This post is the seventh in a series of discussions regarding various aspects of time management <\/strong>as it relates to the risk of delay<\/strong>.\u00a0 More specifically, we have titled the series MANAGING RISK OF DELAY [Subject Series]<\/a><\/strong>, since we focus heavily on the managerial aspects of program \/ project management.\u00a0 This post addresses some managerial tools relative to the integrated nature of time management<\/strong> using critical path and earned value management<\/strong>.<\/p>\n The challenge associated with managing all (critical and non-critical path) work is common to virtually all projects.\u00a0 This challenge is true for most project management situations.\u00a0 It is intensified in the case of larger and more complex projects.\u00a0 Examples include Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects.\u00a0 In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge.\u00a0 Over the past seven years, M&M<\/a><\/strong> has program\/project managed five projects exceeding $100 million (USD) in investment value (total installed cost).\u00a0 Thus, practical\/practioner experience is engendered in this discussion\/post.<\/p>\n As noted in Part 6 of this Subject Series<\/a><\/strong>, time and progress management has proven to be a three part managerial challenge, with the three parts closely linked.\u00a0 These three performance indicators are:<\/p>\n Performance Indicators for critical path scheduling and earned value schedule management tend to be structured differently.\u00a0 This is complementary, not conflicting.\u00a0 These general Performance Indicators [sometimes used with Key Performance Indicators or KPI\u2019s] include:<\/p>\n –\u00a0\u00a0\u00a0 Total Float or Slack<\/p>\n –\u00a0\u00a0\u00a0 Lookahead<\/p>\n –\u00a0\u00a0\u00a0 Key Milestone Performance<\/p>\n –\u00a0\u00a0\u00a0 Schedule Variance (SV)<\/p>\n –\u00a0\u00a0\u00a0 Schedule Performance Indicators (SPI)<\/p>\n –\u00a0\u00a0\u00a0 Earned Schedule<\/p>\n –\u00a0\u00a0\u00a0 Baseline Execution Index (BEI)<\/p>\n <\/p>\n Critical path management is generally an outgrowth of the typical planning and scheduling (programming) work.\u00a0 Reports and graphics are easily extracted from popular software tools and programs.\u00a0 Two very compelling managerial tools are:<\/p>\n The project management team can be very well guided by total float performance indicators.\u00a0 McLaughlin and McLaughlin (M&M<\/a>)<\/strong> has found that reports that contain total float, arranged with least total float first, is very effective.\u00a0 Further, this presentation is effective when arranged by Early Start, earliest date(s) first.\u00a0 So, something like sort by total float arranged by Early Start is a good example report.\u00a0 The management team then focuses on the most current\/immediate and higher priority activities.<\/p>\n Use of \u201clookahead\u201d format reports is highly important to the management of all key stakeholders.\u00a0 The window for the lookahead can vary (e.g. 3 weeks, 4 weeks, 60 days).\u00a0 This lookahead window can be adjusted to the application or managerial challenge.\u00a0 This will be discussed at length in a future post.<\/p>\n Turning to earned value approaches, at least four managerial tools that can be helpful are:<\/p>\n Schedule Variance (SV) is defined (PMI PMBOK)<\/a> as:<\/p>\n “Schedule Variance (SV)<\/strong>.\u00a0 A measure of schedule performance on a project.\u00a0 It is the difference between the earned value (EV) and the planned value (PV).\u00a0 SV = EV minus PV.”<\/p><\/blockquote>\n Schedule Variance (SV) is further discussed in PMI Practice Standard for EARNED VALUE MANAGEMENT<\/a><\/em>.\u00a0 This source states:<\/p>\n “Schedule Variance (Are we ahead of behind schedule?<\/em>)<\/strong><\/p>\n The Schedule Variance (SV) determines whether a project is ahead of behind schedule.\u00a0 [snip]\u00a0 A positive value indicates a favorable condition and a negative value indicates an unfavorable condition.”<\/p><\/blockquote>\n Schedule Performance Index (SPI) is defined (PMI PMBOK)<\/a> as:<\/p>\n “Schedule Performance Index (SPI).<\/strong> A measure of schedule efficiency on a project.\u00a0 It is the ratio of earned value (EV) to planned value (PV).\u00a0 The SPI = EV divided by PV.”<\/p><\/blockquote>\n Schedule Performance Index (SPI) is further discussed in PMI Practice Standard for EARNED VALUE MANAGEMENT<\/a><\/em>.\u00a0 This source states:<\/p>\n “Schedule Performance Index (How efficiently are we using time?<\/em>)<\/strong><\/p>\n The Schedule Performance Index (SPI) indicates how efficiently the project team is using its time.”<\/p><\/blockquote>\n Earned Schedule provides a measure of schedule performance based on time rather than on cost.\u00a0 This is a variance to Performance Measurement Baseline (PMB).\u00a0 Additional information on Earned Schedule can be found at http:\/\/www.earnedschedule.com\/<\/a> and is discussed in detail at this site.<\/p>\n Baseline Execution Index (BEI) is a broad metric used to indicate the rate at which actual work is being accomplished (or completed) relative to the Performance Measurement Baseline (PMB).\u00a0 Clearly, this is a bulk progress assessment tool.<\/p>\n It is essential to understand that each major stakeholder has a critical path and a PMB.\u00a0 Both critical path and earned value management may be helpful when managing the overall program or project.\u00a0 This consideration is an input to the Project Execution Plan managerial controls approach.<\/p>\n The discussion above is intended to emphasize that one tool (e.g. critical path analysis and reporting, earned value analysis and reporting, or productivity analysis and reporting) is not the optimum, complete or exclusive answer to professional project time management.\u00a0 Contemporaneous reporting on these and other managerial indicators (Key Performance Indicators, KPI\u2019s) is evaluated and considered together to create \u00a0the complete understanding. \u00a0A key focus is consistency<\/span> of message.<\/p>\n Time-Management Strategy<\/strong> is the higher level challenge.\u00a0 The Time-Management Strategy must be integrated with progress and claims management strategy.\u00a0 More specifically, the time-related issues must be harmonized and synchronized with the progress and claims strategy.\u00a0 The specific strategy, process and procedures are driven by the project specifics.<\/p>\n When M&M<\/a><\/strong> undertakes an assignment involving program\/project development, planning and\/or management, we integrate both critical path time management and earned value management practices and procedures into project execution.<\/p>\n Good luck and let us all attempt to approach the issue of Time-Management strategy with all the factors in an integrated manner (critical path progress, bulk progress or EVM, and productivity) relative to other related aspects of program and project execution planning.<\/p>\n It is important to note that McLaughlin and McLaughlin [M&M]<\/a><\/strong> is not a law firm and is not intending to provide legal advice.\u00a0 M&M <\/a><\/strong>is a consulting firm providing (among other services) non-legal expertise in dispute resolution and litigation support.\u00a0 The Resource Center<\/a><\/strong><\/em> is for the convenience of blog visitors and M&M<\/strong><\/a> does not offer this for commercial purposes.\u00a0 For further information on M&M<\/a><\/strong> services, please see<\/em> <\/em>www.McLaughlinandMcLaughlin.com<\/a><\/em><\/strong>.<\/em><\/p>\n <\/p>\n <\/p>\n <\/p>\n This post is the seventh in a series of discussions regarding various aspects of time management as it relates to the risk of delay.\u00a0 More specifically, we have titled the series MANAGING RISK OF DELAY [Subject Series], since we focus heavily on the managerial aspects of program \/ project management.\u00a0 This post addresses some managerial 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