Project Management Framework Final

PROJECT

PERFORMANCE

MANAGEMENT AND

CLOSURE

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PROJECT MONITORING INFORMATION SYSTEM

 Creating a project monitoring system involves determining

 What data to collect

 How, when, and who will collect the data

 How to analyze the data

 How to report current progress to management

 What data are collected?

 Current status of project (schedule and cost)

 Remaining cost to compete project

 Date that project will be complete

 Potential problems to be addressed now

 Out-of-control activities requiring intervention

 Cost and/or schedule overruns and the reasons for them

 Forecast of overruns at time of project completion

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PROJECT MONITORING INFORMATION SYSTEM –

CONT’D

 Collecting data and analysis

 Who will collect project data?

 How will data be collected?

 When will the data be collected?

 Who will compile and analyze the data?

 Reports and reporting

 Who will receive the reports?

 How will the reports be transmitted?

 When will the reports be distributed?

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SAMPLE PROJECT PROGRESS REPORT

FORMAT

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PROJECT CONTROL PROCESS

Control

 The process of comparing actual performance against plan to

identify deviations, evaluate courses of action, and take

appropriate corrective action.

Project Control Steps

 Setting a baseline plan.

 Measuring progress and performance.

 Comparing plan against actual.

 Taking action.

Tools

 Tracking and baseline Gantt charts

 Control charts

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DEVELOPING AN INTEGRATED COST/SCHEDULE

SYSTEM

 Define the work using a WBS.

 Scope

 Work packages

 Deliverables

 Organization units

 Resources

 Budgets

 Develop work and resource schedules.

 Schedule resources

to activities

 Time-phase work packages into a network

 Develop a time-phased budget using work packages included in an activity. Accumulate budgets (PV).

 At the work package level, collect the actual costs for the work performed (AC). Multiply percent complete times original budget (EV)

 Compute the schedule variance (EV-PV) and the cost variance (EV-AC).

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DEVELOPMENT OF PROJECT BASELINES

 Purposes of a Baseline (PV)

 An anchor point for measuring performance

 A planned cost and expected schedule against which actual cost and schedule are measured.

 A basis for cash flows and awarding progress payments.

 A summation of time-phased budgets (cost accounts as summed work packages) along a project timeline.

 What Costs Are Included in Baselines?

 Labor, equipment, materials, project direct overhead costs (DOC)

 Rules for Placing Costs in Baselines

 Costs are placed exactly as they are expected to be “earned” in order to

track them to their point of origin.

 Percent Complete Rule

 Costs are periodically assigned to a baseline as units of work are completed over the duration of a work package.

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METHODS OF VARIANCE ANALYSIS

 Comparing Earned Value

 With the expected schedule value.

 With the actual costs.

 Assessing Status of a Project

 Required data elements

 Data Budgeted cost of the work scheduled (PV)

 Budgeted cost of the work completed (EV)

 Actual cost of the work completed (AC)

 Calculate schedule and cost variances

 A positive variance indicates a desirable condition, while a negative variance suggests problems or changes that have taken place.

 Cost Variance (CV)

 Indicates if the work accomplished using labor and materials costs more or less than was planned at any point in the project.

 Schedule Variance (SV)

 Presents an overall assessment in dollar terms of the progress of all work packages in the project scheduled to date.

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COST/SCHEDULE GRAPH

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INDEXES TO MONITOR PROGRESS

 Performance Indexes

 Cost Performance Index (CPI)

 Measures the cost efficiency of work accomplished to date.

 CPI = EV/AC

 Scheduling Performance Index (SPI)

 Measures scheduling efficiency

 SPI = EV/PV

 Percent Complete Indexes

 Indicates how much of the work accomplished represents of the total

budgeted (BAC) and actual (AC) dollars to date.

 PCIB = EV/BAC

 PCIC = AC/EAC

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FORECASTING FINAL PROJECT COST

 Methods used to revise estimates of future project costs:

 EACre  Allows experts in the field to change original baseline durations and costs because new

information tells them the original estimates are not accurate.

 EACf  Uses actual costs-to-date plus an efficiency index to project final costs in large projects where the

original budget is unreliable.

EACf = ETC + AC

EAC = Work Remaining / CPI

= (BAC – EV) / (EV/AC)

Where EACf : Estimated total cost at completion ETC : Estimated cost to completing remaining work AC : cumulative actual cost of work completed to date CPI : cumulative cost index to date BAC : total budget of the baseline EV : cumulative budgeted cost of work completed to date

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MAJOR TASKS OF PROJECT CLOSURE

 Evaluate if the project delivered the expected benefits to all

stakeholders.

 Was the project managed well?

 Was the customer satisfied?

 Assess what was done wrong and what contributed to

successes.

 Identify changes to improve the delivery of future projects.

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PROJECT CLOSURE

 Types of Project Closure

 Normal

 Premature

 Perpetual

 Failed Project

 Changed Priority

 Close-out Plan: Questions to be Asked

 What tasks are required to close the project?

 Who will be responsible for these tasks?

 When will closure begin and end?

 How will the project be delivered?

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RETROSPECTIVES

 Lessons Learned

 An analysis carried out during and shortly after the project life cycle to

capture positive and negative project learning—“what worked and what

didn’t?”

 Goals of Retrospectives

 To reuse learned solutions

 To stop repetitive mistakes

 Barriers to Organizational Learning

 Lack of post-project time for developing lessons

 No post-project direction or support for teams

 Lessons become blame sessions

 Lessons are not applied in other locations

 Organizational culture does not recognize

value of learning

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REFERENCES

Anbari, F. T., “Earned Value Project Management Method and Extensions,” Project

Management Journal, vol. 34, no. 4 (December 2003), pp. 12–22.

Bowles, M. “Keeping Score,” PMNetwork, May 2011, pp. 50–59.

Brandon, D. M., Jr., “Implementing Earned Value Easily and Effectively,” Project

Management Journal, vol. 29, no. 3 (June 1998), pp. 11–17.

Cooke-Davies, T., “Project Management Closeout Management: More than Simply

Saying Good Bye and Moving On,” in J. Knutson (Ed.), Project Management for

Business Processionals (Indianapolis, IN: John Wiley and Sons, 2001), pp. 200–14.

Fretty, P., “Why Do Projects Really Fail?” PM Network, March 2006, pp. 45–48

Kerth, Norman L., Project Retrospectives: A Handbook for Team Reviews (New York:

Dorset House, 2001).

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GLOSSARY OF TERMS