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AACE Approved Eduction  Provider

PMI Registered Education Provider

Constant Contact All Star Award (2nd year) 

ANSI 748 says that Control Accounts (CA) MAY be broken down into one or more work packages (WP). If that is done then  budgets must be assigned to work packages. But ANSI 748 does not require costs be collected at the WP level. So why have work packages?

When we record AC (actual cost) it should be pretty accurate. Other than estimating accrued costs, it is correct. But when we establish the PMB (Performance Measurement Baseline) (PV cum over time) and measure progress against it (EV) it's not so accurate. Some WIP (Work in Process) measures distort measuring actual progress (think 50/50). Some tasks are just hard to measure such as progress in design engineering (estimated percent complete). By having WPs we are forced to plan our CA to a lower level and add refinement to our PV and EV. So PV and EVM are always approximate but made better with detail provided at the WP level.

But collecting AC at the WP level is NOT required and can increase EVM implementation costs. Typically if costs are collected at the WP level then charge numbers are created where they are not needed. More charge numbers just means more chance of a wrong number being used; distorting the data. Also the ability to compute CV (cost variance) at the WP level can lead to variance analysis being performed at the WP level.  SV (schedule variance) and CV, and variance analysis, are only required at the CA level in an ANSI 748 EVMS. This just adds cost and effort where its not required.

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Starting in January 2013 all AACE certification exams will be done using local testing centers and computer terminals. No  longer will applicants have to wait to find where their exam will be held. Nor will a testing site need to be found or a need to find AACE member-proctors.

Certification exams requiring a written memo will use a text editor tool. This is probably a good move for those like me who cannot write clearly, get hand cramps after an hour of writing, and wish they could rearrange paragraphs to make more sense.

So on your 2013 exam date you may be the only one at the testing center taking an AACE exam. But the exam scheduling opportunities should be about infinite.

AACE Total Cost Management Conference

WHEN: November 14-15, 2012

WHERE: Dubai, UAE

MORE INFO: AACEI

Construction CPM Conference

(CPM as in Critical Path Method, not affiliated with the College of Perf. Mgmt.)

WHEN: January 27-30, 2013

WHERE: New Orleans, LA

MORE INFO: www.ConstructionCPM.com

EVM WORLD 2013

WHEN: 29-31 MAY 2013

WHERE: NAPLES, FL

MORE INFO: CPM

AACE International's Annual Meeting

In June I found myself providing EVM services first in Missoula, Montana and later in Chaguanas, Trinidad and Tobago. There  is little these two cities have in common except English and the reason for interest in EVM. (They each drive on opposite sides of the road.)

In both cases the small - medium size client companies had been asked to provide EVM data to their customers. One client's customer was a US based top defense contractor; the other British Petroleum (BP).

Neither project involved a government entity. Notably absent was any mention of ANSI 748, IBRs (Integrated Baseline Reviews), or Contract Performance Reports. Their customers had simply become accustom to using EVM on their internal projects and saw value in asking their contractors (our two clients) to provide EVM data. One organization simply stated that "earned value management data should be used in reporting project status."

Neither client had implemented EVM previously and had no tools in place. In Missoula we provided five days of on-site support and left the client with tailored EzEVM™ Excel workbook templates, ten control accounts, and EVM reporting in place. (How we did that will be in the August EVM Newsletter.) Our Trinidad and Tobago client received EVM training and basic EzEVM™ workshop templates to help them get started.

The use of ANSI 748 EVM continues to grow in the US as more and more companies are faced with the US government requirements in their contracts or as a subcontractor. But the real future for the growth of EVM is with all those non-government projects world-wide that see the value in EVM and simply request earned value management data.

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