EMVS Made Simple

1. GenNext
25 July 2012
https://share.ps.net/fndr/EQS/Project%20Management%20Instant%20Oatmeal/default.aspx?Calenda
rDate=11%2F5%2F2010

2. EVM Made Simple
by Forrest Kovach

3. Earned Value
Management
Made Simple
“Earned Value Management has proven itself to be one of the most
effective performance measurement and feedback tools for
managing projects.” - PMI
3 Confidential Dell Services

4. It is called “Project Management with the
Lights On” - PMI
• Answers Questions:
– How effectively are we using our time?
– Are we currently over or under budget?
– What is the entire project likely to cost?
– Is the project anticipated to complete over or under budget?
• Pinpoints Difficulties
– Road Blocks
– The Magnitude of the Problem
4 Confidential Dell Services

5. It is called “Project Management with the
Lights On” - PMI
• Drives Schedule Performance
– Poor performance indices drive inquires
– Inquires identify roadblocks
– Illuminating roadblocks leads to elimination of impasse or work around
– Keeping the project moving while time and charges are burning
• Drives Cost Performance
– Poor performance indices drive inquires
– Reviewing actuals against planned value
– Unassigned charges
5 Confidential Dell Services

6. Puts Pressure on Measurable
Accomplishments
• What is measured gets done
• Quality comes first
• Performance comes next
• Plan is usually baselined against an aggregate parametric estimate
6 Confidential Dell Services

7. It is instrumentation for Project
Management
• Flying without instruments is dangerous
• Managing projects with out performance measurement is disastrous.
• Do not dismiss the EV measurement as inaccurate, any gauge is
better than none.
7 Confidential Dell Services

8. Project Actuals without EVM is Inconclusive
• Actuals alone do not communicate how much work is accomplished
during the project.
• EVM is needed to measure performance objectively.
• Brief Timeline
– 1967, the Department of Defense established the Cost/Schedule Control
Systems Criteria (C/SCSC)
.
– 1989, EVM is required for most Defense and NASA Acquisitions.
› Added needed controls for cost plus contracts
– Construction industry adopts EVM.
– 1999 Project Management Institute (PMI) creates the College of
Performance Management.
– 2002 EVM receives attention by publicly traded companies in response
to the Sarbanes-Oxley Act.
8 Confidential Dell Services

9. Key EVMS Terms
• Planned Value (PV)
• Earned Value (EV)
• Actual Cost (AC)
• Schedule Variance = EV – PV (to date)
• Budget at Complete (BAC)
• Schedule Performance Index (SPI) = EV / PV
– Answers what % of the planned work was completed to date
– > 1 great
– < 1 below optimal
9 Confidential Dell Services

10. Key EMVS Terms
• Cost Performance Index (CPI) = EV / AC
– Answers how effectively are we using our resources?
– > 1 great
– < 1 below optimal
• Analytical Estimate at Complete (EAC)
– Uses CPI to forecast resource efficiency
– Uses SPI to forecast future schedule performance
– EAC = AC + ((BAC – EV) / (CPI * SPI))
10 Confidential Dell Services

11. Putting EVMS to Work
• Baselined Microsoft Project Plan (MPP) file
Baseline
Unique ID Name Resource Names
Work
16514 Firewall 280h
16515 Initial Assessment 40h Network Engineer[50%]
16518 Routing on DMZ/MDMZ to Reach Client Firewalls 16h Network Engineer[50%]
16526 Best Practices Configuration 24h Network Engineer[50%]
16519 DMZ nats IP Re-Addressing Plan (When Servers are All Up) 56h Network Engineer[50%]
16520 Software Upgrade 24h Network Engineer[50%]
Configure Standard Access from Firewall Leverage Team Servers (Need MPLS
16521 32h Network Engineer[50%]
connection, dedicated circuit to PTC)
16522 Add TACACS Authentication 8h Network Engineer[50%]
16523 Setup Firewall Logs 16h Network Engineer[50%]
16524 Add Monitoring to Firewalls (Needs OPAS) 24h Network Engineer[50%]
16525 Add Firewalls to Voyence (Backup Tool) 16h Network Engineer[50%]
16527 Transition FWs to Firewall Leverage Team (After Go-Live) 40h Network - Transition SME
16719 End User Computing (EUC) Onsite Design and Deployment 302h
16720 EUC Design 172h
16802 Build machine specific drivers into image 40h POC EUC
16803 Operating System patches and updates 20h POC EUC[50%]
16804 Package and script additional software packages (per) 20h POC EUC[50%]
16805 Desktop look and feel (EUC Design Complete) 12h POC EUC[50%]
16806 Run machine consistently 20h POC EUC[50%]
16807 Test driver, office apps and OS integrity 20h POC EUC[50%]
16808 Open and test additional applications 20h POC EUC[50%]
16809 Replicate Test Image to distribution shares 20h POC EUC[50%]
16754 EUC Deployment (PC's, Displays) 130h POC EUC[25%]
11 Confidential Dell Services

12. MPP Task Settings
• Fixed Work
• Duration increases will not increase estimated hours
• Assumes duration increases are due to delays
• Completed tasks earn baseline hours as actual hours when
completed
12 Confidential Dell Services

13. MPP Setting for Project Summary Task
13 Confidential Dell Services

14. MPP Task Usage View
14 Confidential Dell Services

15. MPP Time Phased Data
• Status File
• View – Task Usage – Line 0
• Set Scale to Weeks or Months as Desired
• Right Click to Display both Base and Actual Work
• Actuals are earned by completing planned work
• We are using MPP Actual Work as Earned Value (EV)
15 Confidential Dell Services

16. Transfer Time Phased Data to Excel
• Create Matching Timescale in Spreadsheet
28- 12- 19- 26- 2- 16- 23- 30- 20-
Monday Week Start Nov 5-Dec Dec Dec Dec Jan 9-Jan Jan Jan Jan 6-Feb 13-Feb Feb 27-Feb 5-Mar 12-Mar 19-Mar 26-Mar 2-Apr
18- 25- 8- 15- 22- 29-
Sunday Week End 4-Dec 11-Dec Dec Dec 1-Jan Jan Jan Jan Jan 5-Feb 12-Feb 19-Feb26-Feb 4-Mar 11-Mar 18-Mar25-Mar 1-Apr 8-Apr
Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130h
EV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h
• Replace all h units with Blank so Excel will use the
values as numbers
16 Confidential Dell Services

17. Get Actual Hours
• From PeopleSoft
• Other Sources for Offshore or Legacy Dell
• Combine Actual Hours
• From Financial Analyst
• Filter for Weekly Totals
• Team Must Record Weekly Time
17 Confidential Dell Services

18. PeopleSoft Data
ID Name Financial Depar DeptID Rpt Dt Quantity TRC PC Bus Unit Proj/Grt ActivityID
109767 PRSER01 Q18A12A00Z 5/1/2012 8.000000 RGR CORP PERMS00100 PROJMGMT
109767 PRSER01 Q18A12A00Z 5/2/2012 8.000000 RGR CORP PERMS00100 PROJMGMT
109767 PRSER01 Q18A12A00Z 5/3/2012 8.000000 RGR CORP PERMS00100 PROJMGMT
109767 PRSER01 Q18A12A00Z 5/4/2012 8.000000 RGR CORP PERMS00100 PROJMGMT
52260 GFISS01 B5A2A0000Z 5/2/2012 2.000000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/3/2012 1.000000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/4/2012 0.500000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/8/2012 0.500000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/9/2012 0.500000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/10/2012 2.000000 RGR CORP PERMS00100 INFOASSUR
52260 GFISS01 B5A2A0000Z 5/11/2012 2.000000 RGR CORP PERMS00100 INFOASSUR
50176 PRSER01 Q18A12C50Z 5/1/2012 1.000000 RGR CORP PERMS00100 SERVICEDESK
50176 PRSER01 Q18A12C50Z 5/2/2012 8.000000 RGR CORP PERMS00100 SERVICEDESK
50176 PRSER01 Q18A12C50Z 5/3/2012 2.000000 RGR CORP PERMS00100 SERVICEDESK
50176 PRSER01 Q18A12C50Z 5/4/2012 1.000000 RGR CORP PERMS00100 SERVICEDESK
50176 PRSER01 Q18A12C50Z 5/7/2012 1.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/1/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/2/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/7/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/8/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/9/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/10/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
90337 GMEND01 Q18C9C000Z 5/11/2012 4.000000 RGR CORP PERMS00100 SERVICEDESK
112191 GFBUP01 QA8F00000Z 5/1/2012 4.000000 RGR CORP PERMS00100 PROJMGMT
112191 GFBUP01 QA8F00000Z 5/2/2012 4.000000 RGR CORP PERMS00100 PROJMGMT
18 Confidential Dell Services

19. Transfer Time Phased Data to Excel
• Input Actual Hours
28- 12- 19- 26- 2- 16- 23- 30- 20-
Monday Week Start Nov 5-Dec Dec Dec Dec Jan 9-Jan Jan Jan Jan 6-Feb 13-Feb Feb 27-Feb 5-Mar 12-Mar19-Mar 26-Mar 2-Apr 9-Apr 16-Apr 23-Apr
11- 18- 25- 8- 15- 22- 29- 26- 25-
Sunday Week End 4-Dec Dec Dec Dec 1-Jan Jan Jan Jan Jan 5-Feb 12-Feb19-Feb Feb 4-Mar 11-Mar18-Mar Mar 1-Apr 8-Apr 15-Apr 22-Apr 29-Apr
Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130h 89h 145h 364h
EV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h 78h 125h 341h
Actual hrs 1,265 187 187 188 202 239 178 213 236 261
Base Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,638 1,817 1,957 2,118 2,236 2,354 2,484 2,573 2,718 3,082
EV Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,627 1,795 1,925 2,078 2,185 2,291 2,410 2,489 2,614 2,955
Actual Cum hrs 1,265 1,452 1,639 1,827 2,029 2,268 2,446 2,659 2,895 3,156
SPI 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.99 0.99 0.98 0.98 0.98 0.97 0.97 0.97 0.96 0.96
CPI 1.24 1.17 1.14 1.08 1.01 0.99 0.94 0.90 0.94
SV hrs. 0 0 0 0 0 0 0 0 0 0 0 0 -11 -11 -11 -9 -11 -11 -11 -11 -20 -23
EAC hrs. 8,441 8,919 9,230 9,777 10,448 10,734 11,328 11,790 11,377
VAC hrs. +is below budget 1,895 1,417 1,106 559 -112 -398 -992 -1,453 -1,041
• May need to combine several sources
19 Confidential Dell Services

20. Create Formulas for Analysis
28- 12- 19- 26- 2- 16- 23- 30- 20-
Monday Week Start Nov 5-Dec Dec Dec Dec Jan 9-Jan Jan Jan Jan 6-Feb 13-Feb Feb 27-Feb 5-Mar 12-Mar19-Mar 26-Mar 2-Apr 9-Apr 16-Apr 23-Apr
11- 18- 25- 8- 15- 22- 29- 26- 25-
Sunday Week End 4-Dec Dec Dec Dec 1-Jan Jan Jan Jan Jan 5-Feb 12-Feb19-Feb Feb 4-Mar 11-Mar18-Mar Mar 1-Apr 8-Apr 15-Apr 22-Apr 29-Apr
Base hrs 34h 57h 59h 80h h 61h 128h 199h 239h 117h 185h 327h 153h 179h 140h 162h 118h 118h 130h 89h 145h 364h
EV hrs 34h 57h 59h 80h 61h 128h 199h 239h 117h 185h 327h 143h 168h 130h 153h 107h 107h 119h 78h 125h 341h
Actual hrs 1,265 187 187 188 202 239 178 213 236 261
Base Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,638 1,817 1,957 2,118 2,236 2,354 2,484 2,573 2,718 3,082
EV Cum hrs 34 91 150 230 230 290 418 617 855 972 1,158 1,485 1,627 1,795 1,925 2,078 2,185 2,291 2,410 2,489 2,614 2,955
Actual Cum hrs 1,265 1,452 1,639 1,827 2,029 2,268 2,446 2,659 2,895 3,156
SPI 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.99 0.99 0.98 0.98 0.98 0.97 0.97 0.97 0.96 0.96
CPI 1.24 1.17 1.14 1.08 1.01 0.99 0.94 0.90 0.94
SV hrs. 0 0 0 0 0 0 0 0 0 0 0 0 -11 -11 -11 -9 -11 -11 -11 -11 -20 -23
EAC hrs. 8,441 8,919 9,230 9,777 10,448 10,734 11,328 11,790 11,377
VAC hrs. +is below budget 1,895 1,417 1,106 559 -112 -398 -992 -1,453 -1,041
• Base Cum = Base Cum Last Week + Base Hours Current Week
• EV Cum = EV Cum Last Week + EV Hours Current Week
• Actual Cum = Actual Cum Last Week + Actual Hours Current Week
• SPI = Cum EV Hours / Cum Base Hours
• CPI =Cum EV Hours / Cum Actual Hours
• SV = Cum EV Hours - Cum Base Hours
• EAC = Cum Actual + ((Cum Planed Hours- EV Hours)/(SPI*CPI))
• VAC = Cum Hours at Complete – EAC
20 Confidential Dell Services

21. Graph Result for Analog Communication
21 Confidential Dell Services

22. Conclusions
• Implement Weekly EVM on Projects
• Focus on Indices will Spot Concerns
• Concerns will Drive Performance
• An EVM Adherence Cycle will Increase Company:
– Performance
– Utilization
– Profits
– And crank out projects with more horsepower than ever!
22 Confidential Dell Services

23. Why EVMs and Metric Tools
• When SPI variances occur drill into Microsoft Data for Late tasks.
– Tasks baselined in the past with Start or Finish Variances
• When CPI variances occur review labor charge details where hours
are charged and not earning as much Earned Value in Microsoft
Project Tasks.
• Look for a common cause or theme to Identify and take corrective
action
• Data is only data if it is not acted upon.
23 Confidential Dell Services

24. Questions?
24 Confidential Dell Services

25. Contact
Information for
Inquiries or
Assistance
Forrest Kovach, MBA, PMP, MCTS-Project
Project Management Senior Advisor
Dell | Services
office +1 972 577 4744
cell +1 972 693 7706
Dell Inc. Plano Campus, 2300 W. Plano
Parkway, Plano, TX 75075
25 Confidential Dell Services

26. Thank you