my new leader leave me a message regarding about the recently project progress report ,but I got cunfuse with some of his point , my big problem is that whether we need to put the EVM inside the report to client ?
Below is the email from him :
My main points are:
1. Cost (Section 4)– Worley asked that PLANNED VALUE be presented according to the phased WBS eg. 1. Engineering Planned Value (resource allocation x rate); 2. Procurement Planned Value (Materials up to deliver on site); 3. Construction Planned Value (resource allocation x rate + installation of materials). Section 4 has not been revised to reflect this. Further to this, on each of the phased planned value S-curves we will report ACTUAL VALUE exactly as we did for materials and services previously. Note that actual value / planned value = cost performance index and this represents ONLY COST and is not a measure of either schedule or progress.
2. Invoicing (Section 4.2) – If you wish to detail the linkage between physical percent complete of schedule activities and milestones with the priced schedule, please do this in section 4.2 and not in section 5 progress. Also, as I find it confusing and I’m sure the Client will as well please include a block diagram clearly outlining the workflow steps we take in getting to the invoice referencing your data, graphs and attachments as necessary.
3. Progress (Section 5) - what exactly is “Overall Physical Progress” (and subsequently engineering progress in Section 8 and procurement progress in section 9)?? Is it Earned Value? I don’t think so because the planned value S-curve does not resemble the previous planned value S-curve. Remember that Earned Value = Physical Percent Complete x Planned Value by activity. All we needed to do was add EARNED VALUE (EV) to the planned value S-curves. Which for overall progress we had already done. Note that earned value / planned value = schedule performance index. This is why we present progress immediately before schedule. To fit with Worley thinking, we should present the EV curves for engineering, procurement and construction in sections 8,9 and 11 respectively. There is no other correct way to report progress other than EV by activity. Not man-hours. Not cost. Not rolled up milestone linked invoice amounts, etc.
4. Physical Percent Complete (PPC) – Worley asked that provide them with a description of how we are going to measure PPCs, particularly now for engineer activities. This you can explain in section 8 along with the EV curve.