To determine how project tasks are to be measured and reported using Earned Value technique:
The lead scheduler has happily inform the Planning & Scheduling project team that stakeholders have accepted/approved the Baseline Plan, Schedule and Scope of Work earlier submitted for approval. Given this development, he further informed the team that EVMS system was stated in the contractual requirements as the basis for reporting progress, performance and variance analysis for the project. He therefore requested that we develop methods for measuring performance and reporting work progress/variances objectively using Earned Value.
2. Development of Feasible Alternatives:
The alternatives developed for measurement of work progress and reporting performance/variances of workers productivity are those of Earned Value Management System (EVM) and each
technique is applied specifically to each work item/activity to reflect how
work progress can be measured using that technique. The three basic work
progress measurement methods include:
(a) Discreet Effort
(b) Apportioned Effort
(c) Level of Effort (LOE)
For the purpose of this analysis, evaluation of the various workpages, only the Discreet
Effort technique is considered. The Discreet Effort technique has several other techniques used to measure and report progress of work. These methods includes :
(i) Unit Complete
(ii) % Complete
(ii) % Complete
(iii) Start/Finish Method
(iv) Incremental Method
(v) Expert Opinion
(vi) Cost Ratio or LOE Method
(vii) Weighted or Equivalent Method
3. Development of Outcome for Each Alternative:
Development of the Outcome ( or rather Cost objectives) for each
method adopted by Discreet Effort technique will define clearly how progress of
individual work activity/package will be measured, calculated, recorded and
reported using Earned Value technique. Table 1 below shows how each progress measurement
method will be measured and reported using EVM.
Table 1 Methods of measurement using Earned Value for Precast Box
4. Selection of Acceptable Criteria:
The criteria used for selection of alternatives will be based on
the accuracy of each method to measure "status" or progress and
performance OBJECTIVELY considering workers productivity. The various
methods measuring progress should give further insight into cost
variances and schedule variances analysis and trending so as to objective. The
CV and SV of each method is compared and analysed to determine accuracy.
5. Analysis and Comparison of Each Alternative:
Based on the outcome for considerations of each work package and the various methods of measurement defined by Earned Value, the Weighted Milestone, Unit Complete, % Complete, LOE were selected for reporting performance and controling of overall work progress.
6. Selection of Preferred Alternative:
Based on the analysis and evaluation of work packages using
methods of progress measurement by Discreet Effort technique, it can be
recommended that the Equivalent/Weighted Unit Method should be used to more
often to determine the performance, progress and productivity of workers
effort. Considering the fact that other methods can be easily be applied where
task to be performed is known, tangible and easily quantified.
7. Performanance Monitoring and Evaluation of Results:
Since accuracy, reliability and validity of data obtained
from EVMS is of uttermost concern; the results obtained from the system will
equally depend on the quality of data record and methods used to measure them
objectively. Therefore, to improve performance and evaluations of
results, data collected to used for EV must be measured, quantified and
reported objectively.
References:
1. AACE International (2012) Skills and Knowledge of Cost Engineering (5th Edition Revised) pp. 28.3-28.7 AACE International Morgantown W.V.
2. Brassard, M. & Ritter, D.(2010). The Memory Jogger 2: Tools for Continuous Improvement and Effective Planning, pp.92-95
3. AACE International (2008) Planning and Scheduling Professional certification Guide (First Edition Revised) pp. 143-145 AACE International Morgantown W.V.
2. Brassard, M. & Ritter, D.(2010). The Memory Jogger 2: Tools for Continuous Improvement and Effective Planning, pp.92-95
3. AACE International (2008) Planning and Scheduling Professional certification Guide (First Edition Revised) pp. 143-145 AACE International Morgantown W.V.
Hi Reginald, nice posting this week, but I would MUCH rather see you referencing Humphrey's than either Skills & Knowledge OR the Certification Study Guide.
ReplyDeleteSee you next week!!!
BR,
Dr. PDG, Jakarta