March 2011

The EVM Newsletter™
from Management Technologies
In This Issue
Free EVM Webinar
EVM Track at PMI N.A. Congress
EVM World Registration Open
EVP Study Guide Helps Japan
EVMS Material Management, Part 2 of 3
Give Just 1 Hour to Japan
There's Alway a Few
They're Not Just Numbers
New Workshop Dates/Places

Free EVM Webinar April 6 

$0.00

The PMI EVM CoP is conducting a free webinar on EVM and the EVM CoP. This will be an introduction to EVM and information about the EVM CoP.

 

This one hour webinar will introduce attendees to the concepts of Earned Value Management and the PMI EVM Community of Practice. Attendees will learn why EVM has been a cornerstone of project management cost and schedule metrics for over forty years and why interest in this project/program management method continues to grow worldwide.

 

While you might know about EVM and the CoP this is your opportunity to introduce both to your network of co-workers and associates. Tell me more.

 

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EVM Track at PMI North American Congress

The PMI North American Congress (22-25 Oct 2011, Dallas TX area) will include a track of eight EVM presentations. The PMI EVM Community of Practice (CoP) is chairing this track which will include an update on the second edition of the PMI EVM Practice Standard plus....

· Understanding the Value of Earned Value

· EVMS "Keeping it Simple and Succeeding"

· Integration of Earned Value and Risk Management Using Contingency Reserves

· Application of EVM to equipment manufacturing

· Advances in Earned Schedule and Earned Value Management

· Truth About Preparedness For EVMS Assessments

· EVM on Service Projects - An Optimized Paradigm

The EVM track will be presented on 24-25 October and is subject to change.

 

For more information visit PMI.

 

 

 


EVM3The Earned Value Management Maturity Model®
on
Books 24 x 7 
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The Earned Value Management Maturity Model book is now available from Books 24x7, as well as from Management Concepts.

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EVM WORLD 2011 Registration is Now Open
PMI EVM COP's annual EVM World will be held in Naples, FL May 16-18. Start hinting to your boss that this is the place to be for the latest in EVM theory, techniques, government policy, tools, and best practices. Register before April 18 and save. 
   

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Study for the EVP While Helping Japan

japan flag

For every EVP Study Guide ($65 USD) purchased through 1 May Management Technologies will send $10  USD to the American Red Cross for Japan's relief. Even if you do not plan to take the EVP exam, the Guide will help you understand what ANSI 748 really means and project planning principles. If you do well on the Guide's questions you might even decide to take the exam!

 


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EVM Schedule Adherence and CPI and SPI (t)Statistical Forecasting

The EzEVM™ workbook has provided projects and firms a low cost solution to performing EVM and refining their EVM processes.

 

The EzEVM MSExcel workbook template now includes "Schedule Adherence" and statistical forecasting of final CPI and SPI(t).

 

EVM data can be entered from any EVM software to provide these valuable analysis products as well as traditional EVM indicators.

 

 

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2011 EVP Exam Dates
exam
Listed below are the exam dates, the deadline for discounted applications, and the final date for applications.  Exams are held worldwide so all dates listed may not be right for you

3, 18 June 2011
Early discount: 20 March
Deadline: 4 April
 
7, 9 July 2011
Early discount: 26 April
Deadline: 10 May 

16 Sept 2011
Early discount: 3 July
Deadline: 18 July

10 Nov 2011
Early discount: 1 Aug
Deadline: 10 Sept

12, 17 Nov 2011
Early discount: 29 Aug
Deadline: 13 Sept

9, 10 Dec 2011
Early discount: 25 Sept
Deadline: 10 Oct

Always check with AACE for revised dates and application information.

 
Topme

Greetings..

 

Welcome to the March EVM Newsletter.  

Japan has been hit a terrible blow. There are two articles on how we might assist Japan get back on her feet.

 

This month we continue the three Tidbit series on how purchased project material fits into EVM. Last month we bought the material and learned why tracking its purchase may or may not be part of our PMB. This month we put our material usage plans into our PMB and start getting material cost and schedule variance. 

 

There's news about two EVM events, a FREE one hour webinar from the EVM CoP, and an announcement of a EVM track at the PMI NA Congress.

 

New dates and places are announced for the Earned Value Experience (CAM) workshop and the EVPrep EVP exam prep workshop.

 

There are two articles that relate to honesty. One regarding the EVP exam, and one on honesty in expense reports and EVM data.

  

You can help make this newsletter interesting by contributing news about your activities in EVM, your company, product announcements, or your projects. Each month starts with a blank sheet, we don't make this stuff up! Send news to me at

evinfo@mgmt-technologies.com

Ray Stratton, PMP,EVP
Editor

Tidbit #19 Material, part 2

     

Last month I talked about why the specification, purchase, receipt, and payment of material is not part of an EVM material

lumber

 management. It's part of the labor and milestones associated with obtaining the material, but not material management. We concluded with the purchase of twenty-six tires for five demonstration vehicles and six spare tires.
 

Last month I talked about why the specification, purchase, receipt, and payment of material is not part of an EVM material management. It's part of the labor and milestones associated with

 

obtaining the material, but not material management. We concluded with the purchase of twenty-six tires for five demonstration vehicles and six spare tires.

 

First we have to determine the PV (BCWS) of the material. During our planning we assumed each tire would cost $50 for a total of $1,300. Our scheduling efforts showed that these tires (four per vehicle) would be installed on our five demonstration vehicles as follows:

 

June, Vehicle 1, four tires, PV = $200

July, Vehicle 2, four tires, PV = $200

August, Vehicles 3 and 4, eight tires, PV= $400

September, Vehicle 5, four tires, PV = $200

 

Our spares are not planned to be used.

 

Our project enters the execution phase and in June Vehicle 1 arrives. The team installs the rear tires but a problem with the drive train prevents them from installing the front tires. At the end of the month we perform our EVM accounting: 

  

June, Vehicle 1, PV = $200, EV (BCWP) = $100, SV = -$100.

 

The fact that two tires were not used when planned shows that our project is not on schedule (SV = -$100). We have yet to see the true cost of the tires since the corporate accounts payable has not yet debited the project account. The PO shows shipping and insurance costs plus the tire costs. We estimate from this information that each tire will actually cost $53.

 

Our estimated AC (ACWP) is $106 for the two tires. CV is -$6.

 

In July we complete Vehicle 1 and 2 (6 tires installed), but we still have not been debited for the tire purchase.

 

For the month the PV = $ 200, EV = $ 300, AC (est.) = $318, SV = +$200, CV= -$18.

 

To date: PV = $400, EV = $ 400, AC (est) = $ 424, SV = 0, CV = -$24. We are back on schedule, we just have a little cost problem.


Next month, we continue to build and then test vehicles.

 

 

 



What is Your Time Worth?

 

Japan's land area is about 90% of California's. About 25% of Japan has been destroyed by a horrible confluence of natural and manmadecurrency events. Imagine 25% of the US in a state similar to Japan's. How does a nation recover from this? Would you give an hour of your time to help the people of Japan? I think most people would. But getting to Japan and keeping our commitments at home makes that nearly impossible.

 

We all can contribute funds to help Japan. What is an hour of your time worth? If you are employed by a corporation find out what your "total burdened" labor rate is. If you are a consultant, what is your hourly rate? Consider using this as a guide as you consider a financial donation to help Japan. Can you give an hour of your labor in dollars? The EVM Newsletter has over 1,500 subscribers. If each one gave $100 as par value for their hourly salary we could provide $150,000 to help Japan.

 

Go to the American Red Cross website. Click on Victims of Disasters - Donate Now, then select "Japan Earthquake and Pacific Tsunami"
 

 
Ethics and EVM and Certification?

Recently an individual has been contacting EVPs, me, and others in an attempt to get copies of the EVP exam questions. Of course,legal within the tight network of EVPs this effort was immediately noted and shared with AACE. It appears AACE was also aware of this individual's effort. It's a credit that the EVP community and AACE has stood behind the ethics we subscribe to and has not assisted this person. Apparently this person, after failing the EVP exam twice, wants to be an EVP real bad. That says a lot about the value of the EVP. As long as AACE and EVPs continue to maintain high standards the EVP will remain the valued certification it is.

 


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Working the Numbers

 

A long time ago a business traveler was walking on theadding tape tarmac to get aboard his airline flight (before jet bridges). The wind came up and his hat blew off his head and down the aircraft ramp. It could not be recovered. He continued on his business trip. When he returned he filed his expense report with his boss, including a miscellaneous item "One Hat $35.00." His boss called him into his office. "We are not buying you a hat!" "But it was lost on a business trip which I would not have made were it not for company business", he responded. "I don't care, take the hat off the expense report!" he demanded. Our traveler went back to his office and redid his expense report and turned it in. His phone rang. It was his boss who said he needed to come to his office. "I told you to redo your expense report." "I did". His boss responded, "But the total is the same as your last expense report. I told you to remove the cost of the hat." Our traveller replied, "I did. I told you I lost my hat. It's in there somewhere, you find it!"

Does your management ask you to, or do you "hide the hat" in your EVM data? Usually this starts with efforts to avoid lower values of CPI or SPI, reduce negative trends in SV or CV, or avoiding moving from being Green to Yellow, or Yellow to Red. The right action is to report the bad news sooner than later so more time can be used to correct the problems. Artificially keeping EVM data favorable while the program slips and costs overrun only surprises everyone at the end and erodes the value of EVM. It also diminishes the value of the efforts to use EVM. As in life, honesty is the best policy. 

   
Workshops EVPrep and EVM Workshops
 
UPDATES Workshops have been added in San Jose CA for August; Boston  in  September; Reston VA in October. The Colorado EVPprep workshop has been changed to May 3-4 in Colorado Springs.
 
Earned Value Experience (CAM) Workshop
 
You'll experience creating an earned value management baseline, determining earned value from project status, Classroomcalculating earned value management indices, and estimating final cost and completion date. This workshop is perfect for team leads, control account managers, financial and schedule control staff, project and program managers, and chief project officers. 
 
Excel EzEVM™Templates may be retained by attendees to implement earned value management in their organization.

View the Earned Value Experience (CAM) workshop outline and get the registration form.
 
EVPrep Exam Prep Workshop

The workshop covers all the topics likely covered in the exam and provides exam-like questions and workshop discussion about each question and the possible answers. This workshop also includes an EVM analysis question to help prepare you for the three page written essay in Part II (was part IV).

This is twelve hours of mock EVP exam and discussions of correct and incorrect answers.
  
Do you have an EVP FAQ
  
Go to AACE's website for the latest information about exam dates.
View the EVPrep workshop outline and get the registration form.

Interested in an on-site workshop? Send an e-mail with your your address and the number of attendees to receive a quote.

Upcoming EVM and PM Conferences 
       
EVM World 2011(REGISTRATION IS OPEN NOW)
WHEN: 16-18 May 2011
WHERE: Naples, FL
MORE INFO: PMI EVM CoP  
 
AACE Annual Meeting 2011 (REGISTRATION IS OPEN NOW)
WHEN: 19-22 June 2011 
WHERE:June 19-22, Disneyland Resort, Anaheim CA
MORE INFO: AACE, International  

Australasian Integrated Performance Management Symposium
 (AIPMS)
WHEN: July 2011
WHERE: Canberra
MORE INFO: later

PMI North American Congress (w/ EVM track)
WHEN: 22-25 October 2011
WHERE: Dallas, TX
MORE INFO: PMI

23nd Annual Integrated Program Management Conference
WHEN: 7-9 November 2011
WHERE: Washington DC
MORE INFO: later

 


 

EVM Jobs 
Do you have open EVM positions? Reach over 1,500 possible candidates via The EVM Newsletter to help get the best people to fill your EVM positions. Send me an e-mail with the details and contact information. It will be posted in the next issue.

Do you have news to share? Send your news item and we'll review it for posting in a future EVM Newsletter.
 
Sincerely,
 
Ray Stratton, PMP, EVP
Management Technologies

The EVM Newsletter, EVPrep, The Earned Value Management Maturity Model, EVM3, EzEVM, and The Earned Value Experience are trademarks of Management Technologies. The Earned Value Professional and EVP are trademarks of the Association for the Advancement of Cost Engineering, International. (AACE®). The PMP, PMBOK, and R.E.P. are trademarks of the Project Management Institute.