December 2012
The EVM Newsletter™
from Management Technologies
Highlights in this Issue
CPM Extends Discounted Membership Fee
Book Reviewer Sought
Flying into Reagan National
C.A.R.E about Risk
IPM Conferences Survives "Sandy"
Tidbit: Making EV More Accurate
EVM Europe - US Perspective
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CPM Membership Deal Good Through
15 January!
   

The CPM Charter Membership program has been extended to 15 Jan 2013. Under this program new members may join for only $25. After 15 January the new member fee is $85. Annual membership renewal is $50.

 

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 Book Reviewer Sought 
   

The EVM Newsletter is seeking a reviewer of Earned Value Management for Project Management: Using Microsoft Office Project.

 

It's available from Amazon and other sources.

 

The reviewer should provide a 100-200 word review of the book to be published in The EVM Newsletter. (Might be worth a PDU or 2, or an AACE Recertificaion point.)

 

Attribution and the reviewers email links will be published if desired. If you are interested send me an email.

 

 
 
Quotable Quote
 quill
"I suppose one person can make a difference, but most of the time probably shouldn't.
 
Marge Simpson, 1990
  

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AACE Approved Education  Provider

 R.E.P. logo

PMI Registered Education Provider

 

Constant Contact All Star Award (2nd year)

(Less than 5% of Constant Contact customers are
All Stars.)
 

 

 

Earned Schedule Conference
 

Next year is the 10th anniversary of "Schedule is Different", the landmark article by Walt Lipke that introduced Earned Schedule.

 

A conference is being organized to mark the occasion and to address new developments and challenges, and to strengthen the network of ES practitioners and researchers.

 

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Flying into Reagan National Airport Reinforces US Resolve

 

Pilots flying into Reagan Airport  (DCA) often follow one of several transition routes, known as Standard Terminal Arrival Routes (STARs). The routes follow a string of named waypoints, limited to 5 characters which are unique within all the US Airspace.

 

Arriving from the North the FRDMM ONE ARRIVAL waypoints are, in order: HONNR, BRVRY, COURG, MORLL, PLDGE, WEEEE, WLLLL, NEVVR, FORGT, SEPII, ALWYZ, and FRDMM.

 

From FRDMM the flight flies to either STAND, TGTHR, or LETZZ RLLLL.

 

Arriving from the South the TRUPS ONE ARRIVAL includes: RANJR, JARHD, USAAY, WEEDU SUPRT OOURR TRUPS.

 

Something to think about when your seat is up, tray table is stowed, and your electronic toy is powered down.

  

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 Apply C.A.R.E 
 

It's safe to say that both project management and piloting aircraft are two activiies with some degree of risk. OK, maybe piloting aircraft has bigger consequeneces. But both need to address risk.

  

Here is an acronym from the pilot community that might fit your risk management process.

  

C.A.R.E

  

Consequence - what might happen if identified risks occur?

 

Alternatives - consider alternatives as conditions change.

 

Reality -be realistic and avoid wishful thinking.

 

External pressures - don't let them cause you to deviate from the plan.

 

Next month we'll define:

T.E.A.M

  

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Here is the December EVM Newsletter.me2011

 

If you are reading this then the world did not end on 21 December.

 

It's no surprise if it's 2013 before you get to reading it. We're at the time in the calendar when things slow down worldwide as year end religious and end of year events start happening around the world.

 

I wish each of you Happy Holidays as you celebrate with family and friends this special time of year.

 

This EVM Newsletter has a review of the rescheduled Integrated Program Management Conference (IPMC) which was impacted earlier by Hurricane Sandy. Also there is an announcement from the College of Performance Management (CPM) regarding extension of their charter membership rate through 15 January. Last January the future of CPM was unclear as they separated from the Project Management Institute (PMI). With two successful conferences in 2012 and growing membership it's clear CPM is alive and healthy.

 

The EVM Europe conference has also concluded. We've republished the comments from one American who attended.

 

Do you use 0/100 and 50/50 EVM rules? Then you might be forcing work to fit into one or two month work packages and introducing error into the Earned Value. Is this really the best way to refine the estimation of EV? (It's always an estimate.) If you can count what work is completed and divide by the total quantity or work then the percent complete should be more accurate. The resulting EV should be more accurate too. Our Tidbit #39 suggests how to find something to count.

 

 
  

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I'm looking for a book reviewer.

 

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

Integrated Program Management Conference Survives "Sandy"

The College of Performance Management (CPM), in cooperation with NDIA and SCEA (now the International Cost Estimating and  Analysis Association, ICEAA) successfully rescheduled and held their Integrated Program Management Conference (IPMC) in spite of Hurricane Sandy. Originally scheduled during Sandy's arrival, the Conference was cancelled. After determining that the October program of events could be executed in December the IPMC was rescheduled. The keynote speakers, and virtually all the trainers and symposium speakers were able to accommodate the December 10-12 program. Over 400 attendees received training in EVM and integrated program management, participated in workshop discussions; and heard over twenty speakers present case studies, new topics, and practical experience. 

 

VADM Joseph Dyer, (USN, Ret.) addressed the value of EVM and how to sell it in the face of resistance. His message, pushing harder is not the solution. Get on the "other side" of the issues and learn why the push back. Then, one-by-one solve or address the issue until the resistance is minimized.

 

Again the topic of Agile and EVM was popular. There was only presentation on the topic but the room was virtually filled.

 

Management Technologies got an honorable mention from one speaker telling how they got to a DCMA Validated ANSI 748 EVMS.

 

CPM became independent from the Project Management Institute (PMI) in January 2012 and conducted EVM World 2012 in Naples in last Spring. EVM World 2013 will be held on 20-31 May in Naples, Florida.

 

 
 
Tidbit #39, Making the Best EVM Measure Work 

 

It is the author's opinion that the very best method to  determine EV (BCWP) is the percent complete. While 0/100, 50/50 and the like are simple to apply they require short time spans of one or two reporting periods to avoid zero percent periods in the middle. Making a work package fit these rules can create more work packages than necessary and artificially divide work into small segments that do not fit the real way work is segmented. (A major reason technical leads hate 80 hour per task rules and the like.) Furthermore, the use of 50/50 distorts the real progress made if only 10 percent was done, leaving 90 percent to complete later. Unreal schedule variance and cost variance at the control account level can be the result.

 

The challenge is finding a better means to approximate the percent complete. Of course if the CAM has ten items to complete and three are done it's simple. But what if the task is less clear? What do you count and what is the divisor's value?

 

For example, in planning EVM for an engineering design control account we can ask the engineering team what we should count. They respond with "there is nothing to count. We'll give you our estimated percent complete each month." This is a set up for the asymptotic crawl to 100% after 90% complete is claimed prematurely. Upon further discussion the engineering team holds fast to the fact that this is cerebral work and only they can tell us how far along they are.

 

There must be a better way.

 

During the proposal phase each project team had to provide the cost to complete their work and back it up with a convincing basis of estimate (BOE), usually buried in the proposal. Once the job is won the proposal is put away. Maybe we should take another look at the proposal.

 

"Engineering's bid for the effort is estimated at 4524 staff hours. A project of this complexity usually requires about 26 drawings at 174 hours per drawing." Got it.

 

We can use drawings as a unit of progress to estimate the percent complete! "But we're not sure of the actual number?" "Well, you did say it was 26, not 25 or 27, so it looks like you know down to the unit. Same with the labor, 174 hours, not 175."

 

While the actual number of drawing may vary from 26 as the design effort proceeds at least we have something to count. The divisor can be adjusted if the total count changes from 26. If the count jumps to 35 our percent complete decreases and cumulative EV might decrease, but it's revealing the truth.

 

If some drawings are more complex that others we can create two work packages with different budgets per drawing.

 

So when the CAM says we have nothing to count, get out the proposal and look at the basis of estimate. You will likely find the units the CAM uses in estimating work scope.

 

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EVPrep™ and EVM Workshops

The following workshops are planned for the following locations:

  • Reston, VA
  • Salt Lake City, UT
  • Atlanta, GA

Earned Value Experience (CAM) Workshop (14 PDUs)

 

You'll experience creating an earned value management baseline, determining earned value from project status, calculating 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.

 

Locations and Dates

 

View the Earned Value Experience 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. 

 

EVPrep Exam Prep Workshop (14 PDUs)

 

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).

 

Take this workshop and save $150 on the exam. Attendees are given a temporary limited membership in AACE that allows you to take the exam at AACE member rates.

 

Locations and Dates 

 

This is twelve hours of mock EVP exam and discussions of correct and incorrect answers.

  

Do you have an EVP FAQ
 
  
 

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 

 

  

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

 

PM Global Gov and Controls Symposium

When: 9-10 April 2013

Where: Canberra, Australia

More Info: http://wired.ivvy.com/event/GCSM13/ 

 

EVM WORLD 2013

WHEN: 29-31 May 2013

WHERE: Naples, FL

MORE INFO: CPM

 

AACE International's Annual Meeting

WHEN: 30 June - 3 July 2013

WHERE: Marriott Wardman Park, Washington DC

MORE INFO: AACE 

 

Integrated Program Management Conference

WHEN: 18-20 November 2013

WHERE: Bethesda, MD

MORE INFO: CPM 

 

EVM Europe 2013

WHEN: 4-5 December 2013

WHERE: University of Ghent, Belgium

MORE INFO: EVM Europe 

 

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An American Comments on EVM Europe 2012

 

 

One of our readers, Mark Phillips, attended EVM Europe 2012  and posted ten observations and comments about the event. (Mark is the new VP Communications for CPM.)

 

 

"1. EVM is thriving in Europe. It goes by different names, such as integrated performance management, integrated project control, progress reporting, etc. But demand for insight into project performance and for project control is growing. The concept of integrating schedule, budget and scope, at a minimum, into a project control and management system, is a leading method for delivering that insight and control. 

 

 

"2. EVM is used on some of the largest and most visible projects in Europe including CERN and large infrastructure projects.

 

 

"3. The push for EVM and performance management is being led by senior, seasoned, intelligent professionals that are on the cutting edge of their organizations.  

 

 

"4. There are many, new, practice-based questions coming from practitioners using EVM in new ways. The focus is on developing an accurate picture of project performance and an effective set of project management controls to meet stakeholder needs.

 

"5. Practitioners are devouring the latest advances in performance management research. They are hungry to learn, test and implement best practices or try new ideas to see how it can improve project performance and control.

 

"6. There is an active interchange between practitioners and researchers. Practitioners are customizing methods and tools. Researchers are developing new methods and tools. Active discussion is taking place, driven by the practical challenges of stakeholder needs, project realities and dedication to pushing the boundaries of what EVM can do.

 

 

"7.New areas of research include when to re-baseline; earned schedule's applicability to different types of activity networks; expanding the variables included in an integrated performance measurement system  (to include items such as risk, quality, communication, complexity and social needs, for example) and; the P-Factor's role in calculating EAC. 

 

 

"8. People are looking to the U.S. for EVM expertise. The U.S. has a reputation of being the most experienced source for EVM/integrated performance management expertise.

 

"9. Codified concepts of project management, integrated project control and EVM are a starting point for these practitioners and researchers. Practitioners are taking what is valuable to them, applying it, seeing how it goes and modifying as needed.

 

"10. Practitioners seem to have close, direct contact with the project stakeholders or those interfacing with the stakeholders (in public works projects). They are sensitive to the non-deliverable based expectations for the project i.e. stakeholder requirements outside of the direct project result (such as political expectations, social expectations, an organization's need to predict cash flow or the drive to foster innovation)."

 

For several years EVM Europe coincided with the American Thanksgiving Holiday. This last event did not due to Thanksgiving's early date. After observing the higher attendance by Americans, next year's EVM Europe avoids Thanksgiving.

 

Dates are Dec 4-5 in Ghent, Belgium/

 

Crossed Flag image courtsey of www.crossed-flag-pins.com.

 

 

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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 2012, Management Technologies  

The EVM Newsletter, EVPrep, The Earned Value Management Maturity Model, EVM3, EzEVM, CAMcert, 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. (AACEŽ).

 

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

 

EVM World is a
registered trademark of the College of Performance Management, Inc.