RUC 2

1
Determining the Health of a Project through
Earned Value Management
2
Determining the Health of a Project through
Earned Value Management

• What and Why
• When
• How
• Outcomes
• Limitations
• EVM and RM Integration

Clearing and grubbing for a new water treatment
plant in Kassan, Alaska
3
What and Why

• EVM is a project management technique that
• Objectively quantifies project progress and
  performance in terms of dollars
• Measures actual performance against an assumed
  spending baseline
• Provides indicators of future performance based
  on past performance

4
When

• Scope
• Schedule
• Budget
• Earning Rules
• Accrued Costs

Picture Here
Installing a well line in Pitkas Point, Alaska
5
Toksook Bay, Alaska

• 590 residents
• New WTP/WST
• 8.86M
• Const. Comp 8/31/13

6
How

• Scope Work Breakdown Structure

Scope Item
Construction Activities
OOK 07-002 - Water Treatment Plant
Construction start Date
Initial Material Flown/unload and transport
Safety Safety Stand Down
L - Housing Set-up
Site work
Clear grub/haul off, 1300CY
L - Haul In NSF
Place NSF/Compact/grade
Grade and set connex
Barge Arrival/unload/transfer to site
Piling Contract
Piling Contractor for WTP
Piling Contractor for WST
Set up for Pipe Work
Raw Water from 3A and 3B
L - C-143 Station 4950 to 4000
L - C-142 Station 4900 to 2900
7
How

• Scope WBS
• Schedule Critical Path

Scope Item Est Start Est Copm
Construction Activities 03/12/12 08/31/13
OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13
Construction start Date 05/02/12 05/02/12
Initial Material Flown/unload and transport 05/02/12 05/03/12
Safety Safety Stand Down 05/03/12 05/04/12
L - Housing Set-up 05/04/12 05/25/12
Site work 03/12/12 08/27/12
Clear grub/haul off, 1300CY 05/24/12 05/31/12
L - Haul In NSF 05/31/12 06/14/12
Place NSF/Compact/grade 05/31/12 06/14/12
Grade and set connexes (3) 06/14/12 06/16/12
Barge Arrival/unload/transfer to site 06/16/12 06/23/12
Piling Contract 03/12/12 04/21/12
Piling Contractor for WTP 03/12/12 04/07/12
Piling Contractor for WST 04/07/12 04/21/12
Set up for Pipe Work 06/23/12 06/25/12
Raw Water from 3A and 3B 06/26/12 07/21/12
L - C-143 Station 4950 to 4000 06/26/12 06/30/12
L - C-142 Station 4900 to 2900 06/30/12 07/10/12
8
How

• Scope WBS
• Schedule Critical Path
• Budget Itemized by WBS

Scope Item Est Start Est Copm Cost
Construction Activities 03/12/12 08/31/13 2,664,292.90
OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13 2,664,292.90
Construction start Date 05/02/12 05/02/12 0.00
Initial Material Flown/unload and transport 05/02/12 05/03/12 15,000.00
Safety Safety Stand Down 05/03/12 05/04/12 3,000.00
L - Housing Set-up 05/04/12 05/25/12 25,548.00
Site work 03/12/12 08/27/12 824,916.90
Clear grub/haul off, 1300CY 05/24/12 05/31/12 11,889.50
L - Haul In NSF 05/31/12 06/14/12 20,382.00
Place NSF/Compact/grade 05/31/12 06/14/12 11,936.40
Grade and set connexes (3) 06/14/12 06/16/12 2,984.10
Barge Arrival/unload/transfer to site 06/16/12 06/23/12 9,122.80
Piling Contract 03/12/12 04/21/12 581,900.00
Piling Contractor for WTP 03/12/12 04/07/12 393,638.00
Piling Contractor for WST 04/07/12 04/21/12 188,262.00
Set up for Pipe Work 06/23/12 06/25/12 4,561.40
Raw Water from 3A and 3B 06/26/12 07/21/12 50,175.40
L - C-143 Station 4950 to 4000 06/26/12 06/30/12 11,403.50
L - C-142 Station 4900 to 2900 06/30/12 07/10/12 18,245.60
9
How

• Scope WBS
• Schedule Critical Path
• Budget Itemized by WBS
• Earning Rules Predefined Metrics

Scope Item QTY Unit Est Start Est Copm Cost Dollars
Construction Activities 03/12/12 08/31/13 2,664,292.90    
OOK 07-002 - Water Treatment Plant 03/12/12 08/31/13 2,664,292.90    
Construction start Date 05/02/12 05/02/12 0.00    
Initial Material Flown/unload and transport 1 LS 05/02/12 05/03/12 15,000.00 75 11,250.00
Safety Safety Stand Down 1 LS 05/03/12 05/04/12 3,000.00 0 0.00
L - Housing Set-up 1 LS 05/04/12 05/25/12 25,548.00 10 2,554.80
Site work 03/12/12 08/27/12 824,916.90    
Clear grub/haul off, 1300CY 1300 CY 05/24/12 05/31/12 11,889.50 0 0.00
L - Haul In NSF 6000 CY 05/31/12 06/14/12 20,382.00 0 0.00
Place NSF/Compact/grade 15 DAY 05/31/12 06/14/12 11,936.40 0 0.00
Grade and set connexes (3) 06/14/12 06/16/12 2,984.10 0 0.00
Barge Arrival/unload/transfer to site 06/16/12 06/23/12 9,122.80 0 0.00
Piling Contract 03/12/12 04/21/12 581,900.00    
Piling Contractor for WTP 03/12/12 04/07/12 393,638.00 100 393,638.00
Piling Contractor for WST 04/07/12 04/21/12 188,262.00 100 188,262.00
Set up for Pipe Work 06/23/12 06/25/12 4,561.40 0 0.00
Raw Water from 3A and 3B 06/26/12 07/21/12 50,175.40    
L - C-143 Station 4950 to 4000 06/26/12 06/30/12 11,403.50 0 0.00
L - C-142 Station 4900 to 2900 06/30/12 07/10/12 18,245.60 0 0.00
10
How

• Scope WBS
• Schedule Critical Path
• Budget Itemized by WBS
• Earning Rules Predefined Metrics
• Accrued Costs Actual Cost to Date

ss Version 8, 5/11   Estimated Cost Cost To Date
Cost Tracking  Cost Tracking  Cost Tracking  Cost Tracking  Materials 2,501,487.50   Plan-Set Task Totals Plan-Set Task Totals Plan-Set Task Totals
Updated as of Updated as of 6/2/2012 6/2/2012 Equipment 1,167,040.00   Construction Budget  Construction Budget  8,862,720
Plan set title and plan set Plan set title and plan set OOK-07-002 OOK-07-002 Freight 265,000.00   Costs to Date Costs to Date 1,372,700
Community Name Community Name Toksook Bay Toksook Bay Labor 3,196,771.50   Remaining Balance To Date Remaining Balance To Date 7,490,020
Notice To Proceed Date Notice To Proceed Date 3/15/2012 3/15/2012 Travel 118,590.00  
Subcontract 1,613,831.00  
PPE Material Freight Local Labor ANTHC Labor Equipment Travel Subcontract Total Costs This Period Total Cumulative Costs Percent of Budget Spent
4/21/2012 100,886.00 40,907.93 0.00 81,789.63 0.00 0.00 583,532.46 807,116.02 807,116.02 9.11
5/5/2012 66,463.79 0.00 2,086.43 53,093.87 42,831.01 3,000.00 141.11 167,616.21 974,732.23 11.00
5/19/2012 127,431.70 676.58 4,840.89 58,421.55 1,009.21 560.00 348.26 193,288.19 1,168,020.42 13.18
6/2/2012 58,137.57 67,210.06 10,463.97 50,568.70 17,523.88 560.00 215.19 204,679.37 1,372,699.79 15.49
6/16/2012               0.00 1,372,699.79 15.49
6/30/2012               0.00 1,372,699.79 15.49
11
Biweekly Report
12
EVM Outcomes

• Three-Line Diagram
• Planned Value
• Earned Value
• Actual Cost
• Variances
• CV and SV
• Performance Indices
• CPI and SPI
• Estimate at Completion

Mixing placing concrete for a water storage
tank in Pitkas Point, Alaska
13
EVM Outcomes

•  

Drilling helical piles for a boardwalk in
Kwigillingok, Alaska
Installing water distribution main and flush
hydrants in Pitkas Point, Alaska
14
EVM Outcomes

•  

Excavating for a new lagoon in Kasigluk, Alaska
Thermopile foundation for a clinic in Kaltag,
Alaska
15
EVM Three Line Diagram
CPI 0.91 EAC 9,724,000
PlanTrax Version 3.3b
16
EVM Limitations

• Subjective measurement
• No consideration of quality
• Requires accurate accounting
• Looks forward based on past events

The Tinker familys new bathroom Kasigluk, Alaska
Insulated flush hydrants in Galena, Alaska
17
EVM and RM Integration

• Identify potential problems quantify their
  impact
• Monitor and manage more effectively
• Recoup value of mitigated risks

Crushing rock for pipe bedding in Pitkas Point,
Alaska
The new water treatment plant in Pitkas Point,
Alaska
18
Determining the Health of a Project through
Earned Value Management

• What and Why
• When
• How
• Outcomes
• Limitations
• EVM and RM Integration

A boy with a newly installed arctic box and low
pressure sewer in the background in Kasigluk,
Alaska
19
Questions?