Project evaluation in project management
- 1. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 Project Evaluation and Control Chapter 13
- 2. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-2 The Project Control Cycle 1. Setting a Goal 4. Taking Action and Recycling the Process 2. Measuring Progress 3. Comparing Actual with Planned
- 3. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-3 The Project S-Curve Elapsed Time (in weeks) 10 5 45 40 35 30 25 20 15 50 20 60 40 Cumulative Cost ($ in thousands) Cumulative Budgeted Cost Cumulative Actual Cost $10,000 Negative Var
- 4. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-4 Milestone Analysis Milestones are events or stages of the project that represent a significant accomplishment. Milestones ā¦show completion of important steps ā¦signal the team and suppliers ā¦can motivate the team ā¦offer reevaluation points ā¦help coordinate schedules ā¦identify key review gates ā¦delineate work packages
- 5. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-5 Tracking Gantt Chart Project status is updated by linking task completion to the schedule baseline
- 6. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-6 Earned Value Management Schedule Cost Performance Tracking Control Charts Cost Performance Schedule Earned Value Project S-Curves Cost Performance Schedule
- 7. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-7 Earned Value Terms ļ¶Planned value (PV) ļ¶Earned value (EV) ļ¶Actual cost of work performed (AC) ļ¶Schedule performance index (SPI) ļ¶Cost performance index (CPI) ļ¶Budgeted cost at completion (BAC)
- 8. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-8 Steps in Earned Value Management 1. Clearly define each activity including its resource needs and budget 2. Create usage schedules for activities and resources 3. Develop a time-phased budget (PV) 4. Total the actual costs of doing each task (AC) 5. Calculate both the budget variance (CV) and schedule variance (SV)
- 9. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-9 Earned Value Milestones PV EV AC Slip Overspend Schedule Performed Actual Budget Schedule Cost
- 10. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-10 Earned Value Example Activity Jan Feb Mar April Plan %C Value Staffing 8 7 15 100 15 Blueprint 4 6 10 80 8 Prototype 2 8 10 60 6 Design 3 3 33 1 Mon Plan 8 7 6 17 38 ā 30 Cmltv 8 15 21 38 Mon Act 8 11 8 13 Cmltv Act 8 19 27 40 Planned Value 38=15+10+10+3 Earned Value 30=15+8+6+1 Value 8=80%(10) Cumulative 40=8+11+8+13
- 11. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-11 Earned Value Example Schedule Variances Planned Value (PV) = 38 = 15+10+10+3 Earned Value (EV) = 30 = 15+8+6+1 Schedule Performance Index = .79 = 30/38 = EV/PV Estimated Time to Completion = (1/.79)x4=5 Cost Variances Actual Cost of Work Performed (AC) = 40 = 8+11+8+13 Cost Performance Index = .75 = 30/40 = EV/AC Estimated Cost to Completion = 50.7 = (1/.75)x38
- 12. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-12 Completion Values in EVM Accurate and up-to-date information is critical in the use of EVM ļ 0/100 Rule ļ 50/50 Rule ļ Percentage Complete Rule
- 13. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-13 Human Factors in Project Evaluation & Control ļ¶Optimistic progress reports ļ¶Level of detail ļ¶Process evaluation ļ¶Non-technical performance measurement
- 14. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-14 Critical Success Factors in the Project Implementation Profile 1. Project mission 2. Top management support 3. Project plans & schedules 4. Client consultation 5. Personnel 6. Technical tasks 7. Client acceptance 8. Monitoring & feedback 9. Communication channels 10. Troubleshooting
- 15. Copyright Ā© 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-15