What is the Value of Earned Value?

1. What is the Value of Earned Value? Paul KidstonProject & Programme Management 20092nd December 2009

2. What is the Value of Earned Value? Speaker Paul KidstonHead of Planning, Vinci Construction UK Ltdpaul.kidston@taylorwoodrow.com Sponsor Steve Wake Projects Ltd 9 Belmont Avenue, Palmers Green, London N13 4HD email: swprojects@blueyonder.co.uk www.swprojects.co.uk Training Courses, Booklets, Consultancy.

3. What is the Value of Earned Value? What is Earned Value? • Management tool • Software tool? • A way of thinking… About WORK

4. What is the Value of Earned Value? Drop Line

5. What is the Value of Earned Value? Networks

6. What is the Value of Earned Value? Critical Path Analysis

7. What is the Value of Earned Value? Activity Weeks

8. What is the Value of Earned Value? Cost Management Budget £ Cost Time

9. What is the Value of Earned Value? Cost Management £ Cost Value Time

10. What is the Value of Earned Value? Cost Management Budget £ Cost Value Time

11. 100 125 60 100 Planned Value Actual Cost Productivity Performance Earned Value What is the Value of Earned Value? £ or m-d Time

12. What is the Value of Earned Value? Performance (SPI) (Earned/Planned) = 95 =95% or 0.95 100 Productivity (CPI) (Earned/Actual) = 95 =90% or 0.90 105

13. What is the Value of Earned Value? Definition A method of comparing what work has been achieved with what you had intended to achieve, and the cost of achieving the work. From this, determining mathematically the performance and expressing this as indices in either man-hour or money terms for both the schedule and the budget. Using these indices to forecast the final outcome – unless some changes are made.

14. 2. WBS 1. Scope 7. Actual Cost 3. OBS 4. Activity 5. Plan 9. Earned Value S e t B a s e l i n e ? 10. Analysis 6. Budget What is the Value of Earned Value? 8. Work Performed C h a n g e C o n t r o l ACTION!!!

15. What are the fundamental questions of… What is the Value of Earned Value? time cost • …a client? no surprises profit cash • …a business? turnover all of the above detail • …a project manager? action

16. How does EV answer these? What is the Value of Earned Value? Certainty of programme position Early Warning and visibility Early = Easier & Cheaper Forecasts Self correcting Likely to be true (except for “events”)

17. What else can EV do? What is the Value of Earned Value? Insights into the project for non participants Suggests corrective actions Using labour rather than £ Promotes Good Practice Team Working and Efficiencies

18. What is the Value of Earned Value? From a study of Taylor Woodrow Projects 2001-2008

19. What is the Value of Earned Value? £28m £11.5 m £16.5 m

20. What are the fundamental questions of… What is the Value of Earned Value? time cost • …a client? no surprises profit cash • …a business? turnover all of the above detail • …a project manager? action

21. Concluding comments What is the Value of Earned Value? Needs the right approach… But not (necessarily) a lot of expense Silver bullet?

22. Concluding comments What is the Value of Earned Value? “EVA is a catalyst for action”

23. What is the Value of Earned Value? Speaker Paul KidstonHead of Planning, Vinci Construction UK Ltdpaul.kidston@taylorwoodrow.com Sponsor Steve Wake Projects Ltd 9 Belmont Avenue, Palmers Green, London N13 4HD email: swprojects@blueyonder.co.uk www.swprojects.co.uk Training Courses, Booklets, Consultancy.