I'm new to this forum so forgive me if this subject has been hashed over previously. In projects I've run, I've rarely been afforded the opportunity to control costs as much as I'd like. However, I'd like to start using earned value as much as possible going forward. (Putting aside the issue of whether I can get various team members to agree on %complete, etc).
What I'm wondering is if people have found a good way to track and measure BCWS, etc and then report to management. Do you use the built-in Earned Value code in Microsoft Project? Does it work? Do you do this "manually" via a spreadsheet? Or is there some software or utility you use that pulls all your costs, etc together? (I noticed that gantthead lists some kind of utility but it's for members only and I don't have the $350 to join.) Saving Changes...
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Frank WintersPhotographer and ConservationistSandwich, Ma, United States
Hi Jim, Happy New Year! One comment regarding your post -- I've found that using earned value reduces the PM's reliance on guesses of % complete because it only counts completed work packages in the completion statistics. So if there are 5 modules completed the value earned is the effort and cost estimated for the 5 modules. If a sixth module is "95% complete" no credit toward earned value is added in. Is this explanation consistent with the way you use earned value? Saving Changes...
Yes, that's one way I'd measure value earned. I say "would measure" because I've yet to be in a situation where I've been able to use it. I've mostly read up on it, feel like I have a good sense of it, and would like to apply it in any future role. But in thinking about it, no one ever advises on the best way to actually track it and report on it realworld hence the question. Saving Changes...
Jim, in the corporate sector, managers only have control over head count, all other costs are pretty well set. Earned value is a real world measurement for large scale multi-million dollar programs only, mostly used on government projects. Not knowing the complexity and size of projects being managed, project management maturity and organizational (culture) understanding, it is next to impossible for me advise except to say carefully pick your metrics. Metrics should provide some insight as to the health of a project as well as be appropriate for the culture, budget, and nature of project under management.
BTW, there's 11 ways to measure value of individual tasks on a schedule, if I remember correctly, most project management tools such as MS Project and Primavera use 5 or 6. A full blown Cost Schedule Control System adds to overhead costs which is why you rarely see it implemented in the commercial sector. Saving Changes...
Tom, I understand that EVM is largely used in government contracts. However, I think that there is perhaps some stepped-down version of this that could (and should) be used in private industry. The vast majority of software projects, just for one example, is late and has cost overruns in part because no one is watching costs closely enough. One of the EVM tomes I'm reading says that you can predict and control costs 15- 20% into the project if you track schedule and cost variance rigorously. Then you can make adjustments early rather than when it's too late. (Free up reserves, alert senior management, etc).
What I'm still seeking - and haven't heard answered by anyone - is this (and I'm adjusting the question due to this discussion): are there any PM's out there in private industry who are using EVM or some watered-down version of it? If so, how effective is it? In addition, how do you track schedule and cost variance and all the other variables you need? Then, how do you report this to senior management? My guess is that it's some combination of what you get from Microsoft Project, which you then have to massage into a spreadsheet and make charts from. Or perhaps someone knows of software out there into which you pump your information and it creates this for you. What I'm really seeking - bottom line - is a practical way to bring EVM to organizations, have it help keep the project on focus, and not be so cumbersome to use or understand that it gets abandoned. I'm convinced it's an incredibly useful tool but I haven't yet figured out how to pull all the pieces together. Saving Changes...
Anonymous
I've used the concept of earned value on a few projects below the million dollar mark.
For the really small projects (< $50k) I butcher it a bit and really just focus on ETC (knowing my original budget and how much is spent already). This is more of a budget focus then true earned value.
On my larger projects I entered my costs into MS Project, then do progress updates and earned value reports at regular intervals to get my BCWS and BCWP. I then take ACWP from our accounting system, and put all those together into a spreadsheet.
Yes this does take a bit of fiddling to set up, but is then very quick and easy to update at any point in time.
I just about always present this as a graph because most people understand a simple graph rather than a complex table of numbers.
Jim, I feel your pain. I too am struggling with how to implement and benefit from earned value management in a software-intense project. The two challenges that I face are -1- settling on a true measurement of work completed (e.g. 0%/100% or perhaps 0%/50%/100%) and -2- integrating all of the necessary data (especially financials). Getting your developers to take progress estimation seriously is a challenge; tying in all necessary sources of input data is an even bigger challenge. Like you, though, I am convinced that EVM has a real payoff, and am intent on cracking this nut. Sorry I couldn't do more than commiserate. Saving Changes...
Jim and Chuck, like the both of you I've also struggled with this earned value issue and found that it is best to keep it simple. I prefer to use a set of metrics that I feel is appropriate for the project I'm leading than a full blown EV approach. Checkout page 4 of the attached document in Adobe Acrobat for some basic metrics you can track. Having detail knowledge of the tasks on a schedule and then asking pointed questions often works best for me. Saving Changes...
I think this has been - at least for me - a good and helpful discussion. For one thing, I'm finding out that I'm not so far behind the curve in using EVM for corporate projects. Assuming that the subscribers to this group represent a reasonable microcosm of the PM world, seems like more than a few people are struggling with this.
Secondly, it now seems clear to me that the best way to go is to simply the EVM process, track and report. Sounds like you can use Microsoft Project, massage it and get a "good enough" report.
Sounds like the main challenge remaining, as someone alluded to, is nailing down measurement of work. Not always easy. I had one recalcitrant software manager who couldn't accept deadlines or percentages done or anything. So sometimes you're swimming against the tide. BTW, I recommend a book called "Earned Value Project Management" by Fleming and Koppelman. Got it through PMI. Addresses many of the issues we've been discussing. Saving Changes...
Jerry Manas PMPAuthor | Speaker | Consultant| PDWareFurlong, Pa, United States
Jim,I would definitely recommend double checking the BCWS and BCWP numbers in MS/Project 2000 or earlier. I have found several bugs that rendered some of these numbers useless. With Project 2002, the problems seem to have been resolved. Also, Project 2002 offers more options in terms of Earned Value (including separate tables for cost fields/indices and schedule fields/indices).
I find that taking periodic snapshops of the CPI and SPI indices and charting them out on an excel spreadsheet over time, can show some interesting trends. However, the numbers can all get thrown off if people don't report their time accurately and frequently.
That said, I now just keep it simple (like the others are recommending) and use the earned value reports available in Project 2002. I've even added the Earned Value fields to the footer of my project plan printouts. To summarize, the fields are certainly useful, but they need to used carefully, as they can be misleading. Saving Changes...
Usually we compute productivity as size/effort. How to compute productivity through earned value? (or) how productivity is computed in earned value concept? Saving Changes...
