1. Project Management (x470)
Module 04 : Knowing Where the Project Is

2. Class Road Map Foundational Concepts Knowing WHAT the Project Is
Session 1
Foundational Concepts
Sessions 2 & 3
Knowing WHAT the Project Is
Session 4
Knowing WHERE the Project Is
Session 5
Closure, Group Presentation, Advance Topics

3. Knowing WHERE the Project Is
Session 4 Agenda
Short Quiz 3
Questions / Review
Homework
Short Quiz
Knowing WHERE the Project Is
Metrics
Traffic Light Reporting
Status Reporting Templates
Earned Value Reporting
Change Control
Team Sessions
Continue Project Plan Development

4. Monitoring and Control
Project Execution
Monitoring and Control
Project Approval
Formal “Go” decision
Project Charter
Project Manager assigned
Project Plan
Clear and approved project or phase definition
Stakeholders
Scope (Deliverables)
Schedule
Cost
Project Execution
Complete deliverables per the project management plans
Determine and communicate project status
Knowing Where the Project Is
Deliverables completed, Status Report, Issues and Action Item Log, Meeting Minutes
Change Request Approval / Rejection
Continual Team Development & Conflict Management
Knowing What the Project Is

5. Knowing Where the Project Is: Why Metrics?
To provide goal-centered feedback to detect and correct the course
Guide
Course correction
Forewarn
Issue Detection
Inform
Collective meaning
Act
If you don’t act, don’t measure
What data is relevant?
Where is it best collected?
Who should analyze and act on it?
When should it be done?
Measurements mated with analysis and action!

6. Knowing Where the Project Is: Project Performance Data
Backward Looking
Project status-to-date: schedule, cost, scope/quality
Significant milestones completed
Forward Looking
Projected project status
Milestones for the next reporting cycle
Significant issues and planned corrective actions / recommendations
Project environment changes / review
Traffic Light Reporting
Earned Value Reporting
Traffic Light Reporting

7. Knowing Where the Project Is: Traffic Light Reporting
Metric
Status
Trend
Schedule
Green
Cost
Yellow
Red
Scope / Quality
Others
Overall Health
Need to define what the colors mean!

8. Knowing Where the Project Is: Sample Metric Status Definition
Scope
Green
No scope change.
Yellow
Change within 10% of original scope
Red
Change over 10% of original scope. Need re-baseline.
Schedule
On track for scheduled completion
Within 10% of scheduled completion
Over 10% scheduled completion. Need re-baseline.
Cost
Completion within budget
Completion within 10% of budget
Completion over 10% of budget. Need re-baseline.

9. Knowing Where the Project Is: Sample Metric Status Definition 2
Parameter
Red
Yellow
Green
Comments
Scope
Some “must have” deliverables cannot be delivered
Some “must have” deliverables are at risk
All “must have” deliverables on track to be delivered
Indicator reflecting approved functionality to be delivered by the project
Schedule
Variance > 4 weeks
Variance > 1 week
Variance < 4 weeks
Project on track
Measured as variance of current Critical Path completion date to approved date
Cost
Variance >10%
Variance > 5%
Variance < 10%
Variance < 5%
Measured as variance of (actuals + forecast to complete) to approved budget

10. Knowing Where the Project Is: Sample Metric Trend Definition
Color
Definition
Green
Less than 20% probability that a change that adversely impacts a parameter target (scope, time, cost) will occur
Yellow
20% to 50% probability that a change that adversely impacts a parameter target (scope, time, cost) will occur.
Red
Greater than 50% probability that a change that adversely impacts a parameter target (scope, time, cost) will occur

11. Knowing Where the Project Is: Project Dashboard
Metric
Status
Trend
Problem Statement
Corrective Action
Scope
Schedule
Cost
Overall Health
Executive Summary
Results
Next Steps
Working
Challenges
Significant results for the reporting period.
Significant work to be started for the next reporting period.
Significant work in progress for the reporting period.
Major issues, constraints, etc .

12. Knowing Where the Project Is: Simplified Project Dashboard
Status
Trend
Significant Results for the Period
Significant Work To Be Started or In-Progress for the Period
Challenges and Corrective Actions

13. Knowing Where the Project Is: Multiple Project Reporting
Proj ID
Project Name
Project Manager
Major Issues
Sched Status
Tech Status
Budget
Savings
Staffing
Cust Satis.
Sched Comp.
Overall
DISRUPTED PROJECTS R Y G
TOP INITIATIVES (TI)
INFRASTRUCTURE IMPERATIVES

14. Knowing Where the Project Is: Flexibility Matrix and Status Trigger
Parameter
High
Medium
Low
Scope
Yes
Schedule
Cost
Trigger point for Schedule ‘color’ can be tighter
Trigger point for Cost color can be looser

15. Knowing Where the Project Is: Earned Value Management
Schedule and cost status reporting tool!
Planned Value (PV) – the physical work scheduled to be performed, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Scheduled - BCWS)
Earned Value (EV) – the physical work actually accomplished, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Performed - BCWP)
Actual Cost (AC) - the actual cost incurred to accomplish the earned value. (Actual Cost of Worked Performed - ACWP)

16. Knowing Where the Project Is: Earned Value Example
A work on a project task is expected to cost $1500 to complete and the workers were scheduled to finish today. As of today however, the workers have actually expended $1350 and the best estimate is the task is 2/3 complete. Determine the Planned Value, Actual Cost and Earned Value at this point in time.
Task Budget = $1500
Money Spent = $1350
% Complete = 2/3
Today
PV = 1500
AC = 1350
EV = (2/3)(1500) = 1000

17. Knowing Where the Project Is: Earned Value Formulae
Cost Variance
CV = EV - AC
Cost Variance in %
CVP = (CV/EV) 100%
Cost Performance Index
CPI = EV / AC
Schedule Variance
SV = EV - PV
Schedule Variance in %
SVP = (SV/PV) 100%
Schedule Performance Index
SPI = EV / PV

18. Knowing Where the Project Is: Estimate at Completion
Other Formulae
Actual plus new Estimate To Complete
EAC = AC + ETC
Actual plus budget (PV) for remaining deliverables
EAC = AC + (BAC – EV)
Actual plus budget for remaining deliverables modified by the performance index
EAC = AC + (BAC – EV)/CPI AC
EAC = X
(BAC) EV
The estimate at completion is the best estimate of the total cost at the completion of the project.
The EAC is a periodic evaluation of the status of the project - usually on a monthly basis or until a significant change has been identified.
EAC = AC + (BAC-EV)/CPI
EAC = AC + (BAC-EV)/(EV/AC)
EAC = AC + (BAC-EV)*(AC/EV)
EAC = AC + BAC*AC/EV - AC
EAC = BAC*AC/EV

19. Knowing Where the Project Is: Earned Value Status Reporting
Time of measurement PV SV AC CV
CUMMULATIVE COST, $ EV
TIME

20. Knowing Where the Project Is: Using Earned Value IWk PV AC
% Done EV
SV=
EV-PV
CV=
EV-AC
SPI=
EV/PV
CPI= EV/AC
EAC= AC*BAC / EV 1
400
420 23
368
-32
-52
0.92
0.88
1826 2
800
880 50
-80
1.00
0.91
1760 3
1200
1380 85
1360
160
-20
1.13
0.99
1624 4
1600
1500
100
1.07

21. Knowing Where the Project Is: Using Earned Value II
Project: Software enhancement for a drug company
Baseline: Entire effort priced at $200K and scheduled for completion June 10th
As of June 10: Project cost to date is $195K. One activity is left in the project estimated to cost S25K.
Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount.

22. Knowing Where the Project Is: Using EV II Solution
Given:
BAC = $200K, PV = $200K, AC = $195K
Last Activity Cost = $25K
Solution:
EV = 200K – 25K = $175K
CV = EV – AC = 175K- 195K = -$20K
SV = EV – PV = 175K – 200K = -$25K
CV% = (CV / EV) 100% = (-20/175) 100% = -11%
SV % = (SV / PV) 100% = (-25/200) 100% = -12.5%
CPI = EV / AC = 175 / 195 = .897
SPI = EV / PV = 175 / 200 = .875

23. Knowing Where the Project Is: Using EV II Solution (cont.)
EAC1 = (AC/EV) x BAC = (195/175)200K = $223K
EAC2 = AC + (BAC – EV) = 195K + 200K – 175K = 220K
EAC3= AC + (BAC – EV)/CPI = 195K + (200K-175K)/.897 = $223K
ETC = EAC – AC
= 223 – 195 = 28K

24. Knowing Where the Project Is: Using Earned Value III
Project: Construction of a new house
Baseline: Entire effort priced at $1.2M and scheduled for completion January next year.
As of July 1: First project activity is a site survey with a budget of $80K. By July 1st, half of the site survey is expected to be completed. Cost to date is $60K and work is already 80% complete.
Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount.

25. Knowing Where the Project Is: Using Earned Value IV
Deliverable
Predecessor
Duration
Scheduled
Cost / Day A - 3
$1,000 B 5
$2,000 C 4
$4,000 D 7 E 6 F 8
$3,000
Deliverable
End of Week 1
Actual %
Completed
Cumulative
Actual Cost A
60%
$1,500 B
30%
$3,000 C
10%
$2,000 D 0% E F

26. Cumulative Actual Cost
Week 1 A C E B D F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Using Earned Value IV
Schedule and Cost
End of Week 1
Task
Pred.
Duration (Days)
Scheduled Cost / Day
Actual % Done
Cumulative Actual Cost PV EV A 3
$1,000
60%
$1,500
$3,000
$1,800 B 5
$2,000
30%
$10,000 C 4
$4,000
10%
$8,000
$1,600 D 7 0% $0 E 6 F 8
$6,500
$21,000
$6,400

27. Cumulative Actual Cost
Using Earned Value IV
Schedule and Cost
End of Week 1
Task
Pred.
Duration (Days)
Scheduled Cost / Day
Actual % Done
Cumulative Actual Cost PV EV A 3
$1,000
60%
$1,500
$3,000
$1,800 B 5
$2,000
30%
$10,000 C 4
$4,000
10%
$8,000
$1,600 D 7 0% $0 E 6 F 8
$6,500
$21,000
$6,400

28. Knowing Where the Project Is: Using Earned Value IV (cont…)
Task PV EV AC
SV = EV-PV
CV = EV-AC
SPI = EV/PV
CPI = EV/AC
EAC = AC*BAC/EV A
3000
1800
1500
-1200
300
0.6
1.2
73125 B
10000
-7000
0.3 1 C
8000
1600
2000
-6400
-400
0.2
0.8 D E F
21000
6400
6500
-14600
-100
0.305
0.98

29. Knowing Where the Project Is: Using Earned Value: HW Gantt ChartB D F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Week 1
Week 2 29

30. Knowing Where the Project Is: Project Change Control
Objective
Manage changes to project via an approved change control process
Deliverable
Approved / rejected change request document
Updated project and product process deliverables

31. Project Team Development
Project Manager
Enhancement of stakeholders’ ability to contribute as individual and team’s ability to function as a team
Team building activities
Reward and recognition
Training
Resources
Deliverables
When is an ideal time to start project team development?
Projects are managed through its people!

32. Knowing Where the Project Is: Monitor & Control “Best Practices”
Formalized review process with participation from management on issue resolution
Gate review
Status review
Check-in, stay in-touch
Maintain an open environment
Tracking intensity proportionate to project importance / priority