CSSE Oct.2008 Monitoring and reporting project status Chapter 10, pages

Outline Control vs. risk Other kinds of reporting EV

Why do we need to monitor progress? 70% of projects are: Over budget Behind schedule 52% of all projects finish at 189% of their initial budget Average of 16% of SW projects are on-time and budget Source: The Standish Group

How and What to Update? Determine a set period of time and day of week Report actual work accomplished during this period Report start and finish dates Report days of duration accomplished and remaining Report resource effort Report percent complete

Types of progress reporting Current period reports Cumulative reports Exception reports Stoplight reports Variance reports Numerical Graphical

Milestone trend charts

Stoplight reports

EVA Earned Value Analysis (EVA) is: an industry standard way to: measure a project’s progress, forecast its completion date and final cost, and provide schedule and budget variances along the way.

Baseline vs. actual cost curve

Let’s talk terms BCWS - Budgeted Cost of Work Scheduled ACWP - Actual Cost of Work Performed BCWP - Budgeted Cost of Work Performed

Variance (EV – PV) Positive Indicates ahead of schedule or less cost than planned May not always be good Negative Indicates behind schedule or more cost than planned May not always be bad

Full story

Performance indices Schedule Performance Index SPI = BCWP/ BCWS Cost Performance Index CPI = BCWP/ ACWP

Let’s do an example… PROJECT STATUS: Make 1000 widgets over 50 days (20 per day) INPUT: Total Expected Output = 1000 INPUT: Budgeted Unit Cost = $.50 Total Project Budget is 1000 x $.50 = $500.

EV Input BCWS: How much did we expect to pay for the work that was scheduled? Total Project Days = 10 Unit Production Per Day = 20 widgets/day Budgeted Unit Cost = $.50/widget BCWS = 10 days x 20 widgets/day x $.50/widget budget = $100

EV Input BCWP: How much did we expect to pay for the work that was actually done? Actual Current Output = 150 Budgeted Unit Cost = $.50/widget BCWP = 150 widgets x $.50/widget budgeted = $75

EV Input ACWP: What was the actual cost of the work that was completed? Actual Current Output = 150 Actual Unit Cost = $.60/widget ACWP = 150 widgets x $.60/widget actual = $90

EV Analysis SV: Schedule Variance = BCWP – BCWS The Question: Are we ahead or behind production schedule? SV = BCWP – BCWS = $75 - $100 = -$25

EV Analysis SPI: Schedule Performance Index = BCWP/BCWS The Question: How far ahead or behind schedule are we? SPI = BCWP/BCWS = 75/100 = 0.75 (LT 1, so behind schedule)

EV Analysis CV: Cost Variance is measured as follows: If BCWP > ACWP, the project is UNDER budget! If BCWP < ACWP, the project is OVER budget! The Question: Are we on or off budget? CV = BCWP - ACWP = $75 - $90 = -$15 (negative means over budget)

EV Analysis CPI: Cost Performance Index The Question: How far on or off budget are we? CPI = BCWP / ACWP = 75/90 = (less than 1 means over budget)

Project forecast EAC: Estimate at Completion Method 1: BCWP at a point + Estimates to completion. Method 2: The ratio of BAC / CPI. Method 3: (Wilkens) [(BAC - BCWP)/CPI] + ACWP The Question: At the rate going, how much will all of this cost? This is a SIMPLIFIED estimate of EAC EAC = BAC / CPI = $500 / = $600

Questions?