determining the health of a project through earned value management

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Determining the Health of a Determining the Health of a Project through Earned Project through Earned Value Management Value Management

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Determining the Health of a Project through Earned Value Management. Determining the Health of a Project through Earned Value Management. What and Why When How Outcomes Limitations EVM and RM Integration. Clearing and grubbing for a new water treatment plant in Kassan, Alaska. - PowerPoint PPT Presentation

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Page 1: Determining the Health of a Project through Earned Value Management

Determining the Health of a Project Determining the Health of a Project through Earned Value Managementthrough Earned Value Management

Page 2: Determining the Health of a Project through Earned Value Management

What and WhyWhat and Why

WhenWhen

HowHow

OutcomesOutcomes

LimitationsLimitations

EVM and RM EVM and RM IntegrationIntegration

Clearing and grubbing for a new water treatment plant in Kassan, Alaska

Determining the Health of a Project Determining the Health of a Project through Earned Value Managementthrough Earned Value Management

Page 3: Determining the Health of a Project through Earned Value Management

What and WhyWhat and Why

EVM is a project management technique EVM is a project management technique that:that:– Objectively quantifies project progress and Objectively quantifies project progress and

performance in terms of dollarsperformance in terms of dollars– Measures actual performance against an Measures actual performance against an

assumed spending baselineassumed spending baseline– Provides indicators of future performance Provides indicators of future performance

based on past performancebased on past performance

Page 4: Determining the Health of a Project through Earned Value Management

WhenWhen

ScopeScope

ScheduleSchedule

BudgetBudget

Earning RulesEarning Rules

Accrued CostsAccrued Costs

Picture Here

Installing a well line in Pitka’s Point, Alaska

Page 5: Determining the Health of a Project through Earned Value Management

Toksook Bay, AlaskaToksook Bay, Alaska

590 residents590 residents

New WTP/WSTNew WTP/WST– $8.86M$8.86M– Const. Comp = Const. Comp =

8/31/138/31/13

Page 6: Determining the Health of a Project through Earned Value Management

Scope ItemConstruction ActivitiesOOK 07-002 - Water Treatment PlantConstruction start DateInitial Material Flown/unload and transportSafety & Safety Stand DownL - Housing Set-upSite workClear & grub/haul off, 1300CYL - Haul In NSF Place NSF/Compact/gradeGrade and set connexBarge Arrival/unload/transfer to sitePiling ContractPiling Contractor for WTP Piling Contractor for WSTSet up for Pipe WorkRaw Water from 3A and 3BL - C-143 Station 49+50 to 40+00L - C-142 Station 49+00 to 29+00

HowHowScope – Work Breakdown StructureScope – Work Breakdown Structure

Page 7: Determining the Health of a Project through Earned Value Management

Scope Item Est Start Est CopmConstruction Activities 03/12/12 08/31/13OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13Construction start Date 05/02/12 05/02/12Initial Material Flown/unload and transport 05/02/12 05/03/12Safety & Safety Stand Down 05/03/12 05/04/12L - Housing Set-up 05/04/12 05/25/12Site work 03/12/12 08/27/12Clear & grub/haul off, 1300CY 05/24/12 05/31/12L - Haul In NSF 05/31/12 06/14/12Place NSF/Compact/grade 05/31/12 06/14/12Grade and set connexes (3) 06/14/12 06/16/12Barge Arrival/unload/transfer to site 06/16/12 06/23/12Piling Contract 03/12/12 04/21/12Piling Contractor for WTP 03/12/12 04/07/12Piling Contractor for WST 04/07/12 04/21/12Set up for Pipe Work 06/23/12 06/25/12Raw Water from 3A and 3B 06/26/12 07/21/12L - C-143 Station 49+50 to 40+00 06/26/12 06/30/12L - C-142 Station 49+00 to 29+00 06/30/12 07/10/12

HowHowScope – WBS Scope – WBS

Schedule – Critical PathSchedule – Critical Path

Page 8: Determining the Health of a Project through Earned Value Management

Scope Item Est Start Est Copm CostConstruction Activities 03/12/12 08/31/13 $2,664,292.90 OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13 $2,664,292.90 Construction start Date 05/02/12 05/02/12 $0.00 Initial Material Flown/unload and transport 05/02/12 05/03/12 $15,000.00 Safety & Safety Stand Down 05/03/12 05/04/12 $3,000.00 L - Housing Set-up 05/04/12 05/25/12 $25,548.00 Site work 03/12/12 08/27/12 $824,916.90 Clear & grub/haul off, 1300CY 05/24/12 05/31/12 $11,889.50 L - Haul In NSF 05/31/12 06/14/12 $20,382.00 Place NSF/Compact/grade 05/31/12 06/14/12 $11,936.40 Grade and set connexes (3) 06/14/12 06/16/12 $2,984.10 Barge Arrival/unload/transfer to site 06/16/12 06/23/12 $9,122.80 Piling Contract 03/12/12 04/21/12 $581,900.00 Piling Contractor for WTP 03/12/12 04/07/12 $393,638.00 Piling Contractor for WST 04/07/12 04/21/12 $188,262.00 Set up for Pipe Work 06/23/12 06/25/12 $4,561.40 Raw Water from 3A and 3B 06/26/12 07/21/12 $50,175.40 L - C-143 Station 49+50 to 40+00 06/26/12 06/30/12 $11,403.50 L - C-142 Station 49+00 to 29+00 06/30/12 07/10/12 $18,245.60

HowHowScope – WBS Scope – WBS

Schedule – Critical PathSchedule – Critical Path

Budget – Itemized by WBSBudget – Itemized by WBS

Page 9: Determining the Health of a Project through Earned Value Management

Scope Item QTY Unit Est Start Est Copm Cost % DollarsConstruction Activities 03/12/12 08/31/13 $2,664,292.90    OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13 $2,664,292.90    Construction start Date 05/02/12 05/02/12 $0.00    Initial Material Flown/unload and transport 1 LS 05/02/12 05/03/12 $15,000.00 75% $11,250.00 Safety & Safety Stand Down 1 LS 05/03/12 05/04/12 $3,000.00 0% $0.00 L - Housing Set-up 1 LS 05/04/12 05/25/12 $25,548.00 10% $2,554.80 Site work 03/12/12 08/27/12 $824,916.90    Clear & grub/haul off, 1300CY 1300 CY 05/24/12 05/31/12 $11,889.50 0% $0.00 L - Haul In NSF 6000 CY 05/31/12 06/14/12 $20,382.00 0% $0.00 Place NSF/Compact/grade 15 DAY 05/31/12 06/14/12 $11,936.40 0% $0.00 Grade and set connexes (3) 06/14/12 06/16/12 $2,984.10 0% $0.00 Barge Arrival/unload/transfer to site 06/16/12 06/23/12 $9,122.80 0% $0.00 Piling Contract 03/12/12 04/21/12 $581,900.00    Piling Contractor for WTP 03/12/12 04/07/12 $393,638.00 100% $393,638.00 Piling Contractor for WST 04/07/12 04/21/12 $188,262.00 100% $188,262.00 Set up for Pipe Work 06/23/12 06/25/12 $4,561.40 0% $0.00 Raw Water from 3A and 3B 06/26/12 07/21/12 $50,175.40    L - C-143 Station 49+50 to 40+00 06/26/12 06/30/12 $11,403.50 0% $0.00 L - C-142 Station 49+00 to 29+00 06/30/12 07/10/12 $18,245.60 0% $0.00

HowHowScope – WBS Scope – WBS

Schedule – Critical PathSchedule – Critical Path

Budget – Itemized by WBSBudget – Itemized by WBS

Earning Rules – Predefined MetricsEarning Rules – Predefined Metrics

Page 10: Determining the Health of a Project through Earned Value Management

HowHowScope – WBSScope – WBS

Schedule – Critical PathSchedule – Critical Path

Budget – Itemized by WBSBudget – Itemized by WBS

Earning Rules – Predefined MetricsEarning Rules – Predefined Metrics

Accrued Costs – Actual Cost to DateAccrued Costs – Actual Cost to Datess Version 8, 5/11   Estimated Cost Cost To Date

Cost Tracking  Materials $2,501,487.50  Plan-Set Task TotalsUpdated as of: 6/2/2012 Equipment $1,167,040.00  Construction Budget  $8,862,720

Plan set title and plan set # OOK-07-002 Freight $265,000.00  Costs to Date $1,372,700

Community Name Toksook Bay Labor $3,196,771.50 Remaining Balance To Date $7,490,020

Notice To Proceed Date 3/15/2012 Travel $118,590.00 Subcontract $1,613,831.00 

PPE Material FreightLocal Labor

ANTHC Labor Equipment Travel Subcontract

Total Costs This Period

Total Cumulative

CostsPercent of

Budget Spent4/21/2012 100,886.00 40,907.93 0.00 81,789.63 0.00 0.00 583,532.46 807,116.02 807,116.02 9.11%5/5/2012 66,463.79 0.00 2,086.43 53,093.87 42,831.01 3,000.00 141.11 167,616.21 $974,732.23 11.00%5/19/2012 127,431.70 676.58 4,840.89 58,421.55 1,009.21 560.00 348.26 193,288.19 $1,168,020.42 13.18%6/2/2012 58,137.57 67,210.06 10,463.97 50,568.70 17,523.88 560.00 215.19 204,679.37 $1,372,699.79 15.49%6/16/2012               0.00 $1,372,699.79 15.49%6/30/2012               0.00 $1,372,699.79 15.49%

Page 11: Determining the Health of a Project through Earned Value Management

Biweekly ReportBiweekly Reportss Version 8, 5/11 Estimated Cost Cost To Date

Cost Materials $2,501,487.50 Plan-Set Equipment $1,167,040.00

Constructi $8,862,720

Freight $265,000.00Costs to Date $1,372,700

Labor $3,196,771.50Remaining Balance $7,490,020

Travel $118,590.00Subcontract $1,613,831.00

PPE Material FreightLocal Labor

ANTHC Labor Equipment Travel Subcontract

Total Costs This Period

Total Cumulative

CostsPercent of

Budget Spent Construction Budget4/21/2012 100,886.00 40,907.93 0.00 81,789.63 0.00 0.00 583,532.46 807,116.02 807,116.02 9.11%5/5/2012 66,463.79 0.00 2,086.43 53,093.87 42,831.01 3,000.00 141.11 167,616.21 $974,732.23 11.00%

5/19/2012 127,431.70 676.58 4,840.89 58,421.55 1,009.21 560.00 348.26 193,288.19 $1,168,020.42 13.18%6/2/2012 58,137.57 67,210.06 10,463.97 50,568.70 17,523.88 560.00 215.19 204,679.37 $1,372,699.79 15.49%

6/16/2012 0.00 $1,372,699.79 15.49%6/30/2012 0.00 $1,372,699.79 15.49%

Cost to Date 352,919.06 108,794.57 17,391.29 243,873.75 61,364.10 4,120.00 584,237.02 Cost to Date $1,372,699.79 15.49%

Quantity Unit Est. Start Est. Comp Bi-Weekly TotalRunning

Total Est. Task Cost Earned Valve %Earned Valve

Dollars

03/02/12 08/31/13 $8,862,423.3003/02/12 03/02/12 $0.0003/02/12 03/02/12 $0.0004/27/12 08/20/12 $404,000.0004/27/12 08/20/12 15.00% 45.00% $250,000.00 45% $112,500.00

04/27/12 06/13/12 $150,000.00 0% $0.00

04/27/12 04/27/12 100.00% $4,000.00 100% $4,000.00

04/27/12 04/27/12 $0.00 0% $0.00

05/02/12 08/30/13 $2,233,588.4005/02/12 08/30/13 10.00% 70.00% $71,291.00 70% $49,903.70

05/02/12 08/30/13 4.00% 9.00% $33,840.00 9% $3,045.60

03/12/12 08/31/13 $2,664,292.90

03/12/12 08/31/13 $2,664,292.9005/02/12 05/02/12 $0.00

05/02/12 05/03/12 5.00% 95.00% $15,000.00 95% $14,250.00

05/03/12 05/04/12 % $3,000.00 0% $0.00

6/2/2012

W-WP

W-WT

W-BD

Toksook Bay / 07-002 / WTP WST

3/15/2012

OOK-07-002Toksook Bay

Pre-ConstructionShipping

Pre-Construction CompletedGeneral Conditions

NTP or project start date

Notice To Proceed DateCommunity Name

Plan set title and plan set Updated as of:

OOK 07-002 - Water Treatment Plant

Electrical Panels (subcontract)Pre-Construction Meeting

CONSTRUCTION

Insurance & CPA set-upPer DiemConstruction Activities

OOK 07-002 - Water Treatment PlantConstruction start Date

Initial Material Flown/unload and transportSafety & Safety Stand Down

Actual Cost

Planned Value

Earned Value

Page 12: Determining the Health of a Project through Earned Value Management

EVM OutcomesEVM Outcomes

Three-Line DiagramThree-Line Diagram– Planned ValuePlanned Value– Earned ValueEarned Value– Actual CostActual Cost

VariancesVariances– CV and SVCV and SV

Performance IndicesPerformance Indices– CPI and SPICPI and SPI

Estimate at CompletionEstimate at CompletionMixing & placing concrete for a water storage tank in Pitka’s Point, Alaska

Page 13: Determining the Health of a Project through Earned Value Management

EVM OutcomesEVM Outcomes

Installing water distribution main and flush hydrants in Pitka’s Point, Alaska

Drilling helical piles for a boardwalk in Kwigillingok, Alaska

Page 14: Determining the Health of a Project through Earned Value Management

EVM OutcomesEVM Outcomes

Thermopile foundation for a clinic in Kaltag, Alaska

Excavating for a new lagoon in Kasigluk, Alaska

Page 15: Determining the Health of a Project through Earned Value Management

EVM – Three Line DiagramEVM – Three Line Diagram

PlanTrax® Version 3.3b

Cost and Schedule Variances

CPI = 0.91EAC = $9,724,000

Page 16: Determining the Health of a Project through Earned Value Management

EVM LimitationsEVM Limitations

Subjective Subjective measurementmeasurement

No consideration of No consideration of qualityquality

Requires accurate Requires accurate accountingaccounting

Looks forward based Looks forward based on past eventson past events

Insulated flush hydrants in Galena, Alaska

The Tinker family’s new bathroom Kasigluk, Alaska

Page 17: Determining the Health of a Project through Earned Value Management

EVM and RM IntegrationEVM and RM Integration

Identify potential Identify potential problems quantify their problems quantify their impactimpact

Monitor and manage Monitor and manage more effectivelymore effectively

Recoup value of Recoup value of mitigated risksmitigated risks

Crushing rock for pipe bedding in Pitka’s Point, Alaska

The new water treatment plant in Pitka’s Point, Alaska

Page 18: Determining the Health of a Project through Earned Value Management

Determining the Health of a Project Determining the Health of a Project through Earned Value Managementthrough Earned Value Management

What and WhyWhat and Why

WhenWhen

HowHow

OutcomesOutcomes

LimitationsLimitations

EVM and RM EVM and RM IntegrationIntegration

A boy with a newly installed arctic box and low pressure sewer in the background in Kasigluk, Alaska

Page 19: Determining the Health of a Project through Earned Value Management

Questions?Questions?