Humphreys &Associates, Inc.

Transcription

1 Humphreys &Associates, Inc N. Tustin Street, Suite 250 Orange, CA (714) (Phone) (714) (Fax) No portion of this material covered by the copyrights hereon may be duplicated, reproduced, distributed, or copied in any form, or by any means - graphic, electronic, or mechanical, including photocopying, recording, taping, printing, or information and retrieval systems without written permission of Humphreys & Associates, Inc. The following material is copyrighted by Humphreys & Associates, Inc Portions of the following material are also copyrighted by Arthur Andersen & Co All rights reserved.

2 Earned Value Management Refresher Gary C Humphreys Humphreys & Associates, Inc. January 21, 2012 Humphreys & Associates, Inc

3 Earned Value Management System (EVMS) Guidelines ANSI/ EIA Standard 748-B Government-accepted, Industry-wide standard for Earned Value Management Systems The EVMS Guidelines set forth the capabilities that a good Earned Value Management System should possess Contractors internal systems must meet these guidelines to be considered acceptable by the procuring agency Humphreys & Associates, Inc

4 Planned Value Versus Actual $ Total PV Cost Time Now Planned Value Actual Cost TIME 4815

5 Overrun or Ahead of Schedule? Total PV Time Now Ahead of schedule? Planned Value $ Overrun? Actual Cost TIME 9277

6 What Has Been Accomplished? Tests performed Design review performed Lines of code designed/coded/tested Drawings completed Reports delivered Units delivered Humphreys & Associates, Inc

7 Planned Accomplishment Budget $ Called Planned Value (PV) TIME 9279

8 Earned Value 100 % Task 1 0 % Task 2? Task 3 Time 9280

9 Planned versus Actual Accomplishment $ Earned Value Time Now TIME Planned Value 9281

10 Planned versus Actual Accomplishment Time Now $ Planned Value Earned Value Time 9282

11 What s Been Accomplished? What Did It Cost? Time Now $ Actual Cost Earned Value TIME Humphreys & Associates, Inc

12 What s Been Accomplished? What Did It Cost? Time Now $ Earned Value Actual Cost TIME 0040

13 Earned Value Is A Good Approximation PV $ Planned Value Actual Cost Earned Value AC EV TIME 9283

14 Cost Variance Planned Value $ Actual Cost Earned Value Cost Variance Time 9284

15 Schedule Variance Planned Value $ Actual Cost Earned Value Schedule Variance Time 9286

16 Cost & Schedule Impacts Projected Cost Overrun EAC $ Actual Cost Planned Value Earned Value BAC Projected Schedule Slippage TIME Humphreys & Associates, Inc

17 Planned Value versus Actual Cost Technical: Build a brick wall six feet high, two feet wide, and sixteen feet long Schedule: Four days Cost: Four people at $250 each for four days $ 4,000 Materials $ 6,000 Total planned cost $10,

18 Planned Value versus Actual Cost Cost Element Labor Material Total Time (in days) One Two Three Four $1,000 $1,000 $1,000 $1,000 $6, $7,000 $1,000 $1,000 $1,000 The Plan Total $4,000 $6,000 $10,

19 PV $7,000 Planned Value versus Actual Cost Day One AC $7,200? PV $8,000 Day Two AC $8,500? Day Three Day Four PV $9,000 AC $9,500? PV $10,000 AC $10,500? 9294

20 Planned Value versus Actual Cost PV $10,000 Day Five AC $11,

21 A Comparison Between Planned Value versus Actual Cost and Earned Value Technical: Schedule: Cost: Build a brick wall six feet high, two feet wide, and sixteen feet long Four days Four people with hand tools assigned for four days at a planned cost of $250 per day per person: Total planned labor: $4,000 Materials for the brick wall delivered on site prior to the start of construction include mortar, bricks, reinforcing, lumber and concrete: 6,000 Total planned material $ Total planned cost $10,

22 Planning Using Earned Value Cost Element Labor Material Total Time (in days) One Two Three Four $1,000 $1,000 $1,000 $1,000 $500 $2,000 $2,000 $1,500 $1,500 $3,000 $3,000 $2,500 Material: $6, feet First day 0.5 feet = $ 500 Second day 2.0 feet = $2,000 Third day 2.0 feet = $2,000 Fourth day 1.5 feet = $1,500 Total $4,000 $6,000 $10,000 Total 6.0 feet = $6,

23 Detailed Planning For Day One Using Earned Value Task Schedule Excavate footing Labor 1/4 day PV 250 Form work and supports Labor 1/4 day Material $50 Pour foundation Labor 1/4 day Material $150 PV 300 PV 400 Construct 0.5 feet of brick wall Labor 1/4 day Material $300 Total planned value Labor $1,000 Material $ 500 $1,500 PV

24 Earned Value After Day One Task Schedule Excavate footing Labor 1/4 day 250 (PV) 250 (EV) 300 (AC) Form work and supports Labor 1/4 day Material $50 Pour foundation Labor 1/4 day Material $150 Construct 0.5 feet of brick wall Labor 1/4 day Material $ (PV) 400 (PV) 300 (EV) 300 (AC) Concrete curing 400 (EV) 650 (AC) 550 (PV) 0 (EV) 0 (AC) Planned Value (PV) Earned Value (EV) Actual Cost (AC) Excavate $ 250 $ 250 $ 300 Forms Foundation Brick Wall Total $1,500 $ 950 $1,

25 Earned Value Day One Plan Actual Planned Value $1,500 Planned Value (PV) $1,500 Earned Value (EV) $ 950 Actual Cost (AC) $1,250 ($550) SV ($300) CV 9300

26 Earned Value $12,000 $10,000 Time Now Day 1 Graphics EAC BAC Target $8,000 PV $6,000 $4,000 $2,000 AC EV $0 Award One Two Three Four Five Six TIME (DAYS) 9301

27 Earned Value Day Two Plan Actual Planned Value $4,500 Planned Value (PV) $4,500 Earned Value (EV) $4,500 Actual cost (AC) $4,500 ($0) SV ($0) CV 9303

28 Earned Value $12,000 $10,000 EAC Day 2 Graphics Time Now Target BAC $8,000 $6,000 PV $4,000 $2,000 AC EV $0 Award One Two Three Four Five Six TIME (DAYS) 9306

29 Earned Value Plan Day Three Actual Planned Value $7,500 Planned Value (PV) $7,500 Earned Value (EV) $4,500 Actual cost (AC) $5,500 ($3,000) SV ($1,000) CV 9307

30 Earned Value $12,000 $10,000 Day 3 Graphics Time Now Target EAC BAC Projected $8,000 $6,000 $4,000 EV PV AC $2,000 $0 Award One Two Three Four Five Six TIME (DAYS) 9309

31 Earned Value Plan Day Four Actual Planned Value (PV) $10,000 Earned Value (EV) $ 7,500 Actual cost (AC) $ 8,500 ($2,500) SV ($1,000) CV 9310

32 Earned Value $12,000 $10,000 Day 4 Graphics Time Now EAC BAC Target Projected $8,000 $6,000 PV AC $4,000 EV $2,000 $0 Award One Two Three Four Five Six TIME (DAYS) 9311

33 Earned Value Day Five Planned $10,000 Actual $11,000 Planned Value (PV) $10,000 Earned Value (EV) $10,000 Actual cost (AC) $11,000 ($0) SV ($1,000) CV 9312

34 Earned Value $12,000 $10,000 Day 5 Graphics EAC BAC Target Time Now Projected $8,000 $6,000 PV AC $4,000 EV $2,000 $0 Award One Two Three Four Five Six TIME (DAYS) 9313

35 DOE project summary Work Breakdown Structure with contract WBS(s) WBS Element Energistic Unit Graded Land ~ Roads and Walks Improved Land Fences ~ ~ Parking Lots ~ ~ 1.1 Site Buildings Building # Handling Equipment Structures Building # Processing Equipment ~ ~ 1.1. Utilities ~ ~ Building # 3 ~ ~ ~ ~ Excavations Piling Foundation and Substructure Sublevel Slabs Superstructure and Finishing ~ Ground Level Slabs 0087

36 600 Mw Fossil Unit Level 1 Boiler Plant Equipment Turbine Generator Equipment Accessory Electrical Equipment Level 2 Structures And Improvements Miscellaneous Power Plant Equipment Project Services Humphreys & Associates, Inc

37 Boiler Plant Equipment Level 2 Steam Generator Feed- Water System Wet Ash Handling System Level 3 Condensate System Plant Fire Protection Equipment Chemical Wash System Coal Handling System Nitrogen System Vent And Drain System 0823

38 Coal Handling System Level 3 Unloading System Conveying System Level 4 Storage and Preparation System Dust Collection System 0824

39 Storage and Preparation System Level 4 Stocking And Reclaiming Equipment Primary Crushers Level 5 Secondary Crushers Silos And Bunkers 0825

40 Work Definition Work Breakdown Structure WBS DICTIONARY Humphreys & Associates, Inc

41 WBS Dictionary Contract Work Breakdown Structure Index Program: RFP NO: Contract No.: Contract Plan No. DATE: CWBS CODE CWBS ELEMENT NAME CWBS DEFINITION Humphreys & Associates, Inc

42 Sample Organization Structure Resident Construction Manager Labor Relations Manager Of Technical Services Site Office Manager Project Construction Supervisor Quality Control Manager Chief Of Cost and Schedule Chief Construction Engineer Material Control Manager Construction Equipment Supervisor Boiler Superintendent Turbine Superintendent Accessory Electrical Superintendent Safety And Security Payroll And Accounting Welding Engineer Quality Control Inspectors Cost Engineer Boiler Engineer Field Procurement Scheduling Boilermaker Supervisor Mill Wright Supervisor Electrical Supervisor Planning and Scheduling Engineer Turbine Engineer Warehousing Maintenance Instrument Supervisor Instrument Supervisor Instrument Supervisor Accessory Electrical Engineer Receipts And Distribution Piping Supervisor Piping Supervisor Specialty Supervisor Civil Supervisor Civil Supervisor 0843

43 Responsibility Assignment Matrix and Control Account Structure Contract Work Breakdown Structure Contract Engine Training Fan Compressor Turbine Fan Assembly Full Scale Fan Rig Minor Fan Rig Dual Spool Compressor Rig Test Case Assembly Rotor Assembly Stator Assembly Company Engineering Design Mechanical Design Control Account Control Account Manufacturing Analytical Design Drafting and Checking Control Account Control Account Control Account Account Control Account Work Packages Planning Packages Humphreys & Associates, Inc

44 Planning & Budgeting Establish the baseline - an iterative 3 - step process 1. Define the Work Contract Budget Base Management Reserve 2. Schedule the work $ Performance Measurement Baseline (PMB) 3. Allocate budgets Humphreys & Associates, Inc Time 0142

45 Estimating Is Tied To Scheduling $ $ $ $ $ $ $ $ Humphreys & Associates, Inc

46 Budget Summary Functional Organizations Work Breakdown Structure Functional Organizations 1.0 Total Program Organization Budgets Top Level Organization Organization A Org. A Organization A Organization A3 4 4 Organization B Org. B Organization B Org. C Organization C WBS Element Budgets Undistributed Budget (UB) 5 Performance Measurement Baseline (PMB) 90 Management Reserve (MR) 10 Contract Budget Base (CBB) 100 Humphreys & Associates, Inc

47 By Providing A Time-Phased Budget for Each Control Account Control Account Task 1 Schedule $ Resources $ 2 $ $ 3 $ $ Total $ $ Humphreys & Associates, Inc

48 Incremental Milestone---Planning Milestone Totals Planned Value 300 1,200 1, ,

49 Incremental Milestone---Status Milestone 3 Planned Value 4 Earned Value Totals 300 1,200 1, , , ,

50 Units Complete---Planning Month January February March April Total Budget Feet $100 per foot 1,500 2,000 2,200 1,000 6,700 $150,000 $200,000 $220,000 $100,000 $670,

51 Units Complete---Status Month January February March April Total Budget Feet $100 per foot Quantity Installed $100 per foot 1,500 2,000 2,200 1,000 6,700 $150,000 $200,000 $220,000 $100,000 $670,000 1,000 2,000 2,000 1,700 6,700 $100,000 $200,000 $200,000 $170,000 $670,

52 Percent Complete Month January February March April PV BAC 785 Date 3 25 Status of work depends upon individual evaluation of work accomplished 9938

53 Example Of Apportioned Effort Inspection estimated as 10% of related production Control Account Planned Value Production Control Account Inspection Control Account Earned Value Production Control Account Inspection Control Account June July Aug Total

54 Level Of Effort (LOE)---Planning Month Jan Feb Mar April May Jun Jul PV BAC 1150 Date

55 WBS Summarize Costs $ $ ORGANIZATION $ $ $ $ $ $ $ Humphreys & Associates, Inc

56 Performance Measurement Approach Earned Value - Planned Value = Schedule Variance $70,000 - $76,000 = ($6,000) Earned Value - Actual Costs = Cost Variance $70,000 - $80,000 = ($10,000) Humphreys & Associates, Inc

57 WBS Level 2 Element Detail Work Breakdown Structure Total Contract WBS Level 1 WBS Level 3 Element 23 Detail Element variance 21 (1.2) (10.0) Element variance 31 (8.0) 32 (0.2) 33 (1.2) 34 (0.6) Variance Analysis Traceability Traceability Functional Organization Total Division Contracts variance X (12.0) Y 3.2 Z 6.3 Functions Variance MFG 2.1 ENG (14.0) Tool 0.9 QA (1.0) Contract Summary Contract X Functional Responsibility Detail WBS Level 4 Element 31 Element variance (10.0) Control Accounts Element 46 Detail Engineering Test Control Acct Var. C/A 302 (0.5) C/A 306 (1.5) C/A 308 (6.0) C/A 315 (0.6) Engineering Variance Systems (1.9) Design (0.1) Test (9.0) Research (3.0) Control Accounts Engineering Test Detail Contract X Engineering Departments Detail Humphreys & Associates, Inc To work package detail 0255

58 Title: Condensing System Number: Report Period: July Planned Earned Actual Schedule VAR Cost VAR ($000) Value Value Cost Variance % Variance % Current (10) (33) (2) (10) Cumulative (80) (21) (30) (10) 1,200 1,300 (100) Budget At Complete Estimate At Complete Variance At Complete Problem Analysis Impact Corrective Action Plan Estimate At Completion Justification Variance Analysis Report Control Account Manager Approvals Signature Date Signature Date Title Title Humphreys & Associates, Inc

59 Estimate At Completion Now EAC $ AC Actual Costs Estimate To Complete ETC Humphreys & Associates, Inc Time 9949

60 Cost Performance Index (CPI) Earned Value Actual Cost CPIe = = = Actual Cost Earned Value OR 70,000 80,000 80,000 70,000 CPIp = = = Humphreys & Associates, Inc

61 To Complete Performance Index (TCPI) Planned Value for remaining work TCPI = = Estimate for remaining work BAC - EV EAC - AC Cum Cum 210,000-70,000 TCPI = = = ,000-80, , ,000 Humphreys & Associates, Inc

62 Performance Indices Comparison CPI E Performance to date For every $1.00 of actual cost we earned $0.875 worth of work planned TCPI Projected performance.93 For every $1.00 of cost we estimate to earn $.93 worth of work planned to finish on EAC Humphreys & Associates, Inc

63 Effect Of Changes New Baseline New Budget At Completion $ Changes Original Baseline Original Budget At Completion Time Humphreys & Associates, Inc

64 Internal Replanning Time Now Revised Baseline BAC $ Original Baseline Humphreys & Associates, Inc Time Contract Completion Date (CCD) Planned Completion Date (PCD) 0334

65 Revisions Contract Budget Base (CBB) $ Budget at Completion (BAC) Performance Measurement Baseline (PMB) No. 1 The Original Plan Humphreys & Associates, Inc Time Contract Completion Date (CCD) Planned Completion Date (PCD) 9218

66 Internal Replanning CBB Time Now Revised PMB No. 2 BAC First Internal Replan $ Humphreys & Associates, Inc Time X Original PMB Contract Completion Date (CCD) Planned Completion Date (PCD) 9219

67 Internal Replanning CBB Revised PMB No. 3 Time Now X BAC $ X Second Internal Replan Time Contract Completion Date (CCD) Humphreys & Associates, Inc Planned Completion Date (PCD) 9220

68 Implementation Schedule Q 1 Q 2 Q 3 Q 4 1. Organization & Start up 2. Assessment 3. Design 4. Documentation 5. Training 6. Implementation 7. Review & Validation Humphreys & Associates, Inc

69 Sample Storyboard Slide Humphreys & Associates, Inc

70 Humphreys & Associates, Inc

71 80 Legend Current Contract Performance First Measurement (Dollars In Millions) x x - Planned Value Earned Value Actual Cost Target EAC PM EST 58.5 Baseline Contract $58.5 PM EST $56.4 EAC $54.9 Target $43.0 AC $40.0 PV $37.4 EV 7 Months 0 Year 1 Year 2 Year 3 Year 4 Year Time Status x Original Contract Completion Date (CCD) ETC Revised CCD

72 (Dollars In Millions) BAD GOOD Cost/Schedule Variance Trends LEGEND r r Schedule Variance Cost Variance t t Management Reserve 9 9 Tolerance Threshold Variance At Completion X Contractor Program Manager 9CV Threshold (10% = $3.7) t Management Reserve rschedule Variance 9 CV Threshold (10% = $3.7) Cost Variance First Measurement 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR Time Status x Revised CCD

73 (Dollars In Millions) 80 Legend x x Planned Value - Earned Value - Actual Cost -Target -EAC - PM EST Current Contract Performance First Report $49.9 PV 13 Months 0 Year 1 Year 2 Year 3 Year 4 Year Time Status x Second Measurement 5 months after 1 st report $72.2 PM EST $69.9 EAC $59.2 Target $55.9 AC $45.4 EV Original CCD ETC Revised CCD 2 nd Revision of CCD

74 (Dollars In Millions) BAD GOOD Cost/Schedule Variance Trends LEGEND r r Schedule Variance Cost Variance t t Management Reserve 9 9 Tolerance Threshold Variance At Completion X Contractor Program Manager 9CV Threshold (10% = $4.5) Management Reserve t r9 Schedule Variance CV Threshold (10% = $4.5) Cost Variance Second Measurement 5 months after 1 st report 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR Time Status x 2 nd Revision of CCD

75 (Dollars In Millions) Legend x x - Planned Value - Earned Value - Actual Cost -Target -EAC - PM EST Current Contract Performance Second First Report Report $54.5 PV $51.5 EV 0 Year 1 Year 2 Year 3 Year 4 Year Time Status x Third Measurement 7 months after 1 st report $74.3 PM EST $67.8 EAC ETC $60.9 AC & Target Original CCD Revised CCD 2 nd Revision of CCD

76 (Dollars In Millions) BAD GOOD Cost/Schedule Variance Trends LEGEND r r Schedule Variance Cost Variance t t Management Reserve 9 9 Tolerance Threshold Variance At Completion X Contractor Program Manager Third Measurement 7 months after 1 st report CV Threshold (10% = $5.2) Management Reserve t rschedule Variance CV Threshold 9 (10% = $5.2) Cost Variance 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR Time Status 9 x 2 nd Revision of CCD

77 (Dollars In Millions) Legend x x - Planned Value - Earned Value - Actual Cost -Target -EAC - PM EST Current Contract Performance Third Report Second First Report Report $78.0 EAC Fourth Measurement 10 months after 1 st report ETC $74.3 PM EST $70.9 Target $67.5 AC $61.3 PV $60.7 EV 0 Year 1 Year 2 Year 3 Year 4 Year Original CCD Time Status Revised CCD 2 nd Revision of CCD

78 (Dollars In Millions) BAD GOOD Cost/Schedule Variance Trends LEGEND r r Schedule Variance Cost Variance t t Management Reserve 9 9 Tolerance Threshold Variance At Completion X Contractor Program Manager Fourth Measurement 10 months after 1 st report CV Threshold (10% = $6.1) Management Reserve t r Schedule Variance CV Threshold 9 (10% = $6.1) Cost Variance 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR Time Status 9 x 2 nd Revision of CCD

79 The End of Instruction CONTRACT TARGET COST Reporting Cutoff Date EAC BAC AC $ $ PV Humphreys & Associates, Inc EV TIME Thank You for your participation 8513