IS YOUR PROJECT READY FOR EARNED VALUE MANAGEMENT

IS YOUR PROJECT READY FOR EARNED VALUE MANAGEMENT (EVM)? It’s all about the fundamentals Patrick Kennerson

GET THESE RIGHT AND GOODEVM WILL FOLLOW Cultural change required to underpin good EVM highlights weaknesses or gaps in the project planning and control processes and capabilities Managing a robust baseline challenges most organisation The plans must be based on Project deliverables clearly defined within the PBL, not just the functional effort Objective measures of physical progress must be assessed routinely Business systems and processes need to provide data in a timely manner Comprehensive change system is required

CULTURAL CHANGE THIS IS WHAT I FIND… Project Manger QA Comml Reporting Manager Document Management QS Planners QS Risk QS Change Manager

CULTURAL CHANGE THIS IS WHAT I EXPECT…. 1. Project Control Mgr 1. 1 Project Controls 1. 2 Policy Risk 1. 3 EVM Reporting Manager 1. 4 Reporting 1. 5 Assurance 1. 6 Data Integrity 2. Change & Risk Mgt 2. 1 Provide Change Management Process Cost Controller Project Controls Director Project Control 3. Manager Commercial & Cost Mgt 3. 1 Commercial and Cost Management Process Change Manager 2. 2 Scope Change 3. 2 Cost Management 2. 3 BCR Process 3. 3 Commercial Management 2. 4 Stakeholder Management 1. 7 System Integrity 2. 5 Change Document Management 1. 8 Program Team Engagement 2. 6 Facilitate Risk Workshops 1. 9 Process Improvement 2. 7 Administer Risk & Opportunity 2. 8 Undertake various risk analysis 2. 9 Monitor on-going risks 2. 10 Provide monthly risk reports 4. Schedule Mgt 5. Document/Configuration Mgt 4. 1 Develop and maintain the overall master Schedule following good Lead practice planning practices 5. 1 Facilitate best practice document management into specified programme Reporting/QA databases 4. 2 Validate Supplier Schedules in support of the client Works Terms to ensure accepted Contract programs are of appropriate quality, integrity and maturity 5. 2 Administer the Document Management system across the programme 4. 3 Maintain, update and integrate program works in to the overall IMS master schedule in P 6 (or similar) including all associated Milestone management 5. 4 Administer a storage and transmittal library facility Planner 4. 4 Provide accurate and timely Schedule progress and forecast information in line with the Monthly Programme Reviews (MPR) deadlines and formats 4. 5 Meet the requirements of the Integrated Baseline Review (IBR) process Assurance 5. 3 Establish and run the electronic filing system 5. 5 General admin support

LESSON 1 "Being responsible sometimes means pissing people off. " Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It's inevitable, if you're honorable. Trying to get everyone to like you is a sign of mediocrity: you'll avoid the tough decisions, you'll avoid confronting the people who need to be confronted, and you'll avoid offering differential rewards based on differential performance because some people might get upset. Ironically, by procrastinating on the difficult choices, by trying not to get anyone mad, and by treating everyone equally "nicely" regardless of their contributions, you'll simply ensure that the only people you'll wind up angering are the most creative and productive people in the organization.

WEAKNESS AND GAPS SCOPE SCHEDULE COSTS EV ANALYSIS REPORTING FORECAST & STATUS CHANGE RISK

WEAKNESS AND GAPS PROGRAMME CONTROL - SYSTEM Project Plan (IPMP) & Project So. W OBS - Organisation Breakdown structure WBS - Work Breakdown Structure PBS - Product Breakdown Structure So. W - Statement of Work RAM - Responsibility Assignment Matrix EVM - Earned Value Management WAD - Work Authorisation Document Budget Distribution OBS WAD WBS / PBS Risks Risk Management Responsibility Assignment Matrix (RAM) Master Schedule Level 0 Dependencies Dependency planning Statement of work (So. W) Risk Model Schedules Scenario Planning Resource Profile EVM Reporting Financial Info

MANAGING A BASELINE

PROGRESS MEASUREMENT IMS Baseline Workpackaes SUBS A SUBS B Activities Milestones ‘Critical Items’ Subcontract Schedules Update

BUSINESS SYSTEMS Executive. Level Reports What’s the new forecast? Resource Management Analytics Disconnected Business Processes Deliveries are impacted! Are we profitable yet? Customer Support notified of risk Manual Cost reports Management generated Reports Generated RIO Management Disparate Systems & Components Schedule updated Schedule Management Schedule impacted EAC impacts overruns ERP Risk identified

BUSINESS SYSTEMS Gaps in Project Mgmt Discipline Resource Management Analytics Disconnected Business Processes Cost Management RIO Management Disparate Systems & Components ERP Schedule Management

TBHE END RSESULT USINESS YSTEMS: CLARITY VERSUS CHAOS BMS Gaps in Program Project Insight. Mgmt and Discipline Control Resource Management Analytics Disconnected Business Processes Management Cost Management RIO Management Disparate IPM Systems & Components Schedule Management ERP Resource Management Cost Analytics Schedule Management ERP RIO Management

CHANGE CONTROL – SYSTEM FLOW Originator External Suppliers PMO Change Committee/ Board Identify Capture Assign for review Review, assess Propose action Contract revision Assign for action Approve for Action Review Action Agree Closure Approve for action

END OF PRESENTATION Questions?