perception earned value mgmt

7/28/2019 Perception Earned Value Mgmt

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PERCEPTION

Earned Value Management

For

Shipbuilding


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Earned Value Management is a project

management technique designed to:

Ensure work is properly & adequately planned,

budgeted & scheduled

Isolate problems for corrective action

Measure cost & schedule performance of work

accomplished in accordance with ANSI 748

Measure true cost condition

Forecast completion date & final cost


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PERCEPTIONTies Together All Areas of

Earned Value Management

Cost Estimating

Planning, Budgeting & Scheduling

Labor Work Order & Manpower Management

Purchasing & Inventory Control Change Order Management

Earned Value Performance Measurement

Reporting Cost & Schedule Forecasting

Cost Analysis For Future Work Estimating


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Cost Estimating

Planning,

Budgeting & Scheduling

Labor & Manpower

Purchasing & Material

Cost Management Cost Management

Earned Value

Management Reporting

Cost/Schedule Analysis


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Cost Estimating

PERCEPTIONwas developed to permit costestimating that can reflect modern ship design andproduction methods. Using product- and process-based information, cost estimates can be generated

qu c y an accurate y at any eve o eta : Parametric cost estimates based upon

modifiable ship design and mission characteristics

Shipbuilding standard interim products

Detail cost estimates based upon engineered billsof material and equipment specifications.


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Cost Tracking & Forecasting

PERCEPTIONtracks cost and scheduleperformance.

Forecasts are made by the system based

upon earned value methods Trends are developed by the system to

provide management with improved

visibility of changes to contractperformance.


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Tracking & Managing Costs andSchedules

By SWBS (Ship System)

By COA (Shipyard Organization Structure)

By CLIN (Contract Line Item)


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Contract

Project

Contract Line ItemsShip Zones

Outfit Zones

Grand Blocks

Units

Blocks

PWBS SWBS COASWBS

Groups

SWBS

Accounts

Departments

Stages

Work Centers

CLINs

Option to select

WBS for ProjectRoll-Up

Planning

Activity

Assemblies

Subassemblies

Mfg Parts

Time

Charge

A Work Order May Relate to

Multiple WBSs

A Work Order referencing more than one

element of any WBS may be setup as a

Distributed Work Order.

Work Order


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Contract

Project

Contract Line ItemsShip Zones

Outfit Zones

Grand Blocks

Units

Blocks

PWBS SWBS COASWBS

Groups

SWBS

Accounts

Departments

Stages

Work Centers

CLINs

Planning

Activity

Assemblies

Subassemblies

Mfg Parts

Stock issues

Direct Purchase Materials

Owner Furnished Materials

Manufactured Parts

Work Order

Requisition

Pallet Pallet Production Material


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Tracking & Managing Costs andSchedules:

Original Estimated Costs & Schedules

Baseline Costs & Schedules

Current Plan Costs & Schedules


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Labor Hours

Labor Dollars

Weeks

Ahead/Behind

ver ea o ars Material Dollars

Purchased Services

Total Dollars

chedule

Forecast Finish

Date


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Multi-Ship Program ManagementCost & Schedule Consolidation

Contract


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Managing Costs & Schedule by InterimProducts and Manufacturing Process


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Multi-Shipyard Program

Management

Cost & Schedule Consolidation

PERCEPTIONmaps different shipyard WBSconfigurations to a selected WBS standard

Large U.S. Shipyards already mapped include:

Avondale Shipyards

Ingalls Shipbuilding

Bath Iron Works NASSCO

Newport News Shipbuilding


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PERCEPTIONAccommodates

Different Shipyards

& Work Breakdown Structures

Avondale *

Ingalls Shipbuilding *

NASSCO *

USCG (Modified SWBS) * *

MARAD (Weight System)

Commercial Yards US Canada

BIW * Newport News Shipbuilding *

US Navy (SWBS & ESWBS)

& Europe

Ship Repair & Conversions

Shipyard Plant Overhead

Accounts

* Work performed under the U.S. Navys Product Oriented Design & Construction

(PODAC) Project

** Work performed under the USCGs Deepwater Program.


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BAC: Budget At Completion

MR: Management Reserves

EAC: Estimated Cost At

Completion

BCWS: Budgeted Cost of WorkScheduled

BCWP: Budgeted Cost of Work

Performed

ACWP: Actual Cost of WorkPerformed

Planned & Actual Progress

Calendar Schedule Variance

Calendar Variance Trend for

100% Progress


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Compiling Cost & Schedule

Performance Information


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Tracking & Managing

Costs and Schedules

Rework

Change Orders

Labor Hours per 1% Progress

Production Process Rates by Stage ofConstruction

Weeks Ahead/Behind Planned Schedules

Trend Weeks Ahead/Behind for 100% Progress

Forecast & Trend Over-Run/Under-Run


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Summary Progress Reports by Any WBS

Level


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Production Work Centers


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Production Modules & Ship Zones


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Shipyard Trade/Craft


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Tracking Performance CostsTracking Performance CostsBy Percent Progress


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Tracking Performance CostsTracking Performance CostsBy Earned Value


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Tracking EAC ConfidenceTracking EAC Confidence


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Confidence in EAC is a composite of 3 factors:

F(closed) = Degree of total work completed

F(open) = Degree of work orders still open

F(performance) = Consistency of budget performance ofcompleted work orders (via normal distribution).


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Tracking ProgressTracking Progress


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Tracking & ForecastingTracking & ForecastingSchedule VarianceSchedule Variance


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Tracking & ForecastingTracking & ForecastingSchedule VarianceSchedule Variance


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Tracking & ForecastingTracking & ForecastingOverOver--Budget/Savings VarianceBudget/Savings Variance


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Tracking & ForecastingTracking & ForecastingEarned Value PerformanceEarned Value Performance


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Tracking Cost per 1% ProgressTracking Cost per 1% Progress

stper1%

consistent

rk.

Steadytrackofco

progressindicates

performanceofw


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Tracking Performance Indexes

CPI: Cost Performance Index (BCWP/ACWP) SPI: Schedule Performance Index (BCWP/BCWS)

FCPI: Forecast Cost Performance Index (BAC/EAC)

CSPI: Current Schedule Performance Index(ACWP/BCWS)

CCPI: Combined Cost Performance Index (0.5 CPI x[1 + SPI + SPI x (BCWS-BCWP)/BAC]

TCPI: To-Complete Performance Index(BAC-BCWP)/(EAC-ACWP)


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Total Contract Performance

Summary


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Tracking Performance Indexes


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Tracking & Managing DollarDollar Costsand Schedules:

Direct Labor Costs

Overheads Costs

Management Reserves


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Tracking & Managing DollarDollarCosts and Schedules

Direct Labor Costs

Material & Subcontract Costs

Management Reserves


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Total Cash Budget Vs EAC


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Tracking Actual Costs


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Tracking Earned Value Costs


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Tracking & Managing MaterialMaterialCosts and Schedules

Total Committed Costs:Purchases + Stock Used + Stock Reserved

Total Purchases

Purchases Received Purchases Used

Purchases Paid

Stock Used

Stock Reserved


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Tracking Material CostsTracking Material Costs


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OnOn--Line Reporting ofLine Reporting ofCost/Schedule StatusCost/Schedule Status


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Material Cost/Schedule Status


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Combined Labor & MaterialCost/Schedule Status


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Cost/Schedule Performance Indexes


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Cost/Schedule Variance Analysis


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Cost/Schedule Baseline Plan Status


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Tracking Manpower Requirements

As Planned in Baseline

As Currently Planned

As Actually Expended To Date

As Forecast to Complete

Manpower can be evaluated by WBS, by shipyard work

center, for one project or across multiple projects.The analysis can combine current back-log with

proposed new work.


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Tracking Manpower Requirements

(Planned Vs Actual Vs Forecast)


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New Work Manpower Modeled On Top Of

Active Work Manpower


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Measuring Work CenterPerformance


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Measuring Estimate AtCompletion (EAC)PERCEPTIONapplies forecasting factor for EAC.

As work orders close, system learns extent of costvariance for these work orders.

EAC = BAC +Factor x [Variance closed w/os

+Adjustments in-progress w/os]

As progress advances,PERCEPTIONplaces greater

emphasis on recorded cost variance for the EAC.


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Measuring Progress

From EAC and ACWP,PERCEPTIONcomputes

actual progress:

Progress = 100 x (ACWP/EAC)


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Measuring Earned Value

From Progress and BAC,PERCEPTIONcomputes

earned value, BCWP:

BCWP = [Progress x BAC]/100


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Measuring Trends

Using regression formulas

and weighting the more

PERCEPTIONtracks cost and schedule performance

week by week or month by month.

Trends provide management with an early indication of how effective

management efforts are keeping performance to budget and planned

schedules.

recent data more heavily

than older data, the system

computes trends at

completion.


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Systems Integration

Desktop

& InternetProducts


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PERCEPTIONhas been linked to various Ship Design and

Engineering systems:

ARLs ShipConstructor

Systems Integration

The NavysASSETShip Concept Model

Proteus EngineeringsFlagship suite

Intergraphs GSCAD

AutodesksAutoCAD general design system

RebisAutoPLANTpiping system design and engineering system

BentleysMicroStation general design system


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CAD interfaces can be used to down-

load detailed bills of material for Cost Estimating

Purchase Requisitions

Work Order Bills of Materials


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ShipConstructor

Cost Planning

Purchasing

Manpower

DrawingControl

MaterialControl

Performance Customer

AccountingSystems

AccountsPayable

AccountsReceivable

3rd Party Software

Estimating Scheduling Control Reporting Billings

Time Charges

PERCEPTION

Integrated Shipyard Resource Management System


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Data Import/Export Features

PERCEPTIONcan import/export data in various

formats: SQL ODBC

, , , ,

Sybase SQL Anywhere Text files (comma, tab delimited & strings)

Windows cut, copy & paste

U.S. EDI Standard X12 (XML) MicrosoftProject


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SPAR Associates, Inc.

A Full Service Company

Systems Sales, Training & Support Independent Cost Estimating

Planning & Scheduling Services

Contract Cost/Schedule Tracking &Performance Analysis

SPAR has provided systems and services to


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SPAR has provided systems and services to

the shipbuilding and ship repair industries

around the world since 1972.

Our clients are both large and small, and theydeal with commercial and/or government

work.

SPAR understands the detail nature of this

business, from the way shipyards organize

and perform their work and manage theirbusiness.


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SPAR has followed and has implemented

features in its systems to support worldclass shipbuilding practices.

These practices enable shipyards to bemuch more efficient and improve the

quality of their products and services.


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Serving Government Agencies Too

The U.S. Coast Guard

The U.S. Navy

The Federal Maritime Administration

(MARAD)These services include software developed

by SPAR, training and system support, as

well as independent cost estimating andcost realism evaluations.


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Over 35 Years Serving the Shipbuilding &Repair Industry

perception earned value mgmt

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