We’ve covered the Deltek Cobra Replan process thoroughly in the past, yet we realized that we’ve not yet addressed the option of setting Cumulative to Date budgets equal to Cumulative to Date earned.
In this blog, we will address this subject both in its technical aspects and from a more philosophical tact as well.
The Replan process has historically been applied to projects with less than satisfactory performance metrics (CPI and SPI), where either or both the contractor and customer are under pressure to improve their performance metrics.
While this is the most common reason the Cobra Guy has witnessed for utilizing the Replan process, it is not applicable to projects that are performing poorly. Situations where the Replan process is recommended may include the following:
- Significant changes to scope
- A significant change to the technical approach
- Past metrics are interfering with the utilization of metrics in determining a realistic ETC (Useful where future work is not significantly linked to past performance-rarely applicable)
This blog will focus on the less utilized Replan method, where we set cumulative Budgets equal to cumulative Earned. With this method, no effort is made to erase or minimize cost variances but limits the adjustment to erasing past schedule variances.
On highly technical development projects where adjustments to the plan are not uncommon and are understood, where past efforts may not have elicited a successful design and the time invested in reworking these designs often results in significant schedule slips.
Where both the customer and contractor agree that the current project milestones are no longer achievable, it may be decided to replan the baseline hours and dollars through the current period to equal the cumulative earned value.
With this method, budgets remain the same at the project level. The time-phasing and possibly the allocation of budgets for the remaining effort is planned consistent with the updated execution plan.
Because this approach does not attempt to hide poor cost performance, it is rarely used.
What it does is provide an execution plan that the team determines is realistic. Past cost issues are maintained (no change occurs to cost variances as of the date of the Replan).
There may be cases where additional budgets are approved for the remaining effort, but more often the project level negotiated cost remains the same. This does have some obvious challenges, as a slipped contractual completion date will have cost impacts.
For example, LOE tasks will have an expanded PoP. This will result in cost growth. An updated ETC will obviously be required at the completion of the Replan exercise. If updated accurately, the Replanned effort would reflect further cost growth going forward.
Customers generally do not like an ETC right after a baseline is set to show cost growth. That all said, a Replan that is not accompanied with additional budget will generally not have sufficient budget to complete the work. That is the sad truth.
The Process
Below, we can see the project prior to the Replan has a SPI of .51, a significantly unfavorable condition. It has been determined that the remaining effort will be replanned to align with the current execution plan.
While the team could have agreed to just track to the latest ETC, the customer has decided that it is more important that the team sign up to the revised budget spread. Clearly, the focus here is adhering to the revised schedule, with cost being a secondary concern.
To begin the process, launch the Replan process found under the Processes tab in the project view.
Select the appropriate project, then “Next”.
On the “Options” page, there are several options to consider. We will address each separately.
Replan by adding an adjusting entry in the current period: This option, if selected, will post the adjustment to the cumulative budget in the current period. Alternatively, if left unchecked, Cobra will align the budget to equal the earned value month by month, thus changing past history.
While this is not forbidden, often it is decided not to change past history. Many government agencies test monthly reporting to see if any past history changes have occurred. If so, they may require explanations, resubmission of reporting, or possibly will not care.
It is recommended that this be discussed with your customer prior to executing the Replan process. The indented option asks if the baseline finish date be revised to align with the current period adjustment value. It is recommended to check this option, as budgets will then align with baseline dates.
Create a new Work Package for the replanned Budget/Progress/Actuals: Oftentimes, it is much simpler to separate the replanned values from the replanned effort. This can simplify the calculation of earned value going forward. If the schedule is resource loaded and the Milestone or % Complete EVT is utilized, getting the earned value to not adjust unexpectedly up or down during the next cycle may prove challenging.
This is a complicated topic, so maybe for the purposes of this blog, take my suggestion and select this option. New charge numbers will be needed for all remaining effort. Yes, this will drive your procurement folks crazy if their system requires they will need to re-issue POs in order to accommodate a new charge number. This subject makes one’s head hurt. I apologize.
In order to make it up to you, Ten Six has folks who can assist with the setup of this process, which is highly recommended.
Allow planned Work Packages to be replanned: If the intent is to eliminate cumulative to date schedule variances, then yes, allow work packages that haven’t yet started to be replanned. These would have an existing schedule variance if they are in the past. I haven’t come up with a good reason to not have these replanned, but I am sure there could be a valid reason.
Allow completed Work Packages to be replanned: This one is kind of a “duh”. In this exercise, all remaining effort will be replanned. These work packages have no remaining effort, and because they are complete, there is no schedule variance. Budget and Earned are the same. If we were using the option to also erase cost variances, then this would be checked.
Earned cost class for replanned values: As no adjustments are being made to the Earned cost class, there is no reason to modify the default setting.
“Next”
The next page of this process allows the user to select one of several options for what will be Replanned. In my experience, Replans have been applied to the entire project, with one exception way back in 1985, when everything was done on a piece of bark or an animal skin.
That said, it is reasonable that a certain CLIN, process, phase, etc. could be selected for a Replan. As noted earlier, a full discussion between the customer and the contractor should occur prior to performing a Replan. The Cobra Guy has experienced more than one scenario where the resultant Replan was not what was expected.
For our example, we will select the entire Project. At the conclusion, there will be no remaining cumulative to date schedule variances.
“Next”
Select the option to set Budget = Progress.
“Next”
If you are taking the Cobra Guy’s advice, you will separate the old from the new. We selected the option to “Create a new Work Package for the replanned Budget/Progress/Actuals” several screens back.
To be clear, all budgets prior to the status date will be assigned to a new work package. I choose to use the suffix option. This has proven helpful when sorting work packages in Excel, grouping before and after work packages together. That said, either option should be permissible.
Enter what text you want for the renamed work packages. Bonus Item!!! Note that I entered a space before the word “Replan”. This will separate the word from the work package code for a neater appearance. You’re welcome!
A negative of the option of creating a new work package is that the work packages that are replanned will all have the same description. This clearly isn’t helpful. I apologize for this as well.
Once this screen is populated, enter “Next”, then “Finish”.
Enter a log number and comment if the baseline has been set
Hopefully, one is rewarded with a green checkmark.
The resultant Format 1 report will show no cumulative schedule variances. Actual cost information is maintained, including prior cost variances. Note in the current period the BCWS adjustment. The Budget at Completion is adjusted by this amount as well.
It is often a cleaner process when replanning the remaining effort to delete all remaining budgets in Cobra beyond the current period, then re-import the new budgets and time-phasing from the schedule. Tasks in the schedule prior to the Replan process will not be imported.
It may be easiest to remove the work package coding in the schedule so there will be no issues when importing schedule data for status and forecasts. For activities that cross the time now line, it will be necessary to split the schedule activity at time now and only coding those activities beyond time now for import.
A replan is a messy process. Not the Cobra process alone, but the issues between the schedule and Cobra and charge number issues. Overall, most of the Replan exercises I have witnessed probably should not have occurred.
One past client utilized the Replan process nearly every month. That was bold…or something. I may pen another blog under the Earned Value category addressing when a Replan is appropriate and when it is not.
A final word. A thorough discussion is necessary prior to performing a replan. There are several issues that need to be addressed before this is attempted. Again, Ten Six has the expertise to guide an organization through the process.
Also, while much is covered in this blog, much more could have been included. Please let us know of any questions, comments or corrections. We covet your input. Good luck with this process.