Transcript Project Monitoring and Control

Project Monitoring and Control
Introduction
• Goal: ensuring that the project is on time and
on budget and/or highlight any deviation from
the plan
• Areas
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Scope
Schedule
Costs
Risks
Quality
Human Resources
Monitoring
• Scope
– Scope creep… request for changes,
rework, …
• Risks
– Risk monitoring and control
• Human Resources
– Informal talks, set goals, …
Monitoring (II)
• Time and Costs?
• Monitoring the schedule
– Baselining
– “Actual” values
• Monitoring costs
– Earned Value
Basic Concepts
• Baselining
– (values at t1, all values at t2, …)
• Planned versus real Values
– (Planned Start, Planned Effort, Planned
End, …)
– (Actual Start, Actual Effort, Actual End, …)
Planned Value
• The cumulative cost
of the approved
costs
• PV(t) = planned
value at time t
• BAC = Budget at
completion
BAC
PV(t)
t
Planned
End
Actual Cost
• The actual
cumulative cost of
the work done so far
+ estimation to end
AC(t)
t
Actual
End
Earned Value
• Measures real achieved
results (in terms on
earnings)
• The sum of the
approved cost
estimates for activities
completed up to a
specified date
• At the end of the
project, EV = PV
t
Computing Earned Value
• Rule 1. Earned value should be determined
by physically examining products
• Rule 2.
– Finished activities:
• Planned Value
– Unstarted activities
• 0
– For unfinished activities earned value is usually
just a guess
• 50/50 Rule (50 at start and 100 at end)
• 20/80 Rule (20 at start and 100 at end)
• 0/100 Rule (0 at start and 100 at end)
Example
Analysis at date, some values
C
PV
a
b
• Some simple values
EV
Tb Ta
BAC • Expresses project
progress (in terms on
c
monetary values)
AC
• Used to compute
performances
T
– CV = EV - AC
– SV = EV - PV
– a = T - Ta
– b = T - Tb
– c
Cost Performance Index (CPI)
• Compares budgeted cost of work performed
to actual cost
• Indicated the efficiency of the project
– CPI = EV/AC
How much we are actually getting for each
euro we thought we would spend.
Schedule Performance Index
(SPI)
• Compares work performed to work
planned
– SPI = EV/PV
• How fast does the project progress w.r.t.
how fast we expected it to be?
Interpreting EV-indicators
• Typically indicators are stable after 20%
of the project
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CPI > 1 project is on budget
CPI < 1 project is over budget
SPI > 1 project is ahead of time
SPI < 1 project is behind schedule
To Complete Performance
Index
• The efficiency that must be achieved to
complete the remaining work with the
remaining money
– TCPI = (BAC - EV) / (BAC - AC)