June 2011

The EVM Newsletter™
from Management Technologies
In This Issue
EVP Exams Coming to Your Neighborhood
Darwin on "Change"
Decision and Risk Certification
Ears and Eyes Add to EVM Data
Frozen in Time?
EVP 2010 Passing Rate
ENRON's Lessons for EVM

 

EVP Exams Coming to a Location Near You 

 

Beginning January 2013 AACE exams, including the EVP, will be computer based and use local testing sites. You will be able to take the exam when and where you want.

 

Test fees will increase $100 to cover the cost of the exam service. Take it before 2013 and save $100. Take it close to home in 2013  but spend $100 more. Regardless, the written "memo" will still need to read by a grader so your results will come later. 

 

AACE is currently informing examinees about their results approximately twenty days after the exam .  

 

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Quotable Quote

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"It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change."

Charles Darwin
 
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Did you find this newsletter interesting? Forward it to a friend!
 

  
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 
EVM3 cover
The Earned Value Management Maturity Model book is now available from Books 24x7, as well as from Management Concepts.

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AACE Rolls Out Decision and Risk Management Certificate
Decision and Risk Management Professional (DRMP) Certification will undergo beta testing in 2012. 
   

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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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AACE Seeks EVM SMEs for Recommended Practice Development

AACE publishes Recommended Practices in Project Control. These "RP"s are free to the public and provide best practices on a variety of topics. AACE is seeking EVM subject matter experts to assist in the development of an RP on EVM.

 

Contact AACE if you are interested.

 

 

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Topme

Greetings..

 

Welcome to the June EVM Newsletter.  

AACE International just had their Annual Meeting. We have news about a new certification, plans for local computer based certification exams, and the 2010 EVP Exam passing rate.

 

Our EVPrep workshop is planned for Baltimore July 14-15. Registration open until July 7. Early discount rate is extended for EVM Newsletter subscribers.

 

In this EVM Newsletter we've tied together ENRON and EVM, and Ice Harvesting and EVM.

 

Want to volunteer to help write guidance on EVM? There is a call for Subject Matter Experts in EVM.

 

Our subscriber list tops 1,900. If you want to share a story or an idea consider writing 50-100 words on the subject. 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 #22 It's Not Just About Data

     

A while ago a guy walked into the major appliance/telisteninglevision department store. The appliance delivery crew was on break and watching the TVs. He listened and wrote down what he heard them saying.

 

"I should have learned to play the guitar."

 

"That ain't working, that's the way you do it."

 

"I should have learned to play them drums."

 

"We got to install microwave ovens. We got to move these refrigerators."

 

Of course this was the genesis of the lyrics to

Dire Straits - Money For Nothing
Dire Straits - Money For Nothing

You never know what you might learn from listening.

 

Are you listening to your project team or just focused on data? Is the EVM data showing little variance, but there's talk of failed tests, technical challenges, and weekend work? EVM is an important tool in the project management tool kit, but it's not the only one. Listening at meetings and talking with the project team gets you more information to help determine the health of the project.

 

If the project health is not consistent with the EVM data, maybe your EVMS is not healthy either. 

 

 

 

Brain Freeze and EVM

 

In the early 1800's Frederic Tudor had an idea. Harvest ice from the US Northeast and ship it to the South so people could keep cool and cool their drinks. By 1850 53,000 tons of ice were being shipped across the US, half of it from Tudor's operation. Meanwhile,ice harvesting experimentation in labs was showing the ice could be manufactured in ice factories using ammonia refrigeration. But, not to worry, the ice harvesters knew that "this lab experiment could not work commercially". Not one of them invested in ice manufacturing.

 

Brain freeze#1. Soon they were out of business as each city had at least one ice house.

Ice houses and a workforce of ice delivery wagons delivered ice to home ice boxes to keep meats and dairy products useable for days. Meanwhile, those smart people in the labs discovered
Freon and thus ice could be made safely at home. This also shrank the size of the ice factory from the size of a house to a size that would fit in a kitchen. Of course, a refrigerated ice box cost a lot more than just an insulated ice box. The ice houses concluded "No one could possibly afford something so expensive when ice could still be delivered daily". Not one ice house invested in this new "refrigerator" business.

 

Brain freeze #2. Soon they were out of business as every home had a refrigerator and made their own ice.

EVM has been around since at least 1960. ANSI 748 is not much different than the Cost/Schedule Control Systems Criteria. It's lasted a long time. Now, Agile Project Management is a new kid on the block and getting recognition. PMI has an Agile PM certification. The debate has started. Can EVM apply to Agile PM? Should EVM apply to Agile PM? Is Agile PM exempt from EVM? Is Agile PM an excuse to not use EVM? For EVM to work in Agile PM the EVM community might have to revisit some long held principles and bend some traditional rules. We can stand on our tradition and hope that Agile PM will just go away. But this approach did not work for the ice harvesters and ice houses.

 

Brain freeze #3? 


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EVP Exam Pass Rate (2010)

 

AACE has released the pass rates on their seven certifications. Their overall pass rate is 53%. The lowest pass rate is 37% {Certfailure2ified Estimating Professional (CEP)}. This highest is 72% {Planning and Scheduling Professional (PSP)}.

 

The Earned Value Professional (EVP) is 46%. One hundred fifty one (151) took the exam in 2010. Seventy passed. There are 386 EVPs as of 2010. If you are an EVP be proud of it and don't let it lapse! If you are thinking of taking the EVP exam consider using our Study Guide and EVPrep workshop. With 46 passing out of a 100 you need all the help you can get. (Registration is open until 7 July for our Baltimore workshop.)

 

There does not appear to be any initiatives with AACE to change the certification requirements or passing thresholds. AACE is holding to their quality goals.
   
ENRON's Lessons for EVM

  

The keynote presentation at the AACE Annual Meeting was by Sherron Watkins, former Vice President of Enron. Sherron is the person that alerted CEO Ken Lay to "accounting irregenronularities". Time Magazine named her one of their 2002 "Persons of the Year".

What do ENRON and EVM have in common?

 

While most of us don't get involved in our organizations financial books what she had to say about moral and ethical responsibility flows to PMs and CAMs.

Some of Enron's execs still don't believe what they did was wrong. Here are Sherron's rules around her four Ms:
· Would you tell your Mentor what you did?
· Would you tell your Mother what you did?
· Would you want it in the Media?
· If a lot of Money were involved would it change your decision?

White collar crime has three elements: Extreme pressure to achieve, opportunity, and rationalization for doing the wrong thing for the right reason. Do you see any or all of these as you collect and examine your EVM data?

"If the CPI falls below 0.xx our program might be cancelled." (Pressure)

"Let's make this control account all LOE. It will boost the SPI toward 1.0" (Opportunity)

"Let's call it 100% done, it just needs a customer signoff." (Rationalization)

Enron's path to ruin?

  1. Procedures emphasized over principles.
  2. Procedures used to meet goals - principles abandoned.

Recently some ANSI 748 EVM systems appear to have fallen into these same traps. Don't let this happen to your EVMS!
 

   
GAO Says "Realistic" goes with "Baseline"

 

from Computer World

 

The National Archives and Records Administration (NARA) will end development of its electronic records archive (ERA) due to a recent government report showing massive cost overruns andfiles mismanagement on the project.

The US Government Accountability Office stated that the performance data is measured against a flawed baseline, thus hampering NARA's ability to produce reliable estimates of cost and completion.

The NARA estimated cost of building the digital system has ballooned as high as $1.4 billion. The contractor's estimated cost overrun is $2.7 million the GAO report stated. "Without more useful earned value data, NARA will remain unprepared to effectively oversee contractor performance and make realistic projections of program costs," said GAO.

"NARA has, to varying degrees, established selected best practices needed to manage the ERA acquisition through EVM, but weaknesses exist in most areas. For example, the scope of effort in ERA's work breakdown structure is not adequately defined, thus impeding the ability to measure progress made on contractor deliverables. These weaknesses exist in part because NARA lacks a comprehensive EVM policy, training, and specialized resources and also frequently replans the program. As a result, NARA has not been positioned to identify potential cost and schedule problems early and thus has not been able to take timely actions to correct problems and avoid program schedule delays and cost increases."
 

   
PMI® EVM Practice Standard Expected at PMI NA Congress

 

The PMI Earned Value Management Practice Standard, second edition, is expected to be released at the North American Congress this October. It's a complete rewrite of the first edition, with a focus on process and includes improved graphics. According to a recent study (SeeJanuary EVM Newsletter) PMI's EV Practice Standard is the default standard for EVM, worldwide. 

 

 

Workshops EVPrep and EVM Workshops
  
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.

The workshop is held throughout the year in various locations
 
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).

The workshop is held throughout the year in various locations.
 
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 
       

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:

PMI EVM COP

(EVP Exam on 10 November)
  
EVM Europe

WHEN: 23-24 November 2011

WHERE: Valencia (Spain)

MORE INFO: 

http://www.evm-europe.eu/

  
EVM World 2012
WHEN: 30 May 2012 - June 2 2012
WHERE: Naples, FL
MORE INFO: PMI EVM CoP
 

AACE Annual Meeting 2012

WHEN: 8-11 July 2012 

WHERE:Marriott Rivercenter, San Antonio, Texas
MORE INFO: AACE, International  
  


 

EVM Jobs 
Do you have open EVM positions? Reach over 1,800 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, PMI, and R.E.P. are trademarks of the Project Management Institute.