What is the Value of Earned Value Paul

What is the Value of Earned Value? Paul Kidston Project & Programme Management 2009 2 nd December 2009 1

What is the Value of Earned Value? Speaker Paul Kidston Head of Planning, Vinci Construction UK Ltd paul. kidston@taylorwoodrow. com Sponsor Steve Wake Projects Ltd 9 Belmont Avenue, Palmers Green, London N 13 4 HD email: swprojects@blueyonder. co. uk www. swprojects. co. uk Training Courses, Booklets, Consultancy. 2

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

What is the Value of Earned Value? Drop Line 4

What is the Value of Earned Value? Networks 5

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

What is the Value of Earned Value? Activity Weeks 7

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

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

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

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

What is the Value of Earned Value? Performance (SPI) (Earned/Planned) = 95 =95% 100 or 0. 95 Productivity (CPI) (Earned/Actual) = 95 =90% 105 12 or 0. 90

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. 13

What is the Value of Earned Value? 7. Actual Cost 2. WBS 1. Scope 14 Change Control 6. Budget 8. Work Performed 9. Earned Value ACTION!!! 4. Activity 5. Plan Set Baseline 3. OBS 10. Analysis ?

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

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

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

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

What is the Value of Earned Value? £ 28 m £ 11. 5 m £ 16. 5 m 19

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

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

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

What is the Value of Earned Value? Speaker Paul Kidston Head of Planning, Vinci Construction UK Ltd paul. kidston@taylorwoodrow. com Sponsor Steve Wake Projects Ltd 9 Belmont Avenue, Palmers Green, London N 13 4 HD email: swprojects@blueyonder. co. uk www. swprojects. co. uk Training Courses, Booklets, Consultancy. 23