1. © SYBEX Inc. 2005. All Rights Reserved. Session 10 Project Control

2. © SYBEX Inc. 2005. All Rights Reserved. Learning Objectives Understand the elements of integrated change control Understand the concepts behind quality control Understand how to perform risk monitoring and control Understand performance reporting

3. © SYBEX Inc. 2005. All Rights Reserved. Every project is subject to some changes An integrated change control system is required to manage changes in an organized fashion Refer back to the extensive documentation created during the planning phase There may be a formal change control committee involved with large projects Integrated Change Control

4. © SYBEX Inc. 2005. All Rights Reserved. Scope Change Control The management and documentation of any changes to the project scope. For example: –While reviewing a major deliverable, you determine that there have been additions to what was defined in the project plan –Team members tell you they’ve made changes –There is a formal request to add deliverables –There is a design change

5. © SYBEX Inc. 2005. All Rights Reserved. Scope Change Control, con’t Use a standardized form for all scope change requests Analyze the impact of the proposed change vis-à- vis the budget, schedule and quality constraints Use some sort of formal approval process Communicate the results of a proposed change request to all stakeholders Incorporate approved changes into the project plan

6. © SYBEX Inc. 2005. All Rights Reserved. Schedule Control Scope changes might have an impact on schedule –Schedule updates –Corrective action –Lessons learned

7. © SYBEX Inc. 2005. All Rights Reserved. Cost Control Keeping track of project spending to date, determining if any changes to the cost baseline have occurred and taking appropriate action to deal with changes –Revised cost estimates –Corrective action –Lessons learned

8. © SYBEX Inc. 2005. All Rights Reserved. Other Plan Changes In addition to schedule, budget, and scope changes, there are some other elements within a project that can conceivably change –Hunan resources –Requirements –Infrastructure –Configuration

9. © SYBEX Inc. 2005. All Rights Reserved. You Decide You are the PM for a year-long project that will result in the building of a parking garage. Identify the kind of change associated with each item below: –Concrete fabrication vendor changes –Inspector increases number of pieces of required rebar for each concrete section –Fire chief wants to move three fire alarms –Good weather allowed for excavation to complete on time and under budget

10. © SYBEX Inc. 2005. All Rights Reserved. Quality Control Quality control is the process of reviewing project results to confirm compliance with defined standards and making appropriate changes to remove causes of unacceptable quality.

11. © SYBEX Inc. 2005. All Rights Reserved. Quality Control – Inspection and Testing Module testing Unit testing System testing User acceptance testing Factory acceptance testing Site acceptance testing Geographically dispersed teams Vendor deliverables Pareto diagrams Control charts Statistical sampling Flowcharting Trend analysis

12. © SYBEX Inc. 2005. All Rights Reserved. Quality Control Actions Rework Process adjustments Acceptance

13. © SYBEX Inc. 2005. All Rights Reserved. Documentation Quality User documentation User training Help-desk training Other support group documentation –M&O –Sales –Marketing –Etc.

14. © SYBEX Inc. 2005. All Rights Reserved. IT Quality Control Standards Standards Organizations Environmental Processes

15. © SYBEX Inc. 2005. All Rights Reserved. Performance Reporting Variance analysis Trend analysis Estimate at completion (EAC) –Actual cost (AC) –Budget at completion (BAC) –Estimate to complete (ETC) –EAC = AC + ETC

16. © SYBEX Inc. 2005. All Rights Reserved. Performance Reporting, con’t Earned Value –Actual Cost (AC) = Actual Cost of Work Performed (ACWP) –Earned Value (EV) = Budgeted Cost of Work Performed (BCWP) –Planned Value (PV) = Budgeted Cost of Work Scheduled (BCWS) These figures work into various variance analysis calculations

17. © SYBEX Inc. 2005. All Rights Reserved. Variance Analysis Calculations Variances –CV = EV – AC –SV = EV – PV Indexes (ratios) –CPI = EV / AC –SPI = EV / PV –TCPI = (BAC - EV) / (BAC - AC) NOTE: Don’t forget the associative law of mathematics when making this calculation! Everything in the parentheses is worked first, then the division occurs.

18. © SYBEX Inc. 2005. All Rights Reserved. Index Notes CPI over 1 means you’re over budget, CPI under 1 means you’re under budget (for this activity). SPI less than 1 means you’re behind schedule (overrun), SPI more than 1 means you’re ahead of schedule (underrun). A TCPI 20% higher or lower than the CPI means that the current EAC is not representative of past performance.

19. © SYBEX Inc. 2005. All Rights Reserved. You Decide You are a PM for a project and you’re estimating variances for an activity. The activity’s expected cost is $2500. At this point you’ve actually expended $2350 and you’re two-thirds done. –What is the cost variance? –What is the schedule variance?

20. © SYBEX Inc. 2005. All Rights Reserved. You Decide Answer Cost variance = EV – AC = $2500(2/3) – 2350 = $1666.67 – 2350 = -$683.33 Schedule variance = EV – PV = $2500(2/3) – 2500 = -$833.33 CPI = EV / AC = $2500(2/3) / $2350 = 0.709 SPI = EV / PV = $2500(2/3) / $2500 = 0.667

21. © SYBEX Inc. 2005. All Rights Reserved. Dealing with Stakeholders During the Controlling Phase Communicating performance deviations Managing trade-offs –Scope trade-offs –Schedule trade-offs –Cost-trade-offs Cancelling a project

22. © SYBEX Inc. 2005. All Rights Reserved. Effectively Managing the Project Plan Collect data –Progress reports –Issues logs –Budget reports Note progress against baselines –Schedule baseline –Evaluating costs –Scope statement –Deliverable sign-off

23. © SYBEX Inc. 2005. All Rights Reserved. Effectively Distributing Project Information Project team meetings –Consistent date and time –Consistent attendance –Distribution of a written agenda –Start and end the meeting on time –Follow the agenda –Solicit participation from all team members –Distribute meeting minutes Desired team meeting outcomes –Team member interaction –Issues log updates –Problem solving

24. © SYBEX Inc. 2005. All Rights Reserved. Effectively Distributing Project Information, con’t Status reports distributed to the client, stakeholders and sponsor. Reports include: –Summary of project progress compared to schedule and cost baselines –Completion of any major milestone or deliverables –Status of outstanding issues

25. © SYBEX Inc. 2005. All Rights Reserved. Chaptal Winery Case Study Examine the Chaptal figures –Run the CV analysis –Run the SV analysis –Derive the CPI –Derive the SPI –Figure that you’re 90% done

26. © SYBEX Inc. 2005. All Rights Reserved. End of Chapter Review Q&A Instructor Hand-out Q&A Go over end-of-chapter review questions Instructor to hand out additional questions (POP QUIZ TIME!)

27. © SYBEX Inc. 2005. All Rights Reserved. Next Steps For this session: –Explain variance analysis –Describe the possible impacts to check for when evaluating a major change to the project scope –Understand the steps involved in responding to a significant variance from plan, such as increased overtime –Explain how to prevent scope creep when handling requests for changes –Understand the options to present to stakeholders when a project is not progressing as planned –Define estimate to complete (ETC), estimate at completion (EAC) and budget at completion (BAC) –Understand who the various standards bodies are that develop some fo the essential standards used in projects –Be familiar with the Capability Maturity Model (CMM)

28. © SYBEX Inc. 2005. All Rights Reserved. Next Steps, con’t For next session: –Read Chapter 10 and complete the end of chapter review questions. –Work through the continuation of the Chaptal Winery case study found at the end of Chapter 10