BENEFIT-BASED EARNED VALUE MANAGEMENT SYSTEM
A benefit-based earned value management (BEVM) system that may store a work plan identifying tasks for completing a project, a time and cost baseline including time and cost estimates for completing the tasks and a benefits baseline including estimates of benefits and time estimates for achieving the estimated benefits over the duration of the project. The BEVM system may determine actual costs, actual time to complete the tasks, and actual benefits as the project progresses to completion and compare the metrics to the time and cost baseline and the benefits baseline to determine variances which in turn may be used to determine corrective actions and other activities that may be performed in order to improve project performance and business outcomes.
1 . A benefit-based earned value management (BEVM) system comprising:
a data storage to store a work plan identifying tasks for completing a project, a time and cost baseline including time and cost estimates for completing the tasks and a benefits baseline including estimates of benefits and time estimates for achieving the estimated benefits over the duration of the project;
a processor to
interface with at least one of a user portal, an application and a data source to capture metrics including actual costs, actual time to complete the tasks, and actual benefits as the project progresses to completion and store the metrics in the data storage;
compare the metrics to the time and cost baseline and the benefits baseline;
determine variances from the comparisons; and
generate a report providing indications of the variances.
2 . The BEVM system of claim 1 , wherein the processor is to determine a planned benefit from the benefits baseline and determine an actual benefit from the captured metrics and calculate a benefits performance index, wherein the benefits performance index is calculated as a function of the planned benefit and the actual benefit.
3 . The BEVM system of claim 2 , wherein the benefits performance index is the actual benefit divided by the planned benefit.
4 . The BEVM system of claim 1 , wherein the processor is to calculate a benefits performance index that is a measure of benefits realization on the project at a point in time during the project prior to completion.
5 . The BEVM system of claim 1 , wherein the processor is to compare the variances to thresholds to determine performance of the project according to benefits, cost and time, and to determine a prescriptive action to perform based on the comparison of the variances to thresholds.
6 . The BEVM system of claim 5 , wherein the processor comparing the variances to thresholds comprises the processor calculating a benefits performance index that is a measure of benefits realization on the project at a point in time during the project prior to completion, and if the benefits performance index is less than 1 the processor determines benefits of the project are less than expected and if the benefits performance index is greater than 1 the processor determines the benefits of the project are greater than expected, wherein the benefits determination is used to determine the prescriptive action.
7 . The BEVM system of claim 6 , wherein the processor comparing the variances to thresholds comprises the processor calculating a schedule performance index that is a measure of whether the project is on schedule at the point in time, and if the schedule performance index is less than 1 the processor determines the project is behind schedule, and if the schedule performance index is greater than 1 the processor determines the project is ahead of schedule, wherein the schedule determination based on the schedule performance index is used to determine the prescriptive action.
8 . The BEVM system of claim 7 , wherein the processor comparing the variances to thresholds comprises the processor calculating a cost performance index that is a measure of whether the project is on budget at the point in time, and if the cost performance index is less than 1 the processor determines the project is over budget, and if the cost performance index is greater than 1 the processor determines the project is under budget, wherein the budget determination cost performance index is used to determine the prescriptive action.
9 . The BEVM system of claim 1 , further comprising an application interface and communication layer providing the interface between a BEVM system framework and the user portal, the application and the data source via a network.
10 . The BEVM system of claim 1 , wherein the processor stores information in data structures in the data storage, wherein the data structures have predetermined schemas.
11 . A method of managing benefit-based earned value for a project, the method comprising:
storing a work plan identifying tasks for completing a project in a data structure in a data storage;
storing a time and cost baseline including time and cost estimates for completing the tasks in the data structure in the data storage;
storing a benefits baseline including estimates of benefits and time estimates for achieving the estimated benefits over the duration of the project in the data structure in the data storage;
interfacing with at least one of a user portal, an application and a data source via a network to capture metrics including actual costs, actual time to complete the tasks, and actual benefits as the project progresses to completion;
storing the metrics in the data storage;
retrieving the metrics, the time and cost baseline and the benefits baseline from the data storage for a point in time prior to completion of the project;
comparing, by a processor, the retrieved metrics to the time and cost baseline and the benefits baseline;
determining variances from the comparisons; and
generating a report via a graphic user interface providing indications of the variances.
12 . The method of claim 11 , comprising:
determining a planned benefit from the benefits baseline;
determining an actual benefit from the captured metrics; and
calculating a benefits performance index for one of the variances, wherein the benefits performance index is calculated as a function of the planned benefit and the actual benefit.
13 . The method of claim 11 , wherein the benefits performance index is the actual benefit divided by the planned benefit.
14 . The method of claim 11 , comprising calculating a benefits performance index that is a measure of benefits realization on the project at the point in time.
15 . The method of claim 11 , comprising comparing the variances to thresholds to determine performance of the project according to benefits, cost and time, and determining a prescriptive action to perform based on the comparison of the variances to thresholds.
16 . The method of claim 15 , wherein comparing the variances to thresholds comprises calculating a benefits performance index that is a measure of benefits realization on the project at the point in time, and if the benefits performance index is less than 1 determining benefits of the project are less than expected and if the benefits performance index is greater than 1 determining the benefits of the project are greater than expected, wherein the benefits determination is used to determine the prescriptive action.
17 . The method of claim 16 , wherein comparing the variances to thresholds comprises calculating a schedule performance index that is a measure of whether the project is on schedule at the point in time, and if the schedule performance index is less than 1 determining the project is behind schedule, and if the schedule performance index is greater than 1 determining the project is ahead of schedule, wherein the schedule determination based on the schedule performance index is used to determine the prescriptive action.
18 . The method of claim 17 , wherein comparing the variances to thresholds comprises calculating a cost performance index that is a measure of whether the project is on budget at the point in time, and if the cost performance index is less than 1 determining the project is over budget, and if the cost performance index is greater than 1 determining the project is under budget, wherein the budget determination cost performance index is used to determine the prescriptive action.
19 . A non-transitory computer readable medium storing computer readable instructions that when executed by a processor performs operations comprising:
storing a work plan identifying tasks for completing a project in a data structure in a data storage;
storing a time and cost baseline including time and cost estimates for completing the tasks in the data structure in the data storage;
storing a benefits baseline including estimates of benefits and time estimates for achieving the estimated benefits over the duration of the project in the data structure in the data storage;
interfacing with at least one of a user portal, an application and a data source via a network to capture metrics including actual costs, actual time to complete the tasks, and actual benefits as the project progresses to completion;
storing the metrics in the data storage;
retrieving the metrics, the time and cost baseline and the benefits baseline from the data storage for a point in time prior to completion of the project;
comparing the retrieved metrics to the time and cost baseline and the benefits baseline;
determining variances from the comparisons; and
generating a report via a graphic user interface providing indications of the variances.
20 . The non-transitory computer readable medium of claim 19 , wherein the operations comprise:
determining a planned benefit from the benefits baseline;
determining an actual benefit from the captured metrics; and
calculating a benefits performance index, wherein the benefits performance index is calculated as a function of the planned benefit and the actual benefit.