08 - project monitoring and control

8/12/2019 08 - Project Monitoring and Control

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I T Matur i t y

S e r v i c e s

Project Management

08 Project Monitoring and Control

Malte Foegen

- 2 - 2007 wibas IT Maturity Services GmbHFor student use only

1 Project Monitoring and Control Overview


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Provide understanding of the projects progress

so that appropriate corrective actions can be taken when theprojects performance deviates significantly from the plan.

Monitor Projectagainst the Plan

(SG 1)

Manage CorrectiveActions to Closure

(SG 2)

Project-PlansProject Planning


Actual performance and progress of the project aremonitored against the project plan.

Monitor Project against the Plan(SG 1)

Monitor Project

Planning

Parameters(SP 1.1)

Monitor

Project Risks

(SP 1.3)

Monitor

Commitments

(SP 1.2)

Monitor Data

Management

(SP 1.4)

Monitor

StakeholderInvolvement

(SP 1.5)

Conduct

MilestonesReviews

(SP 1.7)

Conduct

ProgressReviews

(SP 1.6)



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Typical WP for Monitoring the Project against the Plan

Monitor Project against the Plan (SG 1)

SP 1.1 MonitorProject Planning

Parameters

1. Records of project

performance

2. Records ofsignificant deviations

SP 1.3 MonitorProject Risks

1. Records of projectrisk monitoring

SP 1.2 MonitorCommitments

1. Recordscommitment reviews

SP 1.4 Monitor DataManagement

1. Records of DataManagement

SP 1.5 MonitorStakeholder

Involvement

1. Records of

stakeholderinvolvement

SP 1.7 ConductMilestones Reviews

1. Documented

milestone reviews

results

SP 1.6 ConductProgress Reviews

1. Documented project

reviews results



Manage Corrective Actions to Closure

(SG 2)

Corrective actions are managed to closure when theprojects performance or results deviate significantly fromthe plan.

Analyse Issues

(SP 2.1)

TakeCorrective

Actions

(SP 2.2)

ManageCorrective

Actions

(SP 2.3)

Project-Plans


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Manage Corrective Actions to Closure

(SG 2)

Typical WP for Managing Corrective Actions to Closure

SP 2.1 AnalyseIssues

1. List of issues

needing Correctiveactions

SP 2.2 Take

Corrective Actions

1. Corrective actions

plan

SP 2.3 Manage

Corrective Actions

1. Corrective actions

results

Project-Plans


Relationships between Project Planning (PP) andProject Monitoring and Control (PMC)

Project Planning (PP) Project Monitoring and Control (PMC)

Plan & Track

SP 2.7 Establish the Project Plan

SP 1.1 Monitor Project Planning

ParametersTime Plan (PP SP 2.1) -

Costs, Effort (PP SP 1.4) -Attributes of the work results and

Duties (PP SP 1.2) -

Resources (PP SP 2.4)

Knowledge and Skills (PP SP 2.5)

Commitment Management SG 3 / SP 3.3 Obtain Plan Commitment SP 1.2 Monitor Commitments

Data Management SP 2.3 Plan for Data Management SP 1.4 Monitor Data Management

SP 2.1 Establish the Budget andSchedule

SP 1.4 Determine Estimates of Effort and

Cost

SP 1.2 Establish Estimates of WorkProduct and Task

SP 2.5 Plan for Needed Knowledge andSkills

Stakeholder Involvement SP 2.6 Plan Stakeholder Involvement SP 1.5 Monitor Stakeholder Involvement

Risk Management SP 2 .2 Ident ify Pro ject Risks SP 1 .3 Monitor Project Risiks

SP 2.4 Plan for Project Resources

Issue ManagementSG 2 Manage Corrective Action to

Closure


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Project Monitoring and Control is necessary to identify

actions such that the project stays on track.

Why do we do it?

Provide an understanding of theproject's progress

Take appropriatecorrective actions

Provide status information for allstakeholders

Advice and Guidance

Use defined measurements fromMeasurement and Analysis to monitor

the projects progress

Determine major deviations and record the deviations and decisions

Add all gathered issues to the Issue List

When re-planning is needed revise estimates and plans

For closed issues think about lessons learned for the related corrective actionsand take those into account for planning and risk management processes

- 1 0 - 2007 wibas IT Maturity Services GmbHFor student use only

The project manager is responsible for tracking the project constantly.

Who makes it?

RUP: Project Manager

The Project Manager plans, manages and allocates resources, shapes priorities,coordinates interactions with customers and users, and keeps the project teamfocused

Team Members

Must support the project manager in estimations, risk analysis, stakeholderidentification, and the team must commit to the plan

When will we do it?

permanent


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Project Monitoring and Control is done throughout the life

cycle. Measurements can help understand the progress.

Project Planning

Measurementand Analysis

Project Monitoring and Control


Project Monitoring and Control is a key element of the Plan-Do-Check-Act control circuit

Do

Check

Act

PMC SG 1

PMC SG 2

Plan

PP

REQM, RD, TS, PI

MA


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2 Tracking of Cost and Schedule Performance


0

20000

40000

60000

80000

100000

120000

Jan 03 Feb 03 Mrz 03 Apr 03 Mai 03 Jun 03 Jul 03 Aug 03 Sep 03 Okt 03 Nov 03 Dez 03

Projected

Actual

How is this project doing?


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Lets Take A Look Under The Hood


The %-complete approaches to answer the question Havewe done what we said wed do? are subjective, incompleteand draw false conclusions

The classic approach:

% complete estimating

% of Budget spent

% of work done

% of time elapsed


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Earned Value Analysis is an industry standard to monitor

and control schedule and budget.

Earned Value Analysis is an industry standard way to:

measure a projects progress,

forecast its completion date and final cost

provide schedule and budget variances along the way

By integrating three measurements, Earned Value provides consistent,numerical indicators with which you can evaluate and compare projects.


Earned Value Analysis answers all three questions:schedule performance, budget performance and completionperformance.

It compares the

PLANNED amount of work with

what has actually been COMPLETED

to determine if

COST

SCHEDULE

WORK ACCOMPLISHED

are progressing as planned.

Work is Earned or credited as it is completed.


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Earned Value provides an Early Warning signal for prompt

corrective action

Bad news does not age well.

Still time to recover

Timely request for additional funds


Some New Terms

BCWS - Budgeted Cost of Work Scheduled

Planned cost of the total amount of work scheduled to be performed by themilestone 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.


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1111


0

20000

40000

60000

80000

100000

120000

Jan

03

Feb

03

Mrz

03

Apr

03

Mai

03

Jun

03

Jul

03

Aug

03

Sep

03

Okt

03

Nov

03

Dez

03

BCWS



49000

56000

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

BCWPACWP

ACWP and BCWP - Actual Cost of Work Performed andBudgeted Cost of Work Performed


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55000

49000

56000

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

BCWS

BCWP

ACWP

The Whole Story


Some Derived Metrics

SV: Schedule Variance (BCWP-BCWS)

A comparison of amount of work performed during a given period of time towhat was scheduled to be performed.

A negative variance means the project is behind schedule

CV: 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.


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All indicators at a glance


More Derived Metrics

SPI: Schedule Performance Index

SPI=BCWP/BCWS

SPI


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Performance Metrics

SPI: BCWP/BCWS

49,000/55,000 = 0.891

CPI: BCWP/ACWP

49,000/56000 = 0.875

CSI: SPI x CPI

.891 x .875 = 0.780


The cost performance index can be used to makeprojections

EAC: Estimate at Completion

EAC = BAC / CPI

The EAC gives an idea of the final cost of aproject.

Example:

EAC= 102,000 / 0.875= 116,571


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102000

90882

103865

0

20000

40000

60000

80000

100000

120000

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

BCWS

BCWP

ACWP

Today

Making Projections


102000

116,571

0

20000

40000

60000

80000

100000

120000

140000

Jan-03

Mar

-03

May

-03

Jul-0

3

Sep-03

Nov-0

3

Jan-04

Mar

-04

BCWS

BCWP

ACWP

Today

Estimate to Complete


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At the end

The project will be 14% over budget

The project will be 3 months late (25% time overrun)


Requirements of Earned Value

Proper WBS Design

Work Items must be small

Work measurement

work-hours, dollars, units, etc.

Good Project Management Practices


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Evaluate Scrum against CMMI PP and PMC.

Step 1: Estimate tasks and efforts. (15 min)

Overall result of the next series of exercises:

Evaluate Scrum against CMMI PP and PMC practices.

Deliver a spreadsheet with the following structure:

Break up in your teams.

Task and Results:

(7 min) Establish the tasks to do the exercise above

(7 min) Use planning poker to estimate the effort for your tasks

Goal:

Understand exercise and practice planning and estimating Ex

rcis

CMMI Text - What Scrum - How OK?

Suggestion how todo with Scrum

PP SP

1.1

Establish a WBS to

estimate the scope of theproject

Yes/

No


Evaluate Scrum against CMMI PP and PMC.Step 2: Set up a spreadsheet to calculate Earned Value.(15 min).


Task and Results:

(12 min) Develop a spreadsheet that allows to handle the Earned Value

(3 min) Test your sheet to ensure that i t works

Goal:

Understand how to use and implement Earned Value

Be prepared to use Earned Value to track your exercise

Ex

rcis


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Evaluate Scrum against CMMI PP and PMC.

Step 3: Do the evaluation.( min)


Task and Results:

Do your tasks and track the efforts

After 30 min, provide an estimate at completion (EAC)

Goal:

Understand Scrum

Understand PP and PMC

Practice an evaluation

Apply Earned Value

Ex

rcis


All formulas


ACWP - Actual Cost of Work Performed

BCWP - Budgeted Cost of Work Performed

SV: Schedule Variance (BCWP-BCWS)

CV: Cost Variance (BCWP-ACWP)

SPI: Schedule Performance Index (BCWP/BCWS)

CPI: Cost Performance Index (BCWP/ACWP)

CSI: Cost Schedule Index (CSI=CPI x SPI)

BAC = Budget at completion (=BCWS until project completion)

EAC = BAC / CPI

Ex

rcis


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Trademarks and Service Marks

Capability Maturity Model; Capability Maturity Modeling; Carnegie Mellon , CMM; and CMMI are registered in the U. S.Patent and Trademark Office by Carnegie Mellon University.

IDEAL; Personal Software Process; PSP; SCAMPI; SCAMPI Lead Assessor; SCAMPI Lead Appraiser ; SEI; SEPG;Team Software Process; and TSP are service marks of Carnegie Mellon University.

iNTACS is a registered trademark by the International Assessor Certification Scheme

Special permission to use CMMI for Development, Version 1.2 (CMU/SEI-2006-TR-008 ESC-TR-2006-008), copyright2006 by Carnegie Mellon University, in the combination of CMMI and ITIL is granted by the Software EngineeringInstitute. The SEI and CMU do not directly or indi rectly endorse wibas IT Maturity Services GmbHs work.

IT Maturity Services is a registered trademark by wibas IT Maturity Services GmbH

wibas IT Maturity Services is official SEI Partner of the Software Engineering Institute of the Carnegie Mellon Universityfor SCAMPI appraisals and CMMI training. For inquiri es, call:

wibas IT Maturity Services GmbHYvonne Fischer

Customer Relations ManagerOtto-Hesse-Str. 19 B64293 DarmstadtGermanyTel: 0049 - 6151 - 50 33 49 - 21Fax: 0049 - 6151 - 50 33 49 - [email protected]


Revision History

Rev.no.

State Date Comments Responsible

1.0 Finished 15.10.2004 Initial version Malte Foegen

1.1 Finished 22.01.2006 Updated layout Malte Foegen

1.2 Finished 23.12.2007 Updated layout Malte Foegen

1.3 Finished 19.01.2008 Added formula overview for Earned Value Malte Foegen

1.4 Finished 07.02.2009 Updated exercises Malte Foegen

Target status: finishedTemplate-Version: 2.11


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08 - project monitoring and control

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