Earned Value Management

 View Only
  • 1.  (SUBCOMMITTEE REVIEW DRAFT) EV-30: EV - Accounting Considerations

    Posted 05-20-2019 05:07 PM
      |   view attached

    (SUBCOMMITTEE REVIEW DRAFT) EV-30: EV - Accounting Considerations

     This draft RP is open for review and comment until July 4, 2019

     AACE welcomes subcommittee review, comment and dialog for recommended practices (RP) that are under development. The subcommittee review utilizes the knowledge of subject matter experts that have specific industry experience and perspective in order to help strengthen RP quality. The subcommittee review period for RP's is 45 days and all input must be provided during that time period. All comments on RP's are considered public and open records; therefore, by providing input on RP's, you are giving consent for the use of your comments and suggestions. All comments shall be professional and in alignment with established industry practices. Please tell your colleagues about this open review period and encourage them to provide their feedback on an industry wide document.

    Christian Heller
    Director of Technical Guidance
    AACE International


    SRD_EV-30_2019-05-20.pdf   298 KB 1 version

  • 2.  RE: (SUBCOMMITTEE REVIEW DRAFT) EV-30: EV - Accounting Considerations

    Posted 05-21-2019 08:38 PM
    This RP is a thought provoking document for me. Such considerations are important in application of EVM. Some of my thoughts / suggestions in the following:-
    1. Refer to Figure 1 the Plan Do Check Act cycle and the various references and flows. It is a good representation but it may be useful to refer (where applicable), related RPs, guides, etc
    2. In the Recommended Practice part, perhaps prior to the Accepted  ​Cost Accounted Classification Methods section (and sub-sections), suggest including something like an overall / general considerations section to include points such as :-
    - Review cost account elements for consistency with methods and Cost Breakdown Structure
    - Review Cost Breakdown Structure for alignment and consistency with the Work Breakdown Structure at an appropriate level
    There will probably be more points and notes or better terminologies perhaps, but the reasons for this type of pointer or general consideration if you like, would be that when the methods are determined and agreed (with EVM practitioner as noted), this would help ensure the focus on the wider / broader process of EVM and its application in different companies or organisations. Differences in tools and processes that different organisations may have, can also be considered in this wider context, so that when EVM is actually "run", appropriate consideration and facilitation is given, while maintaining consistency of standards and practices.
    This may already be covered elsewhere (if so, would be good to refer).

    Donny Lai
    Brisbane, Australia

  • 3.  RE: (SUBCOMMITTEE REVIEW DRAFT) EV-30: EV - Accounting Considerations

    Posted 06-03-2019 10:18 PM

    The following is commentary from Michael G. Ferguson:

    I  looked over the accounting considerations find it detailed and reasonable.  The hardest issue on this is the trace of the cost from the WBS, schedule to the actual cost taken from the financial information services software and the time lag when CAMs see the CPI and SPI.  However, I find the process acceptable.


    Dan Melamed CCP EVP
    Program Analyst
    U.S. Department of Energy
    1 (301) 775-7286
    Disclaimer: this e-mail represents the view of its sender. This e-mail was not prepared as a product of the U.S. Government including the Department of Energy; no official endorsement should be inferred.