W10.1_Reginald Nwachukwu_Performance Measurement Using Earned Value

1. Problem Definition or Opportunity Statement:

To measure individual performance on key project deliverables for AACE Certification Prep Course 2012 using earned value analysis/calculations.

Data are collected and recorded using weekly timecards and blog postings

Figure 1 Record data collect from weekly timecards and approved blog postings

2. Development of Feasible Alternatives:

There are three methods used to measure performance in earned value analysis and calculations. Its an integrated management system that combines scope, schedule and cost together to determine and evaluate the progress and performance of any enterprise. These methods are feasible alternatives that can be used to compute and measure performance of individual, project or program efforts. Only the discrete effort is considered

Performance Measurement Methods:    

                                                                                                                                                                                   

(A) Discreet Effort:     

                                                                                                                                                                                 

 1. Start/Finish (Fixed formula) Method        20/80, 35/55, 0/100 

                                                                                                            

 2. Unit CompleteMethod                             physical quantity count 

                                                                                                                 

 3. Increamental Milstone Mthod                   % complete based on            

                                                                       milestone complete   

                                                                                                          

 4. Percent Complete                                    based on detailed steps  

                                                                     or hrs necessary to 

                                                                     complete the task    

                                                                                                                                                                                       

 (B) Apportioned Effort

                                                                                                                                                                       

 (C) Level Of Effort (LOE)

3. Development of Outcome for Each Alternative:

The outcome for each alternatives is to measure performances using key performance indicators KPI - CPI & SPI for each of the key deliverables.

(i)  CPI

(ii) SPI

4. Selection of Acceptable Criteria:

Selection of the best criteria will be based on DoD TRIPWIRE METRICS

Cost Efficiency CPI = BCWP/ACWP      Favourable is > 1.0, Unfavourable < 1.0

Schedule Efficiency SPI = BCWP/BCWS      Favourable is > 1.0, Unfavourable < 1.0

5. Analysis and Comparison of Each Alternative:

1. Blog Posting:

Data Collected & Recorded

Contract period = 26 weeks

Billing rate, 1hr = $200

Planned weekly work hour  = 2 hrs

Blog posted 10, Reject = Nil

BAC = 26 Weeks x $200 x 2hr = $10,400

Accepted Blog post = 9

% physical complete = 9/26x100% = 35%

Earned value (BCWP)           = %physical complete x BAC

                                               = 35%x$10,400 = $3,640

Planned value (BCWS)          = 9 Weeks x $200 x 2hr = $3,600

Actual cost (ACWP)               = $200 x 15 hrs = $3,000

CV                                          = BCWP – ACWP = $3,640 - $3,000 = $640

SV                                          = BCWP – BCWS = $3,640 - $3,600 = $40

CPI                                         = BCWP/ACWP = $3,640/$3,000 = 1.21

SPI                                         = BCWP/BCWS = $3,640/$3,600 = 1.01

2. Paper Writing:

Data 

                                                           Planned           Earned

(i) Select & submit topic                        10%                10%

(ii) Literature review                               5%                  5%

(iii) Ist Draft                                            40%                40%

(iv) Submit Ist Draft                                 2%                  2%

(v) 2nd Draft                                           16%                 16%

(vi) 3rd Draft                                           14%                  -     

(vii) Final Draft                                       10%                  -         

(viii) Run Plagiarism Check                      2%                  -         

(ix) Submit to AACE                                 1%                  -       

                                                Total         100%             73%

BAC = 61 hours x $200 = $12,200

% Physical Complete = (10+5+40+2+16) % = 73%

% Schedule    = (10+5+40+2+16)% = 87%

Earned value (BCWP) = 73% x $12,200 = $8,906

Planned value (BCWS) = 87% x $12,200 = $10,614

Actual cost (ACWP) = $200 x 24 hours = $4,800

SV = BCWP – BCWS = $8,906 - $10,614 = ($1,708)

CV = BCWP – ACWP = $8,906 - $4,800 = $4,106

SPI = BCWP/BCWS = $8,906/$10,614 = 0.84

CPI = BCWP/ACWP = $8,906/$4,800   = 1.86

6. Selection of Preferred Alternative:

Only two methods of performance measurement using earned value was used and their results are specific to the type of effort required to be measured. Hence, both the unit complete method and the incremental        milestone methods are valuable tools for measuring performance.

7. Performance Monitoring and Post Evaluation of Results:

My individual performance will constantly be checked and monitored using CPI & SPI as key performance index (KPI) in Earned Value Management for this project - AACE Certification Prep Course.

References:

1. Humphreys G.C. (2002) Project Management Using Earned Value (2nd Edition) pp. 545-559

    Orange CA Humphreys & Associates

2. DAU (2006) Earned Value Management 'Gold Card' Retrieved from

    http://projstream.com/images/GoldCard.pdf

3. Drucker E., Demangos D., Hamilton B.A., Coleman .R, Performing Statistical Analysis on Earned    

    Value Data  Retrieved from

    http://www.iceaaonline.org/awards/papers/2009_%20evm_schedule.pdf