Академический Документы
Профессиональный Документы
Культура Документы
Eleanor Haupt
ASC/FMCE
1
Training Objectives
EVMS
does
does EVMS
EVMS =
=
common
common sense
sense
project
project
management???
EVMS
Case Study
EVMS
Why
EVMS
Given:
total budget of $100,000
12 month effort
produce 20 units
Status:
spent to date: $64,000
time elapsed: 6 months
units produced: 8 complete, 2 partial
EVMS
Why do we need
Early Warning?
Course corrections are
easier when you have time
to make small adjustments
Its too late when youre
this close to the iceberg!
EVMS
What is
EVMS?
EVMS
EVMS
Work and resources are driven down to lowest level for execution
A work authorization system is set up that controls changes to the baseline
Budgets are earned as work is completed = EARNED VALUE
Status provided against baseline
schedule and cost variances are isolated
Problem assistance
early warning
corrective plans
Early insight provided into final estimated cost
EVMS
Executive Agent
Defense Contract Management
Command (DCMC) (EVMS Center)
DoD Policy
(compliance)
OSD/AT&L (SA/PM)
SAF/AQX
10
EVMS
EVMS Criteria
11
EVMS
A Spectrum of Implementation
Commercial or Defense
Where
Small
Companies
Government
Organic
Larger Companies
Major
Defense
Contractors
Foreign
Countries
When
as desired
corporate
policy,
enterprise
wide
FFP
contracts?
DoD Non-Major
Contracts
DoD Major
Contracts
(>12 months)
<$6M*
>$6M
>$70M RDT&E
>$300M Prod
Reports
streamlined,
no paper?
tailored to
needs
CPR
C/SSR
ANSI/EIA-748-1998
EVMS
13
EVMS
14
EVMS
$
earned value
time
15
EVMS
BCWS
BCWP
ACWP
BAC
Budget at Completion
EAC
Estimate at Completion
16
EVMS
Its my pleasure
to award you
this contract for
a new railroad
track
Total Budget
hmm...5 miles of
track, 5 months to do
it all....$5000
budget....This
is going to be tough!
What
Whatisisthe
thetotal
totaljob
job
supposed
supposedtotocost?
cost?
What
Whatisisthe
thevalue
valueofofthe
the
contract
contractatatcost?
cost?
17
EVMS
Month 1
BCWS = $1,000
Month 4
BCWS = $1,000
Month 2
BCWS = $1,000
Month 3
BCWS = $1,000
Month 5
BCWS = $1,000
each
eachdollar
dollarof
ofBCWS
BCWSrepresents
representsaaspecific
specificdollar
dollarof
ofwork
workscope
scope
18
EVMS
Month 4
BCWS = $1,000
Month 2
BCWS = $1,000
Month 3
BCWS = $1,000
Month 5
BCWS = $1,000
BCWS
BCWSisisaggregated
aggregatedand
andsummed
summedas
asthe
the
performance
performancemeasurement
measurementbaseline
baseline
19
EVMS
VALUE concept
You
Youearn
earnvalue
valuethe
thesame
sameway
way
as
asititwas
wasbudgeted
budgetedin
inbaseline
baseline
20
BUDGET BASED
EVMS
BC WS
BC WP
Schedule Variance
of the work I scheduled to have done,
how much did I budget for it to cost?
of the work I actually performed,
how much did I budget for it to cost?
SCHEDULE
SCHEDULEVARIANCE
VARIANCEisisthe
thedifference
differencebetween
betweenwork
workscheduled
scheduled
and
andwork
workperformed
performed(expressed
(expressedininterms
termsofofbudget
budgetdollars)
dollars)
formula:
formula:
SV
SV$$==BCWP
BCWP--BCWS
BCWS
example:
example:
SV
SV==BCWP
BCWP--BCWS
BCWS==$1,000
$1,000--$2,000
$2,000
SV=
SV= -$1,000
-$1,000 (negative
(negative==behind
behindschedule)
schedule)
21
Schedule Variance
EVMS
5,000
BCWS
the baseline
sv
BCWP
earned value
TIME
5 months
22
EVMS
m
su
S
W
C
ll B
a
of
BAC
$5,000
$5,000
$
$
$
$
$
$
$
time
when
whenall
allwork
workhas
hasbeen
beenphased,
phased,cumulative
cumulativeBCWS
BCWS==BAC
BAC
e.g.,
e.g., $5,000
$5,000==$5,000
$5,000
23
At the end...
EVMS
At the end of the contract, when all work has been completed:
Ive earned all of my budget ($5,000)
BCWP (cumulative) =
BCWS (cumulative) =
therefore, schedule variance ($) =
$5,000
$5,000
0
Example:
I finished late, but I did finish
SV ($) = $ 0
Formal schedule shows a 5 month actual delay in completing the contract
24
EVMS
actual
actualexpenditures
expendituresvs.
vs.budget
budget
25
Cost Variance
BC WP
AC WP
PERFORMANCE BASED
EVMS
COST
COSTVARIANCE
VARIANCEisisthe
thedifference
differencebetween
betweenbudgeted
budgetedcost
cost
and
andactual
actualcost
cost
formula:
formula:
CV
CV$$==BCWP
BCWP--ACWP
ACWP
example:
example:
CV
CV==BCWP
BCWP--ACWP
ACWP==$1,000
$1,000--$2,400
$2,400
CV=
CV= -$1,400
-$1,400 (negative
(negative==cost
costoverrun)
overrun)
26
Cost Variance
EVMS
5,000
ACWP
actual cost
cv
BCWP
earned value
TIME
5 months
27
EVMS
Estimate at Completion
(EAC)
Just a few little glitches.
We should be able to do
the complete job.ack
lets see, for about $7,500
28
EVMS
B AC
E AC
VARIANCE
VARIANCEAT
ATCOMPLETION
COMPLETIONisisthe
thedifference
differencebetween
betweenwhat
whatthe
thetotal
total
job
jobisissupposed
supposedtotocost
costand
andwhat
whatthe
thetotal
totaljob
jobisisnow
nowexpected
expectedto
tocost.
cost.
FORMULA:
FORMULA:
VAC
VAC==BAC
BAC--EAC
EAC
Example:
Example:
VAC
VAC==$5,000
$5,000--$7,500
$7,500
VAC
VAC==--$2,500
$2,500 (negative
(negative==overrun)
overrun)
29
EVMS
VAC
BAC
TIME
30
EVMS
QUESTION
ANSWER
ACRONYM
BCWS
BCWP
Actual Cost of
Work Performed
ACWP
Budget at Completion
BAC
Estimate at Completion
EAC
31
EVMS
5,000
BCWS
ACWP
cv
sv
BCWP
TIME
5 months
behind
behindschedule,
schedule,
over
overcost
cost
32
Pop Quiz
EVMS
BCWS
BCWP
$
ACWP
TIME NOW
_______schedule,
_______schedule,
___________cost
___________cost
33
EVMS
34
EVMS
Planning
Executing
Controlling
Closing
35
EVMS
control changes
performance reporting
corrective actions
understand variances
Close out
36
EVMS
control changes
performance reporting
corrective actions
Close out
understand variances
EVMS
Planning
38
Planning
Planning is
is aa 33 Step
Step Process
Process
EVMS
LI
NE
PM
BA
SE
3. ALLOCATE BUDGETS
100
40
60
15
25
TIME
30
30
39
EVMS
Organizing
Objectives of organizing
establish a clear picture of the total project work scope
do we know what all of the work is?
40
EVMS
Process
Step 1: define the authorized work using a work breakdown
structure (WBS)
decompose the work into manageable chunks
provides a framework for
program and technical planning
cost estimating and resource allocation
performance measurements and status reporting
41
EVMS
Customer responsibility
Define upper levels of the WBS (to level 3)
MIL-HDBK-881, Work Breakdown Structure
Write initial WBS dictionary and include in request for proposal
Contractor responsibility
Extend WBS to level where work is performed
define the elements
extend WBS dictionary
42
Assigning Work
EVMS
ORGANIZATION
Assignment of a
single work element
to a single team allows
you to roll up the costs
up either direction
WBS
control
account
43
EVMS
Control Account
44
EVMS
corrective action
estimate at completion (EAC)
45
EVMS
Case Study
Part 1
46
Contract Award
EVMS
L. M. Fudd
Sil Vester the cat
Wile E. Coyote
Daffie Duck (your deputy and the CAM for management)
You have allocated the following budgets from your $50,000 award
47
EVMS
Varmint Control
1.1
Small
Animals
1.2
Birds
1.3
Program Mgt
1.1.1
wascally
wabbits
1.2.1
tweetie
1.1.1
1.1.2
wascally
squirrels
wabbits
1.2.2
road runner
48
EVMS
I.M. Taz
Program Manager
L. M. Fudd,
small animals
Sil Vester
tweetie birds
Wile E. Coyote
road runners
Daffie Duck
Program Mgt
49
EVMS
L. M.
Fudd
Wile E.
Coyote
Daffie
Duck
1.1.1
wascally
wabbits
1.1.2
squirrels
1.2.1
tweetie birds
1.2.2
road runner
1.3
program
management
50
EVMS
L. M.
Fudd
Wile E.
Coyote
Daffie
Duck
$5,000
$5,000
$20,000
$10,000
$10,000
51
EVMS
52
EVMS
SCHEDULE
SOW
BUDGET
Labor
1,000 hrs
Labor $
75,000
Material $ 25,000
TIER 1
1.3.4.1
Build ejection seat
TIER 2
$
$
$
$
$
$
$
53
EVMS
Work Package
Work Packages
$
$
$
$
$
$
54
EVMS
rolling wave
detailed plans made for near term work packages
planning packages are for future work and are not detailed
CAMs periodically plan another increment of work packages
EVMS
Apportioned
discrete, dependent on another discrete work package
example: quality assurance
planned as historical estimating factor (e.g., 7%)
Level of Effort
56
Be Discrete!
EVMS
Discrete EV Techniques:
Method
0/100
50/50
Units Completed
Equivalent Units
Weighted Milestone
each milestone weighted based on planned
resources
ideal to have a milestone each month
Percent Complete
Material Concerns
EVMS
58
EVMS
Scheduling
Scheduling system characteristics
complete
all work included
formal
everyone uses same schedule
traceable
vertical (Master, Intermediate, Detail)
horizontal (between tasks)
consistent
identifies sequence of tasks, interdependencies
59
EVMS
60
EVMS
CASE STUDY
Part 2
61
Contract SOW
SOW Paragraph 1.2.2:
The contractor shall design, build, and install a system
to capture and eliminate the species Road Runner
within the state of Arizona.
Contractors Winning Design:
The basic system shall consist of five miles of road,
a fake tunnel painted on a side of the mountain,
plus a device to drop an anvil on the Road Runner.
Schedule Information
The contract was awarded in Month 1, and will be complete by the end of
Month 6.
You can begin building the road immediately, and plan on it taking about one
month to complete one mile of road.
It will take approximately three months to develop, build, and quality test the
anvil support mechanism (ASM).
You should begin the ASM install during the last month of the build cycle,
during quality test. The ASM will take three months to install, and should be
the last item completed on the contract, in Month 6.
Based on past experience, you believe that it will take you two months to paint
the fake tunnel. You will start it one month before the anvil support mechanism
(ASM) begins installation.
The anvil supplier, Acme Anvils, has been a good supplier for you in the past.
The anvil is commercial off-the-shelf equipment. You need delivery one month
before the install is complete.
$1,000
$3,000
$1,500
($1,000)
EV Techniques
BUDGET: $10,000
TIER I MILESTONE
WP# WORK DESCRIPTION
KT AWD
EV METHOD
Procure Anvil
BCWP
BCWS
Build Road
BCWP
BCWS
Build ASM
BCWP
BCWS
Install ASM
BCWP
BCWS
BCWP
Schedule Variance
month
cumulative
Actual Costs
Cost Variance
month
cumulative
KT COMP
EV Techniques
BUDGET: $10,000
TIER I MILESTONE
WP# WORK DESCRIPTION
KT AWD
EV METHOD
BCWS
Procure Anvil
KT COMP
0/100
BCWP
BCWS
2
BCWP
BCWS
3
Build Road
units complete
BCWP
BCWS
Build ASM
500
50/50
Install ASM
v
1,000
1
v
milestone
BCWP
BCWS
600
600
BCWP
Schedule Variance
month
cumulative
Actual Costs
Cost Variance
month
cumulative
600
1,000
2
v
1,000
3
v
500
3,000
500
v
600
1,600
2,100
3,000
BCWP
BCWS
600
% complete
1,000
v
600
500
2,600
500
1,500
v
2,600
500
10,000
EVMS
68
EVMS
More Acronyms!
Apparently, youre
starting to understand this!
69
EVMS
UBUndistributed Budget
= authorized work held at top level until it can be planned in detail
(will eventually have performance measurement)
PMB
MR
Management Reserve
CBB
= PMB + MR
= contract at cost
70
EVMS
UE
L
A
V
CT
A
TR
N
CO
CBB
PROFIT
MGT RESERVE
UB
E
INNE
L
I
SEEL
AA
S
B
T
B
N T
MEEN
E
M
R E
SUUR
A
S
MEEA
E
M
NCCE$
A
N
$
RMMA
O
R
F O
R
F
$
$
PEER
P
CONTROL ACCOUNTS
$
$
$
TIME NOW
time
71
EVMS
Id rather be
doing an IBR
72
EVMS
Did
Didwe
wefully
fullyplan
planall
allwork?
work? Do
Dowe
weunderstand
understandthe
thework?
work?
Do
Dowe
wehave
haveaareasonable
reasonableschedule,
schedule,with
withlogic
logicindicated?
indicated?
Do
Dowe
wehave
haveenough
enoughbudget?
budget?
Are
Arethe
theearned
earnedvalue
valuetechniques
techniquesvalid?
valid?
IsIsthe
theprogram
programmanager
managerpaying
payingattention?
attention?
Bottom
Bottomline:
line: where
whereare
arethe
therisks
risksto
tothe
theprogram?
program?
73
EVMS
Execute!
74
EVMS
75
EVMS
EVMS
Case Study
Part 3
77
Month 1:
Month 2:
Design drawings were completed and signed off ($980)
1 section of road built ($720)
Month 3:
The work package for the fake tunnel was opened ($200)
A labor strike prevented a section of road from being built ($300)
The ASM began to be built, but the unit was not complete ($800)
Month 4:
The tunnel was not completed ($400)
The crew went back on the job, and got paid overtime. 2 road sections built for $1500.
Milestone 2 for the ASM was finally complete. Quality test was pushed out 1 month. ($400)
The install of the ASM was delayed, due to the delay in build.
The anvil was ordered.
Month 5:
The anvil was delivered and final cost was $1,700.
The tunnel was complete ( painted). ($500)
The last section of road was built for $700.
Qual test completed. ($1,900)
The CAM estimated that the install was approximately 20% complete ($400)
Month 6:
Additional work crews were hired, and the installation was completed.
The additional crews cost an additional $1,000. ($2,100 total)
EV Techniques
BUDGET: $10,000
TIER I MILESTONE
KT AWD
KT COMP
MONTH 4
BCWS
1
Procure Anvil
Build Road
Build ASM
BCWP
BCWS
1,500
500
BCWP
BCWS
500
600
50/50
units complete
600
v
600
milestone
BCWP
BCWS
Install ASM
600
600
1,000
1
1,000
1,000
v 2
-
% complete
month
cumulative
Actual Costs
Cost Variance
month
cumulative
500
v
600
1,200
1,000
v 3
1,000
500
v
BCWP
Schedule Variance
TOTAL BAC
1,500
0/100
BCWP
BCWS
4
MONTH 5 MONTH 6
1,500
1,000
500
600
3,000
600
3,000
1,000
500
500
300
1,200
1,500
BCWS
600
1,600
2,100
2,600
2,600
500
10,000
BCWP
600
1,600
500
2,200
3,900
1,200
10,000
EVMS
Control
80
Control
EVMS
So, your project has been baselined and work has started
Is everything going according to plan?
Next step in the process:
BCWS
BCWP
$
time
81
Status Reporting
EVMS
Only ask for the data that you really need and use
can eliminate certain formats
WBS versus organizational reporting
tailor level of reporting to match risk
82
EVMS
Contractor Reports
83
Formats 1 and 2
EVMS
Contents
header:
basic contract information (target, ceiling, name of contractor, etc.)
range of final estimates
body
performance data
variances
budget at completion, estimate at completion
CURRENT
BCWS BCWP ACWP
SV
ELEMENT
ELEMENT
ELEMENT
ELEMENT
ELEMENT
ELEMENT
CV
CUMULATIVE
BCWS BCWP ACWP SV
CV
AT COMPLETION
BUDGET ESTIMATE VARIANCE
WBS or ORGANIZATION
TOTAL
UB
PMB
MR
TOTAL
84
EVMS
Differences
Does not require use of approved management system & criteria
No current period reporting
BCWS and BCWP may be calculated by logical means at higher levels
Application
non-major contracts
85
EVMS
Reform Initiatives
Tailoring
Only ask for the data that you are really going to use
Timing
flash data (early submittal of performance data before
variance analysis)
86
EVMS
Analysis Techniques
or
figuring out where the problems are
87
EVMS
Analysis Techniques
Sort on significant variances
eliminate almost complete, just starting, etc.
what
what are
are the
thedrivers?
drivers?
what
what can
canwe
wedo
doabout
aboutthem?
them?
88
EVMS
WBS
DESCRIPTION
%Spent
CPI
CV
Zepka
28.99
34.09
0.850
Tideman
34.63
41.03
33.67
36.11
Price
85.04
Troop
35.40
Brown
Price
CV
CV % VAC VAC
-296.2 -17.62
-187.2
0.844
-130.8 -18.49
-87.0
0.932
-45.2
-7.26
-36.8
94.35
0.901
-26.4
-10.95
0.0
37.08
0.955
-24.2
-4.75
-24.8
45.70
48.51
0.942
-17.4
-6.16
-3.2
71.62
75.23
0.952
-17.4
-5.03
-30.8
84.18
98.10
0.858
-13.2
-16.54
-16.0
SENSORS
Smith
20.87
21.49
0.971
-10.6
-2.94
-21.6
3600
PCC
3200
COMMUNICATIONS
G&A
2200
SYS ENGINEERING
3800
I&A
2100
PROJ MANAGEMENT
2300
FUNC INTEGRA
5200
3100
10 4000
SPARES
Blair
17.87
18.90
0.945
-7.8
-5.78
-6.2
11 6200
SYSTEM TEST
Hall
60.82
61.66
0.986
-5.6
-1.38
-2.0
12 5100
ENG DATA
Novak
38.51
52.80
0.729
-4.6
-37.10
0.0
13 MR
MGT RESERVE
0.00
0.00
0.0
439.2
14 UB
UNDIST BUDGET
0.0
0.0
15 COM
COST OF MONEY
16 3700
DATA DISPLAY
17 OV
OVERHEAD
18 6100
TEST FACILITIES
19 3500
20 6300
0.0
Troop
41.13
41.13
1.000
0.0
0.0
0.00
0.0
0.0
Smart
100.00
98.02
1.020
0.0
2.0
1.98
0.0
COMP PROGRAMS
Pino
46.46
44.66
1.040
PCC TEST
Bond
23.13
22.64
1.021
3.4
3.87
-1.4
4.2
2.10
21 3400
ADPE
Zepka
41.89
39.79
0.0
1.053
12.6
5.02
4.6
22 3300
AUX EQUIP
Tideman
27.57
24.33
1.133
78.2
11.73
8.4
89
Graphing Techniques
EVMS
P e rc e n t o f D o lla rs
10.0
0%
0.0
-6%
-7%
-10.0
-11%
-20.0
-30.0
BCWS
BCWP
ACWP
CV
SV
7.3
6.9
7.3
-0.5
-0.4
At Completion
KTR
PO
20.8
20.8
20.8
20.8
20.8
23.0
0.0
-2.2
PMB: 20.4
% COMP: 32.9MR: 0.4
KTR MR LRE: 0.0 PO MR LRE: 0.0
COST VARIANCE
CURRENT FUNDING: 10.0
AS OF: JAN 93
SCHEDULE VARIANCE
PO EPC: 24.0
OPR: MR B. TECH
PROJ FUNDING: 23.0
PROGRAM: Mohawk Vehicle
EAC realism
MEGA HERZ ELEC & VEN F04695-86-C-0050 RDPR FPI
Element: 3600
Estimates at Completion
Name: PCC
1992
1993
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
8.0
D o lla rs In M illio n s
Dollars In Millions
0.3 0.6 1.0 1.4 2.2 2.5 4.2 5.6
0.2 0.5 0.9 1.4 2.2 2.7 3.8 5.3
0.2 0.5 0.9 1.5 2.2 3.0 4.2 5.6
0.0 -0.0 -0.0 -0.1 0.0 -0.3 -0.5 -0.3
-0.1 -0.1 -0.1 -0.0 -0.0 0.2 -0.4 -0.3
Cost Drivers, Cause
7.0
graphs
graphsshow
showoverall
overalltrend...
trend...
are
areyou
yougetting
gettingbetter,
better,
or
orworse?
worse?
6.0
5.0
BAC
5.1
LRE
5.4
CUM CPI5.1
5.1
5.4
5.7
5.1
5.4
5.9
5.1
5.4
6.0
5.1
5.5
6.3
5.1
5.5
5.8
5.1
5.5
6.5
5.5
5.7
7.6
5.5
5.7
6.8
5.8
6.0
6.8
90
Analysis of Variances
EVMS
Cost Variance
CV (%) =
SV ($)
BCWP - BCWS
CV ($)
BCWP - ACWP
BCWP - ACWP
BCWP - BCWS
100%
100%
BCWP
91
EVMS
CASE STUDY
Part 4
92
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
total
road
road
drawings
road
tunnel
ASM
road
tunnel
ASM
road
tunnel
ASM
anvil
install
install
$13,300
$700700
$720
$9801,700
$300
$2001,300
$800
$1,500
$4002,300
$400
$700
$500
$1,900 5,200
$1,700
$400
$2,1002,100
EV Techniques
BUDGET: $10,000
TIER I MILESTONE
KT AWD
KT COMP
MONTH 4
BCWS
1
Procure Anvil
Build Road
Build ASM
BCWP
BCWS
1,500
500
BCWP
BCWS
500
600
50/50
units complete
600
v
600
milestone
BCWP
BCWS
Install ASM
600
600
1,000
1
1,000
1,000
v 2
-
% complete
month
cumulative
Actual Costs
Cost Variance
month
cumulative
500
v
600
1,200
1,000
v 3
1,000
500
v
BCWP
Schedule Variance
TOTAL BAC
1,500
0/100
BCWP
BCWS
4
MONTH 5 MONTH 6
1,500
1,000
500
600
3,000
600
3,000
1,000
500
500
300
1,200
1,500
BCWS
600
1,600
2,100
2,600
2,600
500
10,000
BCWP
600
1,600
500
2,200
3,900
1,200
10,000
EV Techniques
BUDGET: $10,000
TIER I MILESTONE
KT AWD
KT COMP
MONTH 4
BCWS
1
Procure Anvil
Build Road
Build ASM
BCWP
BCWS
1,500
500
BCWP
BCWS
500
600
50/50
units complete
600
v
600
milestone
BCWP
BCWS
Install ASM
600
600
1,000
1
1,000
1,000
2
v
-
% complete
v
600
1,200
1,000
v 3
1,000
500
-
1,000
500
600
3,000
600
3,000
1,000
500
500
300
1,200
1,500
BCWS
600
1,600
2,100
2,600
2,600
500
10,000
BCWP
600
1,600
500
2,200
3,900
1,200
10,000
month
-1,600
-400
1,300
700
cumulative
-1,600
-2,000
-700
700
1,700
1,300
2,300
5,200
2,100
month
-100
-100
-800
-100
-1,300
-900
cumulative
-100
-200
-1,000
-1,100
-2,400
-3,300
Actual Costs
Cost Variance
500
BCWP
Schedule Variance
TOTAL BAC
1,500
0/100
BCWP
BCWS
4
MONTH 5 MONTH 6
1,500
13,300
Performance Indices
EVMS
GOOD
COST
COSTPERF
PERFINDEX
INDEX(CPI)
(CPI)== BCWP
BCWP
ACWP
ACWP
1.2
1.1
BAD
1.0
SCHED
SCHEDPERF
PERFINDEX
INDEX(SPI)
(SPI)== BCWP
BCWP
BCWS
BCWS
TIME
CPI
.9
SPI
.8
96
EVMS
Schedule Status
TIME NOW
BCWS
compare
BCWP
SV $
Average monthly BCWS $
97
EVMS
Budget Status
budget
budget status
status
%
%spent
spent == ACWP
ACWP xx 100%
100%
BAC
BAC
compare:
compare:
%
%spent
spent vs.
vs. %
%complete
complete
example:
example:
60%
60%spent
spentvs.
vs.50%
50%complete
complete
98
Variance Explanations
EVMS
99
Significant Variances
EVMS
100
EVMS
(month 5)
CPI and SPI
Variance
VarianceAnalysis
AnalysisReport
Report
1.2
The
Theprogram
programisisnow
now88%
88%complete.
complete. We
We
have
now
spent
$1,200
more
than
our
have now spent $1,200 more than our
original
originalbudget,
budget,primarily
primarilydriven
drivenby
bytwo
two
problems:
problems:
1) building the sections of roads
1) building the sections of roads
(unforeseen
(unforeseengrading
gradingproblems)
problems)
2)2)manufacturing
and
manufacturing andquality
qualitytesting
testingofof
the
theASM
ASM(increase
(increaseininthe
theprice
priceofofraw
raw
stock
and
higher
rates
than
forecast
stock and higher rates than forecastfor
for
quality
qualitypersonnel)
personnel)
0.8
0.6
0.4
CPI
SPI
0.2
0
1
Month
BCWS
1,500
1,000
3,000
3,000
1,000
BCWP
1,500
1,000
3,000
3,000
300
ACWP
1,700
1,100
3,920
4,080
400
9,500
8,800
11,200
Build ASM
Build Road
Procure Anvil
Paint Fake Tunnel
Install ASM
BCWS
3,000
3,000
1,500
1,000
1,000
SV
0
0
0
0
-700
CV
-200
-100
-920
-1,080
-100
-700
-2,400
BCWP
3,000
3,000
1,500
1,000
300
ACWP
4,080
3,920
1,700
1,100
400
We
Weare
areonly
only20%
20%complete
completeon
on
installation,
installation,instead
insteadofofour
ourscheduled
scheduled
66%.
66%. InInorder
ordertotomeet
meetcontract
contractschedule,
schedule,
we
wewill
willhave
havetotoexpend
expendovertime.
overtime. Costs
Costs
will
increase
by
an
expected
$1,000.
will increase by an expected $1,000.
CV %
-13%
-10%
-31%
-36%
-33%
SV
0
0
0
0
-700
CV
-1,080
-920
-200
-100
-100
CV %
-36%
-31%
-13%
-10%
-33%
101
EVMS
performance to date
impact of approved corrective action plans
known/anticipated downstream problems
best estimate of the cost to complete remaining work
also called latest revised estimate (LRE), indicated final cost, etc.
EVMS
BAC
103
EVMS
104
EVMS
Negative VAC:
EAC > BAC
EAC > ceiling
share area
contractor partial loss
overrun contractor loss (100%)
105
Survey says..
EVMS
EAC =
BAC
CPI
106
EVMS
107
EVMS
108
EVMS
EVMS
Forward Look
EVMS
Time now
Cum
CPI
SV$
BCWR
Cum
CV$
Variance
explanatio
n
SPI
ET
C
AC
TCPI-B
avg
3 month
COST HISTORY
TCPI-LRE
Technical risk
Projected varian
ces
COST AVOIDANCE
111
EVMS
CONTROL
ACCOUNT
MANAGER
(CAM)
COST
SCHEDULE
TECHNICAL
Empowered by program manager...
Manage assigned effort:
Technical
Schedule
Cost
Monthly variance analysis
Understand the baseline
GOVERNMENT
CONTROL
ACCOUNT
MANAGER
(GCAM)
112
EVMS
113
EVMS
EVMS
CPR &
SCHEDULE
CPR &
SCHEDULE
CAM
PAPER
GCAM
115
EVMS
116
EVMS
EVMS
118
EVMS
Summary
119
EVMS
Additional References
120
EVMS
SCHEDULE TYPES
Gantt Chart
- Activities Show a Specific Start and Stop Date
Milestone Chart
- Major Event Oriented. Shows Start or Stop Date of Activity
Line of Balance
- Depicts Production Activity. Actual versus Planned Output
Networking
- Identifies and Defines all Activities and Events for a Program
and Links Them in Logical Cause and Effect Sequences
121
EVMS
MILESTONE CHART
GANTT CHART
Program Schedule
A C T IV IT IE S
L
i
n
e
Program milestones
Mo Yr
4
Facility Modification
Equip Integration
Software development
Developmental testing
System testing
Facility mod (opnl site)
NOW
11
TIME (MONTHS)
12
13
Prototype test/evaluation
14
Initial operational
test and evaluation
15
Engineering development
SCHEDULED
ACTIVITY
O N
M A
Type Program
Fiscal year
1986
N
As of June 1986
FY
1988
FY
1987
F
FY
1989
Compl
date
3
Program direction
10
ACTUAL
PROGRESS
Automated
Equipment
Subsystem
Fiscal year
1985
Prior
Schedule
Attachment 3
Now
Attachment 6
NETWORK
80
Contract schedule
(cumulative)
70
1050
U nits
60
90% complete
50
Line-of-balance as of 1 May
40
XXP
0/0
1051
2000
44/0
0/0
BEGIN INITIAL
INITIAL PROGRAM
INITIATE ACQ
PROGRAM DEF
DEF PROCESS
STRATEGY
XXP
XXP
30
20
Actual
delivery
10
1200
0
Month
Contract Schedule
Actual Delivery
15
20
30
52
80
11
14
10
11 12
13
15
16
17
18
19
PROGRAM DEF
20
1250
XXP
4/0
1400
0/0
PMD/F56
DRAFT F/56
RECEIPT
REVIEW/COMMENT
XXP
XXP
Purchased Part
Company Made
Subcontract Part
14
Legend
Date of Study
1 May
6/0
BEGIN INITIAL
Bar
Fabricate fins
1300
Assembly
Assemble air
vehicle body
4/0
DRAFT PAD
REVIEW/COMMENT
2
XXL
Assemble gyro
3
26
25 24
23
22
21
9
Final
assembly
Assemble G&C
components
Test 12
10
19
20 19 18 17 16 15 14 13 12 11 10 9 8 7 6
Work-Days Prior to Shipment - 22 Work-Days per Month.
11
Government
acceptance
Attachment 1
122
EVMS
Category
Definition
Material
Major Material
Cost Subcontracts
123
EVMS
PERFORMANCE STATUS...KEY
THINGS TO TRACK
CV X 100
BCWP
EVMS
Behind Schedule
-
Over Cost
-
EVMS
EVMS
BCWP
ACWP
WORK
ACCOMPLISHED =
ACTUALS
$1000
$2400 = .42
HISTORY
FUTURE
=
$4000
$2600
= 1.54
127
EVMS
BCWP
BCWS
WORK
ACCOMPLISHED
WORK
SCHEDULED
$1000
$2000
= .50
128
EVMS
WORK
= REMAINING =
ESTIMATE
REMAINING
$5000 - $1000
$6400 - $2400 =
$4000
$4000
1.00
reasonable?
=
.42
EVMS
1. Use a single management control system to provide accurate and timely performance data.
2. Integrate the scope of work, schedules, and costs using a common project language, such as a
work breakdown structure.
3. Actual performance at the 15% complete point can be used to predict final performance.
4. Cumulative cost performance index (CPI e) measures efficiency and can be used to predict the final
range of costs.
5. The schedule performance index (SPI) is useful in assessing how much work has been
accomplished.
6. The CPI index provides a statistical basis for a best case final estimate.
7. The CPI and SPI indices may be combined to statistically forecast the most likely final estimate.
8. To Complete Performance Index provides a measure of efficiency required for the future work to
achieve either a specified budget or estimate.
9. The periodic cost performance index for performance (CPI p), calculated by actuals/earned value,
may be used to monitor weekly or periodic production progress.
10. Management should use management by exception to focus on significant variances to the plan
and apply timely corrective actions.
Source: Earned Value Project Management, Quentin W. Fleming & Joel M. Koppelman, Project Management Institute, 1996
130