1. PROJECT PERFORMANCE AND EVALUATION Year 3 Project Management Dr. Margaret Nelson

2. LECTURE OUTLINE Project Performance Project Performance –Overview –Setting Criteria –Monitoring Progress –Measuring Performance Project Evaluation Project Evaluation –Audit –Review

3. PROJECT PERFORMANCE 2 Aspects 1. Project Processes 2. Project Outcomes Project Performance Management Planning Planning Monitoring Monitoring Controlling Controlling Measuring Measuring Reviewing & Evaluating Reviewing & Evaluating Feed forward Feed forward

4. Principles of Conformance Management Inspection Inspection Quality control Quality control Quality assurance Quality assurance Approaches to quality management Approaches to quality management –empowerment<>blame orientation –reactive <> proactive PERFORMANCE V CONFORMANCE

5. CONFORMANCE MANAGEMENT total quality management quality assurance quality control inspection reactiveproactive blame orientated empowerment

6. CRITERIA SETTING Based on project objectives Based on project objectives –Linked to business objectives and goals Criteria for success Criteria for success Key Performance Indicators (KPI) or Key Success Indicators (KSI) Key Performance Indicators (KPI) or Key Success Indicators (KSI)

7. MONITORING PROGRESS Information System Structure –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 Cost and/or schedule overruns and the reasons for them Forecast of overruns at time of project completion

8. Information System Structure (cont’d) –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? –Reports and reporting Who will receive the reports? How will the reports be transmitted? When will the reports be distributed? MONITORING PROGRESS (2)

9. PROJECT PROGRESS REPORT FORMAT Progress since last report Progress since last report Current status of project Current status of project –Schedule –Cost –Scope Cumulative trends Cumulative trends Problems and issues since last report Problems and issues since last report –Actions and resolution of earlier problems –New variances and problems identified Corrective action planned Corrective action planned

10. PROJECT CONTROL PROCESS Control –The process of comparing actual performance against plan to identify deviations, evaluate courses of action, and take appropriate corrective action. Project Control Steps 1.Setting a baseline plan. 2.Measuring progress and performance. 3.Comparing plan against actual. 4.Taking actions

11. 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. –http://pubs.logicalexpressions.com/Pub0009/LPMArticle.asp?ID=577 http://pubs.logicalexpressions.com/Pub0009/LPMArticle.asp?ID=577 –http://www.projectconnections.com/knowhow/template_list/subjects/pm _skills/tracking.html?gclid=CMyLy8W8s4ICFTZLEgodmyxCAw http://www.projectconnections.com/knowhow/template_list/subjects/pm _skills/tracking.html?gclid=CMyLy8W8s4ICFTZLEgodmyxCAwhttp://www.projectconnections.com/knowhow/template_list/subjects/pm _skills/tracking.html?gclid=CMyLy8W8s4ICFTZLEgodmyxCAw –Control charts Plot the difference in scheduled time on the critical path with the actual point on the critical path.

12. DISPARITY AMONG MONITORING SYSTEMS Time-Phase Baseline Plan –Corrects the failure of most monitoring systems to connect a project’s actual performance to its schedule and forecast budget. Systems that measure only cost variances do not identify resource and project cost problems associated with falling behind or progressing ahead of schedule. 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.

13. DEV’T OF PROJECT BASELINES Purposes of a Baseline (PV) –An anchor point for measuring performance A planned cost and expected schedule against which actual cost and schedule are measured. A basis for cash flows and awarding progress payments. A summation of time-phased budgets (cost accounts as summed work packages) along a project timeline. What Costs Are Included in Baselines? –Labour –Equipment –Materials –Project direct overhead costs (DOC)

14. Rules for Placing Costs in Baselines –Costs are placed exactly as they are expected to be “earned” in order to track them to their point of origin. –Percent Complete Rule Costs are periodically assigned to a baseline as units of work are completed over the duration of a work package. DEV’T OF PROJECT BASELINES (2)

15. PROGRESS MONITORING INDICES Performance Indices –Cost Performance Index ( CPI ) Measures the cost efficiency of work accomplished to date. CPI = EV/AC –Scheduling Performance Index ( SPI ) Measures scheduling efficiency SPI = EV/PV –Percent Complete Indexes Indicates how much of the work accomplished represents of the total budgeted (BAC) and actual (AC) pounds to date. PCIB = EV/BAC PCIC = AC/EAC

16. OTHER CONTROL ISSUES Issues In Maintaining Control Of Projects Baseline Changes Contingency Reserve Costs and Problems of Data Acquisition Scope Creep Managing the Portfolio of Projects

17. SCOPE CHANGES TO A BASELINE

18. PROJECT EVALUATION ‘Evaluate’ - to judge or calculate the quality, importance, amount or value of something

19. WHAT DO WE MEAN BY PROJECT SUCCESS? Appropriate intention Appropriate intention Predictability of realisation Predictability of realisation Minimisation of client surprise Minimisation of client surprise Defining project success Defining project success –project and process integrity

20. GAPS IN PERCEPTION problem Briefing problem Briefing problem Design problem Design problem Planning problem Planning problem Execution problem Execution problem Project performance gap Project performance gapoutcome Brief Brief Complete definition Complete definition Complete description Complete description Completed facility Completed facility Client surprise Client surprise

21. PROJECT AUDIT Audit - to make an official examination Audit - to make an official examination Health check Health check The whole point of a project audit is to get a reality-based, accurate picture of a project's expenditures, schedule and quality of work. Think of it as a super-sized project status report The whole point of a project audit is to get a reality-based, accurate picture of a project's expenditures, schedule and quality of work. Think of it as a super-sized project status report Diagnose & Treat problems / issues affecting project performance Diagnose & Treat problems / issues affecting project performance Helps in addressing the critical issues Helps in addressing the critical issues

22. WHY NEEDED? Ensure they are performing correctly Ensure they are performing correctly Highlight any areas where there may be shortfalls or where additional assessments are needed Highlight any areas where there may be shortfalls or where additional assessments are needed Check improvement plans are adequate and being correctly executed Check improvement plans are adequate and being correctly executed Verify that the measurements employed are appropriate, consistent, correct and complete Verify that the measurements employed are appropriate, consistent, correct and complete Indicate what corrective actions can be instigated to correct deviations Indicate what corrective actions can be instigated to correct deviations Provide input, such as lessons learned, into the next planning cycle Provide input, such as lessons learned, into the next planning cycle

23. PROJECT REVIEW Review - When you consider something again in order to make changes to it, give an opinion of it or study it Review - When you consider something again in order to make changes to it, give an opinion of it or study it Post Project Review process consists of activities performed by a project team at the end of the project’s life cycle (or at the end of significant phases of work) to gather information on what worked well and what did not, so that future projects can benefit from that learning Post Project Review process consists of activities performed by a project team at the end of the project’s life cycle (or at the end of significant phases of work) to gather information on what worked well and what did not, so that future projects can benefit from that learning Measures whether the benefits of a project's outcomes have been realised Measures whether the benefits of a project's outcomes have been realised –to measure if expected benefits of the project have been realised –to indicate if the project has caused any problems/opportunities while in use –gauges Client’s / User's comments about performance, reliability, suitability and ease of use of the end product –planned as part of identifying Follow-on Actions but created after the product has finished Could have various stages of reviews Could have various stages of reviews The Office of Government Commerce (OGC) developed the Gateway Project Review Process and introduced it across Central Civil Government as part of the Modernisation Agenda, to support the delivery of improved Public Services. The process has been operating since January 2001. The Office of Government Commerce (OGC) developed the Gateway Project Review Process and introduced it across Central Civil Government as part of the Modernisation Agenda, to support the delivery of improved Public Services. The process has been operating since January 2001.

24. What is the difference between an Audit and a Review?

25. READING LIST Gray, C.F. & Larson, E.W. (2006), Project Management: The Managerial Process, NY: McGraw-Hill International/Irwin. Gray, C.F. & Larson, E.W. (2006), Project Management: The Managerial Process, NY: McGraw-Hill International/Irwin. Reiss, G. (1995), Project Management Demystified: Today’s Tools and Techniques, 2 nd Edition, Reiss, G. (1995), Project Management Demystified: Today’s Tools and Techniques, 2 nd Edition, Winch, G. Lecture Notes Winch, G. Lecture Notes http://www.blackwellpublishing.com/winch/case.pdf http://www.blackwellpublishing.com/winch/case.pdf http://www.blackwellpublishing.com/winch/case.pdf http://www.ce.cmu.edu/pmbook/ http://www.ce.cmu.edu/pmbook/ http://www.ce.cmu.edu/pmbook/ http://www.constructingexcellence.org.uk http://www.constructingexcellence.org.uk http://www.constructingexcellence.org.uk http://www.maxwideman.com/guests/index.htm http://www.maxwideman.com/guests/index.htm http://www.maxwideman.com/guests/index.htm

26. Any Questions? Next Week Revision and Tutorials