book

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

Name: A Practical Guide to Earned Value Project Management, 2nd Edition
ISBN: 9781567263374

by Charles I. Budd, Charlene M. Budd

October 2009

Intermediate to advanced

430 pages

8h 17m

English

Berrett-Koehler Publishers

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Cover
Title Page
Copyright
About the Authors
Dedication
Contents
Preface to the Second Edition
Part I: Introduction
Chapter 1 - Background and Motivation
Our Basic PremiseThe Three Basic Parameters of Project ManagementBusiness ChangesThe Need for a Cost and Schedule Control SystemProject Management MaturityLooking for Value in All the Wrong PlacesOur Example ProjectDiscussion Questions
Chapter 2 - Project Management
A ProjectThe Project CharterProject Life CyclesThe Basic ApproachA More Comprehensive ApproachMinimum Life Cycle RequirementsEVMS ProjectsThe Project Management OfficeEvolving Project Management MaturityThe Project ManagerA Personal Observation of AuthorityThe Project TeamDiscussion Questions

Part II: The Basics of Earned Value
Chapter 3 - Earned Value Metrics
Primary MetricsTotal Value (TV) or Budget at Completion (BAC)Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS) Earned Value or Budgeted Cost of Work Performed (BCWP) Actual Cost (AC) or Actual Cost of Work Performed (ACWP)Reporting and Comparison MetricsAnalogy to the Standard Cost SystemCalculation of RatiosForecasting MetricsCalculations ExampleUsing the MeasurementsThe Challenge of Meeting All TargetsInformation and MotivationDiscussion Questions and Practice Calculations QuestionsPractice Calculations
Chapter 4 - The Earned Value Management System
Evolution of the Earned Value Management SystemConcepts of Earned Value ManagementEarned Value DefinedCriteria and MetricsRequiring the Use of EVMSDriving Force for Using EVMSWhy All the Interest in EVMS?Support for the Value of EVMSDiscussion of the EvidenceThe Dark SideSome Missing InformationDollars, Time, and the ScheduleDysfunctional BehaviorA High-Level View of the 32 EVMS CriteriaOrganizationPlanning and BudgetingAccounting ConsiderationsAnalysis and Management ReportsRevisions and Data MaintenanceDiscussion Questions
Part III: It’s All in the Plan
Chapter 5 - The Project Plan (Criterion 1)
EVMS Criterion 1The Work Breakdown StructureWBS Definitions and StandardsTwo Possible WBS StructuresSteps in Constructing a WBSDefining the ProjectThe Mechanics of a WBSWBS ChartsWBS LevelsA WBS DictionaryControl AccountsWork PackagesDiscussion Questions
Chapter 6 - The Organization (Criteria 2–5)
Organizational ConfigurationsFunctional StyleMatrix StyleProject-Oriented StyleEVMS Criterion 2Organizational Breakdown StructureProject StaffingOBS LimitationsEVMS Criterion 3Linear Responsibility ChartControl Account PlanEVMS Criterion 4EVMS Criterion 5Discussion Questions
Chapter 7 - The Schedule (Criteria 6–8)
Schedule UncertaintyChallenges in Constructing a Realistic ScheduleOvercoming Schedule ProblemsA Bit of Statistics and ProbabilityEVMS Criterion 6Sequence of WorkTask DependenciesSchedule Representation and EvaluationListsBar ChartsNetworksCritical Path MethodEVMS Criterion 7EVMS Criterion 8The Target BaselineSummary-Level Planning PackagesControls and ReportingOver-Target BaselineDiscussion Questions
Chapter 8 - The Budget (Criteria 9–15)
EVMS Criterion 9EVMS Criterion 10Work Packages and Planning PackagesSpecial PackagesEVMS Criterion 11EVMS Criterion 12EVMS Criterion 13EVMS Criterion 14EVMS Criterion 15Project Cost EstimationCost DataProject ControlsEstimating MethodsDiscussion Questions
Part IV: Project Status
Chapter 9 - Tracking Performance (Criteria 16–21)
EVMS AccountingEVMS Criterion 16Direct CostsSpecial CircumstancesEVMS Criterion 17EVMS Criterion 18EVMS Criterion 19Cost PoolsCost Pool DriversCost Allocation MethodsDirect Allocation MethodStep-Down Allocation MethodReciprocal Allocation MethodActivity-Based Costing MethodEVMS Criterion 20EVMS Criterion 21Accounting and Earned Value SoftwareDiscussion QuestionsAppendix 9-A. Reciprocal Allocation of Overhead Costs
Chapter 10 - Reporting Variances (Criteria 22–27)
EVMS Criterion 22EVMS Criterion 23Schedule VarianceCost VarianceExplaining VariancesEVMS Criterion 24EVMS Criterion 25EVMS Criterion 26EVMS Criterion 27Performance to DateInterpreting the VariancesTechnical PerformanceUpdated Values for MaterialsEstimates of Future ConditionsPerformance ReportingPractice CalculationsExercise 1Exercise 2
Part V: Handling a Project’s Changes and Termination….
Chapter 11 - Time for a Change (Criteria 28–32)
Uncertainty May Be the Only CertaintyUnderstanding the Elements of RiskRisk ManagementRisk AssessmentRisk DispositionRisk MonitoringContinuous Risk ManagementRisk Management ToolsWhen Change Becomes NecessaryEVMS Criterion 28Authorized ChangesDirected EffortEVMS Criterion 29EVMS Criterion 30EVMS Criterion 31EVMS Criterion 32Discussion Questions
Chapter 12 - Are We There Yet?
Project TerminationCompleting the ProjectPost-Project ActivitiesDiscussion Questions
Part VI: Earned Value Implementations
Chapter 13 - Implementing EVMS
Reasons to Implement EVMSThe Implementation PlanDetails of ImplementationOrganizational SupportEducation and TrainingEliciting Desired BehaviorDo Your Own Thing, But CarefullySoftware AssistanceImplementation CostDiscussion Questions
Chapter 14 - Government Contracts
Information SourcesDoD WebsitesFederal Acquisition Regulation SystemDoD Reference MaterialCouncils and AgenciesCompliance, Validation, and SurveillanceInitial Compliance ReviewIntegrated Baseline ReviewSurveillance
Chapter 15 - Partial EV Implementations
Earned Value for Project ControlAbridged EV Implementations First Alternative: An Informal EVMS Implementation … 289Second Alternative: High-Level Control AccountsThird Alternative: Follow Basic EVMS Principles Fourth Alternative: The Very Least EVImplementationDiscussion Questions
Part VII: Emerging Practices
Performance-Based Earned ValueSchedule MarginEmerging Practices to Be Treated in Greater Detail
Chapter 16 - Earned Schedule
Rationale for the Development of Earned ScheduleEarned Schedule ConceptsCalculating Earned ScheduleDefinitionsExample of Earned Schedule ComputationsOther Earned Schedule MetricsTime-Based Metrics For ForecastingPerformance Factor (Time) Reconciling Schedule Variance in Time withSchedule Variance in DollarsValidation of Usefulness of Earned SchedulePractice Calculations and Discussion Questions
Chapter 17 - Critical Chain Project Management
BackgroundDevelopment of Critical ChainTraditional Project Management ProblemsThe Critical Chain SolutionA Single Project EnvironmentTraditional SchedulingA Simulated Result from Traditional SchedulingCritical Chain SchedulingCritical Chain ResultsUsing Buffer Management To Control ProjectsMultiproject EnvironmentsUse of Critical Chain with EVMS Critical Chain in Lower Levels of the PerformanceMeasurement BaselineTwo Project PlansPractice Calculations
Appendix A: The 32 EVMS Criteria
OrganizationPlanning and BudgetingAccounting ConsiderationsAnalysis and Management ReportsRevisions and Data Maintenance
Appendix B: Discussion Responses and Exercise Solutions
Glossary
Bibliography
Index

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

PART VII

Emerging Practices

EVMS has been in practice for a number of years and has had only minor changes since it was originally developed. We are now beginning to see several emerging practices that could become mainstream in a short time.

PERFORMANCE-BASED EARNED VALUE

One of these emerging practices is performance-based earned value, or PBEV (Solomon and Young 2007). Solomon and Young’s major contributions are (1) the insertion of product technical requirements and expected quality into a project’s plan;¹ (2) recognizing EV for partially achieving product requirements, such as quality; and (3) formally integrating risk management tasks, such as estimated rework, into the EV system. They provide many examples and alternative methods of ...

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