Comments on: Earned Value Management Systems Will Keep Us Out of Trouble…Don’t Count on It! http://www.reformingprojectmanagement.com/2004/11/09/431/ The magazine for the project age Sun, 12 Oct 2008 19:32:17 +0000 http://wordpress.org/?v=2.0.5 by: Hal http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-2186 Fri, 30 Dec 2005 17:34:27 +0000 http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-2186 I've been involved with numerous planned maintenance projects at power stations. I can't imagine doing a shut-down without an EVMS approach. My posting addressed the vast majority of projects. Most projects are managed with Excel. And those projects don't need more than that. But we may not have appropriate protocols for conforming to SOX. We need an approach that captures the developing network of commitments on the project. I’ve been involved with numerous planned maintenance projects at power stations. I can’t imagine doing a shut-down without an EVMS approach. My posting addressed the vast majority of projects. Most projects are managed with Excel. And those projects don’t need more than that. But we may not have appropriate protocols for conforming to SOX. We need an approach that captures the developing network of commitments on the project.

]]> by: Wayne Abba http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-2183 Fri, 30 Dec 2005 16:53:27 +0000 http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-2183 A company using EVM certainly should use EV projections as one method to estimate revenue... that's just common sense that takes on more meaning with SOX. And EVM is a path to better controls. But there's a larger point. Hal, I must disagree with your definition of EVM. It is definitely not "a system designed for authorizing payments from the customer." One could get that impression if one's experience was limited to very complex US govt contracts. That's where I cut my teeth (disclaimer - I was responsible for US defense EVM implementation from 1982-99). Its purpose always has been to provide an effective way to integrate resources, schedule and technical performance management and measurement. But in govt, the "reporting" or "oversight" aspects tend to be overemphasized. Way back in 1993, I saw a presentation titled "Real Time Earned Value: Controlling a Maintenance Shutdown at Australian Paper Manufacturers, Maryvale Mill," by Len Miller, Director, LMA Partnership Pty Ltd. His take -- "During the hurly-burly of a maintenance shutdown, management control can be made easy using earned value graphical techniques. This proven technique can help analyse performance and take away a lot of uncertainty and sleepless nights often associated with a major plant shutdown." He goes on to describe "simple, clear, easy to read information" with results "obtained and processed within hours... quick turnaround times and faster feedback to the people who need it most results in a project that runs more smoothly. Tensions are reduced when staff are confident in the knowledge that progress is being achieved." A 10-day maintenance shutdown is not a complex project. The value of EVM has been shown again and again around the world. Its essential elements are explained in PMI's new Practice Standard for Earned Value Management (available free of charge to PMI members; others may purchase thru the PMI web site). I always encourage EVM be used as intended -- as a management tool -- with reporting a natural by-product. A company using EVM certainly should use EV projections as one method to estimate revenue… that’s just common sense that takes on more meaning with SOX. And EVM is a path to better controls. But there’s a larger point. Hal, I must disagree with your definition of EVM. It is definitely not “a system designed for authorizing payments from the customer.” One could get that impression if one’s experience was limited to very complex US govt contracts. That’s where I cut my teeth (disclaimer - I was responsible for US defense EVM implementation from 1982-99). Its purpose always has been to provide an effective way to integrate resources, schedule and technical performance management and measurement. But in govt, the “reporting” or “oversight” aspects tend to be overemphasized.

Way back in 1993, I saw a presentation titled “Real Time Earned Value: Controlling a Maintenance Shutdown at Australian Paper Manufacturers, Maryvale Mill,” by Len Miller, Director, LMA Partnership Pty Ltd. His take — “During the hurly-burly of a maintenance shutdown, management control can be made easy using earned value graphical techniques. This proven technique can help analyse performance and take away a lot of uncertainty and sleepless nights often associated with a major plant shutdown.”

He goes on to describe “simple, clear, easy to read information” with results “obtained and processed within hours… quick turnaround times and faster feedback to the people who need it most results in a project that runs more smoothly. Tensions are reduced when staff are confident in the knowledge that progress is being achieved.”

A 10-day maintenance shutdown is not a complex project. The value of EVM has been shown again and again around the world. Its essential elements are explained in PMI’s new Practice Standard for Earned Value Management (available free of charge to PMI members; others may purchase thru the PMI web site). I always encourage EVM be used as intended — as a management tool — with reporting a natural by-product.

]]> by: Donavan McDonough - Spreadshee http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-260 Wed, 31 Dec 1969 16:00:00 +0000 http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-260 There is a culprit that is getting away virtually undetected and that is spreadsheet risks, errors and fraud. The Sarbox Act does little to address this weakness directly. It may put some internal controls in place but it does not necessarily stop Excel from being used for mission critical projects. There is a culprit that is getting away virtually undetected and that is spreadsheet risks, errors and fraud.

The Sarbox Act does little to address this weakness directly. It may put some internal controls in place but it does not necessarily stop Excel from being used for mission critical projects.

]]> by: Hal http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-261 Wed, 31 Dec 1969 16:00:00 +0000 http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-261 I couldn't help myself... I couldn’t help myself…

]]> by: David Waller http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-262 Wed, 31 Dec 1969 16:00:00 +0000 http://www.reformingprojectmanagement.com/2004/11/09/431/#comment-262 Hal, I agree with you. We have far too many top-down controls and too little emphasis on getting the right people, treating them right(training, empowerment, good processes); giving them worthwhile (ie strategy related) work to do and exercising management best practices. Hal, I agree with you. We have far too many top-down controls and too little emphasis on getting the right people, treating them right(training, empowerment, good processes); giving them worthwhile (ie strategy related) work to do and exercising management best practices.

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