About this Presentation
The purpose of this presentation is to propose the development and use of cost buffers in critical chain (CC) environments. The presentation’s organization is an overview of earned value management systems (EVMS), measurement types, EVMS problems, EVMS in a critical chain environment and cost buffers. Earned value assumes that good global optima are achieved by focusing on local optima. It summarizes over time how we plan to spend money (PMB = performance measurement baseline). There are 32 items as part of EVMS. Cost Performance Index (CPI) and Schedule Performance Index (SPI) are discussed. Measurement types include performance, operational and conformance. EVMS is a conformance measurement. EVMS problems are described. There are ways of reporting EV under critical chain but you don’t use it to make decisions. Would it not be better to develop a measurement useful in critical chain? Cost buffers. Three methods of calculating cost buffers are presented. The advantages and disadvantages are discussed. These are being investigated to replace the two indices and be in line with critical chain use in the Department of Defense.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The speaker proposes the development and use of cost buffers in the critical chain environment within the U.S. Department of Defense.
The speaker discusses the problems with earned value and how it can lead to inaccurate project management.
The speaker proposes replacing cost and performance index (CPI and SPI) with project buffer and cost buffer in critical chain for more accurate project management.
Instructor(s)
