From % Complete to EVM

[Rob]

Hi,

Project 2007 pro - No server yet though.

After much effort to do calculated fields to measure expected/planned %
complete to actual % complete I have realized how lame the idea is overall,
and my results have been less than par with summary tasks never working out
just right. I want to move into EVM reporting with a Gantt chart and S Curve.

My project has had three reporting cycles already. I crafted these nifty
TPS reports (Time Project Sheet - I like humor) for tracking task start, work
complete during cycle(1 week), est. remain work, and task finish that
everyone completes once a week for all of their tasks.

Here are the steps I think I need.

1. Enter costs for everyone. - I am going to use the $1 earned
schedule/effort idea.
2. Delete all progress. - Is there a known copy/paste method for removing
and adding work over time?
3. New Baseline.
4. Re-Apply progress. - Again... shortcut to this?

Let me know if these steps get me to where I can do the Gantt chart and S
Curve as if I had been doing EVM all along.

Thank you for all of your help ahead of time.

 

[Jim Aksel]

I see the light bulb came on for you
Copy the %Complete/Start/Finish dates to spare columns Text1, Start1,
Finish1. Now you have something to remind you what the dates should be. If
you want, also store duration in a spare field, perhaps Duration1.

Clear the %Complete column, clear your baseline.
Add a resource with a $1/hr rate and assign that as appropriate so you can
set your work the way you need it.

You have to decide how to handle Actual Costs, to me, it is far better if
you do it rather than let Project calculate it. This can complicate things.
We have separate tasks as cost collectors only. We feed them Actual Cost
from the accounting/time keeping system. There is no way to break it down to
discrete tasks if you do it that way (manually), I tell you that so you go
into this "eyes open"

Once you have the schedule and work the way you want it, baseline. Just be
careful that your schedule logic remains good and you haven't created
artificial date constraints as you do this. Then set your status date and
plug in your progress. Next time you want to take status, remember to set a
new status date first. You can take your %Complete by copying from the spare
column you used to memorialize %Complete. Just watch the dates.

We use the Physical%Complete method and not the %Complete method. I am
writing a long rant about that to put on my blog but it is not done yet. I
do have a paper available to help you convert. It was written for 2003, but
the same rules apply... except at the very end you can use the Visual Report
in 2007. If you poke around on my blog enough, you can find my e-mail. I'd
be happy to send you the paper tonight (Los Angeles time).

In your instance, since you have one resource and it costs $1/hr this is the
same as using %Work Complete.
--
If this post was helpful, please consider rating it.

Jim Aksel, MVP

Check out my blog for more information:
http://www.msprojectblog.com

 

[Rob]

Thanks for the reply Jim. I will email you now.

The lightbulb deffinately came on.

I have about 10 resources on this project. All of which I have my little
TPS reports for the three reporting cycles we have gone through. I am
unclear on what you meant by the following:

In your instance, since you have one resource and it costs $1/hr this is the
same as using %Work Complete.

I used fixed work for almost all of my tasks used from my resource estimates
on the deliverables. As far as actual costs... this is a big internal
project so costs are not really considered. For us it is deadline, deadline,
deadline.

 

[Jim Aksel]

Let me see if I can clarify my comment.

EV is a weighted value based on a %Complete times a budget amount.

Assume one task with a worker at $100/hr. The value of this task for 5 days
(full time) is $4000.

If another task has a single worker at $20/hr for the same five days, the
value of this task is $800. When you do the EV you can see how the more
expensive worker is adding more value.

So, the EV for your "project" becomes %CompleteTask1*4000 +
%CompleteTask2*800. Here, you want Task1 to finish since it produces more
value for you.

In the case of all workers at $1/hr the value of the two tasks is the same,
$40. So your EV has the same weighting for both tasks. This changes the
rolled up number.

This becomes an issue only when the differences in the relative values of
the workers becomes "significant." What constitutes significant is entirely
up to you.

For %WorkComplete, the value of both tasks are 40 hours. At the end of the
day, you will reach the same EV if you claim it against the work (80 hours)
or the cost ($80).

If you need more clarification, shoot me an e-mail. I already received your
other one, just don't have the paper here with me.

--
If this post was helpful, please consider rating it.

Jim Aksel, MVP

Check out my blog for more information:
http://www.msprojectblog.com

 

[Jim Aksel]

Now I have to clarify my clarify... your rolled up %Complete is weighted by
the values of the tasks. Of course if the tasks both claim the same % they
will produce the same value as if they were equally weighted.

See what happens when you use 75% complete for Task1 and 50% for Task2.
Your two %Completes turn out 71% and 63% respectively:

(0.75*4000+.5*800)/4800 = 0.7083333
(.75*40+.5*40)/80=0.625


--
If this post was helpful, please consider rating it.

Jim Aksel, MVP

Check out my blog for more information:
http://www.msprojectblog.com

 

[Rob]

Great explanation, and further explanation.

It sounds like we both start out similar but from different angles in our
work package valuation efforts. Even trying to explain it is causing me to
really question the way we go about things.

When we estimate our work packages, we get the hours(PV) by that level of
resource to complete the package. With the earned effort/schedule method,
this should still give way to visibility of earned/actual vs planned. Earned
and actual will always be the same because at no point will we ever go back
and assess the actual cost(hourly and salary wages). I can not see any value
in doing that.

Costs to us, in an internal project environment, are kind of like sunk costs
already as we are in an operations and projectized environment. On any given
day, someone could be working on something directly related to a large
project, or helping someone out with some small issue they are having.

So %complete and EV are the same with earned effort/schedule method, but
what I think EVM by earned effort/schedule will finally get us is the task
AND summary level expected %complete(PV). Despite my best efforts with
several formulas, I have yet to achieve something that weighted correctly at
the summary level.

Here, it is always "are we on our target date," with little concern of cost.

Rob