October 2011

The EVM Newsletter™
from Management Technologies
In This Issue
A PMP Question
PMI NA Congress
Save $150 on EVP exam
EVM May Reach City Hall
US HHS Keeps It Simple
1,2,3 --- STOP!
The Rise of EVM
Watch the Quality

 

 

PMP Question

  

The Grapevine TX Convention and Visitors Bureau did a great job of alerting the Grapevine business community to the arrival of 3,000 PMI NA Congress attendees. The following sign was seen leading from the Gaylord Convention Center to the Gaylord hotel.

 

But what is the message?

 

 

  1. PMPs get an extra shiny shoe shine.
  2. PMPs get PDUs for getting their shoes shined.
  3. A PMP will manage the shoe shine project.
  4. A PMP is between projects.

 

 

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Quotable Quote

quill

 

"If you'll lie for me,
you'll lie to me."
 
VP at one of the top four US Aerospace companies.
 
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Did you find this newsletter interesting? Forward it to a friend!
 

   
PMI NA Congress EVM Track

The PMI North American Congress was just held in Grapevine Texas. Over 3000 attended the event from 70 countries. Some of the top nations represented were US, Canada, Brazil, Japan, and Nigeria.

 

Papers addressing the following EVM topics are on the CD which you can probably obtain from PMI.

 

· 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

One presentation "EVM on Service Projects - An Optimized Paradigm" was not presented as planned. (Hint: If you are accepted to speak at the PMI Congress you should show up, barring illness. If not, you will likely never get the chance again.)

 

 


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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Save $150 with Management Technologies' EVPrep Workshop

AACE recently announced that attendees at AACE Approved Education Providers (AEP) events would recieve no-cost temporary membership in AACE.

 

This policy allows these attendees to apply for AACE certification exams at the AACE member price ($150 less than the non-member price).

 

If you are planning on taking the EVP exam here is how to save $150.

 

  1. Attend our EVPrep exam prep workshop
  2. Get your temporary member e-mail from AACE.
  3. Apply to take the EVP exam at AACE member rates
  4. Save $150.
   

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Applying EVM to City Government

Republican Tyler Vogt, candidate for Tucson city council, wants to run the city using EVM. That's what they might get if Tucson elects this Raytheon engineer to the city council. Vogt has said he would implement earned value management as part of applying business practices to city government.

  
 

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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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AEP logo

 R.E.P. logo

 

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Greetings..

 

Welcome to the October EVM Newsletter.  me2011

Here is proof again of Student Syndrome. It is most often described as pulling an overnighter to write a poorly executed term paper the night before its June due date, knowing it was due since February. 

 

Work in Arizona, a PMI Leadership Meeting and a PMI Congress in Texas, and an EVPrep workshop in Virginia pushed the EVM Newsletter to the very end of the month. A Navy Reunion and family getaway added to the challenge.

 

Management Technologies is now on Facebook and LinkedIn.

 

Like us on Facebook  View our profile on LinkedIn

 

In this issue:

The US Government's Department of Health has wisely tailored their EVM requirements to seven basics based on ANSI 748. That helps small businesses get started in EVM and provides a basis for more rigorous EVM later.

 

I had to correct last month's item on AACE agreement for their volunteer contributors. Their policy has not changed, but is restated in a revised policy document.

 

The October Tidbit is based, again, on lessons from aviation as they apply to project management.

 

There is a multiple choice question for PMPs.

 

The rise of EVM in literature is shown, news on EVM related research, and why EVM does not guarantee customer satisfaction.

 

Next month, a review of the Second Edition of PMI's Practice Standard on Earned Value Management that PMI has just made available.

 

I'll be at the IPMC (conference) in Bethesda MD. If you see me stop by and say "hi".

 

Our subscriber list is over 2,000. 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

EVM Applied to Medical Research

     

The US Department of Health and Human Services (HHS) has issued a RFP (Broad Area Announcement) in medical research. In it they require the contractor to propose and provide EVM performance measurement data and analysis.

 

However the contractor is not asked to meet ANSI 748 but just HHS listed Seven Principles of Earned Value Management. The Seven Principles are:

  1. Plan all work scope for the program to completion of the contract.
  2. Break down the program work scope into finite pieces that can be assigned to a responsible person or organization for control of technical, schedule, and cost objectives.
  3. Integrate program work scope, schedule, and cost objectives into a performance measurement baseline plan against which accomplishments may be measured. Control changes to the baseline.
  4. Use actual cost incurred and recorded in accomplishing the work performed.
  5. Objectively assess accomplishments at the work performance level.
  6. Analyze significant variances from the plan, forecast impacts, and prepare an estimate at completion based on performance to date and work to be performed.
  7. Use Performance Based information in the company's management processes.

 

The US Treasury also uses a subset (ten) of the ANSI 32 guidelines on smaller contracts.

 

I think this shows great insight by these agencies. It gives their bidders and contractors who have not previously done EVM a chance to compete without having to meet all 32 guidelines. For some of these firms who have not had an EVM requirement before it gives them the chance to get into the EVM "club". I have always promoted a "go slow" approach to implementing EVM. To go from zero to 32 guidelines is both risky and a big investment. Better to get started in EVM, and grow it, than to try to climb to the top without a break.

 

I had training wheels once.

 

 

 

Tidbit # 26, One, Two, Three, STOP!

 

Three is a strange number. It shows up everywhere. Most jokes have three actors. Three people ...the first one says ...., the second one says..., and the third one says (the punch line.). Then there's the caution of "Three on a match" from World War I (Google it). And one, two, three, GO!

 

Aircraft accident investigations often determine that a chain of failures (human or otherwise) often lead to an accident. Often it's three failures. "The flight was delayed, therefore the winds were different than forecast, and a minor aircraft problem became the focus of attention."

 

There is no National Transportation Safety Board (NTSB)-like organization investigating failed projects, but perhaps there should be. If one existed I suspect it would find that projects fail after encountering a series of three "surprises" that on the surface don't appear critical.

 

For example, suppose that key technical leader who was promised to your project is reassigned. Another knowledgeable person is assigned instead. Surprise 1. Due to market pressure HR has given all the staff a 2% raise. Management Reserve should cover it. Surprise 2. The customer has reorganized and placed your project in a different department. Surprise 3. STOP. Review all assumptions and risks. Review the project plan. The world you are in is not the world you expected. Maybe there are no required changes, but stop and find out. Break the chain of three!

 

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Ngram-ing EVM

  

Google has an Ngram search tool. It searches for terms found in books and other text. I researched "earned value management" to see how and when EVM got going in literature and got the following chart. The chart covers 1908-2008. It's essentially flat from 1980 to 1994. The vertical scale is linear.

 

   EVM in texts
 
 

 Customer Satisfaction, Not an EVM Strength

 

A June 2010 PhD dissertation found through a survey that there was noIT Customer difference in customer satisfaction for IT projects using EVM and those that did not. The dissertation, "The Relationship Between Earned Value Management Metrics and Customer Satisfaction", by David R. Plummer was submitted as part of a PhD program. The study measured customer satisfaction using the "Measurement of Expected and Actual Information Systems Performance."

 

This serves as a reminder to us that EVM is strong on cost and schedule performance, and weaker on quality and system performance. The final cost and schedule performance are soon forgotten, but the performance of the final product is revisited every time the product is used. All the more reason to make sure requirements are met before awarding EV (BCWP) for completed work. 

 

Correction, AACE's IP Policy

 

Were you confused by last month's article on AACE's IP policy for contributors? I was, and I wrote the Newsletter article!

 

The article headline said AACE revised their policy but they really didn't. The quote marks also implied a direct quote, but text was not a quoted source. For the bottom line, here is their policy. While there you might as well wander around the AACE website learn more about them.

 

 
 
Workshops EVPrep™ and EVM Workshops
  
The following workshops are planned for the following locations:
  • Reston, VA
  • Atlanta, GA
  • Dallas, TX
  • Columbus ,OH
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.
 
Interested in an on-site workshop? Send an e-mail with your your address and the number of attendees to receive a quote


EVPrepEVPrep 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 
       

 

23nd Annual Integrated Program Management Conference

WHEN: 7-9 November 2011

WHERE: Washington DC

MORE INFO: PMI EVM COP

(EVP Exam on 10 November)
  
EVIAP International Conference
WHEN: 15-16 November 2011

WHERE: Lisbon, Portugal(Spain)

MORE INFO: http://www.eviap.org

 

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  
  
€ 1,000,000 for Project Controls Research
       

"Searching for Static and Dynamic Project Drivers to Predict andresearch Control the Impact of Management/
Contingency Reserve on a Project's Success" (whew) is the title of a research effort selected for €1,000,000 funding by the Flemish Government. Prof Dr. Mario Vanhoucke will lead the research in collaboration with the George Washington University (US), University College London (UK) and CERN (Switzerland).

 

According to the press release "Dynamic scheduling is the integration of baseline scheduling, risk analysis and project control and aims at understanding static and dynamic drivers of project success."

 

Six researchers will be part of Prof Dr. Mario Vanhoucke's team.

 
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

Copyright 2011, 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 , EVP, and the AEP logo are marks of the Association for the Advancement of Cost Engineering, International. (AACE®).

 

The PMP, PMBOK, PMI, and R.E.P. , and the Registered Education Provider logo are
registered marks of the Project Management Institute, Inc.