May 2013
The EVM Newsletter™
from Management Technologies
Highlights in this Issue
Two International Project Controls Conferences Planned
EVM Europe Plans Event #5
On Random Numbers and Projects
CPM Seeks Candidates for Governing Board
Keeping the Simple - Simple
USAF Says Earned Schedule Works
Management Technologies Services 
 


 

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AACE Announces Next Two International Total Cost Management Conferences

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In 2012 AACE conducted its first International Total Cost Management Conference (ITCMC) in Dubai, UAE. It was successful by a number of measures.
  
Their next events are in Bangkok, Thailand (2014) and  Istanbul, Turkey (2015).
  
A call for papers will be announced by September 1, 2013 for the 2014 event.  The ITCMC uses the same peer-reviewed process as used for their Annual Meeting.
 

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 EVM Europe Goes for Five 
 

EVM Europe's fifth annual event, "Integrated Project Controls", will take place in Ghent (Belgium) on December 3-4, 2013.

 

Ghent University and Vlerick Business School are participants. Sessions will include both research and practitioner presentations.

Quotable Quote
 quill
"All project variables are random numbers about a median {and} all variables interact with each other."
  

 

G. Alleman, IPMC Fall 2011
 
 
  

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AACE Approved Education  Provider

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PMI Registered Education Provider

 

 

 

Constant Contact All Star Award (3nd year)

(Less than 10% of Constant Contact customers are
All Stars.)
 

 

 

      

ANSI 748 Revision C is Released

 

ANSI 748C has been released.

 

The good news is that if your EVMS was compliant with ANSI 748 before, it still is.

 

The bad news, if your EVMS was not compliant it still isn't.

 

According to members of the ANSI 748 revision team there has been some minor changes for readably and clearer definitions. One area of revision (for clarity) is in funds management and the relationships between AUW OTB and other factors in the CBB and TAB.

 

Standby for clarification on the following statement in Rev C "Over-target baseline is a term used to describe a situation where the budget (OTB) and/or schedule (OTS) in the contract budget baseline exceeds the program targets..."  I looks like a error as it is different from REV B and established practice. (We'll have an update in the May newsletter.

 

I expect that the principles of ANSI 748, as tested in the AACE EVP exam, will not change.

 

It is available from ANSI's eStandards Store at a cost of $72.

 

 

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Welcome to the May 2013 EVM Newsletter. me2011

 

EVM World 2013 is upon us. EVM World is an annual event of the College of Performance Management (CPM). Hopefully many of you can make it to Naples FL for the 2 ˝ day event.

  

If you are involved in EVM it is the place to be. If you see me say "hi".

 

 

Missed it this year? EVM World 2014 is at end of May in San Antonio, Texas. Plan ahead.

 

DOA. Dead on Arrival. That's the best we can say about our feeble attempt to be clever. In past issues we've presented "The Most Interesting CAM in the World", and a past April 1st (April Fool's Day) announcement that the US Government changed all the traditional EVM terms. We would get some email about these articles.

 

So we thought our announcement of a 1 April passage of a nationwide policy of adopting ANSI 748 in Freedonia would get some email response. Nothing. Nada. Hopefully no one moved to Fredonia seeking a position as EVM analysis. Oh well. We try to add a little non-EVM stuff and sometimes it dies.

  

 

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We have some new subscribers. Welcome to my LinkedIn contacts that have been added to the subscriber list. Don't want your free subscription? Just opt-out using the links at the top or bottom.

 

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

CPM Seeks Board Officer Candidates

     

 

The College of Performance Management (CPM) is seeking nominations for a number of existing board positions and newly created board positions.  

 

The board's positions are filled in two separate elections to provide some continuity of leadership during the transition periods.

 

The nominating period opened on 15 May. The following board positions will be elected this fall.

 

  • Executive Vice President
  • Vice President of Finance
  • Vice President of Conferences and Events - EVM World (NEW!)
  • Vice President of Conferences and Events - IPMC (NEW!)
  • Vice President of Research and Standards
  • Vice President of Global Outreach (NEW!)

Position Descriptions are available on the CPM Web Site. In order to be eligible for election nominees must be CPM members in good standing.

 

If you would like to know more about the positions and duties please contact Lauren Bone (VP Administration) or Gaile Argiro (CPM Exec Admin).

 

 

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Tidbit # 44, Keeping Simple Projects Simple

 

I have had the opportunity help implement EVM in small firms, and small projects in large firms. One common experience is the over-complication of EVM in these situations. It is particularly common in implementations that need to meet ANSI 748 requirements. Simple does not mean you can't meet ANSI 748. It may mean you can meet it - simply.

 

ANSI 748, and the original C/SCSC (Cost/Schedule Control Systems WBS Criteria), were written to address the application of EVM to large projects (ships, aircraft, weapon systems) built by large corporations (Lockheed, Grumman, North American Aviation, Ling-Temco-Vought, etc.).

 

These companies had established departments (hardware engineering, software engineering, manufacturing, systems engineering, etc.) to create a career path for staff and refine discipline specific processes. Mapping these departments and staff to their projects required a complex matrix managed structure, and later integrated product/project teams.

 

Out of this came the project specific OBS (not the corporate organizational chart) and WBS. From this ANSI 748 created control accounts at the intersection of the WBS and OBS so that it was possible, and required, to sum EVM data and variances through both structures. This, in turn, often created a complex, multidimensional cost coding structure to map both the OBS and WBS codes into the charge codes.

 

Today firms with as few as 30 people are sometimes required to do ANSI 748 EVM. It's important to understand how this environment is different from the one in place when C/SCSC and subsequently ANSI 748 were created. (ANSI 748 is virtually the same as C/SCSC in the 32 guidelines carried forward.)

 

In most cases these firms do not contain departments, they contain projects. They are not matrix managed, but projectized instead. Project teams are typically formed around the deliverables or subassemblies. Once the deliverables are delivered the project "department" is dissolved. (Find a new job.)

 

A good WBS should be built upon the deliverables and their components. In an small firm the project teams often end up built around the same deliverables and components. Thus the WBS and OBS become identical except one names the deliverable or component, and the other lists the team leader/manager.

 

The result is that the ANSI 748 requirements to sum data through both is satisfied by summing it through either! In essence we have reduced the complexity of reporting EVM and variances by half.

 

ANSI 748 2.3b says

When a work breakdown structure is used, summarize direct costs from control accounts into the work breakdown structure without allocation of a single control account to two or more work breakdown structure elements.

 

ANSI 748 2.3c says

Summarize direct costs from the control accounts into the organizational elements without allocation of a single control account to two or more organizational elements.

 

So to answer the question "Do you meet 2.3c?" The answer might be "See my response to 2.3b".

 

So can a projectized organization meet ANSI 748 requirements to sum through the OBS and WBS? Yes. One gets the same sums because both structures are identical. If challenged just show how the data is summed using the WBS. Then show how the data is summed through the OBS. Then show that both structures are identical.


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US Air Force Research Confirms Earned Schedule Analysis' Validity

  

 

Recently completed research at the US Air Force Air University, Air Force Institute of Technology (AFIT), has shown that " Earned Schedule (ES) to be a more timely and accurate predictor (of schedule performance) than Earned Value Management."

 

Titled "A Comparison of Earned Value Management and Earned Schedule as Schedule Predictors on DOD ACAT I Programs", five statistical tests were conducted on sixty-four US DOD major (ACAT I) programs. These are really big programs like the F-16, C-17, B-2, and the B-1 among others. The EVM data is good since the contractors involved had ANSI 748 validated systems.

 

These five tests confirmed that ES outperforms "Earned Value Management". This statement is interpreted to mean that EVM analysis using traditional SPI (budget based) and attempts to use it to predict program/project completion dates is inferior to methods employing ES.

 

Earned Schedule provides a means to compute schedule variance and a time based SPI using the time axis of the EVM "S curves" and preserves the utility of SPI to the project's end. Traditional SPI (budget based) is forced to become one since at some point work done divided by work planned will become one point zero.

 

The good news is that if you are practicing EVM you have the data for ES analysis without any additional effort! The researchers will be presenting at EVM WORLD in Naples FL this May.

 

The 247 page report is available in the CPM library . You will need to agree to the terms of use and then search for the article by title.

 

Our EzEVM™ excel workbook computes ES parameters, estimated completion date, and "P" factor to determine how much of the currently completed work is at risk due to being completed prematurely according to the activity network.

   
EVPrep™ and EVM Workshops

The following workshops are planned for one or more of the following locations:

 

  • Salt Lake City, UT
  • San Diego
  • Seattle
  • Austin
  • Bethesda (following IPMC)

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.

  

"Ray, your course is excellent preparation for the EVP Certification test. Your questions were comprehensive like the test and somewhat harder (more complex) than the real test. Your preparation course especially helped with the memo."

Jeff Kottmyer

NASA

 

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

 

EVA12 London 

WHEN: 11-12 June

WHERE: Armours Hall

MORE INFO: EVA12

 

AACE Annual Meeting

WHEN: 30 June - 3 July 2013

WHERE: Marriott Wardman Park, Washington DC

MORE INFO: AACE

 

PM Oz 2013

WHEN: 17-18 September 2013

WHERE: Melborne, Victoria, Australia

MORE INFO:PMOz 2013 

 

IPMA World Congress

WHEN: 30 September - 3 October 2013

WHERE: Dubrovnik, Croatia

MORE INFO: IPMC World Congress 

 

Integrated Program Management Conference

WHEN: 18-20 November 2013

WHERE: Bethesda, MD

MORE INFO: CPM 

 

EVM Europe 2013

WHEN: 3-4 December 2013 (Changed)

WHERE: University of Ghent, Belgium

MORE INFO: EVM Europe 

 

AACE International Conference

WHEN: 12-13 November 2014 (Yes 2014)

WHERE: Bangkok Thailand

 MORE INFO: AACE

 

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 2013, Management Technologies  

The EVM Newsletter, EVPrep, The Earned Value Management Maturity Model, EVM3, EzEVM,
The CAM Exam, 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.