Post on 07-Apr-2017
Is it worth of using EVM for troubled
projects?
NEJAT MURAT ERKAN, MBA, PMP, ITIL
14 Nisan 2016İstanbul
Nejat Murat Erkan, MBA, PMP, EVM, ITIL, CPCC, ACCMr. Erkan started out his career as a business consultant in USA. In the following years, he continued his career in pharmaceutical industry. Initially, he worked as a Project Leader in Health Marketing at GlaxoSmithKline and later on, he worked as a Project Manager in the field of allergy and immunology at Greer Laboratories in North Carolina. After spending 7 years in USA, he moved back to Turkey in 2000. After his return, he continued his career in the telecommunication industry at Vodafone Turkey. In 2005, he started to work at the leading GSM operator Turkcell, as Program Manager and he managed multinational/multi-million dollar Telco/IT projects. In April 2011, he started to work as ICT Key Account Manager for Turkcell Group Companies Best in Belarus and Astelit in Ukraine. Since August 2014, he is working as Turkcell Technology Sales & Marketing Manager.Mr. Erkan holds a Bachelor of Science degree (BSChE) from Yildiz Technical University, Istanbul and a Master ofBusiness Administration (MBA) degree from Campbell University, USA. He is a member of Project Management Institute and currently he is serving as the VP of Marketing & PR & Sponsorship and Outreach of PMI Turkey Chapter and he is the College of Performance Management-Global Advisory Committee representative and first PMI EVM Certified person in Turkey.He gained his PMP certification in September 2005. He is the past president of IPYD (Istanbul Project Management Association). He also lectures project management courses at Istanbul Technical University. In August 2014, he gained his CPCC «Certified Professional Co-Active Coach» certificate and coaches young professionals.Mr. Erkan was born in 1970 in Istanbul. He speaks fluent Turkish, English, French and speaks basic Spanish and basic Russian. He believes in “life time learning”.
Earned Value Management
GOALWhat is EVM and how it is associated with risks?
What is the value of EVM for troubled projects?
Is it really worth of using it?
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AGENDA
EVM Basics?EVM Practices in Turkey and US?EVM Tools?Cultural Impacts and Legislations?How Can We Benefit From EVM?
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PROJECT
1. EVM Basics?2. EVM Practices in Turkey and US?3. EVM Tools?4. Cultural Impacts and Legislations?5. How Can We Benefit From EVM?
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PROJECT EQUILIBRIUM
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PROJECT SUPERHERO
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PROJECT BASIC PROCESSES
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PROJECT BASIC PROCESSES
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PROJECT KNOWLEDGE AREAS
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RISK
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…likely impact or amount at stake should it occur.
it has a likelihood / probabilityof occurring, and a…
RISK EVENT
RISK PLANNING
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Early risk management and mitigation builds better valued projects
RISK RESPONSE PLANNINGAvoid
Mitigate
Transfer
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Avoid
Mitigate
Transfer
Accept (Workaround)
FOR A GOOD START
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Kervan Yolda Düzülür…..!
BASELINING
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To measure,
you need a
referance point!
GENERAL EVM TERMS
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PV: Planned ValueEV: Earned ValueAC: Actual Cost BAC: Budget At CompletionEAC: Estimated Actual CostETC: Estmated Termination Budget VAC: Variance Actual CostCV: Cost VarianceSV: Schedule VarianceCPI: Cost Performance IndexSPI: Schedule Performance Index
CV=EV-ACSV=EV-PVCPI=EV/ACSPI=EV/PVEAC=BAC/CPIETC=EAC-ACVAC=BAC-EAC
GENERAL EVM TERMS
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GENERAL EVM TERMS
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PV= 800 USDEV= 600 USDAC= 900 USD
CV=EV-AC=600-900 = -300 SV=EV-PV=600-800 = -100
CPI=EV/AC=600/900 = 0,67SPI=EV/PV=600/800 = 0,75
PROJECT STATUS ANALYSIS
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EVM is USA
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EVM in Turkey Theoretical knowledge is widely spread in:
- Universities offering certificates in PM - PM training and consulting companies- And of course PMPs in Turkey
But when it comes to industry practices, it is not commonly used due to…
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IMPLEMENTATION of EVMIn Turkey:
Turkish DoD (Subcontracting companies), Construction, Telcommunication and Banking
In other Parts of the World:Aerospace, DoD, Construction, Shipbuilding, IT, Telecommunication, Pharmaceutical, Railroad Infrastructure, Maintenance, Safety, Social Security, Euro 2004, Expo 98, Paper mill etc…
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EVM APPLICATIONS & TOOLSIn Turkey:
- MS Project- MS Excel- In-house developed softwares- SAP Project System
In other Parts of the World:- Cobra & OpenPlan & Winsight- Welcomhome- Planview- Primavera- Systalex etc…
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CULTURAL EFFECTS on EVM and RISK Turkish people will love to take risks with minimal
calculations We believe, we are protected by God and we
believe bad things won’t happen We are not willing to pay/reserve money for risk
allocated issues As a project manager, we need to be more
convincing on EVM and Risk Plan implementation
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LEGISLATIONS and SANCTIONS in TURKEY Turkish Way:
-As a first step, second step and third step PMs try to solve the conflicts with subcontractors internally-As a last step PMs try to solve conflicts by taking to the courts, or make them pay penalties
Courts Lateness:-Taking to the court takes too long, not efficient laws
Few Contractors:-Very few contractors/subcontractors are in the market place
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EVM SYSTEMS
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HOW CAN WE BENEFIT FROM EVMS?
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EVMS is the dashboard of your project...!
HOW CAN WE BENEFIT FROM EVMS? To be aware of the pitfalls of the project early in the life
cycle, so we can take the corrective actions sooner. Resulting time and money saving
To measure project and teams performance, so we can change the pace of the project to meet the objectives
To be able to predict the future of the project in advance, so we can have better control over the project
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LAST WORDS
If you don’t measure it precisely, you can’t manage it properly…!!!
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GOALWhat is EVM and how it is associated with risks?
What is the value of EVM for troubled projects?
Is it really worth of using it?
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Q & A
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N. Murat Erkannejatmurat.erkan@turkcell.com.tr
+90 532 210 2437
Thank You….