Project Management Methodology
Project monitoring and control
What to control?
Scope Resources
Time Cost People
Risks occurrence Communication plan implementation Quality
How to control?
Apply specific technique of the project control for each subject
Integrate project management processes with other IT processes
Use Project Management tools
Scope monitoring and control
At the planning stage the project scope was identified with the help of: Scope definition (in and out) Requirements Deliverables WBS
Scope Control
Scope control involves controlling changes to the project scope
Goals of scope control are to: Influence the factors that cause scope changes Assure changes are processed according to
procedures developed as part of integrated change control
Manage changes when they occur Variance is the difference between planned and actual
performance. Control variances
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The factors of scope change
Time is shorter than planned Human resources not available Material resources shortage Requirements changed
Progress tracking
Tracking is the process of comparing actual with plan
Help to understand the project issues and justify requests for changes
With actual in hands you will operate with facts
Planned characteristics are recorded with the help of baseline
Baselines
MS Project allow storing the project baseline Baseline should be stored first when the
planning stage is completed It can be updated during the project
implementation to reflect changes Baseline is a snapshot of:
TasksResources
Assignments
Tasks baseline
For each task it will show planned characteristics of Duration Start and finish date Resources assigned Cost Dependencies
Use of baseline
Planned data are used to calculate Critical Path Free and float slack Early and late start and finish date
They also are used to monitor the project performance in terms of timeline and cost
Baseline options
For entire project For selected tasks For a part of the project that starts from
selected task
How to track
Specify the work completed in % Use the Tracking Gantt table to record
actual information Use other tables to see the project state
from different perspectives
Using tables
View – Table – Variance Show variances in task timing between baseline
and actual View – Table – Work
Show differences between baseline and actual work efforts
View – Table – Cost Show differences in cost between baseline and
actual
Cost control
Project budget defined at the planning stage and recorded into the project plan creates the baseline
To have the cost baseline established make sure that All tasks from WBS have assigned resources Work efforts are identified Rate or fixed cost data are provided Material resources and third-party services are counted
Cost control tools
Earned value management This is a project performance measurement
technique that integrates scope, time , and cost data.
First thing is to track the WBS items in terms of how much work has been completed by the time of measurement, when the work started and ended, and how much it actually cost to do the work. Use tracking table to record actuals
Cost control tools
You control project performance during some period of time. In other words you have a date as your checkpoint
Normally this is the date of your reporting to the project monitoring committee
For a given date, you calculate the values required to evaluate the cost performance
You can set the date for MS Project thru the Project Information Window. Use The Status Date for this
Cost control tools
You calculate the following values Planned value (PV). That is the budgeted cost for the
work scheduled, also known as BCWS Earned Value (EV). That is the budgeted cost of work
performed, also known as BCWP Actual cost (AC). That is about how much is spent
during a monitoring period, in other words actual cost of work performed, aka ACWP
Cost control tools
To calculate Earned Value you do the following: Calculate Rate of Performance (RP). RP is calculated
as the ratio of actual work completed to the percentage of work planned to be completed.
Calculate Earned Value (EV). To calculate the earned value we use the formula:
The EV = PV to date * RP
Earned Value
Earned value is a powerful metric used to evaluate the project cost performance
Earned value is a measurement that indicates how much of the budget should have been spent in comparison to the cost of the work performed thus far
Earned value is used for financial analysis known as Earned Value analysis
Earned Value analysis
Your need other calculations involved into the cost control Cost Variance (CV) = EV – AC (earned value minus
actual cost) CV shows your actual cost in comparison to the cost planned
for the work performed If CV is negative it means that the cost is higher than
planned. If CV is positive it means that the cost is lower than planned
Earned Value analysis
Your need other calculations involved into the cost control Schedule variance (SV) = EV – PV (earned value
minus planned value) SV shows the difference in the actual work efforts in
comparison to planned efforts If SV is negative it means the work took longer than planned.
If SV is positive it means that the work took shorter time than planned
Cost control tools
Cost performance index (CPI) is the ratio of EV to AC. Used to estimated the projected cost of completing the
project. If CPI = 1, the cost is as budgeted. If CPI < 1, the cost is over budgeted. If CPI > 1, the cost is under budgeted.
Schedule performance index (SPI) is the ratio of earned value to planned value. If SPI = 1 the project is on schedule. If SPI < 1 the project
is behind the schedule. If SPI is > 1 the project is ahead of schedule
Cost control tools
Estimate at completion (EAC) Used to estimate of what it will cost to
complete the project based on performance today
To calculate, use Budget at Completion (BAC) which is equal to planned budget
EAC = BAC/CPI
Exercise
Assume the following numbers: Status date is somewhat in the middle Planned works to be completed is 45% Actual work completed is 30% Planned cost is 55K Actual cost is 60K Project budget is 100K
Exercise
Calculate the following: Rate of performance Earned value Cost variance Schedule variance Cost performance index Schedule performance index Estimate at completion