Your SlideShare is downloading. ×
PM Session 7
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

PM Session 7

2,182
views

Published on

PM Session 7

PM Session 7

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,182
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
240
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Project Management Session 7 Project Management Control
  • 2. Preamble
  • 3.
    • How do I manage the following:
      • The overall health of the project;
      • Scope;
      • Acquisition of goods and services;
      • Value.
  • 4.
    • Project planning:
      • Milestones
      • Schedule;
      • Human resources;
      • Budget;
      • Responsibilities;
      • Contingencies.
    • Ownership:
      • Stakeholder input;
      • Conditions for satisfaction;
      • Stakeholders feel their interest accommodated.
    Project Health
  • 5.
    • Expertise:
      • Have expertise;
      • Members understand their responsibilities;
      • Adequate training for team members;
    • Top level support:
      • Project sponsor share responsibility;
      • TOR agreed;
      • Sponsor and management support when required;
      • Communication.
    • Resources:
      • Available HR;
      • Technology available;
      • Task management effective.
    Project Health
  • 6.
    • Justifiable case:
      • Project fully costed and budgeted;
      • Also agreed with sponsor;
      • ROI clear and acceptable;
      • Metrics in place and methods to measure;
      • Adequate funding;
    • Specification:
      • Objectives clear;
      • Strategic and business alignment;
      • Enthusiasm;
      • Adequate documentation – reports; budget; spec’s; deviations; delegations.
    Project Health
  • 7.
    • How do I manage the following:
      • The overall health of the project;
      • Scope;
      • Acquisition of goods and services;
      • Value.
  • 8. Scope Management
  • 9.
    • There are three basic causes for change in projects:
      • Planners erred in their initial assessment about how to achieve a given end or erred in their choice of the proper goal for the project;
      • The client/user or project team learns more about the nature of the project deliverable or about the setting in which it is to be used;
      • Change in the environment in which the project is being conducted.
    Scope Management
  • 10.
    • Scope is defined at various levels:
      • Project charter;
      • Breakdown of deliverables, tasks etc (this is were the Work Breakdown Structure is important);
      • The baseline plan and the budget also part of the scope.
    • Underlying the issue of scope management is change control :
      • Formal system of change control;
      • Impact of changes should be motivated;
      • Where it affects scope, client signoff should be sought and relevant documents updated.
    Scope management
  • 11.
    • Scope related dilemmas:
      • Scope creep:
        • Changes that are changing the base plan. Inevitable but the project manager needs to keep these changes “manageable” ;
      • Hope creep:
        • Falling behind schedule, with the hope that one could catch up. The project manager needs to be very careful as this can have severe consequences for the project;
      • Effort creep:
        • Similar to hope creep. Activity that does not produce results;
      • Feature creep:
        • Adding features rather than sticking to the original agreement about deliverables.
    Scope management
  • 12.
    • How do I manage the following:
      • The overall health of the project;
      • Scope;
      • Acquisition of goods and services;
      • Value.
  • 13.
    • PMBOK “the processes required to acquire goods and services’;
    • Procurement schedule (as such) should only be considered after the network diagram and schedule bar chart has been finalized but before the resource histograms and cash flow statements – thus what, when before how much and how much when….
    Procurement
  • 14. Procurement
  • 15.
    • How do I manage the following:
      • The overall health of the project;
      • Scope;
      • Acquisition of goods and services;
      • Value.
  • 16. Context
    • 70% of projects are:
      • Over budget
      • Behind schedule
    • 52% of all projects finish at 189% of their initial budget
    • And some, after huge investments of time and money, are simply never comple
    • Source: The Standish Group
  • 17. What is Earned Value? Earned Value is an approach for understanding and assessing what a project is achieving with budgeted money.
  • 18. What Do You Need for EVA? 100 40 60 15 25 30 30 3. Allocate Budgets 1. Define the Work 2. Schedule the Work R PM Baseline Contract Budget Base Time
  • 19. Managing Without EVA Example you budget 100 hours to assemble bridge Pillars and at the end of the period you have achieved the 100 hours Wow we are on budget ! R 0 R 100 hours @ R 300 100 hours @ R 300 Variance Actual Budget
  • 20. Managing Without EVA Does this mean we have achieved 100 hours worth of work ? Actual cost is not an indication of progress, - Only an indicator of hours/money spent.
  • 21. Important Terms
    • BCWS - Budgeted Cost of Work Scheduled:
      • Planned cost of the total amount of work scheduled to be performed by the milestone date;
    • ACWP - Actual Cost of Work Performed:
      • Cost incurred to accomplish the work t hat has been done to date;
    • BCWP - Budgeted Cost of Work Performed:
      • The planned (not actual) cost to complete the work that has been done .
  • 22. Example
  • 23. Example
    • SV - Schedule Variance: (BCWP-BCWS):
      • A comparison of amount of work performed during a given period of time to what was scheduled to be performed.
      • A negative variance means the project is behind schedule
  • 24. Example
  • 25. Example
    • CV - Cost Variance:
    • (BCWP-ACWP)
      • A comparison of the budgeted cost of work performed with actual cost.
      • A negative variance means the project is over budget.
  • 26. Example Schedule Variance = BCWP-BCWS: $49,000 - 55,000 SV = - $ 6,000 Cost Variance = BCWP-ACWP: $49,000 56,000 CV = - $7,000
  • 27. Earned Value?
    • BCWP - Budgeted Cost of Work Performed:
      • The planned (not actual) cost to complete the work that has been done .
  • 28. In Simple Terms… Actual Cost (26) Budget Plan (21) Earned Value (16) Time Now Schedule variance
  • 29. In Simple Terms… Actual Cost (26) Budget Plan (21) Earned Value (16) Time Now Cost Variance
  • 30. In Simple Terms… Actual Cost (26) Budget Plan (21) Earned Value (16) Time Now Time variance
  • 31. Important Metrics…
    • SPI: Schedule Performance Index: SPI=BCWP/BCWS SPI<1 means project is behind schedule
    • CPI: Cost Performance Index: CPI= BCWP/ACWP CPI<1 means project is over budget
    • CSI: Cost Schedule Index ( CSI=CPI x SPI):
      • The further CSI is from 1.0, the less likely project recovery becomes.
  • 32. Important Metrics… SPI: BCWP/BCWS: 49,000/55,000 = 0.891 CPI: BCWP/ACWP: 49,000/56000 = 0.875 CSI: SPI x CPI: .891 x .875 = 0.780
  • 33. Making Projections…
    • Once a project is 10% complete, the
    • overrun at completion will not be less
    • than the current overrun;
    • Once a project is 20% complete,
    • the CPI should not vary from its current
    • value by more
    • than 10%.
    • The CPI and SPI are statistically accurate indicators of final cost results.
    • Source: Defense Acquisition University
  • 34. Summary…
    • Know where you are in terms of the Schedule;
    • Know where you are in terms of the Budget;
    • Know where you are in terms of Work Accomplished.
  • 35. Summary…
    • Earned Value Analysis integrates all three:
    • It compares the planned work with what has actually been completed , to determine if cost, schedule and work accomplished are progressing as planned.
  • 36.