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A Practical Guide to Earned Value Project Management, 2nd Edition

Book Description

The Best Resource on Earned Value Management Just Got Better!
This completely revised and updated guide to earned value (EV) project management is the go-to choice for both corporate and government professionals. A Practical Guide to Earned Value Project Management, Second Edition, first offers a general overview of basic project management best practices and then delves into detailed information on EV metrics and criteria, EV reporting mechanisms, and the 32 criteria of earned value management systems (EVMS) promulgated by the American National Standards Institute and the Electronic Industries Alliance and adopted by the Department of Defense.
This second edition includes new material on:
• EV metrics
• Implementing EVMS
• Government contracts
• Time-based earned schedule metrics
• Critical chain methodologies

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. About the Authors
  5. Dedication
  6. Contents
  7. Preface to the Second Edition
  8. Part I: Introduction
    1. Chapter 1 - Background and Motivation
      1. Our Basic Premise
      2. The Three Basic Parameters of Project Management
      3. Business Changes
      4. The Need for a Cost and Schedule Control System
      5. Project Management Maturity
      6. Looking for Value in All the Wrong Places
      7. Our Example Project
      8. Discussion Questions
    2. Chapter 2 - Project Management
      1. A Project
      2. The Project Charter
      3. Project Life Cycles
        1. The Basic Approach
        2. A More Comprehensive Approach
        3. Minimum Life Cycle Requirements
      4. EVMS Projects
      5. The Project Management Office
      6. Evolving Project Management Maturity
      7. The Project Manager
      8. A Personal Observation of Authority
      9. The Project Team
      10. Discussion Questions
  9. Part II: The Basics of Earned Value
    1. Chapter 3 - Earned Value Metrics
      1. Primary Metrics
        1. Total Value (TV) or Budget at Completion (BAC)
        2. Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS)
        3. Earned Value or Budgeted Cost of Work Performed (BCWP)
        4. Actual Cost (AC) or Actual Cost of Work Performed (ACWP)
        5. Reporting and Comparison Metrics
      2. Analogy to the Standard Cost System
      3. Calculation of Ratios
      4. Forecasting Metrics
      5. Calculations Example
      6. Using the Measurements
        1. The Challenge of Meeting All Targets
        2. Information and Motivation
        3. Discussion Questions and Practice Calculations Questions
        4. Practice Calculations
    2. Chapter 4 - The Earned Value Management System
      1. Evolution of the Earned Value Management System
        1. Concepts of Earned Value Management
        2. Earned Value Defined
        3. Criteria and Metrics
      2. Requiring the Use of EVMS
      3. Driving Force for Using EVMS
      4. Why All the Interest in EVMS?
        1. Support for the Value of EVMS
        2. Discussion of the Evidence
      5. The Dark Side
        1. Some Missing Information
        2. Dollars, Time, and the Schedule
        3. Dysfunctional Behavior
      6. A High-Level View of the 32 EVMS Criteria
        1. Organization
        2. Planning and Budgeting
        3. Accounting Considerations
        4. Analysis and Management Reports
        5. Revisions and Data Maintenance
      7. Discussion Questions
  10. Part III: It’s All in the Plan
    1. Chapter 5 - The Project Plan (Criterion 1)
      1. EVMS Criterion 1
      2. The Work Breakdown Structure
        1. WBS Definitions and Standards
        2. Two Possible WBS Structures
        3. Steps in Constructing a WBS
      3. Defining the Project
      4. The Mechanics of a WBS
        1. WBS Charts
        2. WBS Levels
        3. A WBS Dictionary
      5. Control Accounts
      6. Work Packages
      7. Discussion Questions
    2. Chapter 6 - The Organization (Criteria 2–5)
      1. Organizational Configurations
        1. Functional Style
        2. Matrix Style
        3. Project-Oriented Style
      2. EVMS Criterion 2
        1. Organizational Breakdown Structure
        2. Project Staffing
        3. OBS Limitations
      3. EVMS Criterion 3
      4. Linear Responsibility Chart
        1. Control Account Plan
      5. EVMS Criterion 4
      6. EVMS Criterion 5
      7. Discussion Questions
    3. Chapter 7 - The Schedule (Criteria 6–8)
      1. Schedule Uncertainty
        1. Challenges in Constructing a Realistic Schedule
        2. Overcoming Schedule Problems
        3. A Bit of Statistics and Probability
      2. EVMS Criterion 6
        1. Sequence of Work
        2. Task Dependencies
      3. Schedule Representation and Evaluation
        1. Lists
        2. Bar Charts
        3. Networks
        4. Critical Path Method
      4. EVMS Criterion 7
      5. EVMS Criterion 8
        1. The Target Baseline
        2. Summary-Level Planning Packages
        3. Controls and Reporting
        4. Over-Target Baseline
      6. Discussion Questions
    4. Chapter 8 - The Budget (Criteria 9–15)
      1. EVMS Criterion 9
      2. EVMS Criterion 10
        1. Work Packages and Planning Packages
        2. Special Packages
      3. EVMS Criterion 11
      4. EVMS Criterion 12
      5. EVMS Criterion 13
      6. EVMS Criterion 14
      7. EVMS Criterion 15
      8. Project Cost Estimation
        1. Cost Data
        2. Project Controls
        3. Estimating Methods
      9. Discussion Questions
  11. Part IV: Project Status
    1. Chapter 9 - Tracking Performance (Criteria 16–21)
      1. EVMS Accounting
      2. EVMS Criterion 16
        1. Direct Costs
        2. Special Circumstances
      3. EVMS Criterion 17
      4. EVMS Criterion 18
      5. EVMS Criterion 19
        1. Cost Pools
        2. Cost Pool Drivers
      6. Cost Allocation Methods
        1. Direct Allocation Method
        2. Step-Down Allocation Method
      7. Reciprocal Allocation Method
        1. Activity-Based Costing Method
      8. EVMS Criterion 20
      9. EVMS Criterion 21
      10. Accounting and Earned Value Software
      11. Discussion Questions
      12. Appendix 9-A. Reciprocal Allocation of Overhead Costs
    2. Chapter 10 - Reporting Variances (Criteria 22–27)
      1. EVMS Criterion 22
      2. EVMS Criterion 23
        1. Schedule Variance
        2. Cost Variance
        3. Explaining Variances
      3. EVMS Criterion 24
      4. EVMS Criterion 25
      5. EVMS Criterion 26
      6. EVMS Criterion 27
        1. Performance to Date
        2. Interpreting the Variances
        3. Technical Performance
        4. Updated Values for Materials
        5. Estimates of Future Conditions
        6. Performance Reporting
      7. Practice Calculations
        1. Exercise 1
        2. Exercise 2
  12. Part V: Handling a Project’s Changes and Termination….
    1. Chapter 11 - Time for a Change (Criteria 28–32)
      1. Uncertainty May Be the Only Certainty
      2. Understanding the Elements of Risk
        1. Risk Management
        2. Risk Assessment
        3. Risk Disposition
        4. Risk Monitoring
        5. Continuous Risk Management
        6. Risk Management Tools
      3. When Change Becomes Necessary
      4. EVMS Criterion 28
        1. Authorized Changes
        2. Directed Effort
      5. EVMS Criterion 29
      6. EVMS Criterion 30
      7. EVMS Criterion 31
      8. EVMS Criterion 32
      9. Discussion Questions
    2. Chapter 12 - Are We There Yet?
      1. Project Termination
        1. Completing the Project
        2. Post-Project Activities
      2. Discussion Questions
  13. Part VI: Earned Value Implementations
    1. Chapter 13 - Implementing EVMS
      1. Reasons to Implement EVMS
      2. The Implementation Plan
      3. Details of Implementation
        1. Organizational Support
        2. Education and Training
        3. Eliciting Desired Behavior
      4. Do Your Own Thing, But Carefully
      5. Software Assistance
      6. Implementation Cost
      7. Discussion Questions
    2. Chapter 14 - Government Contracts
      1. Information Sources
        1. DoD Websites
        2. Federal Acquisition Regulation System
        3. DoD Reference Material
        4. Councils and Agencies
      2. Compliance, Validation, and Surveillance
        1. Initial Compliance Review
        2. Integrated Baseline Review
        3. Surveillance
    3. Chapter 15 - Partial EV Implementations
      1. Earned Value for Project Control
      2. Abridged EV Implementations First Alternative: An Informal EVMS Implementation … 289
      3. Second Alternative: High-Level Control Accounts
      4. Third Alternative: Follow Basic EVMS Principles Fourth Alternative: The Very Least EV
        1. Implementation
      5. Discussion Questions
  14. Part VII: Emerging Practices
    1. Performance-Based Earned Value
    2. Schedule Margin
    3. Emerging Practices to Be Treated in Greater Detail
    4. Chapter 16 - Earned Schedule
      1. Rationale for the Development of Earned Schedule
      2. Earned Schedule Concepts
        1. Calculating Earned Schedule
        2. Definitions
      3. Example of Earned Schedule Computations
      4. Other Earned Schedule Metrics
        1. Time-Based Metrics For Forecasting
        2. Performance Factor (Time) Reconciling Schedule Variance in Time with
        3. Schedule Variance in Dollars
      5. Validation of Usefulness of Earned Schedule
      6. Practice Calculations and Discussion Questions
    5. Chapter 17 - Critical Chain Project Management
      1. Background
      2. Development of Critical Chain
        1. Traditional Project Management Problems
        2. The Critical Chain Solution
      3. A Single Project Environment
        1. Traditional Scheduling
        2. A Simulated Result from Traditional Scheduling
        3. Critical Chain Scheduling
        4. Critical Chain Results
        5. Using Buffer Management To Control Projects
      4. Multiproject Environments
      5. Use of Critical Chain with EVMS Critical Chain in Lower Levels of the Performance
        1. Measurement Baseline
        2. Two Project Plans
      6. Practice Calculations
  15. Appendix A: The 32 EVMS Criteria
    1. Organization
    2. Planning and Budgeting
    3. Accounting Considerations
    4. Analysis and Management Reports
    5. Revisions and Data Maintenance
  16. Appendix B: Discussion Responses and Exercise Solutions
  17. Glossary
  18. Bibliography
  19. Index