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