What is PMS How EVM helps in PMS

1. PresenterPresenter
IntroductionIntroduction
ToTo
Project Life CycleProject Life Cycle
&&
PMSPMS
Vaibhav Sharma PMPVaibhav Sharma PMP

2. – Preferred global engineering Practices of excellence
Project Life CycleProject Life Cycle
Initiate
Plan
Execute
Monitor &
Control
Close Out
Formal
Initiation of
the project
Deliverable
List, Milestone
Identification.
Project
Execution as
per plan
Monitoring
Project
Progress as
per plan
Plan & Actual
records,
Lessons
Learnt
Timely Control
the Project

3. Measure / Monitor : Expenditures ? Or Work ?Measure / Monitor : Expenditures ? Or Work ?
Actual Cost / ` is not an indication of work progress, only anActual Cost / ` is not an indication of work progress, only an
indication of hours/money spent.indication of hours/money spent.
Well, I’ve spent 400 hrs ,
Does that mean I’ve
accomplished 400 hrs
of Work?

4. OutcomeOutcome
 Uniformity:
– Monitoring & Reporting Mechanism for all projects.
 Performance gauge:
– Project performance track & records Real Time:
– Instantaneous Progress Update as and when required.
 Optimized project execution:
– Progress monitoring against approved baseline plan, including
resources.
 Track Changes:
– Timely monitoring & alarming for upcoming changes in schedule
& resource requirements.
 Forecast:
– Lessons learnt utilization for future project estimates & execution.

5. PROJECT EXECUTION STRATEGYPROJECT EXECUTION STRATEGY
Q: Project Execution & Monitoring
Mechanism
A: PMS (Progress Measurement
System)

6. Key questions that PMS answersKey questions that PMS answers
Are we on schedule?
Are we on cost?
What are the significant variances?
Why do we have variances?
Who is responsible?
What is the trend to date?
Are we on schedule?
Are we on cost?
What are the significant variances?
Why do we have variances?
Who is responsible?
What is the trend to date?
When will we finish?
What will it cost at the end?
How can we control the trend?
When will we finish?
What will it cost at the end?
How can we control the trend?
We analyze past performance………to help us control the future
PAST PRESENT FUTURE
1. Did we get what we wanted for what we spent?
2. At the end of the project, is it likely that the cost will be
less than or equal to the original estimate?
The Two Key
Questions

7. Road to growthRoad to growth
• Can identify slipping project schedule
or cost deviation
• We can track near real-time delivery
against the plan (Schedule)
• Senior management can view
performance of a live project at any
instant without wait.
• We can have more control over early
detection of schedule & cost deviation
because you can accurately see
when & where deviation is trending
against your baseline

8. Step 1
Step 3
Step 5
Step 4
Step 2
5 steps for PMS5 steps for PMS
BAC-Budget at completion
PV-Planned value
AC-Actual cost
EV-Earn value
EVM-Earn value
management
Estimate / Budget (BAC)
PV
AC
EV
EVM

9. Key Focus areasKey Focus areas
Plan the Work
Work the Plan
Lessons
Learnt
Collect Results
Define the Work
Analyze
Deviations
Take
Corrective Action
Take
Corrective Action
Measure
Performance
Close Project

10. PMS Tool OptionsPMS Tool Options
Tools Advantages Disadvantages
Excel • Low cost • Time consuming
• Suitable for small projects
MS Project • Familiar business
product.
• Built-in EVM
system.
• Detailed plans above 200 lines can be complex to
manage.
• Can be unreliable & time consuming
• No collaboration & automation
MS Project &
MS
Sharepoint
• Familiarity + EVM
• Collaboration
• Low up front cost
• Automation Avail:
• Requires an integrator to set-up a MOSS site to the
right level
• Partial Integration
PPM Tools
•Clarity
•Planview
• Rich feature set
• Fully automated
• High purchase price + excluding year on year running
costs.
• ROI can be hard to justify

11. BenefitsBenefits
 Provides advanced warning of cost and schedule overruns
 Enables preventative measures and/or corrective actions to be
undertaken at the earliest signs of project deviation.
 Provides a mechanism to monitor the performance of suppliers and
their staff in near real time.
 Provides a direct link between budgets, plans, resources and delivery.
 Provides statistics to stakeholders and steering groups showing past,
current and predicted performance
 Enhances management visibility, allowing you to drill down into a
portfolio of projects & tasks to retrieve statistics, that can be measured
against a baseline
 Provides a management reporting methodology that encourages
delegation and an exception based management style. Reduces Micro
Management.

12. Thank you !Thank you !