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Project Evaluation and Control

Chapter 13

© 2007 Pearson Education

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The Project Control Cycle

1. Settin a !oal

". Ta#in $ctionand %ecyclinthe Process

2. &easurinProress

3. Co'parin $ctual(ith Planned

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The Project S-Curve

Elapsed Ti'e )in (ee#s*

10+ "+"03+302+201+ +0

20

,0

"0

Cu'ulative Cost

) in thousands*

Cu'ulative

udeted CostCu'ulative

 $ctual Cost

10/000 eative ar 

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&ilestone $nalysis

&ilestones are events or stages o the projectthat represent a significant accomplishment.

&ilestonessignal the tea' and supplierscan motivate the tea'oer reevaluation pointshelp coordinate schedulesidentify #ey revie( atesdelineate (or# pac#aes

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Trac#in !antt Chart

Project status is updated 4ylin#in tas# co'pletion to theschedule 4aseline

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Earned alue &anae'ent

Schedule

Cost

Peror'ance

Trac#in Control Charts

ProjectS-Curves

Cost

Peror'ance Schedule

Cost

Peror'ance Schedule

Earnedalue

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Earned alue Ter's

Planned value

Earned value

 $ctual cost o (or# peror'ed

Schedule peror'ance inde5

Cost peror'ance inde5udeted cost at co'pletion

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Steps in Earned alue &anae'ent

1. Clearly define each activity  includin its resourceneeds and 4udet

2. Create usage schedules or activities and resources

3. Develop a time-phased budget  )P*

4. Total the actual costs o doin each tas# )$C*

5. Calculate 4oth the 4udet variance )C* andschedule variance )S*

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Earned alue &ilestones

PV   EV

AC

Slip

Overspend

Scheduled Peror'ed

 $ctual

udet

Schedule

Cost

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Earned alue E5a'ple

 $ctivity 8an 9e4 &ar $pril Plan :C alueStain 6 7 1+ 100 1+

lueprint " , 10 60 6

Prototype 2 6 10 ,0 ,

;esin 3 3 33 1

&on Plan 6 7 , 17   38 ∑ 30

C'ltv 6 1+ 21 36

&on $ct 6 11 6 13

C'ltv $ct 6 1 27 "0Planned alue

36

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Earned alue E5a'ple

Schedule ariances

Planned alue )P* < 36 < 1+=10=10=3

Earned alue )E* < 30 < 1+=6=,=1

Schedule Peror'ance >nde5 < .7 < 30?36 < E?PEsti'ated Ti'e to Co'pletion < )1?.7*5"nde5 < .7+ < 30?"0 < E?$C

Esti'ated Cost to Co'pletion < +0.7 < )1?.7+*536

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Co'pletion alues in E&

Accurate and up-to-date inor'ation is critical in the use o EVM

0?100 %ule +0?+0 %ule

Percentae Co'plete %ule

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Au'an 9actors inProject Evaluation B Control

pti'istic proress reports

Devel o detail

Process evaluation

on-technical peror'ance 'easure'ent

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Critical Success 9actors in theProject >'ple'entation Proile

1. Project 'ission

2. Top 'anae'ent support

3. Project plans B schedules

". Client consultation+. Personnel

,. Technical tas#s

7. Client acceptance

6. &onitorin B eed4ac#

. Co''unication channels

10. Trou4leshootin