 Galorath Incorporated Parametric Performance Monitoring and Control (PPMC) Presented by: Karen McRitchie Galorath Incorporated 100 North Sepulveda Boulevard Suite 1801 El Segundo, California

2 Ó Galorath Incorporated 2004 SEER: Project Management Context Knowledge & Experience Baseline(s) & Final Actuals To-date Actuals Measure & Analyze Monitor & Control Baseline Estimate & Plan

3 Ó Galorath Incorporated 2004 SEER: Process Focus (CMMI) Project Planning Establish Estimates Develop a Project Plan Obtain Commitment to the Plan Project Monitoring and Control Monitor Project Against Plan Manage Corrective Action to Closure Measurement and Analysis Align Measurement and Analysis Activities Provide Measurement Results

4 Ó Galorath Incorporated 2004 SEER: Methods Project Planning History-Based Sizing Direct Measure Sizing Parametric Estimation 4-D Planning Project Monitoring and Control 4-D Earned Value Management Status Indication Performance-based Forecasting Measurement and Analysis Estimation Accuracy Assessment and Improvement Calibration Knowledge Base Management Benchmarking

5 Ó Galorath Incorporated 2004 SEER: Tools Project Planning SEER-AccuScope SEER-SEM Project Miner (SEER-SEM option) SEER-H SEER-IC SEER-DFM SEER-SEM Client for Microsoft Project Project Monitoring and Control Parametric Performance Monitoring and Control (SEER-SEM option) Measurement and Analysis SEER-CommonRepository SEER-ScatterPlot+ currently in development SEER-SEM SEER-SEM Calibration Mode PPMC

6 Ó Galorath Incorporated 2004 What is PPMC? A set of add-on features to SEER-SEM that enable project monitoring and control of software development projects Features include: Inputs for actual effort and project progress as well as project metrics Algorithms to combine parametric and earned value Reporting to provide information on project status PPMC employs 4D Earned Value Management Activity Completion Expenditures Artifact Completion Defect Discovery/Removal Parametric Performance Monitoring and Control

7 Ó Galorath Incorporated 2004 Why PPMC? Earned Value Management is considered a best practice for monitoring and controlling the progress of a software project EVM has limitations: A single focus on activity completion as the basis for earning value Difficulty in providing realistic performance based estimate at completion (EAC) PPMC adds monitoring and control capabilities to SEER-SEM PPMC combines: Accepted algorithms currently used for cost and schedule estimation during the project planning process Accepted equations currently used for traditional Earned Value Management Parametric Performance Monitoring and Control

8 Ó Galorath Incorporated 2004 The common question Once a project has started, it is only natural to want to enter your project metrics The most common question: Can I put in my actual effort once the project is underway and will the tool recalibrate my estimate? The right answer is NO - it’s not enough just to give actual hours Just because you spent 50% of a planned budget doesn’t mean your are 50% done What the project manager needs to know: How much more money, how long? How can the project be adjusted to meet objectives? To do this, you need assess the project status in terms of progress, not just expenditures – Earned Value Earned value compares work complete to original estimates.

9 Ó Galorath Incorporated 2004 Combining Earned Value and Parametrics

10 Ó Galorath Incorporated 2004 Traditional EVM – Measures and Metrics Fundamental Measures Budgeted Cost of Work Scheduled (BCWS) Budgeted Cost of Work Performed (BCWP) Actual Cost of Work Performed (ACWP) Variances Schedule Variance (SV) Cost Variance (CV) Time Variance (TV) Performance Indices Schedule Performance Index (SPI) Cost Performance Index (CPI) To-Complete Performance Index (TCPI)

11 Ó Galorath Incorporated 2004 Earned Value and PPMC Terminology Earned Value TerminologyWhat it means BCWS - Budgeted Cost of Work Scheduled The planned costs (baseline plan) SEER-SEM calls this the Baseline Plan ACWP – Actual Cost of Work Performed What you paid SEER-SEM calls this Actual Effort or Actual Cost BCWP – Budgeted Cost of Work Performed The earned value SEER-SEM calls this Schedule Accomplishments EAC – Estimate At CompleteThe latest estimated cost at completion ETC – Estimate to CompleteFunds needed to complete the investment SPI – Schedule Performance Index The percent of the investment that has been completed CPI – Cost Performance IndexThe ratio of earned to actual cost of work performed TCPI - To Complete Performance Index The latest cost efficiency assumed to complete CV - Cost Variance The difference between earned and actual cost of work performed SV – Cost VarianceThe difference between actual and planned work TV – Time VarianceThe variance between the actual and planned schedules

12 Ó Galorath Incorporated 2004 The PPMC Approach PPMC extends the use of SEER-SEM to projects underway

13 Ó Galorath Incorporated 2004 Tracking a Project Once a project is started, the PPMC process may begin Start with a SEER-SEM estimate Establish a baseline estimate Take project “snapshots” periodically Evaluate earned value metrics Replan as required

14 Ó Galorath Incorporated 2004 The Baseline A baseline freezes the current estimate The baseline provides the yardstick against which the project is tracked and evaluated Allows you to do trades with the current estimate while maintaining the planning baseline A baseline can be updated at any time The current estimate may be set back to the baseline at any time

15 Ó Galorath Incorporated 2004 The Snapshot Snapshots are a picture of the project’s metrics at any give point in time The snapshot includes two key components: Work Complete Actual Effort Work Complete describes the progress in terms of milestone completion Actual Effort includes hours as well as size and defect metrics Snapshots are flexible in terms of interval or frequency Regular snapshots – e.g. monthly or quarterly As needed – e.g. before a key review

16 Ó Galorath Incorporated 2004 Snapshots Snapshots are entered in matched sets in a dedicated input view

17 Ó Galorath Incorporated 2004 Reporting PPMC reports and charts are based on the most recent snapshot entered Work complete metrics are used to evaluate remaining effort and schedule (Estimate To Complete) Estimate At Complete = Actual Effort + ETC

18 Ó Galorath Incorporated 2004 PPMC Reporting Options

19 Ó Galorath Incorporated 2004 Looking at Progress Over Time See how actual and earned effort measure up to the baseline plan Click on any month to see specific information See CPI and SPI trends over time CPI = Cost Performance Index; The ratio of earned to actual cost of work performed SPI = Schedule Performance Index; The percent of the investment that has been completed

20 Ó Galorath Incorporated 2004 Other Metrics Track defect discovery and removal rates against expected rates Increased defect reporting rate shows a worsening trend Heath and Status Indicator shows status and trends from the previous snapshot Thresholds are user definable

21 Ó Galorath Incorporated 2004 Summary Parametric Performance Monitoring and Control enables powerful evaluation of a project’s progress Utilizes EVM best practices Capitalizes on parametric model’s ability to replan and forecast based on current project assumptions Flexible – doesn’t require regular care and feeding, you can use it only when you need to Completes the project management continuum

22 Ó Galorath Incorporated 2004 Thank you! For more information: