Project performance tracking analysis and reporting

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Project Performance Management - Tracking, Analysis and Reporting

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Project performance tracking analysis and reporting

  1. 1. PROJECT PERFORMANCE TRACKING, ANALYSIS AND REPORTING SUPREME MANAGEMENT CONSULTANTS CHARLES COTTER 11-12 OCTOBER 2013 RANDBURG TOWERS
  2. 2. TRAINING PROGRAMME OVERVIEW  The Project Performance Framework  Key Performance Indicators and Monitoring of Outcomes: Guide to Identification and Selection  Developing and Analyzing Project Performance Objectives: Outputs and Outcomes  Project Performance Benchmarking  Measuring and Monitoring Project Performance  Reporting & Documenting Project Performance  Research Methods in Project Performance Management  Establishing Baselines and Gathering Data  Project Information Management Systems in Project Performance Management
  3. 3. THE FUNDAMENTAL CONCEPTS  Defining Project/Project Management  Defining Performance Management  The Project Management Triple Constraint  The Project Management Life-cycle  The Performance Management process/cycle
  4. 4. DEFINING PROJECT/PROJECT MANAGEMENT According to Gray & Larson (2008) a project is defined as a complex, non-routine, one-time effort limited by time, budget, resources and performance specifications designed to meet specific needs. PMBOK (2000) define project management as the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
  5. 5. DEFINING PERFORMANCE MANAGEMENT  Performance management can be seen as a comprehensive management system aimed at constantly improving and monitoring the performance of others.  It therefore concerns itself with improving productivity, delivering a better quality service/product and is aimed at achieving the goals of both the institution and the employee.
  6. 6. PROJECT MANAGEMENT TRIPLE CONSTRAINT
  7. 7. PROJECT MANAGEMENT LIFECYCLE
  8. 8. THE PERFORMANCE MANAGEMENT CYCLE
  9. 9. MODEL OF VALUE
  10. 10. MEASURES TO DETERMINE THE VALUE OF A PROJECT – BALANCED SCORECARD PERSPECTIVE
  11. 11. PHASES OF PROJECT PERFORMANCE MONITORING AND TRACKING • Preventative - Prior to Initiation  Project Selection  Risk Management • Concurrent – Project Implementation  Project Monitoring Information System  Project Control Process  Earned Value Management  Control Charts • Reactive – Post Project Evaluation  Post project metrics
  12. 12. PROJECT SELECTION TOOLS – NUMERIC MODELS Financial Models: Payback period Return on Investment (ROI) Net Present Value (NPV) Internal Rate of Return (IRR)
  13. 13. PROJECT SELECTION TOOLS – NUMERIC MODELS Scoring Models: Factor model Decision Matrix Cost Breakeven Analysis
  14. 14. RISK MANAGEMENT PROCESS Risk Identification Risk Analysis Risk Control Risk Evaluation
  15. 15. LEARNING ACTIVITY Syndicate Group Discussion Complete the activity Provide feedback
  16. 16. PROJECT MONITORING INFORMATION SYSTEM Creating a Data Collection structure and process Analysis of the data Reporting current process
  17. 17. DATA COLLECTION  Data collection determined by which metrics will be used for project control  What data to collect?  How will data be collected?  Who will collect the data?  When will data be collected?
  18. 18. DATA ANALYSIS  Methods – electronic and/or manual  Process  Collation  Analysis  Interpretation  Verification
  19. 19. DATA REPORTING  Form – written or oral  Format:  Progress since last report  Current status of project – schedule, cost and scope  Cumulative trends  Problems and issues – new variances and resolutions  Corrective action planned
  20. 20. PROJECT CONTROL PROCESS
  21. 21. LEARNING ACTIVITY Syndicate Group Discussion Complete the activity Provide feedback
  22. 22. DEFINING EARNED VALUE MANAGEMENT (EVM)  Earned Value Management (EVM) is a project management technique for measuring project performance and progress.  It integrates scope, cost and schedule measures to assess the performance of a project.  Based on the three measures a baseline cost and schedule is developed and actual performance is measured with regards to the baseline values.
  23. 23. EARNED VALUE MANAGEMENT  Mastering the terminology:  Planned Value (PV)  Earned Value (EV)  Actual Cost (AC)  Schedule Variance (SV)  Cost Variance (CV)  Schedule Performance Index (SPI)  Cost Performance Index (CPI)  Critical Ratio (CR)
  24. 24. EARNED VALUE MANAGEMENT CONCEPTS  Budget at Completion (BAC): The original cost estimate, budget or quotation.  Planned Value (PV): This is the authorized budget allocated to the work to be accomplished for an activity. It is also known as budgeted cost of work scheduled (BCWS)  Earned Value (EV): This is the value of work performed expressed in terms of the approved budget assigned to work for an activity. It is also known as budgeted cost of work performed (BCWP). BCWP = % complete X BAC  Actual Cost (AC): This is the actual cost incurred in accomplishing the work performed for an activity. It is also known as Actual Cost of Work Performed (ACWP).
  25. 25. WORKED EXAMPLE
  26. 26. EARNED VALUE MANAGEMENT CONCEPTS  Schedule Variance (SV): Schedule variance is calculated as SV = EV –PV  Cost Variance (CV): Cost variance is calculated as CV = EV-AC  Schedule Performance Index (SPI): This represents efficiency of the time utilized on the project. It is calculated as measure of progress achieved compared to progress planned for a project. SPI = EV/PV  Cost Performance Index (CPI): This represents the efficiency of the resource (cost) utilized on the project. It is calculated as measure of value of work completed compared to the actual cost or progress made on the project. CPI = EV/AC  Estimate at completion (EAC) is the expected total cost of a task or project, based on performance as of the status date. EAC is also called forecast at completion, and is calculated like this: EAC = ACWP + (BAC - BCWP) / CPI.  Critical Ratio (CR): This indicator combines both the cost performance index (CPI) and schedule performance index (SPI) to represent the project status. This indicator takes care of cost and schedule trade-offs.
  27. 27. THE SIGNIFICANCE OF THE CRITICAL RATIO  Indicates whether project performance is stable or not over project duration.  Predicts future performance. performance from a stable project  Indicates whether project has experienced special cause variation during the project duration.  Indicates any special trend or pattern observed in project performance.
  28. 28. TUTORIAL VIDEO CLIPS http://www.youtube.com/watch?v=7WsfuvHegxE http://www.youtube.com/watch?v=UggTFk2EiUg http://www.youtube.com/watch?v=jJi1FxC2e64 http://www.youtube.com/watch?v=-MJEYc48Cjs
  29. 29. WORKED EXAMPLE
  30. 30. WORKED EXAMPLE
  31. 31. LEARNING ACTIVITY Syndicate Group Discussion Complete the activity Provide feedback
  32. 32. LIMITATIONS OF EVM  EVM indexes are point estimates; they represent the performance of the project at a particular reporting instance. They do not provide information about project performance over a period of a time.  They do not performance. capture the trend of project
  33. 33. CONTROL CHARTS  Control Charts are a quality tool which displays process data over time against the process control limits. Control limits define the area three standard deviations (by default) on either side of the centerline, or mean, of data plotted on a control chart where expected variation is observed.  A control chart is used to determine whether a given process is stable (contains only common cause variation) or it is subjected to special cause variation.
  34. 34. BASIC COMPONENTS OF A CONTROL CHART  Centerline representing the mean value of the data points  Horizontal border lines, Upper Control Limit (UCL) and Lower Control Limit (LCL) that define the limits of common cause variations  Data points plotted over time
  35. 35. TYPES OF VARIATION  Common Cause Variation (or Controlled Variation): These variations are present in the process due to its inherent nature. These are predictable and expected variations.  Special Cause Variation (or Uncontrolled Variation): These variations are introduced in the process by non–random events /factors external to process. If special cause variation is present in the process then process is said to be in unstable state.
  36. 36. LEARNING ACTIVITY Syndicate Group Discussion Complete the activity Provide feedback
  37. 37. POST-PROJECT EVALUATION  Perform a Post Implementation Review of the project  Close-out report  Assessment of the project against actual performance, quality of management (focusing on quality and risk management)  The lessons learnt that can be applied to future projects
  38. 38. CONCLUSION  Summary  Questions  Contact details:      Charles Cotter +27 84 562 9446 charlescot@polka.co.za Linked In Twitter: @Charles_Cotter

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