A New EVM Performance Index: The MRPI
Earned Value Management Track
It has long been understood that the accuracy of the cost performance index (CPI) is closely tied to how management reserve (MR) has been historically utilized on a specific project/program. However, a formal assessment of MR usage is still not consistently performed in conjunction with CPI calculation and subsequent analysis. This presentation will offer a potential solution to this issue, by proposing a “Management Reserve Performance Index,” or “MRPI.” Once calculated, the author will demonstrate how the MRPI can be then used to develop a “risk-adjusted IEAC” that provides a more accurate assessment of a project’s or program’s overall cost performance.
Project Time & Cost, Inc.
Michael has more than 23 years of experience in project management and controls within both the government and private sectors. He has worked for several of the leading engineering, procurement, and construction (EPC) firms in the industry, to include URS Corporation, Jacobs Engineering, Kiewit, and most recently Parsons Corporation, where he served as Vice President of Project Controls for their federal government-dedicated business unit for almost five years. Prior to joining Project Time & Cost in 2011 as Vice President and EVM Practice Lead, Michael was Vice President of Earned Value Management for SM&A. He is also an adjunct professor at the University of Southern California, teaching graduate level courses in heavy construction estimating and scheduling.
Michael is currently the President of AACE International, the professional association that created and currently administers the industry-recognized Earned Value Professional (EVP) certification. He holds numerous certifications himself, and is an active member of both NDIAs Program Management Systems Committee (PMSC) and the Energy Facility Contractors Groups (EFCOGs) Project Management Working Group (PMWG).