09 project performance mgt
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Performance ManagementPerformance Management
Session 9Session 9
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The Project CycleThe Project Cycle
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Performance ManagementPerformance Management
The Most Basic SystemThe Most Basic System
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Performance ManagementPerformance Management
Monitoring Time PerformanceMonitoring Time Performance
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Performance ManagementPerformance Management
This Is What It Looks Like In MS ProjectThis Is What It Looks Like In MS Project
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Performance ManagementPerformance Management
Monitoring Time PerformanceMonitoring Time Performance
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PerformancePerformance
ManagementManagement
y Looks only at time
y Does not take into account cost performance
y While it implies work completed it is based on
time spent this not verified actual complete
y What is the value of the work completed?
CommentComment
Monitoring Time PerformanceMonitoring Time Performance
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Performance ManagementPerformance Management
Monitoring Budget PerformanceMonitoring Budget Performance
Example you budget 100 hours to assemble bridge
pillars and at the end of the period you have achieved the 100 hours
Budget Actual Variance
100 hours @ R 300 R 100 hours @
R 300
R 0
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Performance ManagementPerformance Management
Ho do you stay on track?Ho do you stay on track?
What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management
Integrated Cost/Schedule System
Project Baselines
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Performance ManagementPerformance Management
Time PerformanceTime Performance
Does not connect duration to resource
utilization
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Performance ManagementPerformance Management
Cost PerformanceCost Performance
Systems that measure only cost
variances do not identify resource and
project cost problems associated with
falling behind or progressing ahead of
schedule
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Performance ManagementPerformance Management
Ho do you stay on track?Ho do you stay on track?
What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management
Integrated Cost/Schedule System
Project Baselines
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Performance ManagementPerformance Management
EVAEVA-- What do you need?What do you need?
Does not connect duration to resource
utilization
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Performance ManagementPerformance Management
EVAEVA-- What do you need?What do you need?
Does not connect duration to resource
utilization
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Performance ManagementPerformance Management
What is Earned ValueAnalysis (EVA)?What is Earned ValueAnalysis (EVA)?
Does not connect duration to resource
utilization
A project performancemeasurement technique that
integrates scope, time, and cost
data.
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Performance ManagementPerformance Management
What is Earned ValueAnalysis (EVA)?What is Earned ValueAnalysis (EVA)?
Does not connect duration to resource
utilization
A project performance measurement technique
that integrates scope, time, and cost data.
Given a baseline (original plan plus approvedchanges), you can determine how well the
project is meeting its goals.
You must enter actual information
periodically to use EVA.
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Performance ManagementPerformance Management
The Planned Value (PV)The Planned Value (PV) -- This is that portion of the approved total costThis is that portion of the approved total costestimate planned to be spent on an activity during a given periodestimate planned to be spent on an activity during a given period
1000
900
800
700
600
500
400
300
200
100
1 2 3 4 5 6 7 8 9 10
PVPV
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Performance ManagementPerformance Management
The Planned Value (PV)The Planned Value (PV) -- This is that portion of the approved total costThis is that portion of the approved total costestimate planned to be spent on an activity during a given periodestimate planned to be spent on an activity during a given period
1000
900
800
700
600
500
400
300
200
100
1 2 3 4 5 6 7 8 9 10
PVPV
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Performance ManagementPerformance Management
Actual Cost (AC)Actual Cost (AC) --TheThe total coststotal costs incurred in finishing work on anincurred in finishing work on anactivity during a given periodactivity during a given period
1000
900
800
700
600
500
400
300
200
100
1 2 3 4 5 6 7 8 9 10
PVPVACAC
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Performance ManagementPerformance Management
Earned Value (EV)Earned Value (EV) -- An estimate of the value of the physical workAn estimate of the value of the physical workactually completedactually completed
1000
900
800
700
600
500
400
300
200
100
1 2 3 4 5 6 7 8 9 10
PVPVACAC EVEV
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Performance ManagementPerformance Management
Time NowTime Now An importantconceptAn importantconcept
1000
900
800
700
600
500
400
300
200
100
1 2 3 4 5 6 7 8 9 10
PVPVACAC EVEV
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Performance ManagementPerformance Management
Based on this you can calculate:Based on this you can calculate:
CV Cost Variance
SV Schedule Variance
CPICost Performance
Index
SPISchedule Performance
Index
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Performance ManagementPerformance Management
Earned ValueEarned Value
Determine value of work
completed attime now
Or percentage times budget
atcompletion (EV=
PCxBAC), where PC is
percentage complete
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Performance ManagementPerformance Management
Cost VarianceCost Variance
Earned Value (EV) minus
Actual Cost (AC) shows the
difference between theestimated cost of an activity
and the actual cost of that
activity
EV-AC=CV
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Performance ManagementPerformance Management
Cost Performance IndexCost Performance Index
CPI = EV/AC
If the CPI < 1 then the project
is spending more than it isgetting in terms of value
Corrective action needs to be
taken else the project will
make a loss or will run out offunds
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Performance ManagementPerformance Management
Schedule VarianceSchedule Variance
Earned Value (EV) minus
Planned Value (PV) shows the
difference between theschedule completion and
actual completion to date.
EV-PV=SV
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Performance ManagementPerformance Management
Schedule Performance IndexSchedule Performance Index
SPI = EV/PV
If the SPI < 1 then the projectis behind schedule
Corrective action needs to be
taken to bring up to schedule
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Performance ManagementPerformance Management
Estimate at Completion (Estimate at Completion (EACEAC))
EAC = AC/PC (where PCis Percentage Complete
atTime Now
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Performance ManagementPerformance Management
Estimate to Complete (ETC)Estimate to Complete (ETC)
ETC = EAC-AC
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Performance ManagementPerformance Management
ExampleExample
WP BAC PV PC EV AC SV CV EAC ETC
1 9000 9000 100 9000 11000 0 -2000 11000 0
2 2000 2000 100 2000 2000 0 0 2000 0
3 10000 6000 50 5000 7000 -1000 -2000 14000 7000
4 6000 6000 67 3996 4000 -2004 -4 6006 2006
5 4000 4000 50 2000 2500 -2000 -500 5000 2500
6 6000 0 0 0 0 0 0 6000 6000
7 8000 0 0 0 0 0 0 8000 8000
8 4000 2000 50 2000 1500 0 500 3000 1500
9 8000 4000 25 2000 3000 -2000 -1000 12000 9000
10 4000 4000 100 4000 3500 0 500 3500 0
29996 34500 -7004 -4504 70506 36006
ExampleExample
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Performance ManagementPerformance Management
ExampleExample
WP BAC PV PC EV AC SV CV EAC ETC
1 9000 9000 100 9000 11000 0 -2000 11000 0
2 2000 2000 100 2000 2000 0 0 2000 0
3 10000 6000 50 5000 7000 -1000 -2000 14000 7000
4 6000 6000 67 3996 4000 -2004 -4 6006 2006
5 4000 4000 50 2000 2500 -2000 -500 5000 2500
6 6000 0 0 0 0 0 0 6000 6000
7 8000 0 0 0 0 0 0 8000 8000
8 4000 2000 50 2000 1500 0 500 3000 1500
9 8000 4000 25 2000 3000 -2000 -1000 12000 9000
10 4000 4000 100 4000 3500 0 500 3500 0
29996 34500 -7004 -4504 70506 36006
ExampleExample
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Performance ManagementPerformance Management
Ho do you stay on track?Ho do you stay on track?
What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management
Integrated Cost/Schedule System
Project Baselines
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Performance ManagementPerformance Management
Dwight EisenhowerDwight Eisenhower
Plans are useless planning is indispensible
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Performance ManagementPerformance Management
When plans changeWhen plans change
EVA allows experts in the field tochange original baseline durationsand costs because new information
tells them the original estimates arenotaccurate
EVA uses actual costs-to-date plus anefficiency index to project final costsin large projects where the originalbudget is unreliable
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Performance ManagementPerformance Management
An Integrated SystemAn Integrated System
System
Planning
Control
WBS
Network
Diagram
Schedule Bar
Chart
Monitorand
Review
Corrective
Action
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Performance ManagementPerformance Management
An Integrated SystemAn Integrated System
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Performance ManagementPerformance Management
Ho do you stay on track?Ho do you stay on track?
What is a Project Monitoring System
Examples of Progress Reports
What is the Project Control Process and why is it useful?
How do I Monitor Time Performance
The shortcomings of monitoring Systems
Earned Value Management
Integrated Cost/Schedule System
Project Baselines
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Performance ManagementPerformance Management
Baseli e isananchor oint for easuring erfor anceBaseline isananchor oint for easuring erfor ance
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Performance ManagementPerformance Management
To change the baselineTo change the baseline change control processchange control process
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Performance ManagementPerformance Management
To change the baselineTo change the baseline change control processchange control process
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Performance ManagementPerformance Management
To change the baselineTo change the baseline change control processchange control process
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Performance ManagementPerformance Management
To change the baselineTo change the baseline change control processchange control process
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