* Adjusting Variances: A key consideration in implementing an OTB is to determine what to do with the variances against the pre-OTB baseline. There are essentially five basic options.
Eliminate all Variances
Eliminate the Schedule Variance (SV) Only - if agreed
Eliminate the Cost Variance (CV) Only - if agreed
Eliminate Selected Variances - if agreed
Retain All Variances - if agreed
As you can see even all powerful DOD, the father of the creature, recognizes that if EVM is to be used for management purposes then the contractor can opt out options 3.5.6.2.2 to 3.5.6.2.5 by merely not agreeing, leaving only as an alternative option 3.5.6.2.1. To me as a contractor I would never accept/agree to any option other than 3.5.6.2.1, it is easier to implement and validate from the contractor as well as from the owner's point of view.
If you opt for option 1, Eliminate all Variances, it shall not take much effort to tackle this issue by doing the right thing by keeping on a separate file the progress history, preferably tracking of projected at completion statistics every update discloses, to me more relevant than current period statistics
As a matter of fact for construction jobs I do not recognize the validity of any of the manipulations proposed on the alternatives 3.5.6.2.2 to 3.5.6.2.5 available at the discretion of both parties if in agreemenrt. I consider them abominations, no wonder optional, only if both parties agree. I only recognize the first option and seems like many construction contractors believe so. I cannot understan why DOD complicated it so much, even when I do not advocate the last option it would keep some order by allowing only options 1 and 5, Eliminate all Variances or Retain All Variances(if agreed).
Please note the article reffers to OTB an OTS (Over Target Baseline and Over Target Schedule) but following variance on contractual baseline is similar.
Member for
16 years 7 months
Member for16 years7 months
Submitted by Gary Whitehead on Thu, 2013-11-07 13:50
What I want to do is add the new variations to the original baseline. -The variations shouldn't be changing the planned value target curve associated with the original baseline for the period before the variation was instructed. In other words: I don't want my SPI to magically become 1 each time I add a variation.
Think I've found a way -If you choose the "set baseline for selected task" with the oiginal baseline, it seems to just add the new tasks to it, rather than over-writing the entire project with current dates, which is precisely what I want. -I got confused by the language used which seemed to suggest I would loose this historical info.
I may be missing something, but I am not quite sure I understand what the problem is.
You need to work with multiple baselines. You can have 10 in Ms Project (actually there are 11, but 1 is normally used to move any other baseline, which is being compared with current schedule)).
When you save project to baseline, it saves the project information the way it is now, including the time phased information, which you can use for historical BCWS S-curve.
Now, when you add variation to your schedule, this is now updated project with new scope and you need to baseline it to a new (separate) baseline.
Thus in your baseline you keep both original baseline (e.g. in baseline 1) and updated baseline (e.g. in baseline 2).
Member for
21 years 8 monthsFrom: http://www.acq.osd.mil/
From: http://www.acq.osd.mil/evm/docs/OTB-OTS%20Guide%20121205.pdf
* Adjusting Variances: A key consideration in implementing an OTB is to determine what to do with the variances against the pre-OTB baseline. There are essentially five basic options.
As you can see even all powerful DOD, the father of the creature, recognizes that if EVM is to be used for management purposes then the contractor can opt out options 3.5.6.2.2 to 3.5.6.2.5 by merely not agreeing, leaving only as an alternative option 3.5.6.2.1. To me as a contractor I would never accept/agree to any option other than 3.5.6.2.1, it is easier to implement and validate from the contractor as well as from the owner's point of view.
If you opt for option 1, Eliminate all Variances, it shall not take much effort to tackle this issue by doing the right thing by keeping on a separate file the progress history, preferably tracking of projected at completion statistics every update discloses, to me more relevant than current period statistics
As a matter of fact for construction jobs I do not recognize the validity of any of the manipulations proposed on the alternatives 3.5.6.2.2 to 3.5.6.2.5 available at the discretion of both parties if in agreemenrt. I consider them abominations, no wonder optional, only if both parties agree. I only recognize the first option and seems like many construction contractors believe so. I cannot understan why DOD complicated it so much, even when I do not advocate the last option it would keep some order by allowing only options 1 and 5, Eliminate all Variances or Retain All Variances(if agreed).
Please note the article reffers to OTB an OTS (Over Target Baseline and Over Target Schedule) but following variance on contractual baseline is similar.
Member for
16 years 7 monthsHi Evgeny, thanks for
Hi Evgeny, thanks for responding.
What I want to do is add the new variations to the original baseline. -The variations shouldn't be changing the planned value target curve associated with the original baseline for the period before the variation was instructed. In other words: I don't want my SPI to magically become 1 each time I add a variation.
Think I've found a way -If you choose the "set baseline for selected task" with the oiginal baseline, it seems to just add the new tasks to it, rather than over-writing the entire project with current dates, which is precisely what I want. -I got confused by the language used which seemed to suggest I would loose this historical info.
Cheers,
G
Member for
17 years 9 monthsGary,I may be missing
Gary,
I may be missing something, but I am not quite sure I understand what the problem is.
You need to work with multiple baselines. You can have 10 in Ms Project (actually there are 11, but 1 is normally used to move any other baseline, which is being compared with current schedule)).
When you save project to baseline, it saves the project information the way it is now, including the time phased information, which you can use for historical BCWS S-curve.
Now, when you add variation to your schedule, this is now updated project with new scope and you need to baseline it to a new (separate) baseline.
Thus in your baseline you keep both original baseline (e.g. in baseline 1) and updated baseline (e.g. in baseline 2).
Regards
Evgeny