EARNED VALUE MANAGEMENT FOR SOFTWARE PROJECT TRACKING by qdk21196

VIEWS: 13 PAGES: 17

									EARNED VALUE MANAGEMENT

FOR SOFTWARE     PROJECT
TRACKING



      By: Nick Klauer
OVERVIEW
 Discuss What EVM is
 Explain why you would Use EVM

 Identify who uses EVM

 How to implement EVM into your project

 Criticisms of EVM
WHAT IS EVM?
 A metric to compare cost of production vs. value
  of product over time
 Used during a project’s lifespan

 Enables a project manager a way to gauge if a
  project is ahead of schedule, falling behind,
  under- or over- budget
WHAT IS EVM?
Common problems in large software projects:

 Integration
 Scheduling Problems

 Budgeting
WHY USE EVM?
 Provides a way to gauge ongoing progress of a
  project
 Better analysis of costs to produce a system

 Schedule Analysis
WHY USE EVM?
Then (1994)                        Now (2004)




Type 1: Success (on time,
         under budget)
Type 2: Challenged (over budget,
         over schedule, but
         complete)
Type 3: Failure (Scrapped)
WHO USES EVM?
   Many Governmental Organizations:
       DoD
       NASA
       DoE
       ANSI/EIA Standard 748-A
       OMB Circular A-11 Part 7
 Project Management Institute(PMI) Standards
 CMMI – Level 5 Integration

 Sarbanes-Oxley Act of 2002 Compliance
                                                                                             No measure for




                                                           EVM COMPARISON – NO EVM METRIC
                                                                                            •
                                                                                            how much work
                                                                                            has been done

                                                                                            •Can’t identify
                                                                                            value of project,
                                                                                            just it’s ongoing
                                                                                            cost

                                                                                            •Can be
                                                                                            misleading (this is
                                                                                            not under-budget)




                                                            APPLIED
Courtesy: Wikimedia Foundation, Inc. and Garry L. Booker
                                                                                                     Can identify




                                                           EVM COMPARISON – BASIC EVM AGAINST PV
                                                                                                   •
                                                                                                   schedule variances

                                                                                                   •It can be inferred
                                                                                                   from week 6 and
                                                                                                   later that we’re
                                                                                                   behind schedule

                                                                                                   •It is shown that
                                                                                                   we are ahead of
                                                                                                   schedule early in
                                                                                                   project.




Courtesy: Wikimedia Foundation, Inc. and Garry L. Booker
                                                                                                Measuring EV




                                                           EVM COMPARISON – EVM AGAINST COST
                                                                                               •
                                                                                               against cost

                                                                                               •Can be seen we
                                                                                               are under budget

                                                                                               •We are creating
                                                                                               more value than
                                                                                               we are expending




Courtesy: Wikimedia Foundation, Inc. and Garry L. Booker
                                                                                                          All three metrics




                                                           EVM COMPARISON – EVM AGAINST BOTH AC AND PV
                                                                                                         •
                                                                                                         included

                                                                                                         •Can be compared
                                                                                                         overall value
                                                                                                         against time

                                                                                                         •Can compare
                                                                                                         against cost as
                                                                                                         well

                                                                                                         •Much more can
                                                                                                         be understood on a
                                                                                                         project’s progress




Courtesy: Wikimedia Foundation, Inc. and Garry L. Booker
HOW TO IMPLEMENT EVM
 Many various implementations
 Standards define different methods

 Three general implementations:
     Simple
     Intermediate
     Advanced
IMPLEMENTING EVM - SIMPLE
 One emphasis: Technical Performance
 Weighted values for each components
       Value can be arbitrary numbers, or dollar amounts
        ($$$)
   Earning Rules:
     0/100 – All or Nothing.
     50/50 – Half value at start, half when completed
     25/75 – Creates an emphasis for completing a piece
      over just starting it
IMPLEMENTING EVM - INTERMEDIATE
 Adds on to Simple
 Schedule Performance

 Values weighted in relation to schedule
       Gives more credit to being on schedule over being
        late
   Earning Rules:
     Adds milestones and weighting of schedules
     Additional models on Effort Analysis and Level of
      Effort(LOE)
         Slow weeks have less of an impact
         Splitting time between components
IMPLEMENTING EVM - ADVANCED
 Takes intermediate, adds Cost Performance
 Requires metrics to be measured in actual dollar
  amounts rather than point systems
 ANSI/EIA 748-A Standard requires Advanced
  EVM to be implemented
CRITICISMS OF EVM
 Can be too lightweight, offering little data
 Costly in small projects

 Doesn’t measure quality of product

 Agile Development not considered a good
  candidate
 Cost Estimation is difficult, no matter what
  metric to measure against
       Estimation falls on Project Manager, Architects
SOURCES
   Delivering Earned Value Management for Government Agencies
    Using the Microsoft Office System -
    http://www.microsoft.com/office/showcase/earnedvalue/demo.mspx
   Wikipedia: Earned Value Management -
    http://en.wikipedia.org/wiki/Earned_value_management
   Software Engineering Institute: Using Capability Maturity Model
    Integration (CMMI) to Improve Earned Value Management -
    http://www.sei.cmu.edu/publications/documents/02.reports/02tn01
    6.html
   Standish CHAOS Report, 1994 and 2004 -
    http://www.standishgroup.com/sample_research/chaos_1994_1.ph
    p
   Statistics over IT Failure Rate - http://www.it-
    cortex.com/Stat_Failure_Rate.htm#The%20Robbins-
    Gioia%20Survey%20(2001)
   Earned Value Management Tutorial – NASA -
    http://evm.nasa.gov/definition1a.html
   Project Management Institute – http://www.pmi.org/

								
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