1. Project Management 9. Performance Management

2. Week 9

3. Performance management

4. Once you have selected a project

5. Once you have selected a project
And planned it

6. Once you have selected a project
And planned it
And hired the team

7. Once you have selected a project
And planned it
And hired the team
And started the work

8. Once you have selected a project
And planned it
And hired the team
And started the work
How do you stay on track?

9. How do you even know if you are progressing to plan?

10. Gray & Larson, 2006, Ch 13.

11. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

12. What is a Project Monitoring System?

13. Monitoring System
Gather
Analyse
Report
It involves determining what data to collect, how, when an who will collect the data; analysis of the data; and reporting progress

14. You need to know what information is needed to satisfy you and your stakeholders.

15. Think about the Information System Structure

16. What data are collected?

17. What data are collected?
current status of project (schedule and cost)
remaining cost to compete project
date that project will be complete
potential problems to be addressed now
out-of-control activities requiring intervention
What data are collected?
Cost and/or schedule overruns & their reasons
Forecasting overruns at time of completion

18. Collecting data and analysis
who will collect project data?
how will data be collected?
when will the data be collected?
who will compile and analyze the data?
who will receive the reports?
how will the reports be transmitted?
when will the reports be distributed?
Photo by germanium

19. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

20. Progress Report Format
Progress since last report
Current status of project
Schedule
Cost
Scope
Problems and issues since last report
Actions and resolution of earlier problems
New variances and problems identified
Corrective action planned

21. How long should a project status report be?

22. 1 page

23. <example>

24. More info
office.microsoft.com/en-us/templates/TC aspx

25. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

26. Project Control Process

27. The process of comparing actual performance against plan to identify deviations, evaluate courses of action, and take appropriate corrective action
Pensiero

28. Measuring progress and performance Comparing the plan to the facts
Project Control Steps
Set and baseline a plan
Measuring progress and performance
Comparing the plan to the facts
Taking Action

29. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

30. Monitoring Time Performance

31. Monitoring Time Performance
Tools used to catch negative variances from plan and communicate project schedule status:

32. Monitoring Time Performance
Tools used to catch negative variances from plan and communicate project schedule status:
Tracking and baseline Gantt charts
show expected, actual, and trend data for event duration performance

33. Time
A Gantt Chart
Figure 13.1 Baseline Gantt Chart (Gray & Larson, 2006, p414)

34. Monitoring Time Performance
Tools used to catch negative variances from plan and communicate project schedule status:
Tracking and baseline Gantt charts
show expected, actual, and trend data for event duration performance
Control charts
plot the difference in scheduled time on the critical path with the actual point on the critical path

35. A Control Chart
Figure 13.2 Project Schedule Control Chart (Gray & Larson, 2006, p415)

36. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

37. Monitoring Systems Disparities
Picture by Pensiero

38. Time-Phase Baseline Plan
Picture by Pensiero

39. Corrects the failure of most monitoring systems to connect a project’s actual performance to its schedule and forecast budget
Picture by Pensiero

40. Systems that measure only cost variances do not identify resource and project cost problems associated with falling behind or progressing ahead of schedule
Picture by Pensiero

41. Earned Value Cost/Schedule System
An integrated project management system based on the earned value concept that uses a time-phased budget baseline to compare actual and planned schedule and costs
Picture by airgap

42. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

43. Earned Value Management

44. What is Earned Value Management (EVM)?

45. What is Earned Value Management (EVM)?
A project performance measurement technique that integrates scope, time, and cost data.

46. What is Earned Value Management (EVM)?
A project performance measurement technique that integrates scope, time, and cost data.
Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals.
You must enter actual information periodically to use EVM.

47. What is Earned Value Management (EVM)?
A project performance measurement technique that integrates scope, time, and cost data.
Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals.
You must enter actual information periodically to use EVM.

48. Terms to learn PV Planned Value CV Cost Variance AC Actual Cost SV
Schedule Variance EV
Earned Value
CPI
Cost Performance Indicator
SPI
Schedule Performance Indicator

49. (Also called the budget)
This is that portion of the approved total cost estimate planned to be spent on an activity during a given period PV
Planned Value

50. The total of direct and indirect costs incurred in finishing work on an activity during a given period AC
Actual Cost

51. EV
An estimate of the value of the physical work actually completed
Earned Value

52. CV
Cost Variance
Earned value minus the actual cost. Shows the difference between the estimated cost of an activity and the actual cost of that activity
TABLE 13.1

53. Earned value minus the planned value
Earned value minus the planned value. Shows the difference between the schedule completion of an activity and the actual completion of that activity SV
Schedule Variance
TABLE 13.1

54. Cost Performance Indicator
The ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project.
If the CPI is equal to 1 or 100% then the planned and actual costs are equal, or the costs are as budgeted.
If the CPI is less than 1 or less than 100%, the project is over budget.
If the CPI is greater than 1 or more than 100%, the project is under budget
CPI
Cost Performance Indicator

55. Schedule Performance Indicator
The ratio of earned value to planned value and can be used to estimate the projected time to complete the project.
Similar to the CPI, an SPI of 1 or 100% means the project is on schedule.
If the SPI is greater than 1 or 100% then the project is ahead of schedule.
If the SPI is less than 1 or 100%, the project is behind schedule
SPI
Schedule Performance Indicator

56. Quick EVM quiz
What can we say if CPI > 1
TABLE 13.1

57. Quick EVM quiz What can we say if CPI > 1
If the CPI is greater than 1 or more than 100%, the project is under budget

58. Quick EVM quiz
What is EV minus AC?

59. Quick EVM quiz What is EV minus AC? EV – AC = SV
Earned Value (what was done)
Minus
Actual Cost (what has been paid) =
Schedule Variance

61. Scenario Example

62. Scenario Example “Purchasing & Installing Web Server” Duration 1 week,
Budget $10,000.

63. Scenario Example “Purchasing & Installing Web Server”
Duration 1 week, Budget $10,000.
PV – Planned Value – for that activity for that week = $10,000
AC – Actual Cost – suppose it actually took 2 weeks and cost $20,000. Assume $15,000 were incurred in week 1, and $5,000 in week 2. These costs are the actual costs for that activity each week
EV – Earned Value – earned value after one week is $7,500. (10,000 * 75%)
Example: CP829_Lecture_Week9_EarnedValue.xls

66. Earned Value Chart for Project after 5-Months

68. Max Wideman

69. Rules for Earned Value Numbers
Negative numbers for cost and schedule variance indicate problems in those areas
The project is costing more than planned or taking longer than planned
CPI and SPI less than 100% indicate problems

70. Table 13.3 Interpretation of Indexes (Gray & Larson, 2006, p429)

71. An alternative Source:

72. Week 2 lecture

73. So, what do you do when your plan changes?

74. There are methods used to revise estimates of future project costs
EVM allows experts in the field to change original baseline durations and costs because new information tells them the original estimates are not accurate
EVM uses actual costs-to-date plus an efficiency index to project final costs in large projects where the original budget is unreliable

75. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

76. Developing an Integrated Cost/Schedule System

77. WBS
Resource plan
Plan
Schedule
Budget
Collect
Monitor
Calculate
Compute

78. Define the work using a WBS Scope Work packages Deliverables
Organization units
Resources
Budgets
Develop work and resource schedules
Schedule resource to activities
Time-phase work packages into a network
Photo by shimonkey

79. Develop a time-phased budget using work packages included in an activity. Accumulate budgets (PV)
At the work package level, collect the actual costs for the work performed (AC)
Multiply percent complete times original budget (EV)
Compute the schedule variance (EV-PV) and the cost variance (EV-AC)

80. Integrated Cost/ Schedules
Figure 13.3 Project Management Information Systems Overview (Gray & Larson, 2006, p419)

81. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

82. Project Baselines

83. Week 4 lecture

84. a Baseline is an anchor point for measuring performance
Photo by _Robert flickr

85. a planned cost and expected schedule against which actual cost and schedule are measured
Gold by Куртис Перри

86. a basis for cash flows and awarding progress payments
Photo by flickr

87. a summation of time-phased budgets (cost accounts as summed work packages) along a project timeline
Picture by Network flickr

89. What Costs Are Included in Baselines?
Labor
Equipment
Materials
Project direct overhead costs (DOC)

90. Figure 13.14 Scope Changes to a Baseline (Gray & Larson, 2006, p436)

91. What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management – a silver bullet?
Integrated Cost/Schedule System
Project Baselines

92. Review
Project monitoring system include; data collection; analysis and reporting.
Project control steps include; baseline plan, progress measurement, comparing actual against projected plan, and actions.
Performance can be monitored using tools such as; tracking Gantts, control charts, baseline plans and earned value management.
Earned value management (EVM) is a technique which incorporated scope, time and cost data to determine the health of the project.
Integrated Cost/Schedule systems are developed creating; WBS, work/resource schedules, budget, and EVM.
Project baselines are an anchor point for measuring performance.

93. References
Horodyski, K. (1995). Managing and developing teams. Footscray, Vic.: Open Training Services.
Greenberg, J. & Baron, R. (1993). Behavior in organizations (4th ed.). Syd., NSW: Allyn and Bacon.
Robbins, S., et al. (1998). Organisational behaviour (2nd ed.). Sydney: Prentice-Hall

94. BetterProjects.net Awesome title page picture by
Derek Farr ( DetroitDerek )