ch10s
TRANSCRIPT
Introduction
Monitoring - Collecting, recording, and reporting information concerning any and all aspects of project performance
Controlling - Uses the data supplied by monitoring to bring actual performance into compliance with the plan
Evaluation - Judgments regarding the quality and effectiveness of project performance
Planning–Monitoring–Controlling Cycle
Must decide what is important enough to monitor
We mainly want to monitor:– Project performance– Budget– Time
Must be operationalized – Some may be monitored continuously– Others may be checked only at milestones
Designing the Monitoring System
1. Identify key factors to be controlled– Performance– Cost– Time
2. Information to be collected must be identified
Designing the Monitoring System Continued
Want to avoid collecting necessary data because it is hard to get
Do not want to collect too much dataThe next step is to design a reporting
system that gets the data to the proper people in a timely and understandable manner
Data Collection
Once we know the data we want, we need to decide how to collect it
Should the data be collected after some event?
Should it be collected on a regular basis?
Are any special forms needed for data collection?
Much Data Involves
1. Frequency counts
2. Raw numbers
3. Subjective numeric ratings
4. Indicators
5. Verbal measures
Information Needs and Reporting
Project reports need to correspond to the schedule
As work packages are finished, reports on those packages are no longer needed
New work packages generate the need for new reports
Thus, the nature of project reports changes over time
Information Needs and Reporting Continued
Reports should address each levelNot at same depth for every level
– Lower levels need detailed information– Senior levels need overview reports
The Reporting Process
Reports must contain relevant dataMust be issued frequentlyShould be available in time for control
Report Types
1. Routine - Reports that are issued on a regular basis or each time the project reaches a milestone
2. Exception - Reports that are generated when an usual condition occur or as an informational vehicle when an unusual decision is made
3. Special Analysis - Reports that result from studies commissioned to look into unexpected problems
Meetings
Reports do not have to be writtenThey can be delivered verbally in meetingsProjects have too many meetingsThe trick is to keep them to as few as
possible
Meeting Rules
Avoid regular status report meetingsStart and end on timeHave an agenda and stick to itPublish the agenda earlyTake minutes
Common Reporting Problems
Too much detailPoor interface between the
data/procedures of the project and the information system of the parent company
Poor connections between the planning process and the monitoring process
Earned Value Analysis
Earned value is an estimate of the percentage of work completed thus far
This can be a difficult for a projectWhy is that the case?
The Earned Value Calculations
50-50 rule0-100 percent ruleCritical input use ruleThe proportionality rule
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Earned Value Analysis - Variances
Cost (spending) variance (CV) – difference between budgeted cost of work performed (earned value) (BCWP) and actual cost of that work (ACWP)
Schedule variance (SV) – difference between earned value (BCWP) and cost of work we scheduled to perform to date (BCWS)
Time variance (TV) –difference between time scheduled for work performed (STWP) and actual time to perform it (ATWP)
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Earned Value Variance - Formula
VariancesCV = BCWP – ACWP (negative value - cost overrun)
SV = BCWP – BCWS (negative value - behind schedule)
TV = STWP – ATWP (negative value - delay)
Index (Ratios)Cost Performance Index (CPI) = BCWP/ACWP
Schedule Performance Index (SPI) = BCWP/BCWS
Time Performance Index (TPI) = STWP/ATWP
Critical Ratio
It is possible for one of the indicators to be favorable while the other is unfavorable.
Cost-Schedule Index
CSI < 1, it is indicative of problem
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EXAMPLE
Assume that operations on a Work Package cost RM 1,500 to complete. They were originally scheduled to finish today. At this point, we actually spent RM1,350. And we estimate that we have completed two thirds (2/3) of the work. What are the cost and schedule variances?
CV = BCWP – ACWP = 1500 (2/3) – 1350 = - 350 SV = BCWP – BCWS = 1500 (2/3) – 1500 = - 500CPI = BCWP/ACWP = 1500(2/3)/1350 = 0.74SPI = BCWP/BCWS = 1500(2/3)/1500 = 0.67
“To complete” and “At Completion”
Project manager reviewing what is complete and what remains
Final cost and final completion date are moving targets
The project manager compiles these into a ‘to complete’ forecast
Actual + forecast = final date and cost at completion EAC = ETC + ACWP ETC = (BAC – BCWP) / CPI