Project Management for Software Engineers (Summer 2016) LECTURES 11 & 12 Project Management, control, & Audit July 11-12, 2017 & (9:00 am – 11:40 pm PST) University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Project Management Cycle Develop Baselines Project Auditing Procedures Project Management Plan Improve objectively & Proactively Plan Do Act Study Plan the work… …Work the plan Watch closely where you’re going Project Controls System Prepare for what you can not control Project Monitoring System University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Effective and Timely Decision Making and Problem Solving KM, the foundation of PM Capture & Measure Processed Data Raw Data Store Generate p1 P2 P3 P4 P5 p6 p7 p8 p9 Analyze Improve Distribute Apply Information KM ELEMENTS People Processes Technology Knowledge Control Explicit Wisdom Effective and Timely Decision Making and Problem Solving Implicit Wisdom Personal KSA University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

What to M / C / A ? Primary Objectives Embedded Objectives Long-term Objectives We need… All management Plans (Baselines) for each  Planning phase to implement sound & practical processes & procedures an effective, efficient, and flexible M&C system to focus on importance, and not convenience (data-based) to make the right assumptions and measure the right metrics Monitor / Control / Audit The essential baseline (Origin of all others): WBS The M&C system must be flexible as the needs may change in the life of the project University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Project Monitoring & Control An effective Monitoring & Control System demands a good KM foundation Stage 1 – Analytically Impaired Stage 2 – Localized Analytics Stage 3 – Analytical Aspirations Stage 4 – Analytical Companies Stage 5 – Analytical Competitors Process Map p. 109 of ConA book  P. 108 difference of the two paths Key elements: P.111 & P. 114 of ConA University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Tools for M&C (Primary goals) CPM & Resource Scheduling Cost Engineering & Accounting Contract & Content Management Project M&C Tools Contract Review Reports & Meetings Client Liaison CMS: Correspondences RFIPCO  CO Procurement Inventory Drawings Claims Management Updates Resource Leveling What-if Analysis Delay Claim Analysis Estimating Budgeting Cash flows Allocate Resources Cost Claim Analysis TIME COST SCOPE Primary Objectives The S-Curve Read pp 445-450 Reports & Meetings: Figure 10-4, P. 446 University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

M&C Technological Platform Choosing the right platform Meredith & Mantel pp. 463-464 Technology pitfalls (Meredith & Mantel pp. 463-464): Computer Paralysis PMIS Verification Information Overload Project Isolation Computer Dependence PMIS Misdirection Jim Collins (Good to Great, p. 162): Use Technology as an accelerator of [business] momentum, not a creator of it University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Project Controls in Action EV: An important measure of success It is as good as the quality of your baselines and updates It’s as good as your assumptions (What is “progress”?) – p. 451 Understand what it really means before measuring & using it Example: pp 456 – 458 Others CPI, SPI, CR (pp 453, 492) SQC techniques for any metric of performance Example: do a control chart for CR University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Project Controls in Action University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Pop Quiz! What is EV – AC? What is EV – PV? What is ST – AT? CV: How much more (<0) or less (>0) you spent to achieve what you earned (BCWP)  A “Cost” metric What is EV – PV? SV: How much more (>0) or less (<0) work (in $ values) you completed in the planned timeframe A “Scope & Time” metric What is ST – AT? TV: How faster (>0) or slower (<0) is your project is your project progressing (vs baseline Sch) A “Scope & Time” metric TV corresponds to SV TV translates the SV from the cost axis to the time axis University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Where are we now? For SV (SPI) Compare PV & EV For CV (CPI) Compare Ahead of Schedule Under Budget Ahead of Schedule Under Budget For SV (SPI) Compare PV & EV (Ignore AC Curve) For CV (CPI) Compare AC & EV (Ignore PV Curve) Behind Schedule Over Budget Behind Schedule Over Budget Behind Schedule Under Budget Ahead of Schedule Over Budget University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Forecast – Scenario #1  Assuming same efficiency as Experienced? mm P1 (AT, EV) P2 (AT, AC) Extrapolate to End (P3): EAC=BAC x (AC/EV) ETC= EAC - AC mm mm The formula on page 454 is incorrect (ETC=BAC-EV)/CPI University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Forecast – Scenario #2  Assuming same efficiency as Planned? ETC = BAC – EV  EAC = ETC+AC The formula on page 454 is incorrect (ETC=BAC-EV)/CPI 13 University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Forecast – Scenario #3  Assuming efficiency is improved to compensate for delays & cost overruns? ETC = (BAC – EV) / CSI , CSI=CPI x SPI The formula on page 454 is incorrect (ETC=BAC-EV)/CPI University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018

Important NOTE THESE THREE SCENARIOS EMOJI’S WOULD BE REVERSED (  ,  ,  ), if the current status would have been: AHEAD OF SCHEDUL (SV>0) UNDER-BUDGET (CV>0) The formula on page 454 is incorrect (ETC=BAC-EV)/CPI Conclusion: Explain how to apply the corrections (2&3) : Bottom-up approach University of Southern California, IMSC/SSU CERTIFICATION PROGRAM 9/21/2018