Abstract: This paper describes the basic principles of earned value and proposes a three dimension multilevel earned value model that can be effectively applied to plan and control construction projects. The three dimensions that integrate the model are: the work breakdown structure (WBS), the cost breakdown structure (CBS) and the cost account breakdown structure (CABS).
It describes how the three dimensions are defined, mapped and integrated during the planning phase and explains the proposed approach to measure project time and cost performance with the three dimensions proposed.
In large and complex construction projects with many specialties, activities and resources the proposed method is a pragmatic approach to implement earned value management. The proposal reduces the effort to track actual costs but still provides integrated and precise information for decision making.
The paper shows various reports examples and explains how to apply the proposed approach using commercial project management software.
Audience Focus: Intermediate
Application Type: Experience-Based
Time/Location: MON 10:00-11:00/Salon K
Abstract: Earned value management (EVM) is an effective performance measurement methodology that integrates project scope, schedule, and cost. Since 2006, the Federal Acquisition Regulations (FAR) has required the use of an ANSI/EIA-748 compliant EVM system (EVMS) on government contracts exceeding agency thresholds – typically $10 – 20 million. Industry, however, has recognized the value of implementing EVM on smaller contracts but struggles to find a value added methodology that meets the intent of the 32 ANSI criteria without imposing the perceived burden of a fully compliant system. Some have recommended an EV-Lite that implements only selected criteria without consensus as to which criteria should be excluded. Others argue that none of the criteria can be eliminated but may be tailored for smaller projects. This paper proposes that rather than focusing on the development of an abridged or tailored set of criteria, new implementations of EVM for smaller projects should be constructed around key artifacts based on an assessment of the strengths and weaknesses of the organization’s current project management methodologies.
Audience Focus: Intermediate
Application Type: Experience-Based
Time/Location: MON 11:15-12:15/Salon K
Abstract: The baseline execution index (BEI) is one of several project control indices that are useful for project monitoring as well as portfolio management. When combined with earned value management (EVM) metrics, the BEI can provide effective visibility into the health of a project. Through the analysis of EVM field data from several large software development programs the usefulness and predictive nature of the BEI will be explored. The potential for making this index more constructive will also be investigated. The applicability of the index when combined with other project health metrics at various points in the project lifecycle will also be summarized.
Primary Author: Ms Vicki L. Frahm EVP Sandia Corporation
