proj control n earned value method

8/22/2019 Proj Control n Earned Value Method

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Project Control and Evaluation


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Definition

To evaluate a project is to attempt to determine ifthe overall status of the work is acceptable interms of intended value to the client once the job

is finished. Project evaluation appraises the progress and

performance of a job and compares it to whatwas originally planned.

That evaluation provides the basis formanagement decisions on how to proceed withthe project.


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Purposes of Project Evaluation

Improve project performance together with themanagement of the project.

Ensure that quality of project work does not take a back seatto schedule and cost concerns.

Reveal developing problems early so that action can betaken to deal with them.

Identify areas where other projects (current or future)should be managed differently.

Keep client(s) informed of project status. This can also help

ensure that the completed project will meet the needs ofthe client.

Reaffirm the organizations commitment to the project forthe benefit of project team members.


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Conducting the Project Audit

Ideally, a project audit should be

conducted by an independent examiner,

who can remain objective in theassessment of information.

However, the audit must be conducted in

a spirit of learning, rather than in aclimate of blame and punishment.


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Contents of the Audit Report

1. Current project status. This is best shown by performing anearned value analysis. However, when earned valueanalysis is not used, status should still be reported asaccurately as possible.

2. Future status. This is a forecast of what is expected tohappen in the project. Are significant deviations expectedin schedule, cost, performance, or scope? If so, the natureof such changes should be specified.

3. Status of critical tasks. The status of critical tasks,

particularly those on the critical path, should be reported.Tasks that have high levels of technical risk should be givenspecial attention, as should those being performed byoutside vendors or subcontractors, over which the projectmanager may have limited control.


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Contents of the Audit Report Cont

4. Risk assessment. Have any risks been identified thathighlight potential for monetary loss, project failure, orother liabilities?

5. Information relevant to other projects. What has beenlearned from this audit that can or should be applied toother projects, whether in progress or about to start?

6. Limitations of the audit. What factors might limit thevalidity of the audit? Are any assumptions suspect? Are

any data missing or suspected of contamination? Wasanyone uncooperative in providing information for theaudit?


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Monitoring and Controlling Process

Group

At the program level, monitoring andcontrolling involves obtaining andconsolidating data on status and progress

from individual projects or program packages(i.e., non project tasks).

Monitoring also entails interfacing with theprogram governance structure to ensure theorganization has a clear picture of the currentbenefit delivery and expected future benefits.


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Integrated Change Control

Integrated Change Control is the

process of coordinating changes

across the entire program, includingchanges to cost, quality, schedule,

and scope


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Resource Control

Resource Control is the process of managing allprogram resources, and their associated cost,according to the program management plan.

It is the process of monitoring human resourcesto ensure that committed resources are madeavailable to the program consistent withcommitments, resources are allocated within the

program according to the plan, and resources arereleased from the program as dictated by theplan.


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Monitor and Control Program Work

Monitor and Control Program Work is the processof collecting, measuring and consolidatingperformance information, and assessingmeasurements and trends to generate

improvements. The Monitor and Control Program Work Process

focuses on individual project reporting tounderstand each projects performance as it

relates to the overall program, as well asreporting on non-project deliverables beingproduced at the program level.


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Issue Management and Control

Issue Management and Control is the process ofidentifying, tracking, and closing issues effectively toensure that stakeholder expectations are aligned withprogram activities and deliverables.

This alignment can be accomplished by severalapproaches, including modification of requirements orthe program scope, adjusting organizational policies, orchanging stakeholder expectations.

Issue Management and Control at the program level

can also include addressing the issues escalated fromthe constituent projects that could not be resolved atthe project level.


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Scope Control

Scope Control is the process for controlling changes tothe program scope. This is a formal process foraccomplishing the following tasks:

Capturing requested changes

Evaluating each requested change Deciding the disposition of each requested change

Communicating a decision to impacted stakeholders

Archiving the change request and its supporting detail

When a request is accepted, initiating the activitiesrequired to have the change incorporated into theprogram management plan.


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Schedule Control

Schedule Control is the process of ensuring that theprogram will produce its required deliverables andsolutions on time.

The activities in this process include tracking the actualstart and finish of activities and milestones against theplanned timeline, and updating the plan so that thecomparison to the plan is always current.

Schedule Control must work closely with the other

program and portfolio control processes.

It involves identifying not only slippages, but alsoopportunities.


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Cost Control

Cost Control is the process of controlling changes to, andproducing information from, the program budget.

It is proactive, analyzing actual cost as incurred against theplan to identify variance from the plan, and, wherepossible, doing trend analysis to predict problem areasearly.

It is also reactive, dealing with unanticipated events ornecessary but unplanned activities that affect the budgeteither negatively or positively.

It is frequently thought of as merely holding down cost sothat the program remains on budget, or bringing it back tobudget when there is an overrun


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Quality Control

It is the process of monitoring specific program deliverablesand results to determine if they fulfill quality requirements.

It identifies faulty outcomes and allows the elimination ofcauses of unsatisfactory performance at all stages of thequality loop, from the identification of needs to theassessment of whether the identified needs have beensatisfied or not.

It ensures that quality plans are executed at project levels,via quality reviews and project management health checks.

it is performed throughout the program. Program results include both products and services, such as

deliverables, management results, and cost and scheduleperformance


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Communications Control

Communications Control is the process of managingcommunications to inform the stakeholders about theprogram and resolve issues of interest to them.

The Communications Control Process ensures that policiesand procedures are received, recorded, and routed to theintended recipients (through the Information DistributionProcess).

The scope and extent of this process is much wider at theprogram level than at the project level.

Apart from the program sponsor, the other stakeholdersinvolved in a program could include product managers,financial managers, and senior management personnel,especially those involved in strategic planning.


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Communications Control cont

Furthermore, since programs tend to be of largersize, greater cost, and much longer in duration,proactive communication is required with the

community at large. Such external communications will not only

include addressing issues specific to a program,such as environmental issues, but also managing

public and media relations at the social andpolitical level as may be appropriate to theprogram.


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Performance Reporting

It is the process of consolidating performance data toprovide stakeholders with information about how resourcesare being used to deliver program benefits.

It aggregates all performance information across projectsand non-project activity to provide a clear picture of theprogram performance as a whole.

This information is conveyed to the stakeholders by meansof the Information Distribution process to provide themwith needed status and deliverable information.

Additionally, this information is provided to stakeholders ofthe program and its constituent projects for the purpose ofproviding them with general and background informationabout the programs performance.


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Risk Monitoring and Control

Risk Monitoring and Control is the process of

tracking identified program risks, identifying

new risks to the program, executing risk

response plans, and evaluating theireffectiveness in reducing risk through the

program life cycle.

They include oversight of risks and responsesat the project level within the program.


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Risk Monitoring and Control cont

Risk Monitoring and Control is an ongoing process.

Risk monitoring involves tracking program-level riskscurrently identified in the risk response plan andidentifying new risks that emerge during the executionof the program, for example, unresolved project-levelrisks that demand resolution at the program level.

It includes determining whether new risks havedeveloped, current risks have changed, risks have been

triggered, risk responses are in effect where necessaryand are effective, and if program assumptions are stillvalid.


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Program Contract Administration

Program contract administration is the process

of managing the relationship with sellers and

buyers at the program level, excluding such

processes performed at the component level.

The process includes purchases and

procurement of outside resources that span

the program domain and that are not coveredby a specific project.


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Program Contract Administration cont

The program management team must be aware of thelegal, political, and managerial implications duringimplementation, since contractual issues can affectdeadlines, have legal and costly consequences, and can

produce adverse publicity. The team must effectively communicate with sponsors,

sellers, governing bodies, and the project and programmanagement teams.

At the program level, program contract administrationrelies on the interaction of other program and projectprocesses.


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Closing Process Group

The Closing Process Group formalizes acceptanceof products, services, or results that bring theprogram, or a project within a program, to

completion. The Closing Process Group includes the processes

required to terminate formally all the activities ofa program, finalize closure of a project within the

program and hand-off the completed product toothers, or to close a cancelled program or projectwithin the program.


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Closing Process Group cont

The purposes of the Closing Processes include the following:

To demonstrate that all program benefits have beendelivered and that the scope of work has been fulfilled orto document the current state in the case of earlytermination

To demonstrate that contractual obligations with the sellerand/or the customer have been met or to document thecurrent state in the case of early termination

To demonstrate that all payments to the seller or from the

customer have been delivered or to document the currentstate in the case of early termination


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To release all human resources and to demonstrate that allother resources have either been made available to otheractivities, sold, discarded, returned to the owner,transferred to the organization maintaining the product orservice, or transferred to the customer, or otherwise

disposed of To demonstrate that all required documentation has been

archived in the manner prescribed by the programmanagement plan, or to document the current state in thecase of early termination

To demonstrate that any intellectual property developedduring the course of the program has been captured anddocumented for future use, in a manner that ensures legalprotection of this valuable asset


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To transition ongoing activities such as

product support, service management, or

customer support from a project or the

program to an operational support function

To leave in place a legacy of operational

benefit sustainment, deriving optimum value

from the work accomplished by the program.


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Program closure activities happen throughout

the program, not just at program completion.

As specific projects and other activities are

completed, closing activities must occur.

Otherwise, valuable program information will

be lost, and there is a potential that the

program will not meet its closure obligations.


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Close Program

Close Program is the process of formalizing theacceptance of the programs outcome by the sponsoror customer.

However, administrative closure should not wait until

the program has completed the execution process. Projects under the program need to be closed before

the program is closed.

As each project or each non-project activity closes, theClose Program Process should be performed to captureinformation and records, archive them, communicatethe closure event and status, and obtain sponsor orcustomer sign-off.


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Component Closure

Component Closure is the process of performingprogram management activities to close out a projector other non-project activity within the program.

Program component closure deals with these closure

issues at the program level, that is, it is informed byand performed at a higher level than normal projectclosure occurring at the project level.

This process involves validating and ensuring that the

project closure has indeed taken place at the projectlevel.


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Component Closure cont

The resources that become available may be reallocated to othercomponents that are either active or awaiting activation within theprogram.

Project records must be closed and archived as needed.Communications to a larger or different set of stakeholders than

those at the project level may be needed, as well. The information required for this process is obtained from each of

the projects or work packages.

For a program, component closure will normally be done at the endof the project life cycle.

However, project closure may need to be done if a project is beingterminated before the completion of its life cycle. This can be theresult of a program benefits review or changes in the externalenvironment.


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Contract Closure

Contract Closure is the process of closing out a contract executedduring the program and on behalf of the program, in accordancewith the contracts terms and conditions.

This process also applies to cases of premature contracttermination.

Contract Closure involves both product verification (i.e., verifyingthat the work was done) and the updating of all contract records.

In the case of premature termination, it involves documentation ofactual work performed plus work not performed, the circumstancesthat caused termination, and the updating of all contract records.

Contract records are important and include the contract itself andother relevant documentation, such as progress reports, financialrecords, invoices, and payment records.

These are often kept in a contract file, which should be part of thecomplete program file.


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Contract Closure cont

In the case of premature termination, it involvesdocumentation of actual work performed pluswork not performed, the circumstances thatcaused termination, and the updating of all

contract records. Contract records are important and include the

contract itself and other relevant documentation,such as progress reports, financial records,

invoices, and payment records. These are often kept in a contract file, which

should be part of the complete program file.


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Contract Closure cont

Contract documentation is also important

should a procurement audit or legal action be

initiated.

Such an audit is a structured review of the

procurement process from procurement

planning through contract administration.

In case of legal action, accurate and complete

documentation is critical for swift resolution


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Project closure

All projects eventually end.

Some end successfully, others end in disasters.

Some common reasons why projects end poorly are:

changing market conditions,

lack of cooperation from clients, lack of management

support,

lack of resources,

politics, technical problems, and

poor management.


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Learning From Past Experience

The lessons-learned documentcaptures thesuccesses, challenges, and other information of aproject.

Managers of similar projects in the future can

refer to what is in the document and,consequently, operate more efficiently andeffectively.

The lessons-learned document not only

communicates useful information to futureproject managers, but also helps to identify theirown strengths and weaknesses.


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Learning From Past Experience cont

Advantages for the project manager:1. He ensures that the data are useful. This task is easy since he has

collected reliable, valid measures throughout the project.

2. He identifies other sources of information. Since he collected andorganized data throughout the project, this action is easy. He

especially uses the information in the project history files.3. He assigns someone on the noncritical path to do the preliminary

work for preparing the document.

This includes collecting documents and data, as well as preparingthe draft. This approach allows the project manager to handleconcurrent activities during project closure.


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Learning From Past Experience cont

4. He solicits input from project participants forideas and information to include in the

document. This ensures a more objective andcomplete document. He has team membersreview the draft to preclude any biased content.

5. He submits the document to senior

management, whose responsibility is to ensurethat it is not forgotten and apply its contents tosimilar projects in the future.


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Releasing People and Equipment

At closure, the project manager must release

the people who have worked on the project.

Releasing people is not simple.

If released inefficiently and ineffectively,

morale problems can occur. If theres a feeling

of pending disaster, people may depart

prematurely and leave tasks unfinished.


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Releasing People and Equipment cont

Since it is a matrix environment, the projectmanager knows that prematurely releasingpeople may mean losing them permanently.

So he reviews the responsibility matrices andschedule to determine the remaining work.

He then releases only those without work,since people sitting idle will in time interferewith the others productivity, spread rumors,or add unnecessary labor costs.


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Recognizing and Rewarding People

No project is complete without recognition foroutstanding performance.

While conceptually simple, the project managerknows in reality its implementation is difficult. He

must decide whether to reward individuals or theteam or both, what the most meaningfulrecognitions would be, and what rewards arewithin his power.

These are difficult to determine; still he followssome basic principles when giving recognitionand rewards.


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cont1. He strives for objectivity. He uses objective criteria for measuring

results. It is hard to forget the past or divorce yourself from thepersonalities of the individuals. The only way to avoid thosecircumstances is to be as objective as possible.

2. He determines the values and behaviors he wants to reward. He

rewards these values and behaviors that best satisfy those of thecompany.

3. He remembers the expectancy theory. Expectancy theory states thatsuccessful performance depends on peoples expectations ofrewards, whether extrinsic or intrinsic. In other words, a personsexpenditure of effort depends on his or her expectations of reward.

If a person expects a financial reward and receives a nonfinancialone, morale might fall and productivity decline.


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cont4. He appears fair and consistent. If several people gave outstanding

performances, he gives them equal recognition and rewards. Eventhe appearance of being unfair or inconsistent can cheapen arecognition or reward.

5. He is timely. He presents the recognitions and rewards within a

reasonable time to gain maximum motivational value. If he givesrecognitions or rewards long after completing a milestone, forexample, they lose their meaning and impact.

6. He does not rely on monetary rewards. In fact, he avoids them.Money provides only short-term satisfaction and can prove divisive,especially if a person feels shortchanged. He uses a variety of

nonfinancial rewards, from plaques to dinners to trips. For manyproject managers in a matrix environment, such rewards may be allthey are entitled to dispense.


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Project Closure Report

A Project Closure Report is a document which

formalizes the closure of the project.

It provides confirmation that the criteria for

customer acceptance have been met and

requests sign-off from the Project Sponsor to

close the project.


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Project Closure Report cont

A Project Closure Report includes:

A formal list of completion criteria

Confirmation that each completion criterion has beenmet

A list of outstanding business activities, risks and issues

A set of closure actions (to hand over projectdeliverables / documentation, terminate suppliers,

release resources and undertake closurecommunication)

A request for project closure approval.

proj control n earned value method

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