EVM in the Real World – Part III

In my last blog I discussed challenges to using earned value management tools to track progress on projects. In particular, I suggested that some of the challenges are posed by things like the complexity and/or type of work required.
The complexity and/or type of work will have a direct impact on the level of difficulty tracking progress. If you only have two or three tasks that you are expected to progress on a linear schedule, then you’ll have a relatively easy job tracking. When you have hundreds of tasks with people spread across the organization, and/or including outside vendors that do not progress in a linear fashion, you can expect to have your work cut out for you.
Some of the typical variables that you’ll have to consider:
o Ramp up time to start work
o Required training prior to work
o Learning curve expected for the type of work
o Special design challenges of the work
o Integration with other projects often increases complexity
o Integration with green fields projects or any new and untested technology
o Work that is under a regulatory micro-scope
o Work that is highly visible to senior executives and/or the community
o Particular quality design challenges
o Loss of life challenges with the use of equipment
o Any required safety training and regulatory compliance demands
o Logistics for receipts of materials
o Delays caused by long lead items ordered for project
o Quality assurance activities that may cause delays
o Decision making architecture that results in natural time delays
o Vendor delays
o Union demands that may delay work, like contract negotiations
o Weather complications
As I said in my last blog, all of these things will require time on the schedule. When we’re planning work, we review all of these variables and consider any others that may be particular to this project, and then we try to translate these challenges into calendar time, and in some cases, risk and costs. As a result, typically none of these things will progress in a linear fashion and must be tracked in unique ways that translate into reality. When your tracking tools do not align well with the type of work being performed, then the reports tend to look like mere shadows of reality.
Each of these variables must be dealt with individually. In some cases you may simply add a little extra time to a task, in other cases you may need to break a task into sub-parts, and perform qualitative analysis on each component. In addition, I suggest performing three point estimates on each component, and incorporating risk analysis. In addition to your risk analysis, you may need to add risk response plans.
In some cases your risk analysis and risk response planning will result in added time and contingency, in other cases it will add tasks to your project plan. All in all, these added steps will give you a much more realistic picture of where you need to be and how track progress across your subsequent plans.
Larry T Barnard
You can follow Larry at http://larrytbarnard.com

EVM in the Real World – Part II

In my last blog I discussed challenges to using earned value management tools to track progress on projects. In particular, I suggested that some of the challenges are posed by things like the number of tasks, and the number of people.
The number of tasks and consequent number of people has a direct impact on the level of difficulty tracking progress. If you only have two or three tasks with a few people that are expected to progress on a linear schedule, then you’ll have a relatively easy job tracking. When you have hundreds of tasks with people spread across the organization, and/or including outside vendors that do not progress in a linear fashion, you can expect to have your work cut out for you.

Some of the typical variables that you’ll have to consider:
o Ramp up time to start work
o Required training prior to work
o Learning curve expected for the type of work
o Any required safety training and regulatory compliance demands
o Logistics for receipts of materials
o Set-up of temporary work stations
o Security procedures and password allocations
o Delays caused by long lead items ordered for project
o Quality assurance activities that may cause delays
o Decision making architecture that results in natural time delays
o Holiday schedule for staffing
o Holiday schedule for vendors
o Vendor delays
o Union demands that may delay work, like contract negotiations
o Weather complications
o Theft on project like loss of laptops, cell phones, etc.

All of these things will require time on the schedule. When we’re planning work, we review all of these variables and consider any others that may be particular to this project, and then we try to translate these challenges into calendar time, and in some cases, risk and costs. As a result, typically none of these things will progress in a linear fashion and must be tracked in unique ways that translate into reality. When your tracking tools do not align well with the type of work being performed, then the reports tend to look like mere shadows of reality. In some cases those shadows are a poor reflection of the project. Usually this is because people either haven’t included the above stated variables, or because they’re tracking in a linear fashion, when the work is non-linear.

For non-linear work, I suggest breaking the tasks into smaller segments based on the micro-life cycle of the task. For example, if there is required ramp up time for receipt of materials, training, and general set-up, then break this out as a separate task. Once the work is fully up and running, break the work itself into smaller pieces that make sense. We often have a design phase, testing, build, further testing, regulatory work, quality checks, commissioning, validation, etc. Each component tends to have something unique about it. If you are realistic in your decomposition of the work, you’ll find it easier to track. If and when you’re not sure, bring in the subject matter experts for help.

In my next blog, I’ll propose some additional approaches that will make your life as a pm tolerable.

Larry T Barnard
You can follow Larry at http://larrytbarnard.com/

Using Earned Value Management in the Real World

Project management seems to lack some effective tools for earned value management.
I want to know, how many project managers use the typical earned value management tools offered in the PMBOK? Whenever I ask this question, the unanimous response is that 90% of my students and clients either use none of the offered formulas, or they use one or two basic ones for high level reporting. So I propose the same question to you, “what do you use in real life?”
In response to the average response, I would like to discuss the challenges to EVM tools and the need for alternative approaches. Part way into any project, the project manager is faced with the challenge of analyzing performance against the planned baseline. When there is a deviation from the plan, the pm must assess the extent of the deviation in the present, and forecast the impact of the deviation in the future. There are many things that make this difficult. I would like to discuss: number of tasks, number of people, complexity and/or type of work required.
Number of tasks: measuring one task is often difficult enough, but when you have a larger project with upwards of a thousand tasks that are interconnected and co-dependent on suppliers, logistics, border crossings, regulatory audits, quality control, etc., you now have a fluid, constantly changing environment. Welcome to the world of project management. Suddenly, measuring current status is tuff enough, let alone forecasting one week into the future.
Let’s add people: projects would be great without people. Unfortunately we need people to do the work. With people we have varying levels of skill, training, education, competency, availability, etc. This results in varying levels of progress, motivation, and levels of engagement along with challenges building teams, maintaining open communication, solving problems and coordinating effort at the basic level.
That may not be complicated enough, let’s add some complexity to the type of work being done. Complexity tends to require higher levels of collaboration and team efforts. Now we have some major challenges. In most organizations, teams are pre-assigned without consideration of appropriate fit to the work or each other. This results in poor alignment of: personality types, skill sets, personal interests, education, competency, or aptitude to learn.
In my next two blogs, I’ll propose some alternative approaches that may make your life more tolerable, or at least extend your career as a pm beyond the month.

Larry T Barnard
You can follow Larry at http://larrytbarnard.com/