csse 372 software project management: introduction to ... · q6 . earned value management terms !...
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CSSE 372 Software Project Management:
Introduction to Earned Value Analysis (EVA)
Shawn Bohner Office: Moench Room F212 Phone: (812) 877-8685 Email: [email protected]
Q1
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Planned or unplanned?
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Learning Outcomes: Plan (verb)
Create a plan for an intermediate size software project and manage to the plan. Maintain a software project schedule. n Controlling Software Projects
to the Plan n Introduce Value and
describe how it can be measured
n Examine Earned Value Analysis Concepts
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What is the “value” of a software product to an individual customer? An information system to a firm?
n Think for 14.5 seconds… n Turn to a neighbor and
discuss it for a minute
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How do you answer the question: “What have we done so far?”
n What are the Estimates vs. Actuals? % of Budget spent… % of Work completed… % of Time Elapsed…
n Planned progress can be: ¨ Subjective, inaccurate, and incomplete ¨ Prone to false conclusions
n Actual progress, on the other hand is… often like plans
Q2
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Earned Value Earned value compares the planned amount of work with what has actually been completed, to determine if cost, schedule, and work accomplished are progressing as planned n Work is “Earned” or
“credited” as it is completed
Q3
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Why Earned Value? n Provides “Early Warning”
call for corrective actions
n Quantifies many of the diverse activities in the development process
n Organizes for pachyderm management :-) ¨ Large seemingly impossible
projects
Q4
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Earned Value Starts with Good WBS n One WBS per Program/Project
¨ Deliverable-oriented ¨ Work not in the WBS is out-of-scope
n Full (and accurate) definition is key ¨ Defined deliverable(s) ¨ Timeframe for delivery
n Total cost (direct and indirect) to deliver product
In other words, you need a good plan before earned value is of any value!
Q5
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Work Packages n Lowest level WBS elements
n Have three measurable components
1. Scope of work to be accomplished 2. Total (direct and indirect) cost 3. Timeframe for completion
n Size Work Package so that it can be handed
off to a task manager/engineer ¨ Too large: multiple people responsible for work ¨ Too small: program manager winds up micro-
managing everything
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Enough With the WBS Stuff Already !
Let’s talk about Earned Value…
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Earned Value Management (EVM)
n Popular project performance measurement technique that integrates scope, time, and cost data
n With a baseline (plan + approved changes), you can determine how well the project is meeting its goals ¨ Actual project information periodically collected to
determine Earned Value
Q6
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Earned Value Management Terms n Planned value (PV) is the portion of the approved
cost estimate planned to be spent on an activity during a given period ¨ Also called the budgeted cost of work scheduled (BCWS)
n Actual cost (AC) is the total costs (direct and
indirect) incurred in completing work on an activity during a given period ¨ Also called actual cost of work performed (ACWP)
n Earned value (EV) is an estimate of the value of the
work actually completed ¨ Also called the budgeted cost of work performed (BCWP), ¨ EV based on original planned project costs and the rate at
which the team is completing work on the project to date Q7
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Time
Progress
1/3 Time - 1/4 Progress
Earned Value – The Standard S-Curve
2/3 Time - 3/4 Progress
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No ramp up - no learning time
Time
Progress
Earned Value – The Aggressive Curve
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About 30% of the work done
70% to 80% of the time gone by
Time
Progress
Earned Value – The Curve to Avoid
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Early years of Computer Addition…
Then laptops, smart phones, iPads…
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Earned Value – Basic Performance Metrics
Cost Performance Index A measure of how close the project is to spending on the work performed to what was planned to have been spent.
Schedule Performance Index A measure of how close the project is to performing work as it was actually scheduled.
INDEX VALUES < 1: over budget or behind schedule > 1: under budget or ahead of schedule
Q8
Cost Variance Difference between projected cost and actual cost.
Schedule Variance Difference between projected schedule and actual schedule.
CV = EV–AC SV = EV–PV
CPI = EV/AC SPI = EV/PV
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How to Measure Earned Value
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Earned Value – PV, EV and AC Curves
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Let’s talk Final Project: Software Project Management Plan n See Assignment n Template with Rubric n Extensive Example n Work with team effectively – Team Changes...
n Due: 11:55pm, Friday, November 2nd, 2012. ¨ No late days – will be reviewed by another team
for last homework!
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Tomorrow we will bend the mind a bit more with Earned Value…
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Homework and Reading Reminders n Complete Homework 5 – Software Schedule
¨ Due by 11:55pm, Tuesday, October 9th, 2012
n Final Project – Software Project Management Plan (SPMP) ¨ Completed by team… ¨ Due by 11:55pm, Friday, November 2nd, 2012. ¨ No late days – will be reviewed by another team
for last homework!