1. 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)
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9/21/2018

2. 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
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3. 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
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9/21/2018

4. 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

5. 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
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9/21/2018

6. 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
Reports & Meetings: Figure 10-4, P. 446
University of Southern California, IMSC/SSU CERTIFICATION PROGRAM
9/21/2018

7. M&C Technological Platform
Choosing the right platform
Meredith & Mantel pp
Technology pitfalls (Meredith & Mantel pp ):
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

8. 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
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9/21/2018

9. Project Controls in Action
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10. 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
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9/21/2018

11. 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
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12. 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
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13. 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
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14. 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

15. 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