Understanding Earned Value Management System (EVMS)

Scope of the project : This project comprises of laying a fence around a square plot of size 1 km on each sides (A,B,C,D). Each side has a budget of 1000. The work is supposed to get over on the 4th week. The surveyor is conducting the survey to assess the progress after 4 weeks from the start date.

Side A, Side B, Side C are fully completed.

The Budgeted Cost of Work Scheduled BCWS(A), which is also known as the Planned Value (PV) for A = 1000

Since ‘A’ got over, the Budgeted Cost of Work Performed BCWP(A), which is also known as Earned Value (EV) for ‘A’  = 1000

The Actual cost (AC) incurred to complete side A = 1000

For SIDE – B,   PV=1000, EV=1000, AC=1000

For SIDE – C, PV=1000, EV=1000,  AC=1000

For SIDE – D, PV=1000, EV=500, AC=800

evm example 1 (1)

EVMBAC (2)

Conclusion 

A Schedule Performance Index (SPI) =>1 indicates the project is doing well schedule wise

A Schedule Performance Index (SPI) < 1, indicates that the project is lagging behind schedule wise

If the Cost Performance Index (CPI) >=1, indicates that the work is getting completed within budget

A Cost Performance Index (CPI) < 1 indicates that we have spend more than planned for the completed work.

Throughout the project if we can maintain a CPI and SPI which is greater than or equal to one, then the project is doing well schedule wise and cost wise. 

The ‘S’ Curve

The ‘S curve’ is widely used in project management to track the project. At regular intervals they plot the Planned Value (PV), Earned Value (EV) and the Actual Cost (AC) . If SPI=1 and CPI=1, then all these curves would have intersected at PV.

Badget-at-Completion-EVM-for-SharePoint

The Budget at Completion (BAC) is the sum of ‘PV’ of all the work from start of the project till the end.

Based on these data, it is possible to forecast the Estimate at Completion (EAC)

EAC = AC + (BAC-EV) / CPI  (Assumption, the nature of the work is same)

 

pmp_kochi_kerala_india

Book sniffing note: Slanguage, by Bernard Share

Sesquiotica

Look, I don’t think I’m weird about this. I really don’t. I think lots of you sniff your books. And probably other people’s too.

The way books smell matters. The cheap hard white academic institutional paper of tenure books and reheated dissertations has a smell that tells you from the beginning that you will learn a firehose-blast of trivialities and you will not admit to enjoying it too much. My undated Hodder & Stoughton edition of The Ruba’iya’t of Omar Khayyam has just a memory of a smell of storytime from thick soft volumes, while my copy of Elementary Particles by David Griffiths has an inexplicable faint whiff of black pepper. For a long time, every issue of National Geographic had a tangy smart pong that was the closest thing I’d ever found to the taste left by a large bug (perhaps a bee) that slammed into the back…

View original post 563 more words

The books I purchased and practised – Seven habits

7habitsThe seven habits of highly effective people’  by Stephen Covey is one book I purchased several times during the last 20 years and read several times, and benefited a lot by practicing the concepts. One of the exercises in the book under ‘Begin with the end in mind’ habit was to write down a personal mission statement, and I did one. The gist of it was to get into a job which will help me to travel a lot, meet lot of people, see new places…I wrote them in a writing pad, and as usual I lost track of it. After another ten years this writing pad surfaced again, and to my surprise I had accomplished everything that was written there as my personal mission. It sounds good. According to the book ‘The power of the sub-conscious mind’, which I just completed reading last week,  when I wrote my personal mission statement on a sheet of paper, it might got registered in my sub-conscious mind, and slowly the vision became a reality, because the subconscious mind, and in turn, the conscious mind started working toward it. Then the hunt for the next set of ‘vision starts’, and the cycle repeats.

“What is your personal mission statement?”. Yes, I am asking a difficult question. This year, I started by asking several people about their ‘definition of success of life’ and the majority did not know about it, yet they were chasing it. Here is a great opportunity. Take a sheet of paper, and write down your personal mission statement. Once the mission is clear, then we will be able to clarify our ‘to do list’ and ‘not to do list’. The ‘not to do list’ is as important as the ‘to do list’, because the ‘not to do list’ releases time for the ‘to do list’. Stephen covey explains the time quadrants of;

  • Urgent and not important
  • Urgent and important
  • Not urgent and not important  (eliminate)
  • Not urgent and important (give priority) 

‘Not urgent –  important’ activities are the ones which will give maximum benefits in the long run. One must eliminate the ‘not urgent – not important’ stuff, and make time for the ‘not urgent and important’. My post graduate degree happened like that. Some of my certifications which gave me maximum dividends in the longer run happened like that. Once we have our personal mission statement defined, then prioritization of our activities become easier. After all, it is just one life, that comprises of just 36,500 days, if we live for 100 years. Time is constant, and we must prioritize.

Once we know what is our true mission, then…

“And, when you want something, all the universe conspires in helping you to achieve it.”

Paulo Coelho, The Alchemist

 

 

Multi dimensional risk analysis for PMP

Here is a multi dimensional risk analysis for the PMP credential from the industry, trainer, PMP aspirant perspectives with an intent to communicate an independent and unbiased view. 

pmprisks

Industry related risks 

  1. The risk – There is a wide spread rumor about PMP credential as a product, which has reached the end-of-life stage in the product life cycle.  Reality – While this can be true from the training providers perspective due to too many trainers / companies undercutting each other, this is never true from the project management professional’s / aspiring professional’s perspective. PMP still rules as most recognized certification for predictive project management (most suited for large projects involving engineering, procurement, construction and management (EPCM). PMP credential is followed by PRINCE2. There is no other choice as of now for anyone who wants to pursue a globally accepted predictive project management related certification based on Plan, Do, Check, Act (PDCA) by Deming. I am using the term ‘predictive project management’ explicitly because there are many popular certifications available under the agile family (SCRUM, XP, RUP, TDD etc..) which are not a right fit for EPCM projects where the engineering discipline does not allow for much change, hence the agile family of frameworks are more suitable for product development where the requirements and the technology are highly volatile. Even then I am toying with the idea of applying agile during the planning phase of EPCM projects. Do not pelt stones at me because I am talking differently, or because I am the only one talking so. Unfortunately the agilists and the traditionalists do not like each other very much, even when the scrum masters fail miserably because they do not have any clue about stakeholder management, risk management, communication management, resource management, scope management, quality management etc. In my personal opinion, predictive and adaptive (agile) project management streams are complimentary  in nature for those whose goal is to manage their projects successfully, without bias towards any one particular framework.

Trainer related risks

  1. Many trainers teach the inputs, tools and techniques and outputs of the project management processes, in the same sequence as they are listed in the project management body of knowledge (PMBOK), without focusing on the benefits. That makes it very boring and difficult to remember (note that PMBOK is a 750+ page document). A better approach would be to learn process group wise;
    • Initiation
    • Planning
    • Execution
    • Monitoring & Controlling
    • Closing – This approach makes it easy to remember, as this is the natural flow of the project.
    • processgroupwisedoclist
  2. Many trainers provide too much emphasis on remembering inputs, tools&techniques and outputs (ITTO). Remembering them for 49 processes is humanly impossible, especially when one is under exam pressure. In fact, surprisingly those who spent maximum effort to mug up ITTO during their preparation time have failed in the final exam. Once you understand PMBOK process group wise, it is easy to recollect logically the inputs, tools&techniques and outputs. For example remembering the ITTO for the process ‘Develop project charter’ is much easier when one looks at it as the first process under ‘Project initiation’ process group, than the ‘First process’ under ‘Project integration management’ knowledge area.
  3. They do not give any emphasis on the ‘professional ethics’ of project managers. You can imagine the plight of someone who tries into master professional project management without any idea about professional ethics. Since the questions are scenario based, every project management scenario has an ethics angle, and mastering it makes it easier while choosing the best project management decisions.
  4. PMBOK has a wealth of information for the project management practitioner. Many trainers lacks the experience to articulate the concepts from the practitioner’s perspective. For example, project charter can be explained as just an output of project initiation or it can be a great document to develop a well understood project success criteria among all stakeholders..
  5. Trainers may not be well versed with various project domains to cite the right examples, whereas the participants are from different domains. They end up seeing everything as a nail, because the only tool they have is a hammer.
  6. Trainers trying to showcase their knowledge than focusing on the knowledge transfer. Mostly with inexperienced trainers.
  7. Trainers who does not explain things in detail, due to monotony. Mostly with highly experienced trainers.
  8. Trainers recommending too many reference material, thus making the preparation difficult.
  9. Trainers who charge very less fees, who losses interest mid way through the course because they are not compensated enough for their efforts.
  10. Disillusioned trainers, who are wearing the trainer’s hat out of compulsion than by choice.

Learner related risks

  1. Underestimating the effort required. One need to spend atleast 80 hours of preparation time, which include training, self study and exam practise.
  2. Over confidence, hence insufficient preparation.
  3. Lack of confidence, hence not scheduling the exam and finally dropping the idea.
  4. Enrolling for cheap courses, just because they are cheap, without giving any weight age for trainer profile, method of training and track record. Online courses which are just record and play, which are priced lower than the price of books is the number one culprit. Think of the frustration, re-preparation effort and the re-registration fees after failing in the first attempt. Passing PMP in the first go is very important. Do not decide based on the direct costs alone, consider the indirect costs (especially the cost of failure) as well, before deciding on the training program.
  5. Try to finish it off at the earliest, preferably within 30 days of the course completion, else other priorities may take precedence.

pmpinjust5weeks

Open your eyes before you open your mouth

AACEI’s TCM vs PMI’s PMBOK

One of the things that drew me to WRENCH was its insistence on standardization. As someone who has long been immersed in PMI and AACE (the top two industry-wide standards of our time), I was delighted to meet someone who shared my view, namely, that standardization is perhaps the most overlooked yet most critical success factor in modern project management.

Daniel and I have had many long and impassioned conversations about why this is the case, whether it stems from a genuine lack of awareness on the industry’s part, or just its failure to prioritise. But now, I have hope that every EPC company will wake up and standardize its processes (in order to meet quality requirements), its departments (in order to ensure accuracy in every deliverable) and its stakeholders (in order to make sure everybody is on the same page). But how would they go about it?

Let’s say a company somehow gets convinced that it would be a good thing to ‘standardize’. What’s the next step? Most companies are likely to look into PMI, which is well-known (even if not fully understood), and some might even look into AACE, out of curiousity if nothing else. And that’s where the confusion starts. “Should we go for PMI’s PMBOK or AACE’s TCM?” How are they different? Do they complement/supplement each other?

Read the full article

pmpinjust5weeks

5 Tools You May Not Know About

https://wp.me/p3Ca1O-8Ae

Mentoring someone with imposter syndrome

Found this HBR article very useful. At times, I am also suffering from this syndrome. May be, I am not alone in this. Most of us would have undergone this at some point or other.

https://hbr.org/2019/02/mentoring-someone-with-imposter-syndrome

Before the camera – 10 points to professionalize your corporate video presentations

Whatever is repeated is a potential candidate for automation. Repeated or to-be repeated corporate presentations, learning / training programs are no exception. While adding professionalism to our otherwise amateurish video presentations can be exciting, there are many hurdles one has to cross, which are successfully overcome by everyone else,  who have traversed the same path before. Speaking to the camera is a different ballgame when compared to talking to live audience. The time has come for professional managers to develop great video presentation skills. Here are the lessons I learnt from my journey and by observing others behind and before the camera within the corporate world.

  1. Everything needs planning to get perfect results. Professional video making is no exception.
  2. Practice is the key. Do not expect perfection without practice.
  3. No one in this world captures perfect video presentations without retake.This awareness will help you to remain cool and confident in the middle of multiple retakes.
  4. Script / story boards are essential. That is a perfect confidence booster. Will help to avoid repetition.
  5. Good and comfortable dressing and makeup are essential.
  6. Body language is important. Do it during the time of the day when you are most energetic.
  7. Do it incrementally than attempting long single take. If possible do it sentence by sentence. While this increases editing work, this reduces stress on the presenter. Patience and energy to do several takes is important. Do not try to finish it off quickly. Take breaks when required.
  8. Setting the right environment is important. Everyone must set their mobiles to silent mode. There is nothing more frustrating than a ringing mobile during a video recording. Prevent others from moving behind the scenes, unless it is planned so. Do not compromise on perfect lighting and audio as it enhances the viewing experience.
  9. Begin with the end in mind. At the end, you are going to get great product / output. Treat your video shoot as a project. Manage all potential risks pro-actively.
  10. Observing professional corporate video shoots with an intent to learn and improve and then implementing the lessons learnt is the smartest way to master this art. In fact, the points in this blog post are my notes to self which I scribbled down on my mobile phone while observing how professionals perform a professional corporate video shoot at WRENCH.

Why traditional project success criteria are still relevant today?

During one of my training programs, a project manager said ‘I am not getting acceptance for my project. What should I do get the acceptance?’. That was a difficult question to answer, considering the fact that I did not know much about his project. Still I wanted to give it a try, and I asked more questions about the probable causes that are acting in favor of project acceptance and the ones acting against project acceptance, just to understand the context better, before trying to help him out, if possible.
The key factors favoring his project’s acceptance

  • The project leadership team, especially the CEO is committed to the project
  • The product quality is excellent.
  • Capability of the team is good.

The key factors opposing his project’s acceptance

  • Organizational politics
  • Fear of loss of job
  • Trade union involvement …

Luckily I asked him about the ‘acceptance criteria’ of the project, which he, his team and all the key stakeholders were trying to achieve, and unfortunately it was not available. Further research reveals that, this is a major problem in many projects. The perception of success varies from project to project, and from stakeholder to stakeholder. There is no agreed upon success criteria for most of the projects, and it is a global project management problem or opportunity!.

Click here for the original blog post

Courtesy : http://www.wrenchsolutions.com