This tutorial begins with a comprehensive, common sense explanation of EVM that can be applied to any project. Then the presenter will address the unique characteristics of software-intensive projects, lessons learned during development of complex systems for government and commercial enterprises, and best practices for using EVM. Because measurement incurs costs, there will be a discussion of the types of projects that will benefit from use of the tool. Further discussion will address techniques for adapting EVM to be consistent with agile software development.

Organizations that utilize world-class processes will learn to implement EVM that is consistent with industry standards for project management and systems engineering as well as the CMMI. A sample of key criteria from the EVM industry standard will be mapped to the following:

• Project Management Body of Knowledge (PMBOK®)
• CMMI
• Standard for Application and Management of the Systems Engineering Process (IEEE 1220)
• Processes for Engineering a System (EIA 632)

You will learn how to implement EVM as a process improvement within the above frameworks and to use Performance-Based Earned Value for cost-effective management analysis, control and forecasting.

Some of the EVM topics that are common to all projects include:

• Establishing the Work Breakdown Structure
• The importance of requirements-based planning
• Developing and validating the Performance Measurement Baseline (PMB)
• Understanding the differences between control accounts, work packages and planning packages
• Integrating cost and schedule plans and performance
• Techniques for objective progress assessment
• Best practices for variance analysis
• The power of the Cost Performance Index (CPI)
• Preparing reliable estimates of costs at completion (EAC)
• Validating EACs
• Controlling changes to the PMB
• Supplier Acquisition Management

Some of the software-unique topics include:

• Key CMMI Process Areas and Systems Engineering Standards
• Significant work packages and work products
• Selecting practical measures of schedule progress
• Importance of Technical Performance Measurement (TPM)
• Accounting for deferred functionality and rework
• Relating earned value to software quality
• Early warning signs of project problems
• Use of Magnitude to Date (CPI) at CG Smith Software
• Integrating risk management with EVM
• Adapting EVM to agile software development
• Implementing EVM as a process improvement

This tutorial includes practical tools, proven techniques, examples, case studies and lessons learned that could be easily be adopted by project managers and used for successful project execution.

Learning objectives:

• Use EVM based on project risk
• Implement EVM consistent with industry standards and CMMI
• Select integrated measures of cost, schedule and technical performance

Lessons learned:

• How and when to use EVM
• Implement EVM within CMMI process improvement
• How to adapt EVM to agile software methods

Paul Solomon manages Earned Value Management (EVM) for programs in Northrop Grumman Corp. and is a Visiting Scientist at the Carnegie Mellon University/Software Engineering Institute (SEI). He is in an organization that has achieved SEI Capability Maturity Modelâ for Software (SW-CMMâ) Level 5. He was on the team that wrote the ANSI Standard for EVM and received the esteemed David Packard Award from the DoD for that effort. Paul has developed internationally recognized best practices for managing software-intensive projects. He is a Project Management Professional and holds BA and MBA degrees from Dartmouth College.