The following abstracts have been submitted for consideration for the 2014 Annual Meeting in New Orleans, LA. The final program will consist of approximately 100 tracks.
(EVM-1487) Simplified Earned Value Management- A Contractors Perspective
Primary Author: Dr Paul D Giammalvo CCP PTMC/APMX
Abstract: This is a comparison between how the US Government and their large government contractors and private sector, entrepreneurial contractors perceive, interpret and apply ANSI 748 Earned Value.
This paper takes the 32 NDIA requirements and isolates only those where private sector contractors use or interpret those criteria differently than strictly required under NDIA Guidelines.
The paper demonstrates by examples and a case study that while private sector contractors substantially do comply with the NDIA criteria, how the private sector differs from the government sector leads to several interesting and potentially important recommendations on how the US Government could or should "simplify" or "modify" ANSI 748 to make it more "user friendly" and less bureacratic.
(EVM-1528) Taking the "One Day IBR" to the next level
Primary Author: Mr Julian C. Keith EVP Tecolote
Abstract: The Integrated Baseline Review has long been a part of government defense contracts. The goal is establish an executable baseline that covers the technical scope required on schedule and within cost targets. However, recent cost saving initiatives across the DoD, and specifically within space programs, have developed policies and guidance to streamline IBR activities, going against traditional IBR practices. Specific policies have been put on some contracts that establish guidelines and boundaries on how customers communicate and interact with performing contractors, and the impact on the IBR has put responsibility on the government to review documents and data available through normal contractor processes and CDRL deliverables. A comparison between traditional IBR practices versus this new streamlined one day IBR will begin to provide insight into the advantages and disadvantages of each approach, and possibly show opportunities to streamline the process even further by creating a day to day program management style that will accomplish the same goal to ensure a performance baseline that covers the technical scope required on schedule and within cost targets.
(EVM-1540) Integrated Project Management Approach for EPC Energy Projects
Primary Author: Mr Williams Chirinos INEXERTUS
Abstract: Although there is an effort to implement the best project management techniques worldwide, energy projects still experience difficulties meeting the three successful criteria delivered on time, with a final actual cost on or below budget, and in full compliance with the requirements.
A new integrated project management approach is presented through a case study to design an Oil and Gas Production Facility. This approach starts with the definition of the work scope using a work breakdown structure and project plan based on deliverables and milestones, instead of activities or tasks. The focus on project results increases the objectivity when reporting physical project progress and facilitates the implementation of earned value management. Earned schedule concept is included to forecast the project completion date. The work breakdown structure, earned value and earned schedule are powerful techniques, but are rarely used worldwide.
The combination of this result-oriented concept with a simplified application of earned value and earned schedule facilitates the definition and execution phases, and increases the probability of success and ROI of energy projects.
(EVM-1552) EVM in Practice Strategic Control throughout Project Life Cycle
Primary Author: Dr Peerapong Aramvareekul PhD PMP EVP PSP Williams Companies
Co-author(s): Mr Daniel Ryan Green PSP Williams Companies
Abstract: Earned value management (EVM) is an important project management tool and is considered one of the best-in-class techniques for supporting proactive decision making. The correct interpretation and effective communication of earned value analysis (EVA) data will improve project cost and schedule control which will consequently increase project success.
For engineering and construction (E&C) projects such as those in the oil and gas industry, EVM must be involved at the very beginning of the project, starting at planning when putting together the project contract. Practically, EVM should be introduced throughout project life cycle: initiating, planning, executing, controlling, and closing.
Just like every good tool, applying techniques incompletely or misinterpreting data can provide misleading results and lead to ineffective decision making. This is even worse than not using the tool at all. EVM itself has some weaknesses therefore it is essential to correctly understand how to practically implement EVM calculations and processes.
This paper will explain how to incorporate EVM method into project management throughout project life cycle for better project success.
(EVM-1553) Earned Value Management Rating Index (EVMRI)
Primary Author: Dr Peerapong Aramvareekul PhD PMP EVP PSP Williams Companies
Abstract: Earned value management rating index (EVMRI) is a scoring system that measures how effective performance evaluation results will be from applying earned value management (EVM) method. The EVM is considered one of the best techniques that support proactive decision making. Practical experience has proven how important it is to monitor and evaluate project performance. Being ready for EVM starting from initiating and planning stages will increase the effectiveness of the tool and its evaluation.
In engineering and construction, it is important to include EVM into consideration at the beginning of project life cycle. In order to receive useful information from earned value analysis (EVA), not only knowing how to use EVM calculations but also preparing resources and its environment to be ready throughout project life cycle will be a successful combination.
This paper will present the concept of scoring system, called EVMRI, measuring its readiness of utilizing EVM for the most efficient results. This readiness scoring system is broken into three stages management and process, subject and set up, tracking and evaluation.
(EVM-1556) If EVMS is So Good
Primary Author: Mr Thomas W Jaeger EVP Tecolote Research, Inc.
Abstract: The ultimate objective of using EVM systems on large projects is to capture and report accurate, reliable performance data for use by managers and the customer in assessing project cost and schedule status. This data must be of reliable integrity to enable managers and stakeholders to identify project cost and schedule issues early and to forecast with reasonable confidence the likely project completion date and final cost. Too often the customer is surprised that their project will significantly overrun its budget or target completion date even though the EVMS data indicates the project is on budget and on schedule. This session will present examples of such projects and explain why the customer was surprised by the project finishing late and/or over budget. Further, this session will identify how to spot indicators of projects in trouble even though the EVMS metrics indicate otherwise. This session is for managers and analysts who want to learn how to spot practices that may detrimentally impact the accuracy and reliability of the EVMS data being reported on their projects.
(EVM-1598) Critical Path DRAG Cost for Corrective Action Development
Primary Author: Ms Leah V Zimmerman CCP EVP PSP 6K Systems
Abstract: Project Managers design corrective action plans by careful consideration of alternative approaches, often this process lacks a quantitative and disciplined method. Identification and focus on the project schedule activities that provide the greatest reward for the corrective action can improve the chances of the project meeting the technical objectives on time and within budget. The concepts of critical path DRAG, resource elasticity, expected monetary value and technical debt will be explored and explained. A quantitatively driven, corrective action decision-tree and process model will be proposed and the use of the model will be explored to improve project outcomes through better corrective action plans.
(EVM-1618) AEVA (Agile Earned Value Approach): a solution for managing & controlling dynamic projects
Primary Author: Dr Tahir Tanif
Abstract: Earned value is a powerful methodology. It provides a variety of metrics that can help in managing and controlling a project. However, it does rely on having access to the right information, in the correct format and in a timely manner. As earned value finds its use on projects in different industries, it is important that it is customised in line with the control requirements of the project. The amount of systems, processes and procedures developed should be sufficient enough to provide the appropriate level of management and control.
This paper introduces a 4-stage framework called AEVA (Agile Earned Value Approach). It ensures that an EVMS (Earned Value Management System) is designed, implemented and maintained through the project life cycle, without it becoming an administration burden for the project team. AEVA can be used for both reimbursable and fixed-price contracts. The main objective of AEVA is to keep the earned value essence intact whilst being flexible and adaptable, to cope with the demands of fast-paced projects.
(EVM-1636) Earned Value - Oil/Gas on a Journey of Exploration
Primary Author: Mr Nicholas L Kellar CCP EVP PSP British Petroleum (BP)
Co-author(s): Ms Marlene M Hyde CCP EVP CH2M Hill Inc
Abstract: This paper explores the commercial application of earned value (EV) in the oil and gas industries compared to government EV requirements. Some of the largest and most complex projects in the world are owned and managed by a few oil companies known as Super Major oil companies. These projects require the most efficient and best management techniques. This paper will explore how they manage these mega-projects and whether Earned Value contributes to their success. Several international projects from oil companies such as BP, Chevron, and Shell will be evaluated for EV maturity.
EV will be evaluated by creating a maturity index model to measure the common practices between government applications of EV vs. commercial EV for the energy industries. Areas of common EV implementation will be explored and areas of contrast will be identified. Commercial industry typically demands less EV rigor than the government. It is expected that the EV maturity matrix will vary between companies and even between projects within the same company.
(EVM-1649) Recommended Practice 75R-13, Schedule and Cost Reserves within the Framework of ANSI EIA-748
Primary Author: Mr Dan Melamed CCP EVP U.S. Department of Energy
Co-author(s): Mr Robert Loop EVP PSP United States Department of Energy
Abstract: This paper discusses the recommended practice (RP) RP 75R-13 for schedule and cost reserves within on projects consistent with American National Standards Institute (ANSI) - Electronics Industries Alliance (EIA) - 748 Earned Value Management (EVM) practices. The application of MR and UB to ANSI projects will be discussed in relation to existing RPs in order to clarify their use in projects with EVM based upon the ANSI 748 standard.
(EVM-1668) Its All about Scope Management
Primary Author: Mr Robert Loop EVP PSP United States Department of Energy
Abstract: A fundamental principle of earned value consistent with the ANSI-EIA 748 requirements is the integration of scope-schedule-budget. Scope growth is a common reason for projects to exceed contractual and internal cost targets. One reason for cost growth is not keeping technical scope integrated with cost and schedule. This paper/presentation will address scope management within earned value. Technical scope at the project level is planned through the WBS to the control account where it is integrated with schedule and cost. This is a fundamental requirement of Guideline 8. This creates an integrated baseline. But it is important that this is maintained after the baseline through change control to maintain the integration. Besides driving project cost, scope management is a key component to understand EVM baseline control requirements.
(EVM-1672) Applying Activity Based Management and Earned Value Management for Well Abandonment
Primary Author: Mr Afriandi Eka Prasetya ST
Abstract: This paper is an actual case study which documents the abandonment of 7 oil wells located in Indonesia.
Well abandonment covers site clearance work, pull the string out of hole, plugging the hole, and managing the mob/demob of equipment between sites.
By applying the fundamentals of Activity Based Costing (ABC) and Earned Value Management (EVM), the abandonment project of 7 oil wells was completed in a total of 131 days, a slippage of 12% over the approved plan of 117 days and at a total cost of 1.078 million USD, versus the target cost of 1.074 million dollars.
This paper explores the step-by-step process that is used to create the Baseline Schedule, track the progress against the schedule and report to the appropriate stakeholders. The paper concludes by recommending ABC combined with EVM be applied to other well abandonment projects.
(EVM-1677) Earned Value - Are we doing a right thing?
Primary Author: Mr Achal Misra EVP ADCO
Abstract: Predictions are precise when a system operates in linear pattern with known constraints. If a system follows a non-linear pattern in variable conditions, then ability to predict is challenged. Considering this hypothesis, a question arises, how correctly a project performance be predicted when operating with basic variables (scope, schedule and cost) and unknown constraints?
To answer this question, it requires exploring earned value and performance indicators (efficiency) based on which forecast are made. The forecast reliability is questioned being based on analysis of past performance that is non-repetitive. Under such circumstance, does the earned value provide a meaningful performance indicator?
ANSI EIA-748 standard pivots earned value and the perceptual change from plan to earn potentially misleads as accomplishments keep changing distorting the performance indices. Implicit curiosity surfs, are we doing a right thing?
Answering this critical curiosity, this paper examines the derived project efficiency challenging the reliability of the project performance indicators. The paper discusses the inherent constraints of earned value and concludes with thoughts for further research to develop a robust earned value.
(EVM-1679) Using EV Everday
Primary Author: Ms Sheri L. Crowe EVP Washington River Protection Solutions Company
Co-author(s): Ms Amy D Basche Washington River Protection Solutions Company
Abstract: EV Everyday is a communication tool to Project Control Professionals, Control Account Managers, Project Managers, and anybody who touches the tools, processes, procedures, and execution of EVMS on a project. The goal of EV Everyday is to make the project teams understand that Earned Value is not a "once a month" (during monthly status and reporting time), or an "annual thing", during the annual surveillance or certification review. Our goal is to clearly explain how what people do on the project everyday IS EVMS. Over the course of a year, individuals are receiving regular correspondence to increase their knowledge and understanding about what they do everyday to subcontract management, weekly time card approvals, weekly schedule status, etc. are all EVMS actions.
(EVM-1722) ANALISYS OF THE COSTS VARIATION: A NEW TOOL
Primary Author: Mr Rolando Miranda Pontes Fundacao Getulio Vargas
Co-author(s): Mr Rafael Vargas Pontes Unimed
Abstract: The costs management in projects is an area of knowledge on PMBOK that includes the estimation's process, budget and costs control. These processes are applied to the completion of the project into the previewed budget. For so the process of costs control is aimed to monitoring the costs fulfillment to isolate and understand the variations for the costs base line, identifying the motivations of the positive and negative variations. One of the control tools is the Management Earn Value used to monitoring the cost performance and estimate the variations and the cost indexes of fulfillment in the project until the date of measurement.
To implement timely corrective actions that effectively can extinguish the causes of variations in costs is necessary to isolate the types of variations and identify yours responsible.
This paper aims to present this new tool to analyze the variations in project costs. From the cost variance calculated by the Value Added aims to demonstrate the application of this new tool decomposing and analyzing the variation of identifying cost variations due to the price of resources (estimated difference between the price and the actual price), and variations because the amount of resources consumed (deviation between the estimated amount and the amount consumed). The calculation of the price and quantity ends up sending those responsible and hence the causes of variations.
Through a case study this paper aims to demonstrate how to apply this new tool and also demonstrate that the analysis of value, although important, can sometimes hide major cost problems in the project when it is applied to the measurement date and not by individual work package.
Thus, it is intended to highlight the importance of this tool as a new ally in cost management on projects.
(EVM-1747) Effective use of Earned Value for Construction Performance Analysis
Primary Author: Mr Laurie Scott Bowman CCP EVP PSP Synchrony
Abstract: The effective management of construction performance has been identified in a number of studies as being a key determinant in overall project success. It is in the interests of both the contractor and the owner to plan, measure, monitor and control construction progress so that