- 12. Copyright @ 2011. All rights reserved Small and Large Projects Summary • EV system can be relevant for both large and small projects • Keep the data detail appropriate to the size • Smaller projects will have less data but may be more complex to manage (e.g. More part @me involvement from central func@onal groups, same skilled trades but smaller numbers of people) • Complexity and schedule dura@on will determine the amount of data/reports generated • Change happens in all projects • Be prepared, always integrate Risk Management within your processes and ensure the appropriate Project Con@ngency is included within the Original Budget
- 13. Copyright @ 2011. All rights reserved Flexibility Systems adjusted to suit the phase and nature of construc4on Simplicity Clear, concise and graphic repor4ng Data analy4cs but report on the issues ‘No Surprises’ Culture Comprehensive Baseline Spot and mi4gate risks and issues early Leading to effec4ve management of scope, cost & schedule DifferenSators of a World Class EVM System
- 14. Copyright @ 2011. All rights reserved 1. ANSI/EIA Standard 748-‐A: Earned Value Management Systems 2. APM Knowledge: Earned Value Management, APM Guidelines 3. Na@onal Defence Industrial Associa@on (NDIA), Program Management Systems Commihee (PMSC), ANSI/EIA-‐748-‐A Standard for Earned Value Management Systems Intent Guide 4. USA Department of Defense – Earned Value Management Implementa@on Guide EVM Reference Documents