Group 12 - Progress and Performance Measurement and Evaluation.pdf
- 1. PROGRESS AND PROGRESS AND PERFORMANCE PERFORMANCE MEASUREMENT AND MEASUREMENT AND EVALUATION EVALUATION Chapter 13
- 2. GROUP 12 GROUP 12 Reporters Reporters Alvie Gane G. Ramada Jane M. Pinque
- 3. WHERE WE ARE NOW WHERE WE ARE NOW
- 4. CHAPTER OUTLINE CHAPTER OUTLINE 1. Structure of a Project Monitoring Information System 2. The Project Control Process 3. Monitoring Time Performance 4. Development of an Earned Value Cost/Schedule System 5. Developing a Status Report: A Hypothetical Example 6. Indexes to Monitor Progress 7. Forecasting Final Project Cost 8. Other Control Issues 9. Summary 10. Key Terms
- 5. Creating a project monitoring system involves determining: What data to collect How, when, and who will collect the data How to analyze the data How to report current progress to management Structure of a Project Structure of a Project Monitoring Information Monitoring Information System System
- 6. Information System Structure 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 requiring intervention Cost and/or schedule overruns and the reasons for them Forecast of overruns at time of project completion -- What data are collected? Project Monitoring Project Monitoring Information System Information System
- 7. Information System Structure (cont’d) Collecting data and analysis Who will collect project data? How will data be collected? When will the data be collected? Who will compile and analyze the data? Reports and reporting Who will receive the reports? How will the reports be transmitted? When will the reports be distributed? Project Monitoring System… (cont’d) Project Monitoring System… (cont’d)
- 8. Control Project Control Steps Setting a baseline plan. Measuring progress and performance. Comparing plan against actual. Taking action. Tools - Tracking and baseline Gantt charts - Control charts The process of comparing actual performance against plan to identify deviations, evaluate courses of action, and take appropriate corrective action. 1. 2. 3. 4. The Project Control Process The Project Control Process
- 11. Glossary of Terms Glossary of Terms
- 12. Developing an Integrated Cost/Schedule System Developing an Integrated Cost/Schedule System Scope Work packages Deliverables Organization units Resources f. Budgets Schedule resources to activities 1. Define the work using a WBS. a. b. c. d. e. 2. Develop work and resource schedules. a. b.Time-phase work packages into a network (EV-AC). 3. Develop a time-phased budget using work packages included in an activity. Accumulate budgets (PV). 4. At the work package level, collect the actual costs for the work performed (AC). Multiply percent complete times original budget (EV).` 5. Compute the schedule variance (EV-PV) and the cost variance
- 14. Development of Project Baselines Development of Project Baselines PURPOSES OF A BASELINE (PV) WHAT COSTS ARE INCLUDED IN BASELINES? A planned cost and expected schedule against which actual cost and schedule are measured. A basis for cash flows and awarding progress payments. A summation of time-phased budgets (cost accounts as summed work packages) along a project timeline. - An anchor point for measuring performance -- Labor, equipment, materials, project direct overhead costs (DOC)
- 15. Development of Project Baselines (cont’d) Development of Project Baselines (cont’d) RULES FOR PLACING COSTS IN BASELINES Costs are periodically assigned to a baseline as units of work are completed over the duration of a work package. -Costs are placed exactly as they are expected to be “earned” in order to track them to their point of origin. -Percent Complete Rule
- 16. Methods of Variance Analysis Methods of Variance Analysis Comparing Earned Value Assessing Status of a Project Data Budgeted cost of the work scheduled (PV) Budgeted cost of the work completed (EV) Actual cost of the work completed (AC) A positive variance indicates a desirable condition, while - With the expected schedule value. - With the actual costs. - Required data elements - Calculate schedule and cost variances a negative variance suggests problems or changes that have taken place.
- 17. Methods of Variance Analysis Methods of Variance Analysis Cost Variance (CV) Schedule Variance (SV) - Indicates if the work accomplished using labor and materials costs more or less than was planned at any point in the project. - Presents an overall assessment in dollar terms of the progress of all work packages in the project scheduled to date.
- 20. Developing A Status Report: Developing A Status Report: A Hypothetical Example A Hypothetical Example ASSUMPTIONS -Each cost account has only one work package, and each cost account will be represented as an activity on the network. -The project network early start times will serve as the basis for assigning the baseline values. -From the moment work an activity begins, some actual costs will be incurred each period until the activity is completed.
- 21. Indexes to Monitor Progress Indexes to Monitor Progress Performance Indexes Measures the cost efficiency of work accomplished to date. CPI = EV/AC Measures scheduling efficiency SPI = EV/PV Indicates how much of the work accomplished represents PCIB = EV/BAC PCIC = AC/EAC - Cost Performance Index (CPI) - Scheduling Performance Index (SPI) - Percent Complete Indexes of the total budgeted (BAC) and actual (AC) dollars to date.
- 22. Additional Earned Value Rules Additional Earned Value Rules Rules applied to short-duration activities and/or small-cost activities Assumes 100 % of budget credit is earned at once and Allows for 50% of the value of the work package budget Uses subjective estimated percent complete in -- 0/100 percent rule only when the work is completed. -- 50/50 rule to be earned when it is started and 50% to be earned when the package is completed. -- Percent complete with weighted monitoring gates combination with hard, tangible monitoring points.
- 23. Forecasting Final Project Cost Forecasting Final Project Cost Methods used to revise estimates of future project costs: Allows experts in the field to change original baseline durations and costs because new information tells them the original estimates are not accurate. Uses actual costs-to-date plus an efficiency index to project final costs in large projects where the original budget is unreliable. -- EACre -- EACf
- 24. KEY TERMS KEY TERMS Baseline budget Control chart Cost performance index (CPI) Cost variance (CV) Earned value (EV) Estimated Cost at Completion—Forecasted (EACf) Estimated Cost at Completion—Revised Estimates (EACre) Percent complete index—budget costs (PCIB) Percent complete index—actual costs (PCIC) Schedule performance index (SPI) Schedule variance (SV) Scope creep To complete performance index (TCPI) Tracking Gantt chart Variance at completion (VAC)
- 25. Measures accomplishments against plan and deliverables. Provides a method for tracking directly to a problem work package and organization unit responsible. Alerts all stakeholders to early identification of problems, and allows for quick, proactive corrective action. Improves communication because all stakeholders are using the same database. Keeps customer informed of progress, and encourages customer confidence that the money spent is resulting in the expected progress. Provides for accountability over individual portions of the overall budget for each organizational unit. The best information system does not result in good control. Control requires the project manager to use information to steer the project through rough waters. Control and Gantt charts are useful vehicles for monitoring time performance. The cost/ schedule system allows the manager to have a positive influence on cost and schedule in a timely manner. The ability to influence cost decreases with time; therefore, timely reports identifying adverse cost trends can greatly assist the project manager in getting back on budget and schedule. The integrated cost/schedule model provides the project manager and other stakeholders with a snapshot of the current and future status of the project. The benefits of the cost/schedule model are as follows: 1. 2. 3. 4. 5. 6. With your information system in place, you need to use your communication plan to keep stakeholders informed so timely decisions can be made to ensure the project is managed effectively. Chapter Summary Chapter Summary
- 27. Ignoring progress and Ignoring progress and performance measurement in performance measurement in project project management is like management is like building a house without a building a house without a blueprint. You’ll end up with a blueprint. You’ll end up with a structure full of uncertainties. structure full of uncertainties.
- 28. THANKYOU And God bless <3