Pm Session 7

Project Management Session 7Project Management Control

Project Management Control

*Preamble


*How do I manage the following:The overall health of the project;Scope;Acquisition of goods and services;Value.


* Project planning: Milestones Schedule; Human resources; Budget; Responsibilities; Contingencies.Ownership: Stakeholder input; Conditions for satisfaction;Stakeholders feel their interest accommodated.

Project Health


* Expertise: Have expertise; Members understand their responsibilities; Adequate training for team members; Top level support: Project sponsor share responsibility; TOR agreed; Sponsor and management support when required; Communication.Resources:Available HR; Technology available; Task management effective.

Project Health


* Justifiable case: Project fully costed and budgeted; Also agreed with sponsor; ROI clear and acceptable;Metrics in place and methods to measure; Adequate funding;Specification:Objectives clear; Strategic and business alignment; Enthusiasm;Adequate documentation reports; budget; specs; deviations; delegations.

Project Health




*Scope Management


*There are three basic causes for change in projects:Planners erred in their initial assessment about how to achieve a given end or erred in their choice of the proper goal for the project;The client/user or project team learns more about the nature of the project deliverable or about the setting in which it is to be used;Change in the environment in which the project is being conducted.Scope Management


*Scope is defined at various levels:Project charter;Breakdown of deliverables, tasks etc (this is were the Work Breakdown Structure is important);The baseline plan and the budget also part of the scope.Underlying the issue of scope management is change control:Formal system of change control;Impact of changes should be motivated;Where it affects scope, client signoff should be sought and relevant documents updated.

Scope management


*Scope related dilemmas:Scope creep:Changes that are changing the base plan. Inevitable but the project manager needs to keep these changes manageable ;Hope creep:Falling behind schedule, with the hope that one could catch up. The project manager needs to be very careful as this can have severe consequences for the project;Effort creep:Similar to hope creep. Activity that does not produce results;Feature creep:Adding features rather than sticking to the original agreement about deliverables.Scope management




*PMBOK the processes required to acquire goods and services; Procurement schedule (as such) should only be considered after the network diagram and schedule bar chart has been finalized but before the resource histograms and cash flow statements thus what, when before how much and how much when.Procurement


*Procurement




*Context 70% of projects are:Over budgetBehind schedule

52% of all projects finish at 189% of their initial budget

And some, after huge investments of time and money, are simply never comple

Source: The Standish Group


*What is Earned Value?Earned Value is an approach for understanding and assessing what a project is achieving with budgeted money.


*What Do You Need for EVA?


*Managing Without EVAExample you budget 100 hours to assemble bridgePillars and at the end of the period you have achieved the 100 hoursWow we are on budget !

BudgetActualVariance100 hours @ R 300R 100 hours @ R 300R 0


*Managing Without EVADoes this mean we have achieved 100 hours worth of work ?Actual cost is not an indication of progress, - Only an indicator ofhours/money spent.


*Important TermsBCWS - Budgeted Cost of Work Scheduled: Planned cost of the total amount of work scheduled to be performed by the milestone date;ACWP - Actual Cost of Work Performed: Cost incurred to accomplish the work that has been done to date;BCWP - Budgeted Cost of Work Performed: The planned (not actual) cost to complete the work that has been done.


*Example

Chart2

50005000

1100012000

1750019000

2620029000

3500039000

4900055000

37803

37834

37865

37895

37926

37956

BCWP

BCWS

EVA Chart

500050005000

120001100012500

190001750019600

290002620029900

390003500039900

550004900056000

650003780337803

800003783437834

900003786537865

950003789537895

1000003792637926

1020003795637956

Project is:

13.8% Behind Schedule16.1% Over Cost

BCWS

BCWP

ACWP

Typical Chart

90008640

1800017280

2700025920

3600034560

4500043200

5400051840

6300060480

7200037834

8100037865

9000037895

9900037926

10800037956

Projected

Actual

Typical Data

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

Projected900018000270003600045000540006300072000810009000099000108000

Actual8640172802592034560432005184060480

Factor0.96

ACWP

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWP50001100017500262003500049000

ACWP50001250019600299003990056000

ACWP

BCWP

ACWP

BCWP

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWP50001100017500262003500049000

BCWS50001200019000290003900055000

BCWP

BCWP

BCWS

BCWS

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWS5000120001900029000390005500065000800009000095000100000102000

BCWS

BCWS

EVA Data

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWS5000120001900029000390005500065000800009000095000100000102000

BCWP50001100017500262003500049000

ACWP50001250019600299003990056000

Schedule Variance0-1000-1500-2800-4000-6000

Sched. Var. %0.0%-8.3%-7.9%-9.7%-10.3%-10.9%

Schedule Perf. Index1.0000.9170.9210.9030.8970.891

Cost Variance0-1500-2100-3700-4900-7000

Cost Var. %0.0%-13.6%-12.0%-14.1%-14.0%-14.3%

Cost Perf. Index1.0000.8800.8930.8760.8770.875

EAC 1

VAC 1

VAC % 1

EAC 2

Project is:



*ExampleSV - Schedule Variance: (BCWP-BCWS):A comparison of amount of work performed during a given period of time to what was scheduled to be performed.A negative variance means the project is behind schedule


*Example

Chart4

500050005000

120001100012500

190001750019600

290002620029900

390003500039900

550004900056000

650003780337803

800003783437834

900003786537865

950003789537895

1000003792637926

1020003795637956

BCWS

BCWP

ACWP

EVA Chart

500050005000

120001100012500

190001750019600

290002620029900

390003500039900

550004900056000

650003780337803

800003783437834

900003786537865

950003789537895

1000003792637926

1020003795637956

Project is:


BCWS

BCWP

ACWP

Typical Chart

90008640

1800017280

2700025920

3600034560

4500043200

5400051840

6300060480

7200037834

8100037865

9000037895

9900037926

10800037956

Projected

Actual

Typical Data

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

Projected900018000270003600045000540006300072000810009000099000108000

Actual8640172802592034560432005184060480

Factor0.96

Combined Chart

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWS5000120001900029000390005500065000800009000095000100000102000

BCWP50001100017500262003500049000

ACWP50001250019600299003990056000

Combined Chart

BCWS

BCWP

ACWP

ACWP

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWP50001100017500262003500049000

ACWP50001250019600299003990056000

ACWP

BCWP

ACWP

BCWP

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWP50001100017500262003500049000

BCWS50001200019000290003900055000

BCWP

BCWP

BCWS

BCWS

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWS5000120001900029000390005500065000800009000095000100000102000

BCWS

BCWS

EVA Data

1/1/032/1/033/1/034/1/035/1/036/1/037/1/038/1/039/1/0310/1/0311/1/0312/1/03

BCWS5000120001900029000390005500065000800009000095000100000102000

BCWP50001100017500262003500049000

ACWP50001250019600299003990056000

Schedule Variance0-1000-1500-2800-4000-6000

Sched. Var. %0.0%-8.3%-7.9%-9.7%-10.3%-10.9%

Schedule Perf. Index1.0000.9170.9210.9030.8970.891

Cost Variance0-1500-2100-3700-4900-7000

Cost Var. %0.0%-13.6%-12.0%-14.1%-14.0%-14.3%

Cost Perf. Index1.0000.8800.8930.8760.8770.875

EAC 1

VAC 1

VAC % 1

EAC 2

Project is:



*ExampleCV - Cost Variance: (BCWP-ACWP)A comparison of the budgeted cost of work performed with actual cost.A negative variance means the project is over budget.


*ExampleSchedule Variance = BCWP-BCWS:

$49,000- 55,000SV = - $ 6,000

Cost Variance = BCWP-ACWP:

$49,000 56,000CV = - $7,000


*Earned Value?BCWP - Budgeted Cost of Work Performed: The planned (not actual) cost to complete the work that has been done.


*In Simple TermsActual Cost (26)Budget Plan (21)Earned Value (16)Time NowSchedule variance

Sheet:

J

F

M

A

M

J

J

A

S

O

N

D

Budget Plan

Actual Cost

Earned Value


*In Simple TermsActual Cost (26)Budget Plan (21)Earned Value (16)Time NowCost Variance

Sheet:

J

F

M

A

M

J

J

A

S

O

N

D

Budget Plan

Actual Cost

Earned Value


*In Simple TermsActual Cost (26)Budget Plan (21)Earned Value (16)Time NowTime variance

Sheet:

J

F

M

A

M

J

J

A

S

O

N

D

Budget Plan

Actual Cost

Earned Value


*Important MetricsSPI: Schedule Performance Index:SPI=BCWP/BCWSSPI

Date post:	09-Mar-2016
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Pm Session 7

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