Level: Intermediate
TCM Section(s):
7.1. Project Scope and Execution Strategy Development
7.3. Cost Estimating and Budgeting
Venue: 2023 AACE International Conference & Expo
Abstract: The Department of Energy (DOE) Order 413.3B, Program and Project Management for the Acquisition of Capital Assets — like other government agencies' directives — sees the use of an effective earned value management system (EVMS) compliant with the EIA-478 Standard as essential to delivering its capital asset projects/programs on time and within budget. To help achieve this goal, the DOE Office of Project Management (PM) initiated a multi-year academic research study in November 2018 (that is currently still ongoing) with Arizona State University (ASU), involving over 30 government, industry, and academic organizations. Study results show that those project/program environments (namely government and contractor cultures, people, practices, and resources) genuinely committed to managing their projects/programs with an effective EVMS compliant with the EIA-478 Standard are significantly more likely to succeed in meeting budget targets than those projects/programs managed without it. The integrated project/program management (IP2M) maturity and environment total risk rating (METRR) (pronounced “IP2M meter”) is a novel assessment mechanism developed as part of the study that consolidates all the key variables and provides a tailorable roadmap for defining and determining the maturity (or effectiveness) of an EVMS and identifying environmental barriers that prevent its full implementation and benefits. The application of IP2M METRR shows promising results in many DOE capital asset projects/programs, an example of which will be provided in this paper.
TCM Section(s):
7.1. Project Scope and Execution Strategy Development
7.3. Cost Estimating and Budgeting
Venue: 2023 AACE International Conference & Expo
Abstract: The Department of Energy (DOE) Order 413.3B, Program and Project Management for the Acquisition of Capital Assets — like other government agencies' directives — sees the use of an effective earned value management system (EVMS) compliant with the EIA-478 Standard as essential to delivering its capital asset projects/programs on time and within budget. To help achieve this goal, the DOE Office of Project Management (PM) initiated a multi-year academic research study in November 2018 (that is currently still ongoing) with Arizona State University (ASU), involving over 30 government, industry, and academic organizations. Study results show that those project/program environments (namely government and contractor cultures, people, practices, and resources) genuinely committed to managing their projects/programs with an effective EVMS compliant with the EIA-478 Standard are significantly more likely to succeed in meeting budget targets than those projects/programs managed without it. The integrated project/program management (IP2M) maturity and environment total risk rating (METRR) (pronounced “IP2M meter”) is a novel assessment mechanism developed as part of the study that consolidates all the key variables and provides a tailorable roadmap for defining and determining the maturity (or effectiveness) of an EVMS and identifying environmental barriers that prevent its full implementation and benefits. The application of IP2M METRR shows promising results in many DOE capital asset projects/programs, an example of which will be provided in this paper.