1. Project Management x470 Executing, Monitoring & Control UC Berkeley Extension, Business and Management Week 4 - May 14, 2011 Jennifer Russell 415.385.1749jr@mastodonconsulting.com Ray Ju 415.845.8880rayju@sbcglobal.net

2. 2 Agenda Team Time Quiz Monitor and Control Human Resources Management Earn Value Management Quality Management Planning Project Final

3. 3 Challenges of Execution / Monitoring and Control Project implemented to deliverable, time, cost and process baselines Deliverable completion status Issues / action items management Corrective actions Change control Risk monitoring and control Tracking intensity Maintaining an open environment

4. 4 Monitoring and Controlling “We cannot live without change. The race for survival in this world is not to the strongest, but to the most adaptive.” Jong-Yong Yun, Vice-Chairman, Samsung Jong-Yong Yun, Vice-Chairman, Samsung

5. 5 Monitoring and Controlling Processes

6. 6 Monitor & Control Project Work Monitor project processes Actions taken to control project performance Monitoring performed throughout the project Collecting, measuring and distributing performance information and assessing measurements and trends to effect process improvements

7. 7 Integrated Change Control Influencing the factors that create changes to ensure that changes are agreed upon Determining that a change need to occur or has occurred Managing the actual changes when and as they occur Scope, Schedule and Cost Control Process control Scope Change Request template in workbook

8. 8 Project Baseline Change Control Scope Mgm’t Scope VerificationAccepted Deliverables Scope ControlUpdates to Scope Statement, WBS and other scope documents Time Mgm’t Schedule ControlUpdates to schedule and other Time Management documents Cost Mgm’t Cost ControlUpdates to Cost Baseline and other documents Knowledge Area Monitoring and Control Process Key Deliverbles

9. 9 Scope Verification Process of obtaining formal acceptance of the completed project scope (deliverables) by the stakeholders Deliverables and work results review Documented acceptance of phase or major deliverable completion by the sponsor/client

10. 10 Project Human Resource Management Process GroupProcess NameProcess Major Deliverable/s Monitoring & Controlling Manage Project Team Requested Changes Recommended Corrective and Preventive Actions Team member performance Issue / conflict resolution Staff change management

11. 11 Type Of Conflicts Scheduling Priorities Manpower resources Technical opinions and trade-offs Administrative procedures Costs Personality clashes Equipment and facilities Capital expenditures Responsibilities Others? “The success or failure of a project manager is related to the ability to anticipate and deal with change.” Trouble Happens; Keep Your Cool.

12. 12 Views of Conflicts OldNew Conflict is dysfunctional and cause by personality differences or a failure of leadership Conflict is an inevitable consequence of organizational interaction Conflict is to be avoidedConflict can be beneficial Conflict is resolved by physical separation or management intervention Conflict is resolved by identifying the causes and problem solving by the people involved and their immediate manager Treat conflicts as expressions of stakeholders’ needs and expectations!

13. 13 Conflict Resolution Modes Confrontation (Problem Solving) Facing the conflict directly, which involves a problem-solving approach whereby affected parties work through their disagreements. Compromising Bargaining and searching for solutions that bring some degree of satisfaction to the parties in a dispute. Characterized by a “give- and-take” attitude. Withdrawal Retreating or withdrawing from an actual or potential disagreement. Forcing Exerting one’s viewpoint at the potential expense of another. Often characterized by competitiveness and a win- lose situation. Smoothing De- emphasizing or avoiding areas of difference and emphasizing areas of agreement.

14. Conflict Resolution Objectives 1.Solve the conflict / problem 2.Do it in a way that builds relationships No tricks!  Pause and think before reacting  Keep the meeting under control  Listen to all involved parties  Express your views in a way that resonates with the other parties  Be willing to say when you were wrong  Not act as a superman and leveling the discussion only once in a while  Know the organization  Clarify the nature of the conflict  Understand the conflict motives / feelings / mental models (specially yours)  Suggest procedures for resolving differences  Facilitate the communications process

15. 15 Project Communication Management Process GroupProcess NameProcess Major Deliverable/s Monitoring & Controlling Performance Reporting 1.Performance Reports –Comparison to baseline –Bar chart, S-curves, histograms, tables, traffic light –Earned Value Management 2.Forecasts Manage Stakeholders Resolve issues

16. 16 Project Communication Management Collection and dissemination of performance information to stakeholders with info on how resources are being used to meet project goals –Status reporting (where project stands vs. baselines) –Progress reporting (accomplishments) –Forecasting (prediction of future performance) –Risks (present and future) assessment –Special problems / management assistance

17. 17 Project Dashboard ProjectMetricStatusTrend Problem Statement Corrective Action Scope Schedule Cost Overall Health Executive Summary Results Next Steps Working Challenges

18. 18 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 Green On track for scheduled completion Yellow Within 10% of scheduled completion Red Over 10% scheduled completion. Need re-baseline. Cost Green Completion within budget Yellow Completion within 10% of budget Red Completion over 10% of budget. Need re- baseline.

19. 19 Sample Metric Trend Definition ColorDefinition Green Less than 25% probability that a project risk that impacts a parameter target (scope, time, cost) will occur Yellow 25% to 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur. Red Greater than 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur

20. 20 Flexibility Matrix and Status Trigger Trigger point for Schedule color can be tighter ParameterHighMediumLow ScopeYes ScheduleYes CostYes Trigger point for Cost color can be looser

21. 21 Project Reports Proj ID Project Name Project Manager Major Issues Sched Status Tech Status BudgetSavingsStaffing Cust Satis. Sched Comp. Overall DISRUPTED PROJECTS 12 RR YYYYYRR 32 Y G YY GGGG Y TOP INITIATIVES (TI) 8 GGGGGGGGG 18 GGGGGGGGG INFRASTRUCTURE IMPERATIVES 6 GGGGGGGGG 43 GGGGGGGGG

22. Earned Value Management (EVM)

23. 23 Earned Value Management (EVM) 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)

24. 24 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. Planned Value (PV) = $1500 (work scheduled/planned to be completed) Actual Cost (AV) = $1350 Earned Value (EV) = 1500(2/3)= $1000 (work actually completed)

25. 25 Earned Value Formulae Cost Variance (CV)CV = EV - AC Schedule Variance (SV)SV = EV - PV Cost Variance in %CVP = (CV/EV)100% Schedule Variance in %SVP = (SV/PV)100% Cost Performance Index (CPI) CPI = EV/AC Schedule Performance Index (SPI) SPI = EV/PV

26. 26 Estimate at Completion EAC = AC EV X 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. (BAC) Other Formulae a.Actual plus new estimate to complete EAC = AC + ETC b.Actual plus remaining budget (PV) EAC = AC + (BAC – EV) c.Actual plus remaining budget modified by the performance index EAC = AC + (BAC – EV)/CPI

27. 27 Using Earned Value Project: Software enhancement for a drug company Baseline: Entire effort priced at $200K and scheduled for completion June 10 th As of June 10: Project cost to date is $195K. One activity is left in the project estimated to cost $25K. Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount.

28. 28 Using EV 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

29. 29 Using Earned Value Deliverable Predecessor Duration Scheduled Cost / Day A-3$1,000 B-5$2,000 CA4$4,000 DB7$1,000 EC6$2,000 FD8$3,000 Deliverable End of Week 1 Actual % Completed Cumulative Actual Cost A60%$1,500 B30%$3,000 C10%$2,000 D0%0 E 0 F 0

30. 30 Using Earned Value V: Gantt Chart A C E B D F 12345678910101 1212 1313 1414 1515 1616 1717 1818 1919 2020 Week 1 Schedule and CostEnd of Week 1 TaskPred. Duration (Days) Scheduled Cost / Day Actual % Done Cumulative Actual Cost PVEV A 3$1,00060%$1,500$3,000$1,800 B 5$2,00030%$3,000$10,000$3,000 CA4$4,00010%$2,000$8,000$1,600 DB7$1,0000%$0 EC6$2,0000%$0 FD8$3,0000%$0 $6,500$21,000$6,400

31. 31 Using Earned Value TaskPVEVAC SV = EV-PV CV = EV-AC SI = EV/PV CI = EV/AC EAC = AC*BAC/EV A300018001500-12003000.61.2 73125 B100003000 -700000.31 C800016002000-6400-4000.20.8 D000 E000 F000 2100064006500 -14600 -1000.3050.98

32. 32 Quality Management Project quality management includes the process required to ensure that the project satisfies the needs for which it is undertaken. –Conformance to requirements: the project’s processes and products meet written specifications –Fitness for use: a product can be used as it was intended

33. Quality Processes Quality planning: –identifying which quality standards are relevant to the project and determining how to satisfy them –Clear scope statement, acceptance criteria Quality assurance: –applying the planned, systematic quality activities to ensure all processes needed to meet requirements are employed. Quality control: –monitoring specific project results to determine whether they comply with applied quality standards, and identifying ways to eliminate causes of unsatisfactory performance. "You can use an eraser on the drafting table or a sledge hammer on the construction site.” -- Frank Lloyd Wright 33

34. Product vs. Project Quality Project Quality: –Applies to all aspects of the project, regardless of the product Product Quality –Product quality measures and techniques are specific to the particular type of product produced by the project 34

35. Quality Planning Identify which variables have the most influence on the overall outcome of a process Cost-benefit tradeoffs 35

36. Quality Assurance Continuous quality improvement Benchmarking Audits 36

37. Quality Control Cause-and-effect diagrams trace complaints about quality problems back to the responsible production operations –They help you find the root cause of a problem –Also known as fishbone or Ishikawa diagrams 37

38. Quality Control Charts A control chart is a graphic display of data that illustrates the results of a process over time Quality control charts allow you to determine whether a process is in control or out of control –When a process is in control, any variations in the results of the process are created by random events; processes that are in control do not need to be adjusted –When a process is out of control, variations in the results of the process are caused by nonrandom events; you need to identify the causes of those nonrandom events and adjust the process to correct or eliminate them 38

39. Pareto Diagram Pareto analysis is also called the 80-20 rule, meaning that 80 percent of problems are often due to 20 percent of the causes In the below chart, Log-in Problems account for about 55% of the complaints and together with System lock-ups accounts for about 80% 39

40. 40 Planning for Final Presentation Everyone participates 45-60 minutes = 30-45 minutes + 15 Q&A Demonstrate use of tools, templates and processes 12 – 18 slides Addendum for any supporting documents Presenting to your sponsor audience for approval to move project forward

41. Grading Rubric 1. Appearance40% Is this presentation Visually Appealing Interesting to you Words legible to read Graphics / animation support and not distract 2. Content 60% Does this presentation Make sense Follow good Project Management methodology and process Put the pieces into the proper order Provide enough details for you to make an informed decision 41