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Project Controls and Earned Value

Publicado el 20 de mayo de 2017

Mohammed Azeez Seguir

712 32 149
Planning & Cost Control Engineer

whatisEarnedValue?EarnedValuemeasuresprojectperformancebycomparing
actualworkcompletedandtheactualcostagainstbudgetedworkplanned(atagiven
dateintheprojectschedule).TocalculateEarnedValue,youneedtobeabletocompare
howmuchworkhasbeencompletedagainsthowmuchwasexpectedtobecompletedat
agivenpoint.Togetthat,youneedtohaveanagreedprojectscope,agreedplanned
valueofeachagreedworkpackage,assignedandbudgetedworkpackages,andagreed
progressmeasures.Tocomplicatethingsjustabit,therearemultiplewaysof
calculatingearnedvalue,soyoualsoneedtoagreeonastandardwayofcalculating
earnedvalue,andwhatthatstandardmeans.

Withallofthatagreed,youcanstartyourEarnedValuegraphbylookingatthePlanned
Valuewhichistheamountofworkyouexpecttobecompletedatpointsacross
time.Graphit.Thenastheprojectprogresses,youneedtocalculatetheEarnedValue
bylookingattheamountthatwasactuallyearnedineachperiod.Graphthat.Whenyou
aredonethis,yougetapictureofwheretheprojecthasbeen.Addanothercurve,the
ActualCostsandtheExpectedatCompletion,andyougetareallygoodpictureofwhat
hashappenedontheproject.Youcanalsostarttofocuswheretheprojectwillend
up.Holdontoyourstomach,hereswhatanEarnedValuegraphcanlooklike

So,whatdoesthisreallytellyou?Surprise,youarebehind.Surprise,youreover
budget.Itcouldhelpyoufigureoutwhereyouregoingandhowmuchitwillcostyou.

Overall,herearesomeproblemswiththeEarnedValuegraph:

1.Complicated.ItisverycomplicatedtogettotheultimateoutcomeoftheEarned
Valuegraph,anditisoftenafleetingthing.Ittakesalotofefforttobuildand
maintaintherearviewmirroroftheEarnedValuepicture.Theamountofeffort
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requiredtobuildandmaintaintheEarnedValuegraphtakestimefromcontrolling Volver a LinkedIn.com

theproject.Itisalsocomplicatedtointerpretthegraph.Therearesomanylineson
anEarnedValueReport,itishardforsomeonelikeaProjectStakeholdertoreally
understanditwithoutaninformedprojectmanagerwhocanwalkthemthroughit.

2.Calculationsontopofcalculationsderivednumbers.Togettothe
EarnedValue,youhavetopullnumberstogether,summarizethem,runcalculations
againstthem,andrepresentthemonagraph.Indoingso,youlosethegranularityof
whatisdrivingyourproject.Youcantreflectbackonachangerequestthatcaused
youtorunover,akeyitemthatdidntarriveontime,acontractorthatcausedan
accident,coldandsnowyweatherthathitinJune,andsoon.

3.Tellsyouthatyouareoverbudgetandlatebutyoualready
knewthat.Yup,ifyouareoverbudgetandlate,andyouknowenoughabout
what'swhattoactuallymakeanEVgraph,wellyoualsoknowthatyouareover
budgetandlate.Ontheotherhand,intherarecasethatyou'reareonbudgetandon
time,youknowknowthattoo.TheEVgraphjustmakesithighlyvisibleandkeeps
youfrombeingindenial.

4.Maturity.IfyouveeverreadupontheCapabilityMaturityModelorother
similarmodels,youllknowthattrackingmetricslikeEarnedValueareonly
valuablewhenyouareatthetopendofaCMM.Atthelowerlevels,whenyouare
inanInitial,Managed,orevenaDefinedmaturity,applyingmetricslikean
EarnedValueshowsonlythatyoucancreateagraph.Itdoesnthelpyouunderstand
repeatableperformanceacrossprojectsorportfolios.

5.Itisntprescriptiveastowhatneedstobefixed.Becausethispictureis
derivedbyrollingdatauptoahigherlevel,thensummarizingnumbersandrunning
calculationsonthem,youcantseetheindividualproblemsthatarecausingyouto
belateandoverbudget.Theonlywayyougettothatinformationisifyoucanlook
atindividualprojectfacts,timing,trends,andforecast.TheFactsaretheraw
numbersandbusinessprocessesonyourprojectlikeaChangeRequestoran
IncidentReport.TheTimingreflectsanyagingordelaysonthebusiness
processesthatultimatelycancausetheprojecttorunlate.TheTrendsareaviewof
theimpactsofseveralrelateditems(likeChangeRequests)whichshowstheoverall
impactofthegroupofitems.Lookingtothedetailsofthefacts,timing,andtrends
willhelpaProjectControlleractuallycontroltheprojectandincreasethelikelihood
ofasuccessfulproject.

Dontgetmewrong.TheEarnedValueReport&Graphhasitsplace.Itjustisntthe
onlything,oreventhemostimportantthing,thataProjectControllershouldbedoing.

TheEarnedValueReportshouldbetheoutcomefromanintegrated,automated,and
collaborativeprojectcontrolssystem.ProjectControllersshouldspendtheirdays
respondingtoalerts,dashboards,andreportsthathelpthemquicklyunderstand
exceptionsthatneedtobeactioned.WhenaProjectControllertakesactionto
resolveexceptionsinthefacts,timing,andtrends,theControllerwillbecausing
betterresultsontheEarnedValueGraph.

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TheEVReportitselfshouldflowautomaticallyfromtheintegrated,automated,and Volver a LinkedIn.com

collaborativeprojectcontrolssystem.TheProjectControllershouldonlyhaveto
pressabuttontogeneratethereport.ThisgivestheProjectControllertimeto
identifyandactionexceptions,inordertodrivetheprojectforwardtoasuccessful
completion.

Finalthought...TheEVreportishelpfultoaProjectControllerasamechanismto
explainwhatishappeningontheprojectandwhereitisgoing.However,it'svalue
improvesgreatlyifyoucanactuallydiginandunderstandthedetailsofwhatis
happeningontheprojectandtakeactionstomaketheprojectbetter

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Mohammed Azeez
Planning & Cost Control Engineer Seguir
6 artculos

32 comentarios Ms reciente

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Graeme Pink 2d
Business, Programme & Project Improvement
One of many methods for measuring progress, to inform action, to manage the outcome. In a process
where one-size does not fit all.
Recomendar Responder 1

Stephen Ashford 2d
International Real Estate Development. Built-Form, Landed and Legacy Assets
Budget At Completion is bit of an oxymoron - budget is budget. Its a constant.
Recomendar Responder 1

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