32in32 Earned Value Guidelines

Guideline #1: WORK
Gather project scope documents and break the project into manageable chunks; a work products family tree.
๐Ÿ”‘ Key tip: What you EXCLUDE from project scope is perhaps even more important than what you INCLUDE.
Guideline #2: ORGANIZATION
Create a project team organization chart with ONE project manager and ONE accountable name for each major chunk of work.
๐Ÿ”‘ Key tip: Give managers authority, tools, and training to manage their work.
Guideline #3: DATA INTEGRATION
It takes a village of systems to define, plan, budget, collect costs, claim progress, update forecasts, and analyze a project successfully.
๐Ÿ”‘ Key Tip: A smart and uniform coding approach helps integrate data.
Guideline #4: OVERHEADS
Overhead (also called indirect) costs need a single manager for each department, function, or pool.
๐Ÿ”‘ Key Tip: Project teams cannot deliver scope and schedule on budget if overhead costs are out of control.
Guideline #5: CHUNKS OF WORK
Break projects into manageable work chunks with defined technical scope bounded by cost, schedule, and performance targets.
๐Ÿ”‘ Key Tip: Assign a single work code and team code to manage each work chunk.
Guideline #6: SCHEDULE
Create a plan capturing authorized work scope realistically modeling the logical tasks to measure progress for phases, deliverables, and events.
๐Ÿ”‘ Key Tip: Aim for the FEWEST tasks required to manage the work.
Guideline #7: PROGRESS
Measure progress on delivering work products with start, finish, and interim milestones–even inchstones–tracking technical performance goals.
๐Ÿ”‘ Key Tip: Claim progress objectively so that your replacement could easily know percent complete.
Magic Guideline #8: BUDGET
Timephase cost targets (budgets) by resource to successfully deliver the work scope, schedule, and cost.
๐Ÿ”‘ Key Tip: Set realistic budget targets and document assumptions and buy-in from task and resource owners..
Guideline #9: COST ELEMENTS
Break budget targets into key cost elements like direct labor, material, and other costs.
๐Ÿ”‘ Key Tip: Don’t forget to identify costs for travel, tooling, software, equipment, facilities, material, parts, and services.
Guideline #10: WORK PACKAGES (AND PLANNING PACKAGES)
Break manageable chunks of work into individual work packages or planning packages (far-term, less-defined).
๐Ÿ”‘ Key Tip: Assign ONE earned value technique per work package for how you will claim performance.
Guideline #11: ฮฃ OF WORK PACKAGE + PLANNING PACKAGE BUDGETS = CONTROL ACCOUNT BUDGETS
Budgets for Work Packages (short, near-term tasks) and Planning Packages (often larger, far-term tasks) must sum to Control Account (manageable chunk of work) budgets.
๐Ÿ”‘ KEY TIP: Budget hours AND costs.
Guideline #12: IDENTIFY, BUDGET, & CONTROL LEVEL OF EFFORT
“Discrete” tasks drive and can delay the overall project and deliverables. “Levelย Ofย Effort” tasks provide management, administrative, or other functional or as-required support.
๐Ÿ”‘ KEY TIP: Identify, budget, and control LOE
Guideline #13: SETUP OVERHEAD BUDGETS BY ORGANIZATION
Set up project overhead cost targets (budgets from Guideline 8) by Organization codes from Guideline 2.
๐Ÿ”‘ KEY TIP: Apply realistic and consistent overhead costs based on past and likely future overhead rates.
Guideline #14: SETUP TWO MANAGEMENT BUCKETS FOR WORK
Set-up two management buckets for original plus new scope and another for unplanned, in-scope changes–until work can be time-phased.
๐Ÿ”‘ KEY TIP: Only authorized work goes into these buckets!
Guideline #15: ฮฃ OF ALLOCATED BUDGETS = CONTRACT BUDGET
Continually balance the project checkbook: Sum of allocated budgets equals the contract’s target budget.
๐Ÿ”‘ KEY TIP: Authorized work means contractually agreed work scope, schedule, and budget. Likely does not equal authorized.
Guideline #16: CAPTURE DIRECT PROJECT COSTS
Capture actual hours and costs for labor, material, and other costs charged DIRECTLY to the project.
๐Ÿ”‘ KEY TIP: Setup the fewest charge numbers required to analyze variances and aid with future bids.
Guideline #17: ฮฃ DIRECT PROJECT COSTS BY WORK CODE
Sum up actual direct hours and costs (Guideline 16) by project work products or codes (Guideline 1).
๐Ÿ”‘ KEY TIP: Be sure costs roll up directly to ONLY ONE lowest level work code.
Guideline #18: ฮฃ DIRECT PROJECT COSTS BY ORGANIZATION
Sum up actual direct hours and costs (Guideline 16) by Organization (function or product team) (Guideline 2).
๐Ÿ”‘ KEY TIP: Be sure costs roll up directly to ONLY ONE lowest level organization code.
Guideline #19: CAPTURE INDIRECT (OVERHEAD) PROJECT COSTS
Capture indirect (overhead) actual costs allocated to the project by organization (department, function, or product team).
๐Ÿ”‘ KEY TIP: Include labor, material, and other overhead costs and rollup per Guidelines 1 and 2.
Guideline #20: IDENTIFY UNIT COSTS, EQUIVALENT UNIT COSTS, OR LOT COSTS (if applicable)
Track actual material costs for whole and partially complete systems, assemblies, sub-assemblies, and lots.
๐Ÿ”‘ KEY TIP: Equivalent costs are for partial completion (partial units can add up to one equivalent unit).
Guideline #21: THREE MATERIAL ACCOUNTING ESSENTIALS

1. Capture actual material costs within manageable chunks of work.
2. Claim progress as received, consumed, or with progress milestones.
3. Track residual inventory.

๐Ÿ”‘ KEY TIP: Every part matters (quantities and costs).
Guideline #22: IDENTIFY MONTHLY COST AND SCHEDULE VARIANCES
Generate monthly reports analyzing monthly, inception to date, and at completion cost and schedule variances.
๐Ÿ”‘ KEY TIP: Roll up to manageable work chunks and the project level per Guidelines 1 and 2.

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