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Practical Approach towards Project Control Systems

Using EVM & CCPM Integration

 

FEATURED PAPER

By Essam Mohamed Lotfy, PMP, CCP

ELV – Projects Manager, NAFFCO

Abu Dhabi, UAE

 


Introduction

Despite widely-accepted project control systems utilities & ways of doing things being used to watch (for changes, unusual things, etc.) the project performance, it was seen/obvious that a large number of projects do not complete on time & within budget (For every $1 billion invested in the United States, $122 million was wasted due to missing project performance. (Source: Pulse of Profession Report 2016 PMI.org) However, Earned Value Management (EVM) ways of doing things are used to watch (for changes, unusual things, etc.) project performance the chances to have performance shortages still exist. Since most Project Managers focus only on gain & loss since EVM is cost-oriented this way most of Project managers might select wrong priorities and ignore the resource constraints and Actual site conditions.

It’s very important to successfully identify the good Projects control systems & progress review ways of doing things that promise that something will definitely happen or that something will definitely work as described the project completion on time, within budget. In order to tell apart the needed/demanded good project management solid basic structure on which bigger things can be built and sustained project controls system it is preferred to move beyond traditional scheduling processes. Usually, most of projects have no ideal conditions for the activities of many possible/likely such as but not limited to, Project complex difficulty level, useful thing/valuable supply types and site location.

The main concern of using traditional scheduling process is that most of the planners and/or schedulers ignore or do not think about/believe uncertainties.  However; PERT (The Program Evaluation and Review Technique) model is being used to calculate construction activity duration as an average of Optimistic, Pessimistic and Most likely duration of the activity. This model is being calculated to give a weighted average of activity duration it is a classic model that usually gives optimistic results. Another classic model is being used is CPM (Critical Path Method) which still ignores the previously-mentioned uncertainties. The need for change from traditional scheduling process to a modern and practical model is to think about the uncertainties that may affect the project activities estimated duration and cost also, and Project Managers with their teams have to have an agreed-upon process that allows all of the project risk areas to be uncovered, tested/evaluated and dismissed or mitigated (Pre-Mortem managerial strategy – Source Wikipedia).

The approach to this idea depends on TOC (Theory of Constraints or Explanation of why something works or happens the way it does of Restrictions) to put into use CCPM (Critical Chain Project Management) which were developed by Goldratt. This practical scheduling process applies the resource constraints on the project Critical Path to finally develop a Critical Chain.

The goal of this technical paper is to:

  • Make the case for using a scheduling technique that considers uncertainties and natural variability that may impact the project activities, especially in the construction field.
  • Highlight hidden risks of using earned value management only.
  • Make the case for implementing an integrated model of earned value management with critical chain project management that gives better early warnings to project management teams about any possible impact on the project completion date and budget.

“Apply Critical Chain Project Management and Utilize Collaboration between Project Stakeholders to get your Projects completed with less time and money”

More…

To read entire paper, click here

 

How to cite this paper: Lotffy, E. M. (2018). Practical Approach towards Project Control Systems Using EVM & CCPM Integration, PM World Journal, Vol. VII, Issue VII – July. Available online at https://pmworldjournal.net/wp-content/uploads/2018/07/pmwj72-Jul2018-Lotffy-project-control-using-evm-and-ccpm-integration-featured-paper.pdf



About the Author


Essam Mohamed Lotffy

Abu Dhabi, UAE

 

 

 

Essam Lotffy, PMP, CCP is ELV Projects Manager, BSc. in Electrical Engineering, Power Distribution through Zagazig University, Egypt since 2001. He has pursued and achieved his certificates in Project Management (PMP®) from PMI-USA since 2013, and certificate in Cost Management (CCP®) from AACE International since june-2014. Essam has 15 years extensive hands on experience in various aspects of projects and project management within maintenance, power distribution networks, monitoring and supervision, and construction projects as well.

He has volunteered at PMI-Global Congress EMEA-2014 – Dubai during 5th to 8th May 2014. He has made technical presentations at PMI-AGC 15th International conference –Bahrain 19th to 21st January 2015; the 54th AACEi-SF Bay Annual Western Winter Workshop, Lake Tahoe, Nevada, USA; and the 55th AACEi-SF Bay Annual Western Winter Workshop, Indian Wells, CA, USA. He has authored and co-authored papers previously published in the PM World Journal and now contained in the PM World Library at https://pmworldlibrary.net/authors/essam-lotffy/

An independent project management, cost engineering and cost control consultant and instructor, Mr. Lotffy can be contacted at [email protected]