Project Control Process

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Project Control Process

  1. 1. COLLEGE OF ENGINEERING Construction Management Group 3By1- Saleh Aladdadh2- Naif Alharbi3- Salman Almansor Submitted to .Dr. Tomas Ucol Ganiron, Jr
  2. 2. PROJECT CONTROL PROCESS- What is Controlling Process - PM responsibility 2
  3. 3. Advanced Control: An Overview I attribute my success to this: I never gave or took an excuse. Florence Nightingale 3
  4. 4. PROJECT CONTROL PROCESSPurpose : to ensure that project objectives are met by monitoring andmeasuring progress and taking corrective actions when necessary 4
  5. 5. Progress Measurement If we don’t change ourdirection, we are likely to end up where we’re headed. Anonymous 5
  6. 6. Traditional Approaches to Progress Measurement• Budget vs. actual• Percent complete• “Trust me” 6
  7. 7. Modern Approaches• Smaller projects or projects with unstable scope: – Weekly or biweekly deliverables – Done or not done• Larger projects: – Earned value 7
  8. 8. Earned Value Concepts 8
  9. 9. Earned Value Mechanics• Build (and plot) your baseline• Record (and plot) the actuals• Measure (and plot) progress 9
  10. 10. Build Your Baseline• Information developed by planning: – WBS with 108 technical activities and 18 management activities. – Estimates show that all 126 activities will require 1 person for 1 week. – You are constrained to have three full-time staffers plus one half-time project manager. – Staff and PM both cost $1,000 per week. 10
  11. 11. Build Your BaselineMonth Staff PM Total 1 $12,000 $2,000 $14,000 2 $12,000 $2,000 $14,000 … … … … 9 $12,000 $2,000 $14,000 $108,00 $126,00Total $18,000 0 0 11
  12. 12. Plot Your Baseline Scheduled Cost ($126,000)Cumulative Values Time 12
  13. 13. Record Your ActualsMonth # Staff Staff $ PM Total $12,00 $14,00 1 3.5 $2,000 0 0 $12,00 $14,00 2 3.5 $2,000 0 0 $16,00 $19,00 3 4.7 $3,000 0 0 $16,00 $18,00 4 4.5 $2,000 0 0 n/a $56,00 $65,00Total $9,000 0 0 13
  14. 14. Plot Your Actuals Scheduled Cost ($126,000)Cumulative Values Actual Cost ($65,000) Time 14
  15. 15. Measure Your Progress Earned value = budget for completed itemMo. Done Not Staff PM Total $12,00 1 10+2 2 $10,000 $2,000 0 $11,00 2 9+2 5 $9,000 $2,000 0 $15,00 3 13+2 4 $13,000 $2,000 0 $18,00 4 16+2 0 $16,000 $2,000 0 $56,00Tot. 56 n/a $48,000 $8,000 15 0
  16. 16. Plot Your Progress Scheduled Cost ($126,000)Cumulative Values Actual Cost ($65,000) Earned Value ($56,000) Time 16
  17. 17. Use Ratios to Estimate Completion• Cost Performance Index (CPI) = Earned Value / Actual Cost• Cost Estimate At Completion (Cost EAC) = Total Scheduled Cost / CPI• Schedule Performance Index (SPI) = Earned Value / Scheduled Cost• Schedule EAC = Planned Duration / SPI 17
  18. 18. Sample Earned Value Calculations• Cost Performance Index (CPI) = 56,000 / 65,000 = 0.86• Cost Estimate At Completion (Cost EAC) = 126,000 / CPI = 126,000 / 0.86 = 146,500• Schedule Performance Index (SPI) = 56,000 / 56,000 = 1.00• Schedule EAC = 9 months / 1.0 = 9 months 18
  19. 19. Other Earned Value Acronyms• SC = BCWS = PV – Budgeted Cost of Work Scheduled – Planned Value• AC = ACWP – Actual Cost of Work Performed• EV = BCWP – Budgeted Cost of Work Performed 19
  20. 20. More Earned Value Acronyms EstimateBudgeted At Completion d (BAC) Overrun Estimate To Actual Cost Complete (ETC) Estimate At Completion (EAC) 20
  21. 21. Sample Values Total Scheduled Cost = 3,500Cumulative Values Actual Cost = 1,800 Duration = 12 months Budgeted Cost = 900 Earned Value = 600 Time 21
  22. 22. Sample Earned Value Calculations• Cost Performance Index (CPI) = 600 / 1,800 = 0.33• Cost Estimate At Completion (Cost EAC) = 3,500 / CPI = 3,500 / 0.33 = 10,500• Schedule Performance Index (SPI) = 600 / 900 = 0.67• Schedule EAC = 12 months / 0.67 = 18 months 22
  23. 23. … continued Budget = Estimated Overrun = 7,000 3,500Actual Cost Estimate To Complete (ETC) = = 8,7001,800Cost Estimate At Completion (EAC) = 10,500 23
  24. 24. Interpreting Results• Negative is bad: – If CV < 0, you are over budget. – If SV < 0, you are behind schedule.• Less than 1.0 is bad: – If CPI < 1.0, you are over budget. – If SPI < 1.0, you are behind schedule. 24
  25. 25. Time Variance• Earned Schedule (ES) — the number of periods planned for the current Earned Value.• Actual Time (AT) — the number of periods that have elapsed since the project started.• TPI (Time Performance Index) = ES / AT 25
  26. 26. … continued … Scheduled CostCumulative Values AT = 22 PD = 52 ES = 18 Earned Value Time 26
  27. 27. … continued• Time to Complete (TC) = Planned Duration / TPI = 52 / 0.8 = 65 = 13 weeks late• SPI will give similar results early in the project, but becomes less reliable later. 27
  28. 28. Summary of Key Points• Earned value is the most reliable approach to progress measurement when scope is reasonably stable.• Keep work-items small and short to avoid measurement errors. 28

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