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Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
Week 9-performance-management-1222266539427090-9
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Week 9-performance-management-1222266539427090-9

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  • 1. Project Management 9. Performance Management
  • 2. Week 9
  • 3. Performance management
  • 4. Once you have selected a project
  • 5. Once you have selected a projectAnd planned it
  • 6. Once you have selected a projectAnd planned itAnd hired the team
  • 7. Once you have selected a projectAnd planned itAnd hired the teamAnd started the work
  • 8. Once you have selected a projectAnd planned itAnd hired the teamAnd started the work How do you stay on track?
  • 9. How do you even know if you are progressing to plan?
  • 10. Gray & Larson, 2006, Ch 13.
  • 11. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 12. What is a Project Monitoring System?What is a Project Monitoring System?
  • 13. Monitoring System Monitoring System Gather Gather Analyse Analyse Report ReportIt involves determining what data to collect, how, when an who will It involves determining what data to collect, how, when an who will collect the data; analysis of the data; and reporting progress collect the data; analysis of the data; and reporting progress
  • 14. You need to know whatinformation is needed tosatisfy you and yourstakeholders.
  • 15. Think about theInformation SystemStructure
  • 16. What data arecollected?
  • 17. current status of project current status of project (schedule and cost) (schedule and cost) remaining cost to compete remaining cost to compete project project date that project will be date that project will be complete complete potential problems to be potential problems to be addressed now addressed now out-of-control activities out-of-control activities requiring interventionWhat data areWhat data are requiring interventioncollected?collected? Cost and/or schedule overruns Cost and/or schedule overruns & their reasons & their reasons Forecasting overruns at time Forecasting overruns at time of completion of completion
  • 18. 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? who will receive the reports?how will the reports be transmitted?when will the reports be distributed? Photo by germanium
  • 19. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 20. Progress Report FormatProgress since last reportCurrent status of project Schedule Cost ScopeProblems and issues since lastreport Actions and resolution of earlier problems New variances and problems identifiedCorrective action planned
  • 21. How longshould aprojectstatusreport be?
  • 22. 1 page
  • 23. <example>
  • 24. More infowww.projectconnections.com/knowhow/subsets/sample-templates/StatusReports.doc www.ic.arizona.edu/~profcomm/writing/samples/stat_samp_s1.htm http://www.projectperfect.com.au/info_status_report.php http://saulcarliner.home.att.net/idbusiness/statusreport.htm office.microsoft.com/en-us/templates/TC011417231033.aspx
  • 25. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 26. Project Control Process
  • 27. The process of comparing actual performance against plan to identifydeviations, evaluate courses of action, and take appropriatecorrective action Pensiero
  • 28. Project Control Steps Set and Measuring Comparing the baseline a progress and plan to the Taking Action plan performance facts
  • 29. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 30. Monitoring Time Performance
  • 31. Monitoring Time Performance Tools used to catch negative variances from plan and communicate project schedule status:
  • 32. Monitoring Time Performance Tools used to catch negative variances from plan and communicate project schedule status: Tracking and baseline Gantt charts show expected, actual, and trend data for event duration performance
  • 33. Time A Gantt ChartFigure 13.1 Baseline Gantt Chart(Gray & Larson, 2006, p414)
  • 34. Monitoring Time Performance Tools used to catch negative variances from plan and communicate project schedule status: Tracking and baseline Gantt charts show expected, actual, and trend data for event duration performance Control charts plot the difference in scheduled time on the critical path with the actual point on the critical path
  • 35. A Control ChartFigure 13.2 Project Schedule Control Chart(Gray & Larson, 2006, p415)
  • 36. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 37. Monitoring Systems Disparities Picture by Pensiero
  • 38. Time-Phase Baseline Plan Picture by Pensiero
  • 39. Corrects the failure of most monitoring systems toconnect a project’s actual performance to its scheduleand forecast budget Picture by Pensiero
  • 40. Systems that measure only cost variances do notidentify resource and project cost problems associatedwith falling behind or progressing ahead of schedule Picture by Pensiero
  • 41. Earned Value Cost/Schedule SystemAn integrated project management system based on the earned valueconcept that uses a time-phased budget baseline to compare actualand planned schedule and costs Picture by airgap
  • 42. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 43. Earned Value ManagementEarned Value Management
  • 44. What is Earned Value Management (EVM)?
  • 45. What is Earned Value Management (EVM)?A project performance measurement techniquethat integrates scope, time, and cost data.
  • 46. What is Earned Value Management (EVM)?A project performance measurement techniquethat integrates scope, time, and cost data.Given a baseline (original plan plus approved changes), you candetermine how well the project is meeting its goals.You must enter actual information periodically to use EVM.
  • 47. What is Earned Value Management (EVM)?A project performance measurement techniquethat integrates scope, time, and cost data.Given a baseline (original plan plus approved changes), you candetermine how well the project is meeting its goals.You must enter actual information periodically to use EVM.
  • 48. Terms to learnPV Planned Value CV Cost VarianceAC Actual Cost SV Schedule VarianceEV Earned Value Cost Performance CPI Indicator Schedule Performance SPI Indicator
  • 49. (Also called the budget)PV Planned Value This is that portion of the approved total cost estimate planned to be spent on an activity during a given period
  • 50. The total of direct and indirect costsAC Actual Cost incurred in finishing work on an activity during a given period
  • 51. An estimate of the value of theEV Earned Value physical work actually completed
  • 52. Earned value minus the actual cost.CV Cost Variance Shows the difference between the estimated cost of an activity and the actual cost of that activity TABLE 13.1
  • 53. Earned value minus the plannedSV Schedule Variance value. Shows the difference between the schedule completion of an activity and the actual completion of that activity TABLE 13.1
  • 54. Cost Performance The ratio of earned value to actualCPI cost and can be used to estimate the Indicator projected cost of completing the project. If the CPI is equal to 1 or 100% then the planned and actual costs are equal, or the costs are as budgeted. If the CPI is less than 1 or less than 100%, the project is over budget. If the CPI is greater than 1 or more than 100%, the project is under budget
  • 55. Schedule Performance The ratio of earned value to plannedSPI value and can be used to estimate Indicator the projected time to complete the project. Similar to the CPI, an SPI of 1 or 100% means the project is on schedule. If the SPI is greater than 1 or 100% then the project is ahead of schedule. If the SPI is less than 1 or 100%, the project is behind schedule
  • 56. Quick EVM quizWhat can we sayif CPI > 1 TABLE 13.1
  • 57. Quick EVM quizWhat can we sayif CPI > 1 If the CPI is greater than 1 or more than 100%, the project is under budget
  • 58. Quick EVM quizWhat is EV minusAC?
  • 59. Quick EVM quizWhat is EV minusAC? EV – AC = SV Earned Value (what was done) Minus Actual Cost (what has been paid) = Schedule Variance
  • 60. Scenario Example
  • 61. Scenario Example“Purchasing & Installing Web Server”Duration 1 week,Budget $10,000.
  • 62. Scenario Example“Purchasing & Installing Web Server”Duration 1 week, Budget $10,000. PV – Planned Value – for that activity for that week = $10,000 AC – Actual Cost – suppose it actually took 2 weeks and cost $20,000. Assume $15,000 were incurred in week 1, and $5,000 in week 2. These costs are the actual costs for that activity each week EV – Earned Value – earned value after one week is $7,500. (10,000 * 75%) Example: CP829_Lecture_Week9_EarnedValue.xls
  • 63. Earned Value Chart for Project after 5-Months
  • 64. Max Wideman
  • 65. Rules for Earned Value NumbersNegative numbers for cost and schedule variance indicate problems in those areas The project is costing more than planned or taking longer than planned CPI and SPI less than 100% indicate problems
  • 66. Table 13.3 Interpretation of Indexes(Gray & Larson, 2006, p429)
  • 67. An alternativeSource:http://www.mountaingoatsoftware.com/release_burndown
  • 68. Week 2 Week 2lecture lecture
  • 69. So, what do you do when your plan changes?
  • 70. There are methods used to revise estimates of future project costsEVM allows experts in the field to change original baseline durationsand costs because new information tells them the original estimatesare not accurateEVM uses actual costs-to-date plus an efficiency index to project finalcosts in large projects where the original budget is unreliable
  • 71. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 72. Developing an Integrated Cost/Schedule System
  • 73. WBS Resource planPlan Schedule Budget CollectMonitor Calculate Compute
  • 74. Define the work using a WBS Develop work and resource schedules Scope Work packages Schedule resource to activities Deliverables Time-phase work packages Organization units into a network Resources Budgets Photo by shimonkey
  • 75. Develop a time-phased budget At the work Compute the Multiply using work package level, schedule percent packages collect the variance (EV- complete times included in an actual costs for PV) and the original budget activity. the work cost variance Accumulate (EV) performed (AC) (EV-AC) budgets (PV)
  • 76. Integrate d Cost/ SchedulesFigure 13.3 Project Management Information Systems Overview(Gray & Larson, 2006, p419)
  • 77. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 78. Project Baselines
  • 79. Week 4 Week 4lecture lecture
  • 80. a Baseline is an anchorpoint for measuringperformance Photo by _Robert C_ @ flickr
  • 81. a planned cost and expected schedule against which actual cost and schedule are measuredGold by Куртис Перри
  • 82. a basis for cash flows andawarding progress payments Photo by quaziefoto @ flickr
  • 83. a summation of time-phasedbudgets (cost accounts assummed work packages) along aproject timeline Picture by Network Osaka @
  • 84. What Costs Are Included in Baselines? Labor Equipment Materials Project direct overhead costs (DOC)
  • 85. Figure 13.14 Scope Changes to a Baseline(Gray & Larson, 2006, p436)
  • 86. What is a Project Monitoring System Examples of Progress ReportsWhat is the Project Control Process and why is it useful? How do I Monitor Time Performance The shortcomings of monitoring Systems Earned Value Management – a silver bullet? Integrated Cost/Schedule System Project Baselines
  • 87. ReviewProject monitoring system include; data collection; analysis andreporting.Project control steps include; baseline plan, progress measurement,comparing actual against projected plan, and actions.Performance can be monitored using tools such as; tracking Gantts,control charts, baseline plans and earned value management.Earned value management (EVM) is a technique which incorporatedscope, time and cost data to determine the health of the project.Integrated Cost/Schedule systems are developed creating; WBS,work/resource schedules, budget, and EVM.Project baselines are an anchor point for measuring performance.
  • 88. ReferencesHorodyski, K. (1995). Managing and developing teams. Footscray, Vic.: OpenTraining Services.Greenberg, J. & Baron, R. (1993). Behavior in organizations (4th ed.). Syd.,NSW: Allyn and Bacon.Robbins, S., et al. (1998). Organisational behaviour (2nd ed.). Sydney:Prentice-Hall
  • 89. BetterProjects.net Awesome title page picture by Derek Farr ( DetroitDerek )

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