Summer FALL 1

Fall 2 • 0 • 0 • 5 The Measurable News

The Magazine of the Project Institute’s College of

Theme of This Issue: Application of EVM to the PMI-CPM PMI-CPM EURO 2004 Programme PMI-CPMInternational PMI-CPM PMI-CPM PMI-CPM by PMI-CPMEarned PMI-CPM Value Antonio Laranjo M.Sc., Management PMI-CPM PMI-CPM Euro2004 Tournament Director PMI-CPM PMI-CPM and PMI-CPM PMI-CPM Alexandre Rodrigues Ph.D. PMP, Executive Partner, Threon Iberia

It was not just national football teams that were working toward the European championships in 2004. Portugal, which hosted Euro2004, had to have 10 stadiums C O N T E N T S match fit and up to UEFA standard. was applied to help ensure everything was ready for kick-off.

Application of EVM to the EURO2004 Program by Antonio Laranjo and y the time that the Euro- purely to host football matches. Alexandre Rodrigues...... pg 1 pean championships reac- They are also expected to become From the Editor Bched the cruical final leg important local centres for other By Anita Cukr ...... pg 3 in 2004, Portugal created not one sporting and social activities dur- but 10 stadiums and the necessary ing and after the tournament. As a The Growing Project Planning infrastructure to meet the exacting consequence, their general scope and Community specifications of EUEFA and includes running tracks, swim- By Dale E. Gillam, ...... pg 5 FIFA. Of the 10 stadiums, seven ming pools and units for other Earned Value Management and were completely rebuilt and three sporting activities; health and Fixed Control Accounts were improved. Each stadium con- shopping centres, commercial and by Claude LeComte and stituted an independent and com- entertainment areas; conference Craig Terry ...... pg 9 plex project and the overall sched- rooms and auditoriums and cin- ule was two years - with no slip- emas. XML Standard to Exchange Cost page. and Schedule Data These projects were subject to im- by Joan Ugljesa ...... pg 14 Scope was an important aspect. portant constraints. All stadiums The stadiums are not designed had to conform to the most recent Continued on page 6 6 FALL 2005

Continued from page 1 norms and requirements imposed by both UEFA managed in parallel. and FIFA. In addition to top quality pitches, each had to be able to cope with a minimum crowd of Earned Value Management (EVM) was used to 30,000 and the accompanying public facilities. help create these stadiums for the third largest There had to be excellent changing room accom- worldwide sporting event with an overall budget modations for referees and players, and it had to of 460 million euros. meet the needs of the world's press and media. Medical and dope-testing control rooms were re- The EURO 2004 programme owed much to the quired, along with the safety, surveillance and se- experience of Expo 98, the last World Fair of the curity measures essential at today's top level foot- last millennium, held in Lisbon in 1998. It, too, ball matches. was complex, with a work breakdown structure (WBS) of 12 major programmes, each with 75 Each stadium had a different specification to bring individual projects, and an unmoveable final it up to scratch. Some needed renovation and ad- schedule. Each project was classified on the basis aptation, like one of the oldest urban stadiums, of its relative importance to the overall mission the Coimbra which was expanded from its former and each contained thousands of standard activi- 14,000 capacity. Of the new stadiums, two were ties defined by the project manager. At sub-con- built in Lisbon; The Sport Lisboa e Benfica sta- tactor level, the WBS led to thousands more tasks dium, with a 65,000 spectator capacity and the Jose and actions. As with Euro 2004, there was inter- Alvalade stadium which replaced an existing, but national participation, resulting in a mandatory and aging, facility. rigorous process and an effec- tive cost and schedule control system. The time period for the construction was the same for all projects, and they were implemented and

● Process Design

● Earned Value Management Implementation Project

● Independent Data Analysis Management

● Integrated Baseline Reviews Excellence since ● Information Systems Integration

● Software Evaluations & Training

● Operational Support Summer FALL 7

The Euro 2004 stadium programme had three main • The value of the physical work accomplished objectives: (1) to monitor and evaluate the pro- calculated as the number of work units accom gramme, (2) to monitor the building of all the sup- plished times the unitary cost; port facilities, and (3) to monitor the building and improvement required to all national and local • The estimation of the labour work accom infrastructure plished based on the estimated time to com plete the task, and not on the basis of the budget The same control techniques were implemented remaining; in all projects to increase the probability of pro- ducing performance metrics that could be imme- • Detailed progress information collected on time diately compared. Because the control system was and with accuracy. common, the metrics collected (and their under- lying assumptions) were the same for all projects, In addition to meeting these requirements, the fol- enabling a valid, easier and more economic com- lowing guidelines were adopted as the basis for parative analysis. This allowed management to the establishment of a coherent and useful EVM- gain an important understanding about the over- based control methodology: all programme performance. On the basis of ob- jective data, pressure could then be exerted with • All techniques were implemented from the very the appropriate contractors, so that they would all beginning in all projects; reach similar levels of performance. • Information gathering was integrated within the EVM metrics such as the Actual Cost (AC), management and quality assurance and control Planned Value (PV) and Earned Value (EV) were activities; collected and performance indices were calculated. In addition, other metrics were produced to better • The specific interests of all parties involved understand the causes of deviations and to help in were addressed, so that information gathering devising effective re-planning decisions. These was not seen just as 'additional effort'. Agree included: ment with all parties was achieved on what in formation they needed to provide, and to dem • Staff productivity per type of work; onstrate the type of feedback they would re ceive; • Monthly invoiced costs and determination of trend analysis; • Easy-to-use templates were developed and pro vided, common to all projects, which allowed • Physical progress accomplished per type of for a more accurate and consistent data collec work. tion process;

The implementation of EVM at Euro2004 was • Data collected was stored in and processed from based on the following key requirements that were a central database system; established at the beginning of the programme: • Numerical analytical data on progress and per • The evaluation of the physical work accom formance was complemented with graphical plished (i.e., the Earned Value), which required representations and images/ photos of the work the establishment of measures for work units underway in the field; and the estimation of their unitary cost, for each type of work; Continued on page 8 8 FALL 2005

Continued from page 7 • Indices were produced that allowed manage forecast: the final! (ed. note: For the record, after ment to validate the data collected (i.e., 'data- beating Spain, England, and Holland to reach the quality control' indices); final, host Portugal fell to Greece in the final 0-1, the only goal coming in the 57th minute in what • Comparative analyses of performance were BBC Sports called one of the biggest shocks in produced across all projects that allowed man football history.) agement to put pressure on the appropriate sub contractors; About the Authors

• All EVM metrics and indices were represented António Laranjo was the Tournament Director in graphics and on a timely basis; of Euro2004, responsible for the definition and implementation of the programme-wide control • Information and data provided by the QA/QC system (including the EVM method), in particu- team was processed, and used in the review lar regarding the stadium projects. He was previ- meetings with stakeholders, thereby emphasiz ously program manager of Expo98 where he first ing its usefulness; launched this programme management approach in Portugal. He is Adjunct Professor at the Instituto • Results and impacts of EVM-based corrective Superior de Engenharia de Lisboa and is currently actions were tracked and analyzed, thereby undertaking a PhD on Project Initiatives demonstrating to all parties the usefulness of (PFI). the method. Alexandre Rodrigues is founding Executive Part- The information system used at Euro2004 to sup- ner of Threon Iberia, Threon Group, a international port this approach was improved from the initial consulting firm specializing in the delivery of version used in Expo98. However, EVM alone - Project Management services and education. His while a powerful tool - is not sufficient. There are consulting work focuses on helping organisations limitations and, as Expo 98 demonstrated, such a to adopt project management best practices, in large programme also requires a significant particular the EVM method. He has previously amount of human resources, a powerful informa- worked in consulting in the US and UK and cur- tion system and a great deal of commitment by all rently delivers these services in several countries involved. around the world. He is a certified Engineer, holds a PhD in Management Sciences and holds the PMP The Euro 2004 tournament was a success both in credential from the Project Management Institute. respect to the construction projects and to the event itself. During the preparation for the tournament, Earned Value Management played an important role by providing confidence to key stakeholders and by keeping the project management team in- formed of the areas needing more attention. Metrics and productivity patterns provided impor- tant benchmarks to exert pressure on the various suppliers involved. The success of the event was recognized internationally and one can confidently say that the Portuguese definitely won this major event, except for what EVM could produce no