Processes On Demand

Processes On Demand is an intranet/LAN ready HTML based software solution that enables PMOs and virtual PMOs to rapidly set up, use, and continuously improve upon their core processes and best practices. Processes On Demand is EVM ANSI 748 compliant and provides de facto standard project management processes, scalable workflows to project size, step by step user guidance, and a library of project management templates, forms, and checklists including processes and templates for Earned Value Management.

Executive Overview - 3 minutes

Rapid and widespread acceptance of Earned Value as a best practice has encouraged an increasing number of institutions, both in private and public sectors, to include Earned Value in their project management process. Whether seeking to achieve EVMS ANSI/EIA 748 compliance or simply improve project performance, Processes On Demand provides PMOs and virtual PMOs significant time and cost savings over in-house developed process solutions and other vendor alternatives. Processes On Demand enables users to easily follow and master project management processes, best practices, and techniques.

What is EVM ANSI 748?

The ANSI standard on Earned Value Management Systems (EVMS) was approved on May 19, 1998. The EVMS guidelines incorporate best business practices for earned value management systems that have proven to provide strong benefits for program or enterprise planning and control. The process guide contained in this standard includes project scope definition, schedule, and cost objectives, as well as establishment of a baseline plan for accomplishment of program objectives and use of earned value techniques for performance measurement during the execution of a project. The system described in the standard provides a sound basis for problem identification, corrective actions, and change control. The identification number of this standard is "ANSI/EIA-748-1998" and copies of the standard are available through Global Engineering Documents.

What is Earned Value Management?

Budget verses actual costs can give a very mis-leading picture. Earned value puts a dollar value the status of your project and shows you you your project's 'health' at a glance. Basic concepts of an EVMS are:

• Plan all work for the program to completion.
• Integrate program work scope, schedule, and cost objectives into a baseline plan against which accomplishments may be measured.
• Objectively assess accomplishments at the work performance level.
• Analyze significant variances from the plan and forecast impacts.
• Use data for management decision making and implementation of management actions.

The essence of earned value management is that a budget is established for each element of work. As the elements of work are completed their budgets are earned. As such, work progress is quantified and the earned value becomes a metric against which to measure both what was spent and what was scheduled to be completed. Schedule variances, which cannot be seen when viewing budget versus actual costs, are quantified. The cost variances are true cost variances that are not distorted by schedule variances. This early detection mechanism gives you a chance to correct problems before it is too late. Without earned value you can only compare what was spent versus what was planned. This does not give an indication of what was actually accomplished.

EVMS Guidelines and Recommendations

Scope Definition - Scope definition is comprised of two major components:

• The statement of work. The statement of work (SOW) identifies the work scope requirements for a project. The major portion of the scope definition is done during the proposal and contract negotiation phase. The statement of work is used as a basis for the schedule and budget development.
• Work breakdown structure (WBS). The WBS is used to divide the statement of work into definable product elements and related services into appropriate elements for cost account and work authorization. The WBS dictionary identifies the portion of the statement of work with the WBS elements.

Program Schedule  - Schedule planning and control are necessary prerequisites for basic project management and effective cost control. While project management software packages like Microsoft Project are typically the preferred method for schedule development, it is not necessary for earned value management.

Budgeting - Resource assignments are assigned to the activities in the schedule. Labor and burden rates are applied to the resource assignments to develop a cost or budget for the project. The ANSI standard discusses how to define the budgeting elements, rates, management reserve, work authorization, planning accounts and much more. A work package is simply a task - a point where work is planned, tracked, and earned value is calculated.

Baseline - The performance measurement baseline is made up of all the planning package budgets and any undistributed budget. It represents the current project plan and will change as the project plan is refined and revised.

Performance Measurement - Earned value is direct measurement of the quantity of work completed. It does not reflect the quality of the workt. It is used to determine the health of your project. Budget costs versus actual costs does not always provide a clear picture of the "health" of your project. Earned value analysis allows you to compare the budgeted value of completed work versus the actual costs.

Schedule Performance - The time-phased budget is the schedule for expenditure of the resources needed to accomplish the project scope. The budget for a period is compared to the earned value for the same period to determine the schedule performance or schedule variance. It represents the value of the work that is ahead or behind schedule.

Cost Performance - The cost variance is determined by comparing the actual cost with the earned value for a particular period. The cost variance is the difference between the work accomplished and the costs incurred.

Estimates at Completion - Periodic assessment of the remaining requirements of a project is an important part of project management. The estimate at completion provides a true view of the project's status for completion.

Revisions and Data Maintenance - Change control is an important aspect of baseline management. The performance measurement baseline should reflect the current project plan of the project's objectives. It is important that unauthorized changes are not performed as they corrupt the baseline.

Documentation - Processes On Demand provides complete documentation of policies and procedures, techniques, and templates, forms, and checklists. Processes On Demand can be implemented and applied effectively throughout your company resulting in improved project management performance and the adoption and successful use of EVM techniques.

Processes On Demand - EVM ANSI 748 Compliant

Processes On Demand can be installed in a day and fully setup in less than a week. It reduces the time and costs required to setup project management processes, best practices, and techniques such as Earned Value Management. Processes On Demand will help you fully use your existing project management tools and share your existing project management knowledge. It enables workplace mentoring, training, and continuous process improvement as well reduces project management training costs. Key features include:

• Intranet/LAN ready HTML software solution
• Ready-to-use de facto standard processes project management, SDLC, and Go-to-Market
• Sarbanes-Oxley Compliant
• EVM ANSI 748 Compliant
• Process Builder for customer unique processes, policies, and procedures
• Enablement of the Microsoft Enterprise Project Management (EPM) Solution
• Integration with Microsoft Project and Project Server
• Portfolio Management Process
• Governance Process
• On Demand access to information, resources, tools, and mentors
• On Demand Help - Ask the PMO, FAQ, and Glossary of Terms
• Template Library of ready-to-use project management templates, forms, and checklists including Earned Value Management
• Cross reference for process steps and PMBOK®® knowledge areas
• Intuitive, user friendly interface
• Easy to setup and available in many languages
• Easy to edit with leading web application editors such as Macromedia Dreamweaver, Microsoft Frontpage, and IBM Websphere