Session M1- The Challenges of Tracking Earned Value on The SV Scout Project

Copyright @ 2011. All rights reserved
The Challenges of Tracking Earned Value on
The SV Scout Project
Project Controls Expo – 13th Oct 2015
Emirates Stadium, London

Preet Bhuller
Managing Consultant
 An Engineer, a Programme & Risk Management Consultant
 Background in - Mechanical Engineering & MSc in Engineering
Management
 10 years of Programme Risk & Opportunity Management, 3
years of Safety Management and 2 years of Earned Value
Management (EVM)
Contact Details:
Mobile: 07590 268 477
Email: preet.bhuller@hiqsigma.com
http://uk.linkedin.com/pub/preet-singh-bhuller-b-eng-msc/3a/98a/5ab

 A leading international multi-
disciplinary engineering, science,
technology and management
consultancy
 Formed in 1985 from maritime
research and technology
organisations
 An Employee Benefit Trust,
providing complete
independence
 Operates world-wide in defence,
transport, government, energy
and environment sectors
BMT Group

• BMT Hi-Q Sigma is an operating company of the international BMT Group, with
offices in Bath, London, Winchester and Ottawa.
• At the heart of our business is a commitment to helping customer organisations
transform and improve.
• We deliver solutions to complex problems, reducing uncertainty and enabling
informed decision making, so you can move forward with confidence.
BMT Hi-Q Sigma

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 Transport
BMT Hi-Q Sigma

Portfolio Management
Setting the direction and scope
of a portfolio of projects to
ensure outcomes are
compatible with the overall
business direction and
objectives
Programme & Project
Diagnostics
Independent impartial advice
providing assurance and
confidence in the deliverability
of programmes and projects
Enterprise Architecture
Enabling organisations to
understand, document,
communicate and manage the
components of their
businesses to the optimum
levels
Project Controls and EVM
Support for development of
Earned Value Management
systems that enable profound
understanding of current
project performance
Investment Appraisal
Cost management and
strategic advice helping
organisations use market
forces to the best advantage
Risk and Opportunity
Management
Creating the environment, the
processes and tools for risk
management and opportunity
exploitation
Requirements Definition
Requirements are mapped to
project outcomes providing full
assurance that the expected
benefits are quantifiable,
measurable and achievable
Planning and Schedule
Management
Help in correlating and
integrating schedules to
enhance reliable decision-
making and forecasting
Training and Mentoring
A range of bespoke learning
and development programmes
from highly-skilled and
experienced practitioners
BMT Hi-Q Sigma Core Capabilities

Your EVM Experience
 Which of these best describes your EV experience and skills:
A – (Advanced): I eat, sleep and breathe EVM and can’t imagine my life
without it.
B- (Practitioner): I have practiced EVM occasionally or a long time ago,
am competent in its application but do not profess to be an expert!
C – (Basic): I am aware of what EVM is and why it might be used.
D – (None): I don’t know what EVM means but I’d like to find out (or I
have accidentally wandered into the wrong presentation and am now
looking for the exit!).

Scout SV
• DE&S CAT A Project to deliver SV Scout + Variants
• Army’s highest priority new equipment programme
• Biggest single order for fighting vehicles in 30 years
• 589 vehicles with expected IOC 2018
“The Scout SV project will deliver ‘game changing reconnaissance’ for the British Army, with
a new fleet of armoured fighting vehicles including the Scout Reconnaissance variant. The
vehicles have been designed with high levels of protection, mobility and crew comfort”

Scout SV will equip the army with:
• A family of rapidly-deployable medium weight Armoured
Fighting Vehicles
• Effective across a spectrum of operations including
• Rapid intervention
• High intensity, Major Combat Operations
• Enduring Peacekeeping and Peace Enforcement
• Equipped with the 40mm Cased Telescoped Cannon and
Ammunition (CTCA) & world class mobility effective in all
weathers & across a variety of terrain
• Game changing sensors, surveillance, protection & target
acquisition systems

Scout SV Programme
• Demonstration Phase onto Manufacturing !
• The SV Programme consists of two blocks of capability including
Training and Support elements:
• RB1: Four roles consisting of;
• Scout (with 40mm Cannon)
• Protected Mobility Recce Support (PMRS),
• 2 Equipment Support (ES) variants for
• Repair and Recovery
• Special To Role (STR) variants: Two roles consisting of;
• Command & Control
• Engineer Reconnaissance

Scout Variants
Single Base Platform Design

EVM & Schedule Performance Support
The Requirement
• The MoD wants to know:
• How is ‘our’ project progressing?
• What has the contractor achieved with the money we
have spent so far?
• What is the true out-turn cost going to be?
• Can I trust the data in the reports supplied by the
contractor?
• Do we have confidence in the contractor’s delivery?
• Associated to this:
• What are their ‘get-well’ plans or recovery
actions?

EVM & Schedule Performance Support
Meeting the Requirements
• Fully developed EVMS that is integrated with existing SV Risk and
Schedule Processes
• EVMS that interfaces with industry programme management
information
• Accurate collection of costs
• Generation of reliable SPI/CPI indices and Cost Schedule
Variances
• Development of monthly EVM Reports
• Prediction of anticipated performance via
• ETC, EAC and TCPI calculations
• Comparisons to SRA modelling using Forecast Schedule Estimates

EVM Core Functions
EVM
Requirement
Core Interfaces
Technical
Team
OUTPUTS
INPUTS

WBS, CAs and CAMs
• A CA is allocated to one CAM
• All CAs are mapped to a CAM
• Allows for traceability ensuring
• The £ amount in a CA plan should equal
CA amount in the RAM
• Sum of work scope should equal the
PMB value

EVM Interface with Risk & Schedule

EAC/ETC Metrics
• Estimate At Completion (EACs)
• How much will we have spent when we’re actually done
• EACs calculated and analysed at any level of the WBS
• EAC = actual costs incurred + remaining work
• EAC = ACWP (cum) + ETC (Estimate To Complete)
• Where ETC = (BAC-EV)/PI
(Performance Indicator - depending upon what variance (SPI/CPI) we want to
factor in.
• We use this method because of past performance trends and the assumption that the
current variances will continue to be present in the future.
• EAC = AC + (BAC − EV) ⁄ CPI or EAC = AC + (BAC − EV) ⁄ SPI

Forecast Schedule Completion Estimates
• Operating Milestone for System CDR 3rd Dec 2014 (Forecast
Completion)
• Start of Contract date (Contract Effective Date) 1st July 2010
• Forecasted Duration approx 53 months
• The SPI Cum 0.95
• Factoring SPI into duration 53 / 0.95 = 56 months
(which is a 3 month increase to the forecasted duration of 53 months)
• Forecast Completion Dec 2014 + 3 months = Mar 15

Milestone Chart Ouput
EV Forecast
SRA Modelling

Monthly EVM Report (front)

Monthly EVM Report (back)

SV Scout EVM DAT Tool

Tony Purpuri
Managing Consultant
 A Chartered Engineer, Cost Estimator/Manager and Systems
Engineer
 Background in - Aeronautical Engineering
 9 years of Cost Estimating, Systems engineering and Safety
management
Contact Details:
Mobile: 07500 807912
Email: tony.purpuri@bmt-hqs.com
Linkedin: https://uk.linkedin.com/in/tonypurpuri

SCOUT SV EV DAT
• The Scout SV Requirement
• To store all Project’s EV data
• To report EV data monthly in agreed formats
• To analyse EV data for integrity and check contractors
calculations
• Receive full EV data input from Contractor in the form of excel
data (CPRs 1-5)

SCOUT SV EV DAT
• The EV DAT Solution
• Excel based tool
• Monthly data stored in worksheet and metrics calculated
• Automatically formats contractors data
• Series of charts for data trends
• HTML outputs created using VBA
• Tool can handle changes to baseline and rebaselining

EV WBS

EV Reports

EV Data Analyses
• Needed to check the contractors AP figures
• Devised a series of data checks that independent assessed the
integrity of the data
• The results of checks were fed back to contractor and PT to
increase data fidelity.

EV Data Checks

Example EV Data Checks
RC01:
BCWP=0 ACWP>0 AP data
RC01: The data for the current month (AP)
reports that no value (BCWP) was earned but
actual costs (ACWP) have been recorded. This
indicates that work was done but the Earned
Value Technique (EVT) criterion which would allow
value to be earned was not achieved during the
AP.

Example EV Data Checks
RC03:
Cum BCWS = 0 AP'ly ACWP <> 0
RC03: The cumulative planned value (BCWS)
to date is zero but the actual cost (AWCP) in AP
is not zero. This indicates that ACWP has been
attributed to a WP which is not planned to have
started.

EV DAT Benefits
• Reporting interface
• Exactly compatible with the Contractor’s Data Set
• Verification and validation tool when analysing industry's data
• EV assurance checks
• Flexible format that allows for rebaseline without loss of data

The Challenges

Your EVM
Challenges

Challenge 1
Description
• Activities that are deemed complete but not fit for purpose.
• E.g. contractual documentation that is completed on time/budget but NOT
deemed fit by the Mod
Solution
• take advantage of the rebase line exercise to ensure activities are described
more intelligently
• (e.g.100% complete progress includes room for re-work and amendments post
authority review)
• Ensure sensible use of EVM Techniques!

Challenge 2
Description
• The challenge of incorporating re-work within an existing PMB!
(Linked to challenge 2).
• How should re-work be incorporated?
• What does best practice suggest? (APM manual)
• Can it be promulgated on SV Scout?

Challenge 2 cont…
Budget Elements

Challenge 2 cont…
Types of Baseline Changes
• Baseline Maintenance via Rolling Wave (RW)
• No impact to PMB
• RW allows converting PPs to WPs
• Re-Planning
• Within budget and schedule of CBB
• Drawdown from MR
• Re-Baselining
• Contract Change!
• Impacts margin

Challenge 2 cont…
Contractor EVM Plan stipulates
• Expected Work
• An understanding of the effort is known
• Work is planned into existing WPs during the next RW
planning
• Unexpected Work
• If work is unexpected but part of the existing scope then
• Rework is simply carried out within the WP (using
existing float) impacting CPI and SPI
• If work is unexpected and NOT part of the scope (change in
scope!)
• Requires new WPs to be created
Baseline
Maintenance
Re-Planning

Challenge 2 cont…
Solution
• Using Re-Planning to justify the re-work
• Ensuring that the new WPs are raised via an existing BCR
process
• Requiring a draw down from Management Reserve
• Ensuring that the new activities raised via the BCR are
“intelligently” linked to existing milestones within the PMB
KEY!

Challenge 3
Description
• The schedules received is often out of ‘kilter’ with the corresponding EV
data – making realistic comparisons a challenge
Solution
• In addition to analysing the schedule pitched at its existing level we also
analysed schedules at a more detailed technical level (NB: non
mandated/contractual requirement)
• This often requires visits to contractors site since the technical schedules
were not contractual deliverables
• Helped by developing good and open relationships with the contractor

Challenge 4
Description
• The ever present risk of Re-baselining for the wrong reasons is a challenge to
manage and often, political and out of our hands
• The project has been re-baselined for the 3rd time!
Solution ? (Opportunity rather…)
• Ensuring that previous EV data (CPRs) and trends is saved including any
associated review notes and corrective actions
• Using LFE to ensure at baseline reset, previous scheduling/planning mistakes
are not repeated. E.g. EVTs and activities in the schedule are defined
intelligently to ensure EV tracking is robust

Your EVM
Challenges
 Open floor

Questions

Session M1- The Challenges of Tracking Earned Value on The SV Scout Project

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Session M1- The Challenges of Tracking Earned Value on The SV Scout Project