Earned Value Management theory and its application on practice at CERN and JINR.

1. Earned Value Management theory and its application on practice at CERN and JINR. Dmitry Kekelidze Software Engineer JINR – LIT/ CERN - GS-AIS

2. Agenda • EVMS concepts • NICA project • EVM web-based application

3. What is EVM? EVM is the project management tool... Are we there yet? How much longer before we’ve arrived? What can we do about it?

4. EVMis • performance measurement • how am I doing against my baseline plan? • performance management • what do I need to do to bring the project in on cost • and schedule?

5. Example: making this presentation • Preparation • Research Topic • Decide on Structure • Make Slides • EVM Basics • EVM Advanced • NICA Intro • Conclusion • Finishing up • Trial Presentation • Implement Feedback

6. Project: making the presentation Research Presentation template Start slides EVM Basics EVM Advanced Agenda Conclusion NICA Intro cost Slides ready Reshuffle Dry run time

7. What is this mysterious Earned Value ? What is an honest measure for what is achieved?

8. Project: making the presentation Research Presentation template Start slides EVM Basics EVM Advanced Agenda Conclusion NICA Intro Slides ready cost Reshuffle Dry run time

9. EVM Concepts • Main metrics :

10. How is our project doing? $ Budget Planned Value Cost Actual Cost Achievement Earned Value now time • Are we ahead or behind schedule? • Are you getting value for money? • Did you spend money on the right things?

11. What happens? $ Planned Value Actual Cost Earned Value now time Underspending but ...

12. What happens ? $ Planned Value Earned Value Actual Cost now time Underspending but ...

13. SV < 0 SV > 0 CV < 0 CV > 0 EVM Concepts $ PMR Project Management Reserve BAC: Budget At Complete PV AC CV = EV – AC Cost Variance SV = EV – PV Schedule Variance EV now project start project end time

14. Earned Value: Cheat Sheet

15. Estimated Cost at Completion $ EAC now time

16. Benefits of EVM • Requires development of integrated baseline • Results in better project definition and planning • Early identification of trends and problems • Accurate picture of project status • Cost, schedule, and technical • segregation of schedule and cost variances • Projection of final costs • Project control by the team • Enables project manager to make informed decisions based on facts • Results in successful projects • On time, on cost

17. Example: software development Requirement 100h Architecture 100h Design 100h Code 200h Testing 100h

18. Example: execution plan

20. PMBOK

21. Terminology • WBS: Work Breakdown Structure, hierarchical list of all the activities to be performed to complete the project. • Workunits: The “Leaves” of the WBS tree. Activity small in size/duration, under responsibility of one person. • Workunits use Resources (money, people) to produce Deliverables

22. Where can EVM be Applied? • EVM suitable for projects that have: • Clear definition of work scope • Project schedule range from a few months to many years • Small to very large cost

23. What is a large-scale project? • Technically complex and demanding, • i.e. that cannot be fully specified in the front-end phase; • Long makespan: economic effects like inflation • Involving many contributors, contractors, suppliers... • i.e. many activities that are outsourced, result-oriented.

24. Agenda • EVMS concepts • NICA project • EVM web-based application

25. NICA

26. NICA Is NICA large-scale project? • Work planned for period from year 2012 till 2017 • Estimated cost is more than 100M $ • Tasks to complete: • General Infrastructure • Accelerator • MPD Detector • All the work have to be well coordinated

27. LHC Accelerator and Detectors

28. Project audit of 2001 • 18% overspend announcement … only • Technical Coordinator → “the project is behind schedule” • Project Administrator → “the project is under-running” • LHC Team: not is position to demonstrate that the project could be completed within allocated budget! Member States asked the LHC Project Management to set up a formal Project Control System

29. The key requirements • EVM-based project control system • Deliverable-oriented physical progress monitoring • Interfaced to accounting systems, to get accurate information on actual costs • Excel spreadsheets to interact with DBs • Web-based

30. Why a D-O EVMS? An activity of the project Activity not started Progress 0% Activity half-way Progress 50% Activity almost done Progress 90% Activity completed? Progress 90%! 90%-syndrome

31. Outcome of EVM experience… • Re-established trust • Cost and Schedule Review Committee: ‘world class’ • CERN management was formally congratulated by Member States • Further overruns were discussed in the context of proven project control. • Project culture at CERN and cost awareness of project engineers have improved.

32. Agenda • EVMS concepts • NICA project • EVM web-based application

33. Data Definition • Resources • Personnel • Material WBS Workunits Deliverables • Web interface • Excel files

34. Collaborative tool Reminders for progress reporting

35. Dynamic Reports • Crosstab to drill drownthrough the WBS structure (or other dimension…) • PV, EV, AC Chartsatevery WBS level

36. Conclusion • Objectively measures performance of the project as it moves from project initiation through project closure. • Provides early warning of potential project adverse performance. • Shows Opportunity associated with positiveschedule variance. • Enables the management of risk associated with underwriting or insuring against negative schedule variance. • Provides a means to forecast future performance based upon past performance.

37. Спасибо! Dmitry.Kekelidze@cern.ch Questions?