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32in32: The Earned Value Guidelines in Digestible Bites

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#32in32

The Earned Value Guidelines in Digestible Bites!



#32in32 is a campaign tackling the 32 Earned Value (EV) Guidelines in 32 words. Whether you are new or an expert in Earned Value for managing projects, follow along with #32in32 on AzTech social media!



Guideline #1: WORK
Gather project scope documents and break the project into manageable chunks; a work products family tree.
🔑 Key Tip: What you EXCLUDE from project scope is perhaps even more important than what you INCLUDE.


Guideline #2: ORGANIZATION
Create a project team organization chart with ONE project manager and ONE accountable name for each major chunk of work.
🔑 Key tip: Give managers authority, tools, and training to manage their work.


Guideline #3: DATA INTEGRATION
It takes a village of systems to define, plan, budget, collect costs, claim progress, update forecasts, and analyze a project successfully.
🔑 Key Tip: A smart and uniform coding approach helps integrate data.


Guideline #4: OVERHEADS
Overhead (also called indirect) costs need a single manager for each department, function, or pool.
🔑 Key Tip: Project teams cannot deliver scope and schedule on budget if overhead costs are out of control.


Guideline #5: CHUNKS OF WORK
Break projects into manageable work chunks with defined technical scope bounded by cost, schedule, and performance targets.
🔑 Key Tip: Assign a single work code and team code to manage each work chunk.


Guideline #6: SCHEDULE
Create a plan capturing authorized work scope realistically modeling the logical tasks to measure progress for phases, deliverables, and events.
🔑 Key Tip: Aim for the FEWEST tasks required to manage the work.


Guideline #7: PROGRESS
Measure progress on delivering work products with start, finish, and interim milestones--even inchstones--tracking technical performance goals.
🔑 Key Tip: Claim progress objectively so that your replacement could easily know percent complete.


Magic Guideline #8: BUDGET
Timephase cost targets (budgets) by resource to successfully deliver the work scope, schedule, and cost.
🔑 Key Tip: Set realistic budget targets and document assumptions and buy-in from task and resource owners..


Guideline #9: COST ELEMENTS
Break budget targets into key cost elements like direct labor, material, and other costs.
🔑 Key Tip: Don't forget to identify costs for travel, tooling, software, equipment, facilities, material, parts, and services.


Guideline #10: WORK PACKAGES (AND PLANNING PACKAGES)
Break manageable chunks of work into individual work packages or planning packages (far-term, less-defined).
🔑 Key Tip: Assign ONE earned value technique per work package for how you will claim performance.


Guideline #11: Σ OF WORK PACKAGE + PLANNING PACKAGE BUDGETS = CONTROL ACCOUNT BUDGETS
Budgets for Work Packages (short, near-term tasks) and Planning Packages (often larger, far-term tasks) must sum to Control Account (manageable chunk of work) budgets.
🔑 KEY TIP: Budget hours AND costs.


Guideline #12: IDENTIFY, BUDGET, & CONTROL LEVEL OF EFFORT
"Discrete" tasks drive and can delay the overall project and deliverables. "Level Of Effort" tasks provide management, administrative, or other functional or as-required support.
🔑 KEY TIP: Identify, budget, and control LOE


Guideline #13: SETUP OVERHEAD BUDGETS BY ORGANIZATION
Set up project overhead cost targets (budgets from Guideline 8) by Organization codes from Guideline 2.
🔑 KEY TIP: Apply realistic and consistent overhead costs based on past and likely future overhead rates.


Guideline #14: SETUP TWO MANAGEMENT BUCKETS FOR WORK
Set-up two management buckets for original plus new scope and another for unplanned, in-scope changes--until work can be time-phased.
🔑 KEY TIP: Only authorized work goes into these buckets!



Guideline #15: Σ OF ALLOCATED BUDGETS = CONTRACT BUDGET
Continually balance the project checkbook: Sum of allocated budgets equals the contract's target budget.
🔑 KEY TIP: Authorized work means contractually agreed work scope, schedule, and budget. Likely does not equal authorized.



Guideline #16: CAPTURE DIRECT PROJECT COSTS
Capture actual hours and costs for labor, material, and other costs charged DIRECTLY to the project.
🔑 KEY TIP: Setup the fewest charge numbers required to analyze variances and aid with future bids.


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