SECOND EDITION
Earned Value Management (EVM) Techniques for Engineering and Prototype Production Activities
By Sergio Gerosa and Claudio Capodiferro
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Editor’s note: Second Editions are papers that were previously published, either in the distant past or in a language other than English, which have continued relevance today and deserve additional visibility. The paper below was originally presented at the PMI’99 Annual Seminars/Symposium – PMI’s 30th Annual Symposium on Project Management in Philadelphia, Pennsylvania, USA in October, 1999. This paper is included here with the permission of the author, who is copyright holder.
Introduction
Earned Value Management (EVM) techniques are presently extensively used in the Aerospace field, as an essential tool of cost and schedule management. The Earned Value concept is related to the performance measurement of the project, in order to evaluate what we got (i.e. the earned value) with respect to what we spent and what we planned to spend.
The paper provides an overview of EVM techniques applied in our company, based on usage of Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), and Responsibility Assignment Matrix. The Cost Accounts (CA) are used as basic units of reporting. The Work Packages (WP) and the associated Measurable Milestones (MM) are used as basic units of control.
The paper will present the guidelines of standard procedures for EV reporting applied within our company. It will focus in particular on EVM applications in the field of engineering activities and prototype production, both typical of the space industry. At the end, future company directions in the field of EVM will be illustrated.
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Sergio Gerosa
Author

Sergio GEROSA GEROSA is an Aeronautical Engineer working since more than fifteen years in Thales Alenia Space, the largest European aerospace industry. Head of Commercial Telecommunication Programs (in Italy) between 2002 and 2006, he has then been appointed as Director Product Competitiveness. He has a large experience in the implementation of state of the art project management techniques, in particular of EVM and Risk Management methodologies. He is a member of Project Management Institute (PMI) since 1998, and Associate Member of the Board of the PMI Rome Italy Chapter. He is member of the Editorial Board of the International Journal of Engineering Management & Economics (Inderscience Publishers). Sergio teaches Project Management in three Masters of Science organized by Italian Universities (University of Rome “La Sapienza” and University of Rome “Tor Vergata”), as well as at the Thales University for the Passport to Program Management and Introduction to Contract Management courses. He is author of the several papers on project management ("The Project of a Lifetime ", IPMA World Congress 2008; "The Tower of Babel: When Communicating Becomes a Nightmare ", PMI EMEA 2008; "A Design to Cost Methodology to Manage Complex Product Development in the Space Industry", PMI EMEA 2007; "Using Knowledge Elicitation Techniques in the Risk Assessment of Space Projects", PMI EMEA 2006; "Project Financing and Risk Management: a new challenge for program management in the space industry of the third millennium", PMI Europe 2001 and published as Cover Story on “Project & Profits”; "Earned Value Management: How to avoid the 90% complete syndrome" IPMA 2002; "Methods and applications of Risk Management in space programs" & "Earned Value Management techniques for engineering and prototype production activities", PMI 1999 Annual Symposium). Sergio can be contacted at Sergio.Gerosa@thalesaleniaspace.com.
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Claudio Capodiferro
Author

Claudio CAPODIFERRO is member of the Project Management Institute (PMI), PMI Rome Italy Chapter since 1997. He is a certified Project Management Professional (PMP), by PMI, since 04 January 2001. He has a degree in Computer Sciences and twenty years of experience in the space sector since his employment at Alenia Spazio, now Thales Alenia Space, 10 July 1989. His roles have been in the Project Management Office of the major international space programmes, involved in the execution of best practices of Project Control, Planning and Scheduling, Earned Value and Risk Management. He has been Trainer on the job for European Young Graduates teaching the implementation of Project Management Methods for Space Programmes”, Oct.-Dec. 2000, Oct.-Dec. 1997. Claudio is author of the following papers and presentations: “Programmatic Risk Management (PRM)”, PMI Rome Chapter, Professional Meeting, Rome, March 2001; “Project Human Resources Management (PHRM)”, PMI Rome Chapter, Professional Meeting, Rome, June 2000; and “Earned Value Management techniques for engineering and prototype production activities”, 30th Annual Symposium of Project Management Institute, Philadelphia, Oct.1999. Claudio can be contacted at claudio.capodiferro@thalesaleniaspace.com. |
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