Posted by How to Manage a Program Effectively
EVM & Scheduling Track
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Abstract:
This paper will describe the importance of cost estimating to Program Control. Specifically it will consider the policy for Earned Vale Management (EVM) and the need to consider the deviation from the baseline program in an EVM System (EVMS). Through the integration of a parametric model with an EVMS application, on based upon frequent re- evaluation of the baseline, it is possible to increase the confidence in the EVM metrics.
The paper will elaborate on Chapter 7 of the “Systems Cost Engineering” book published by Gower and edited by Dale Shermon. It will consider how EVM can be applied using the TruePlanning cost models. After a simple example, to explain the principles behind this parametric solution, the paper will elaborate on this application of the hardware, software and IT parametric cost models with a practical example of a program baseline being monitored against earned value.
The technique is transferable and equally applicable to all government procurement agencies or customer initiatives where program management needs to be monitored and reviewed. With the application of a parametric methodology this is a realistic proposition with limited resources.
Author(s):
Bruce Fad
VP Professional Services
Bruce Fad is Member/owner of PRICE Systems, LLC and directs all activities of PRICE Systems Professional Services Division, which includes: parametric cost estimating model and general estimating topic training course development, PRICE models technical support to licensing clients, and PRICE Systems Americas consulting services, Bruce maintains an active role in services through instructing and by supporting consulting engagements as either a project director or individual contributor as a Subject Matter Expert (SME). In 1995 Bruce was named Parametrician of the Year by the International Society of Parametric Analysts. He frequently prepares and delivers presentations on the subject of cost estimating and analysis for professional society conferences.
Dale Shermon
Principle Consultant, HVR Practice, QinetiQ
Dale Shermon is a Principle Consultant responsible for the Cost Management Through Life section in HVR Practice within QinetiQ. Dale has presented courses in fundamentals of cost estimating, hardware estimating, software estimating, life cycle cost, Cost Estimating Relationships, Information Technology, risk analysis and supplier assessment in the UK, Italy, USA, Sweden, Australia, Singapore, Taiwan and Germany. He has conducted consulting assignments in UK, Italy, France, Australia and the Netherlands. He was responsible for the development of the “PRICE HL Questionnaire” within the PRICE Estimating Suite and the TruePlanning for Concepts methodology.
Dale was the editor and major contributor of the Gower publication “Systems Cost Engineering” (ISBN: 978-0-566-08861-2) which was published in July 2009.
Dale was the first European to become an International Society of Parametric Analysts (ISPA) Certified Parametric Practitioner in 2003. He has been the tutor for the “Cost Estimating Relationships” session of the ISPA Professional Development Training at the 2004, 2005, 2006 and 2008 conferences and in 2009 was the tutor for “International use of Parametrics” session.
He was the first European to be awarded the ISPA Frank Freiman award in 2009 for lifetime contributions to parametric estimating.
Dale was previously working as a Senior Executive Consultant within PRICE Systems Ltd providing training, consulting and support in Northern Europe. Prior to this Dale was a Cost Forecaster within Pricing and Forecasting Group (PFG) a support group of the Defence Procurement Agency (DPA) part of the UK Ministry of Defence (MOD). He headed a cell studying submarine platform Whole Life Cycle (WLC) Costs that supported DPA project approvals. He has been parametric cost estimating since 1987.
Dale has held estimating positions in various defence and aerospace companies including. Matra Marconi Space, British Aerospace (Space Systems) Ltd, British Aerospace (Dynamics) Ltd. and Rolls-Royce Ltd. Military Engine Group. During this career he has participated in numerous proposals and studies in engineering fields as varied as satellites, missiles and aero-engines. During his period in the MOD he performed High Level Studies covering all of the armed services.
Dale has presented papers to the European meeting of Space System Cost Analysis Group (SSCAG) in Toulouse, France; the PRICE Symposium in Nice, France, Cambridge and London UK also at the International Society for Parametric Analysts (ISPA) Conferences in San Diego, California; Frascati, Italy; Denver, Colorado; Seattle, Washington, St Louis, Missouri, New Orleans, Louisiana and Orlando, Florida. This final paper “If a little bit of Knowledge is dangerous… what is a lot of Knowledge?” presented with the UK MOD was awarded Best Applications Track Paper for the conference. At ISPA, Seattle the paper entitled “Creating True Concepts, a methodology, not a model” was awarded Best Hardware Track Paper 2006.
He has had articles published in the “Project” magazine of the Association for Project Management, “The Cost Engineer” the journal of the Association of Cost Engineers and the “Defence Management Journal” (DMJ) the management journal for the United Kingdom (UK) Ministry of Defence (MOD).
Dale has a Bachelor of Arts Degree from the Open University and is a Fellow of The Association of Cost Engineers (ACostE) and member of The Association of Project Management (APM). Dale has a Certified Diploma in Accounting and Finance from the Association of Chartered Certified Accountants (ACCA).