Earned Value Management (EVM) Presented by Scott Letasi, SWFWMD

1. Earned Value Management (EVM)Presented byScott Letasi, SWFWMD Watershed Management Program Consultant Meeting July 19, 2007

2. What is Earned Value Management? EVM is the use of an integrated management system that coordinates work scope, schedule and cost goals, and objectively measures progress toward these goals.

3. Earned Value Management Approach • The basic concept of earned value is to evaluate a project’s health based on the Work Planned, Work Performed, and Dollars Spent.

4. Concept Applied to WMP • Planned Value – Cost and Schedule from the Project Development Task documented in the project Agreement and Work Orders. • Performed (Earned Value) – Task deliverables received and approved by the Districts Project Manager. • Spent (Actual Cost) – Invoiced Amount based on fixed price contract.

5. Earned Value Terminology • BCWS – Budgeted Cost of Work Scheduled • BCWP – Budgeted Cost of Work Performed • ACWP – Actual Cost of Work Performed • BAC – Budget at Completion • EAC – Estimate at Completion • CV – Cost Variance • SV – Schedule Variance • VAC – Variance at Completion

6. Why Earned Value Management?Section 8 of Private Entity Agreements 8. REPORTS. The CONSULTANT will provide the DISTRICT with any and all reports, models, studies, maps or other documents resulting from the PROJECT. Additionally, two (2) sets, electronic and hardcopy, of any final reports must be submitted to the DISTRICT as Record and Library copies. The CONSULTANT must submit a Work Order status report with each invoice to include the Project Manager's assessment of the PROJECT'S actual progress as compared to the approved performance schedule. Details must include any deficiencies and the recovery actions completed and planned.

7. Work Order Status Reports • Status Report (Memo & Table) • Earned Value (Chart) • Deficiencies Report (Text) • Recovery Action Plan (Chart & Text) • Recovery Action Completion Report (Chart & Text)

8. Example Status Report Table – May 2007

12. Performance Indicies • Cost Efficiency CPI = BCWP (EV) / ACWP (AC) • Schedule Efficiency SPI = BCWP (EV) / BCWS (PV) Example: EV = $75k, PV = $100k SPI = $75,000/$100,000 = 0.75 = 75% Efficient

13. Estimate at Completion Based on Cost EAC = Actuals to Date + (Work Remaining / Efficiency Factor) EAC = $75,000 + ($25,000 / 0.75) = $108,333 Based on Schedule EAC = Current Date + (Planned Completion Date - BCWS) / Eff. Factor EAC = 2.8 Months + ( Month 12 - Month 2) / .75 = 16.1 Months

15. Recovery Action Plan Identify what project management practices can be implemented to recover from a SPI < 1. • Increase Level of Effort – Have staff spend 20 hours a week on the project instead of 15 hours. • Increase Manpower – Add additional staff temporarly to the project to complete a task allowing the project to get back on schedule. • Implement aTool – Increase efficiency of a process to reduce the effort and time spent.

17. Work Order Status Reports • Status Report (Memo & Table) • Earned Value (Chart) • Deficiencies Report (Text) • Recovery Action Plan (Chart & Text) • Recovery Action Completion Report (Chart & Text)

18. Discussion / Q&A Contact Information Scott Letasi scott.letasi@swfwmd.state.fl.us (352) 796 -7211 x 4287