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Chapter14-DeterminingProjectProgressandResults.pptxCONTEMPORARY PROJECT MANAGEMENT, 4E
Timothy J. Kloppenborg
Vittal Anantatmula
Kathryn N. Wells
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Determining Project Progress and Results
Chapter 14
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Chapter 14 Core Objectives:
Develop and demonstrate use of a change control system
Demonstrate how to monitor and control project risks with various resolution strategies
Create and present a project progress report
Chapter 14 Technical Objectives:
Describe project quality tools, including how and when to use each
Calculate current project schedule and budget progress, and predict future progress, using earned value analysis (EVA)
Document project progress using MS Project
Chapter 14 Behavioral Objectives:
Describe the importance of formal reporting and communications
Demonstrate negotiating skills
Manage conflicts during the project execution
Duke Energy
“The fundamental reason for determining project progress and results comes down to one thing—presenting actionable, decision-making information to project leaders…Identifying, collecting, managing and presenting data that allow you to control critical aspects of your projects is a fundamental element of project success.”
Paul Kling, director – project management and controls,
Power Delivery Engineering, Duke Energy
6
Five Aspects of Project Determination
“Determine” can mean:
to give direction to or decide the course of;
to be the cause of, to influence, or to regulate;
to limit in scope;
to reach a decision;
to come to a conclusion or resolution.
The PM and Decision Making
During project execution, a PM may need to:
Give directions
Re-plan
Influence
Guard the scope
Follow-up to ensure proper results are delivered
PM decision-making may involve:
Personally making decisions
Delegating decisions
Being part of a group that makes decisions
Facilitating a decision-making process
Project Balanced Scorecard Approach – Perspectives
Customer
Internal business
Financial
Growth and innovation
Balanced Scorecard Approach to Project Determination
Internal Project Issues
Project’s nerve center consists of integration, risk, & communications issues.
Integration includes making choices to ensure project results are delivered.
PM needs to understand priorities and make decisions accordingly.
Internal Project Issues
Direct and Manage Project Work
Monitor and Control Project Work
Monitor Project Risk
Implement Risk Responses
Manage Communications
Monitor Communications
Direct and Manage Project Work
Empower Control
Empower others as possible, yet control as necessary when authorizing & performing project work
Who is allowed to authorize?
When is it time to perform the work?
Directing and managing project work – performing the work as defined in various components of the project management plan, including approved changes, with an intent to accomplish project objectives.
Sources of Work to be Performed
Work package level of the WBS
Approved corrective actions
Preventive actions
Defect repairs
Aids to Project Tradeoff Decisions
Well-developed project charters
Effective stakeholder management
Clear communications
Monitor and Control Project Work
Monitoring and controlling project work – a series of activities such as identifying work packages for tracking, reviewing, and documenting the progress to ensure that the project execution meets performance objectives as defined in the project plan.
Monitor – reviewing the progress and capturing project performance data with reference to the project plan; developing performance measures; and communicating performance information.
Control – assessing actual performance obtained from monitoring a work element and comparing it with planned performance, determining variances, analyzing trends to identify and implement process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.
Monitor and Control Project Work
Variance – a measurable departure from a planned baseline or expected value
What metrics to keep
What to measure
How to report results
Monitor and Control Project Work
Continually measure & observe throughout the project
Activities occur in parallel with project execution
Activities need to be timely
Allow workers to self-control their work when possible
Types of Project Control
Steering control - work is compared to the plan on a continual basis
Go/no go control – PM must receive approval to continue
Corrective actions
Preventive actions
Defect repair
Possible Monitoring and Controlling Decisions
Revisit the project charter
Adjust the project plan
Adjust day-to-day instructions
Proceed to project closing
Results of Monitoring and Controlling a Project
Perform Integrated Change Control
Change is a reality on all projects
Correct person or group needs to approve changes
Need a simple, standard system for proposing and evaluating changes
Perform integrated change control – reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets, and the project management plan.
Change control – a process wherein change proposals to various project planning elements are acknowledged, formally documented, and either approved or declined after review.
Perform Integrated Change Control
Change control board – consists of a formal group authorized and responsible for reviewing, evaluating, approving, delaying, or rejecting any changes to any aspect of the project plan by following a formal communication method of documenting the decision process.
Project manager
Sponsor
Core team
Key stakeholders
Change is expected; plan only the first iteration
Breakout session!
With your team, create a simple change-request form and use it to propose a real or potential change to your project plan. Evaluate how this change would affect your project management plan (schedule, budget, quality, etc.) and decide whether or not to approve the change request.
Monitor Project Risk
Consider multiple responses to a given risk
For previously identified risk events:
Track the identified risks
Execute the response plans
Evaluate their effectiveness
Monitor risks – the process of adhering to the risk response plan of tracking identified risks, identifying new risks, monitoring residual risks, and evaluating the effectiveness of the risk response process throughout the project.
Resolving Project Risks
Unanticipated risks may materialize
Unknown risks require contingency
Time
Budget,
Other resources
Risk Event Resolution Strategies
Implement Risk Responses
Possible outcomes of implementing a risk response include:
Updates to the risk register
Approved change orders
Lessons learned
Implement risk responses– when a risk event occurs or is likely to occur soon, the person assigned to that risk executes the strategy identified in the risk management plan.
Manage Communications
Determine project information needs
Establish an information retrieval & distribution system
Collect information on executed work & work in progress
Report progress to all stakeholders
Manage communications – all the work connected with the communications management plan, including planning for it; generating it; organizing and sharing it; and storing and disposing of it.
Determine Project Information Needs
Communicate
Accurately
Promptly
Effectively
Authorization to proceed
Direction setting
Status reporting
Approval of outputs
Establish Information Retrieval and Distribution System
Target the communications
Use new & proven communications methods
Refer to communications plan
Use active listening
Collect Information on Executed Work and Work in Progress
How well is this particular activity proceeding in terms of time and budget?
How well is the entire project proceeding in terms of time and budget?
How much more money will need to be spent to finish?
To what extent does the quality of this work meet requirements?
Collect Information on Executed Work and Work in Progress
What methods that we have used need to be improved before we do that type of work again?
What evidence supports the answers to the above questions?
What methods that we have used are worth repeating?
How many hours of human resource time have we used to complete this activity compared to how much we estimated?
Report Performance
Work performance data – actual, raw observations and measurements during execution of project activities
Work performance information – the work performance data analyzed in context and integrated, considering relations across areas
Work performance reports – the compilation of work performance information in some physical or electronic form that are presented as project documents intended to generate awareness, discussions, decision-making, or other suitable actions
Report Performance
Report weekly/daily
Emphasize specifics
Report the target date, current status
Update risk register and issues logs
Consider recommended changes
Brief standup meetings; no chair, no coffee
Time Horizons for Project Performance
Monitor Communications
Monitor communications– monitoring and controlling communications throughout the project lifecycle in order to make certain that the information needs of all stakeholders are met
Team members empowered to decide what to do & when
Communication is frequent & rapid
Rolling wave planning
Change is expected
Monitor Communications– Agile Burndown Chart
Used to show amount of work remaining
Customer Issues
Manage & Control Quality
Manage quality—forward-looking
Control quality—backward-looking
Control Scope
Quality management & control tools… complete list in Exhibit 14.9
Flow chart—model showing work flow
Check sheet—simple, structured form to gather data
Pareto chart—vertical bar graph, showing frequency of problems
Cause and effect diagram—outline showing possible causes
Histogram—vertical bar graph, showing average & variation
Run chart—scatter-diagram showing time
Control chart—run chart with process average & control limits
Flow Chart
Check Sheet
Pareto Chart
Cause and Effect diagram
Histogram
Run Chart
Control Chart
Control Scope
Insist all changes go through integrated change control system
Try to avoid changes to scope
Work from a scope baseline
Control scope – the act of closely monitoring the project and product scope status and only allowing necessary changes to the scope baseline.
Scope change – any change to the project work activities or deliverable
Control Scope
How large a difference between actual and planned scope
Reasons for the difference
Action necessary to resolve differences
Variance analysis – the process of determining both the cause and the amount of difference between planned and actual performance.
Success of product is predicted by having team members—including product owner—use product before customers do
Financial Issues
Control Resources
Control Schedule & Costs
Earned Value Management for Controlling Schedule & Costs
Control Resources
Lack of necessary resources could adversely affect both budget & schedule
PM needs to look ahead to make sure resources are available when needed & solve problems proactively
Control resources– a process by which all of the physical resources needed to perform the project are planned and monitored, and changes are made if necessary throughout the life of the project.
Control Schedule and Costs
Comparing actual cost & schedule to baseline
Changes made through the integrated change control system
Ensure no more money than authorized is spent
Methods:
Earned value management
Project scheduling software
Earned Value Management
A decision-making tool
Examine project status at a given point in time
Understand project’s progress in terms of cost and schedule
Earned value management – a management method of measuring schedule & cost performance
EVM Terms
Earned Value Management Example
Currently Known Values
Budget at completion (BAC) – how much was the project supposed to cost?
Actual cost (AC) – how much did the work already done cost?
Earned value (EV) – How much work is done?
Planned value (PV) – How much work should be done?
Variances
Cost variance (CV) – How much is the project over or under budget?
Schedule variance (SV) – How much is the schedule ahead or behind?
Indexes
Cost performance index (CPI) – How efficient is the budget?
Schedule performance index (SPI) – How efficient is the schedule?
Estimates
Estimate at completion (EAC) – What do we think the total project will cost?
Estimate to complete (ETC) – How much more do we expect to spend?
Use past performance to estimate future performance
To-complete performance index (TCPI) – How efficient do we need to be to finish on budget?
Using MS Project 2016 to Monitor and Control Projects
What makes a schedule useful
How MS Project recalculates the schedule based on reported actuals
Current and future impacts of time and cost variances
Define the performance update process
Steps to update the project schedule
What Makes a Schedule Useful?
Each of the three sets of data includes start and finish dates, duration, work, & cost
The Baseline set –a copy of the stakeholder approved scheduled values.
Past actual time and cost results—What actually happened as reported by the resources assigned to activities.
Future estimated time and costs-- Scheduled values are used and continuously recalculated by MS Project.
The planned schedule
Performance data
The scheduled set
How MS Project Recalculates the Schedule Based on Reported Actuals
Copies data entered into Actual fields into Scheduled fields, replacing estimates
Recalculates future activity schedules based on past activities and future estimates
Current and Future Impacts of Time and Cost Variance
Comparisons between any two sets of data can help you understand:
Time & cost performance variances from baseline
Critical path changes
Resource allocation issues
Emerging risks
Remaining contingency & management reserves
Impacts of proposed changes
Define the Performance Update Process
Who reports?
All team members and suppliers assigned to previously scheduled activities
Any resource wanting to change an activity
What is reported?
Actual Start, Actual Finish, Actual Duration Complete, & Estimated Remaining Duration
When to report?
Status Date driven by the date of the stakeholder review meeting
PM publishes “Status Date” or “As of Date”
How to report?
List of team members’ current assignments
Previously reported Actuals
Steps to Update the Project Schedule
Acquire the performance data
Set the status date (as of)
Display the status date line on Gantt chart
Enter duration-based performance data
Reschedule remaining work
Revise future estimates
Steps to Update the Project Schedule
Step 1: Acquire the Performance Data (duration-based data)
Date assignment started
How much duration is completed
How much duration remains
Actual finish date (if finished)
Steps to Update the Project Schedule
Step 2: Set the status date (as of)
Click the Project Tabb>>Properties Group>>Project Information
Click the “Status date” drop-down
Set Status date, as shown in Exhibit 14.19
Click OK
Step 2: Set the status date (as of)
Step 3: Display the status date line on the Gantt chart
Click the Task Tab>>View Group>>Gantt Chart
Right click on the right pane>>select Gridlines
In the “Line to change list,” select Status Date (see Exhibit 14.20)
In the “Normal” box, choose dashed dotted line; choose Green for color
Click OK
Steps to Update the Project Schedule
Step 3: Display the status date line on the Gantt chart
Step 3: Display the status date line on the Gantt chart
Steps to Update the Project Schedule
Step 4: Enter the Duration-Based Performance Data
See detailed instructions pp.484-486 of textbook
Step 4: Enter the duration-based performance data
Steps to Update the Project Schedule
Step 5: Re-schedule Remaining Work
Click on Task
Project >> Status group>> Update Project
In Update Project dialog, click Reschedule uncompleted work to start after:
Enter Status Date
Click on Selected tasks
OK
Steps to Update the Project Schedule
Step 6: Revise Future Estimates
At any status meetings, ask team members if estimates for their upcoming tasks need updating
Replanning if Necessary
Use the integrated change control system to understand the impact
What kinds of changes might we make in response to the problems?
Does the approval for a change need to be escalated to higher management?
Summary
PM needs to understand how changes in one area might impact another area
PMs monitor & control project activities
Adjustments to projects processed through the project’s integrated change control process
Potential changes will be proposed, approved/ disapproved, documented, & implemented
Summary
PMs control project aspects that are subject to tradeoffs—scope, quality, cost, & schedule
Use quality control tools to understand quality level, where problems exist, root causes, & how to improve processes
Use earned value management (EVM) and MS Project to understand, document, & improve on cost and schedule progress
Controlling, Monitoring, and Reporting Projects at a Major Medical Center
Team-level monitoring
Division-level monitoring
Institutional-level monitoring
PM IN ACTION
Emergency Medicine Division of Cincinnati Children’s Hospital
Controlling, Monitoring, and Reporting Projects at a Major Medical Center
PM IN ACTION
Primary aim was a reduction
in length of stay for patients, supported by process measures representing specific intervals of this time, such as time from arrival in the department to
being seen by a physician & time from being able to leave the department to actually leaving.
Controlling, Monitoring, and Reporting Projects at a Major Medical Center
PM IN ACTION
The intent of this dashboard is to provide hospital leadership with a high-level view of recent progress on individual projects
PMBOK Exams
You can expect to see several questions using Earned Value Management (EVM) on either the CAPM or PMP, and you will not be provided with the formulas. You should memorize all of the following formulas and write them down on the blank paper you are provided with as soon as you enter the testing room so you can refer to them throughout the test
CV (cost variance) = EV-AC
SV (schedule variance) = EV-PV
CPI (cost performance index) = EV/AC
SPI (schedule performance index) = EV/PV
ETC (estimate to complete) = (BAC-EV) / CPI = BAC-EV
EAC (estimate at completion) = AC + ETC
TCPI (To-complete performance index) = (BAC-EV)/(BAC-AC)
You will need to apply these formulas for the test, so refer back to section 14-4c of this book to review abbreviations, when to use each formula, and how to interpret the results
You can also expect at least a few questions pertaining to the Integrated Change Control process. Remember that once the project management plan is approved and you have a baseline, any proposed change to schedule, budget, or scope needs to go through the change control process
Casa de Paz Development Project
This project development has proceeded in unexpected ways.
How should progress on various aspects be tracked?
How does the initial rental lessen risk?
SV= EV-PV
SV=EV-PV
AC
-
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CV
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SPI
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EV/AC
CPI
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ETC
AC
EAC
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=
EV)/CPI
-
BAC
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ETC
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TCPI
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