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Evaslides
Evaslides
Today s Situation
Need for accurate and consistent status information Numerous complex (and interrelated) projects
Projects with many WBS activities Virtual offices Diverse technology platforms
Bad news does not age well. Still time to recover Timely request for additional funds
?
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12
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100000
80000
60000
Projected Actual
40000
20000
0 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
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EVA works best when work is compartmentalized . Compartmentalization is best achieved with a wellplanned Work Breakdown Structure. So, how do I create a WBS for a really complex project?
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Division (if necessary) into lower-level Work Packages. Metrics for measuring EV performance
Milestones % complete Other
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(cont.)
Cost incurred to accomplish the work that has been done to date.
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(cont.)
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Cost Variance
= BCWP-ACWP
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Performance Metrics
SPI: BCWP/BCWS 49,000/55,000 = 0.891
Making Projections
Once a project is 10% complete, the overrun at completion will not be less than the current overrun. Once a project is 20% complete, the CPI does not vary from its current value by more than 10%. The CPI and SPI are statistically accurate indicators of final cost results.
Source: Defense Acquisition University
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Making Projections
120000 100000 80000 60000 40000 20000 0 Aug-03 Sep-03 Nov -03 Apr-03 Jan-03 Jun-03 Jul-03 May-03 Dec -03 Feb-03 Mar-03 Oct-03 103865 102000 90882
Today
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Estimate to Complete
140000 120000 100000 80000 60000 40000 20000 0
116,571 102000
Today
No v03
Ja n03
Ju l -0 3 Se p03
M ar -0
Ja n04
03
M ay -
M ar -0
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A New Criteria
Activities earn value as they are completed. The value earned is the WBS budgeted cost of the activity completed to date.
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And what does that mean? ANSI/EIA 748 provides a list of guidelines
Organization Planning, Scheduling, and Budgeting Accounting Considerations Analysis and Management Reports Revisions and Data Maintenance
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Summary
EVA & EVMS will help reduce guesswork in:
Need to get beyond misleading measures of progress. Reasons to use EVA and EVMS:
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