bmgn_n470_lo4_2014-15-sem1 - cv,sv - part 4

7/26/2019 BMGN_N470_LO4_2014-15-sem1 - CV,SV - Part 4

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PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookCopyrightCopyright 2006 The McGraw-Hill Companies. ll rights reser!e".2006 The McGraw-Hill Companies. ll rights reser!e".

THE MANAGERIAL PROCESS Clifford F. GrayEric W. Larson

Third Edition

Pr ojec tManagementPr ojec tManagement

Chapter 13Chapter 13 Progress and PerformanceProgress and Performance

Measurement and EvaluationMeasurement and Evaluation


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Project Monitoring System for ControlProject Monitoring System for Control

Information System Strctre!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 reuiring intervention

Cost and!or schedule overruns and the reasons forthem

"orecast of overruns at time of project completion


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The Project Control ProcessThe Project Control Process

Control! The #rocess of comparing actual performance

against plan to identify deviations$ e%alate

courses of action$ and ta&e a##ro#riate correcti%e

action. Project Control Ste#s

'. Setting a baseline plan.

2. Measuring progress and #erformance.

3. Comparing plan against actual.

(. Ta&ing actions


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Earned )ale Cost*Schedle SystemEarned )ale Cost*Schedle System

+n integrated #roject management system is ,ased on

the earned value concept that ses a time-#hased

,dget ,aseline to com#are actal and #lanned

schedle and costs.


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Glossary of TermsGlossary of Terms

EV (Earned Value) o! muc !e fulfilled"! The #ercent com#lete times its original ,dget. The #ercent of theoriginal ,dget that has ,een earned ,y actal or& com#leted.

The older acronym for this %ale as /CWP 0budgeted cost of

te !or# performed.

PV (Planned Value) o! muc !as planned"! The time-#hased ,aseline of the %ale of the or& schedled. +n

a##ro%ed cost estimate of the resorces schedled in a time-

#hased cmlati%e ,aseline 1/CWS 0 budgeted cost of te

!or# sceduled2.

$C ($ctual Cost) !at is te actual cost"! The actal cost of the or& com#leted. The sm of the costs

incrred in accom#lishing or&. 1+CWP 0 actual cost of te

!or# performed2.

%$&'E 3.


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C) 1flfilled from the #lan - actal costs ---- cost e%oltion2

! Cost variance is the difference ,eteen the earned %ale and the actalcosts for the or& com#leted to date here CVEV*$C.

S) 1flfilled from the #lan ! #lanned %ales ----- schedle e%oltion2

! +cedule variance 1S)2 is the difference ,eteen the earned %ale and the

,aseline line to date here +VEV*PV.

/+C! total ,dget costs

! &udgeted cost at completion. The total ,dgeted cost of the ,aseline or

#roject cost acconts.

E+C! #dated costs

! Estimated costs at completion. Incldes costs to*date plus revised

estimated costsfor the or& remaining.


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ETC! Estimate to com#lete.

)+C

! Cost %ariance at com#letion 1/+C-E+Ce2$ here E+Ceis deri%ed

,y estimators in the field.

! 3r$ alternati%ely$ cost %ariance at com#letion 1/+C-E+Cf2$ here

E+Cfis deri%ed from a formla sing actal and earned %ale

costs.

! )+C indicates e4#ected actal o%er-or nderrn cost at

com#letion.

%$&'E 3.


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Methods of )ariance +nalysisMethods of )ariance +nalysis

Com#aring Earned )ale!With the e4#ected schedle %ale 1S)5E)-P)2.

!With the actal costs 1C)5E)-+C2.

+ssessing Stats of a Project!6e7ired data elements

Data #udgeted cost of the wor$ scheduled (P%)

#udgeted cost of the wor$ completed (&%)

'ctual cost of the wor$ completed ('C)!Calclate schedle and cost %ariances

' positive variance indicates a desirable condition whilea negative variance suggests problems or changes that haveta$en place


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Methods of )ariance +nalysisMethods of )ariance +nalysis

Cost )ariance 1C)2

!Indicates if the or& accom#lished sing la,or and

materials costs more or less tan !as planned at

any #oint in the #roject.

Schedle )ariance 1S)2

!Presents an o%erall assessment in dollar terms of the

progress of all !or# pac#ages in te pro,ect

sceduled to date.


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Cost*Schedle Gra#hCost*Schedle Gra#h


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Earned )ale 6e%ie E4erciseEarned )ale 6e%ie E4ercise

-/01E 3.


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8igital Camera Prototy#e Project /aseline8igital Camera Prototy#e Project /aseline


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8igital Camera Prototy#e Stats 6e#orts9 Periods '8igital Camera Prototy#e Stats 6e#orts9 Periods '!:!:

%$&'E 3.2


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8igital Camera Prototy#e Stats 6e#orts9 Periods (8igital Camera Prototy#e Stats 6e#orts9 Periods (!;!;

%$&'E 3.2 (contd)


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8igital Camera Prototy#e Stats 6e#orts9 Period


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8igital Camera Prototy#e Smmary Gra#h 1===28igital Camera Prototy#e Smmary Gra#h 1===2


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Inde4es to Monitor ProgressInde4es to Monitor Progress

Performance Inde4es!Cost Performance Inde4 1CP*2+easures the cost e,cienc of wor$ accomplished to date

CPI = EV/AC

!Schedling Performance Inde4 1.P*2+easures scheduling e,cienc

SPI = EV/PV

!Percent Com#lete Inde4es

*ndicates how much of the wor$ accomplished represents

of the total budgeted (#'C) and actual ('C) dollars to datePCI = EV/AC

PCIC = AC/EAC


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Inter#retation of Inde4esInter#retation of Inde4es

%$&'E 3.3


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Inde4esInde4es

Periods 'Periods '!


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+dditional Earned )ale 6les+dditional Earned )ale 6les

6les a##lied to short-dration acti%ities and*orsmall-cost acti%ities

!=*'== #ercent rle

'ssumes /00 1 of budget credit is earned at once

and onl when the wor$ is completed

!>=*>= rle

'llows for 201 of the value of the wor$ pac$agebudget to be earned when it is started and 201 to be

earned when the pac$age is completed


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Forecasting Model9 E+Cf

The e7ation for this forecasting model9

bmgn_n470_lo4_2014-15-sem1 - cv,sv - part 4

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