Chap013 4er1

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Chap013 4er1

  1. 1. Chapter 13 Progress and Performance Measurement and EvaluationMcGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved
  2. 2. Project Monitoring System for Control Information System Structure  What data are collected? o Current status of project (schedule and cost) o Remaining cost to compete project o Date that project will be complete o Potential problems to be addressed now o Out-of-control activities requiring intervention o Cost and/or schedule overruns and the reasons for them o Forecast of overruns at time of project completion 13-2
  3. 3. Project Progress Report Format Progress Since Last Report Current Status of Project  Schedule  Cost  Scope CumulativeTrends Problems and Issues Since Last Report  Actionsand resolution of earlier problems  New variances and problems identified Corrective Action Planned 13-3
  4. 4. The 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 1. Setting a baseline plan 2. Measuring progress and performance 3. Comparing plan against actual 4. Taking actions 13-4
  5. 5. Monitoring Time Performance ToolsUsed to Catch Negative Variances from Plan and Communicate Project Schedule Status:  Tracking and baseline Gantt charts o Show expected, actual, and trend data for event duration performance  Control charts o Plot the difference in scheduled time on the critical path with the actual point on the critical path 13-5
  6. 6. Baseline and Tracking Gantt Charts FIGURE 13.1 13-6
  7. 7. Project Schedule Control Chart FIGURE 13.2 13-7
  8. 8. Disparity Among Monitoring Systems Time-Phase Baseline Plan  Corrects the failure of most monitoring systems to connect a project’s actual performance to its schedule and forecast budget Earned Value Cost/Schedule System  Anintegrated project management system based on the earned value concept that uses a time- phased budget baseline to compare actual and planned schedule and costs 13-8
  9. 9. Glossary of Terms EV  The percent complete times its original budget. The older acronym for this value was BCWP—budgeted cost of the work performed. PV (Planned Value)  The time-phased baseline of the value of the work scheduled. (BCWS—budgeted cost of the work scheduled). AC  The actual cost of the work completed. (ACWP—actual cost of the work performed). 13-9
  10. 10. Glossary of Terms CV  Cost variance is the difference between the earned value and the actual costs for the work completed to date where CV=EV- AC. SV  Schedule variance (SV) is the difference between the earned value and the baseline line to date where SV=EV-PV. BAC  Budgeted cost at completion. The total budgeted cost of the baseline or project cost accounts. EACre  Estimated costs at completion. Includes costs to-date plus revised estimated costs for the work remaining. 13-10
  11. 11. Glossary of Terms ETC  Estimate to complete. VAC  Cost variance at completion (BAC-EACre), where EACre is derived by estimators in the field.  Or, alternatively, cost variance at completion (BAC- EACf), where EACf is derived from a formula using actual and earned value costs.  VAC indicates expected actual over-or underrun cost at completion. 13-11
  12. 12. Developing an Integrated Cost/Schedule System1. Define the work using a 3. Develop a time-phased WBS. budget using work packages a. Scope included in an activity. b. Work packages Accumulate budgets (PV). c. Deliverables 4. At the work package level, d. Organization units collect the actual costs for e. Resources the work performed (AC). f. Budgets 5. Multiply percent complete times original budget (EV).2. Develop work and resource schedules. 6. Compute the schedule a. Schedule resources to activities variance (EV-PV) and the cost variance (EV-AC). b. Time-phase work packages into a network 13-12
  13. 13. Baseline Data Relationships 13-13
  14. 14. Methods of Variance Analysis 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 13-14
  15. 15. Cost/Schedule Graph FIGURE 13.4 13-15
  16. 16. Earned Value Review Exercise FIGURE 13.5 13-16
  17. 17. Digital Camera Prototype Project Baseline Gantt Chart FIGURE 13.7 13-17
  18. 18. Digital Camera Prototype Project Baseline FIGURE 13.8 13-18
  19. 19. Digital Camera Prototype Status Reports: Periods 1–3 TABLE 13.1 13-19
  20. 20. Digital Camera Prototype Status Reports: Periods 4–6 TABLE 13.1 (CONT) 13-20
  21. 21. Digital Camera Prototype Status Reports: Period 7 TABLE 13.1 (CONT) 13-21
  22. 22. Digital Camera Prototype Summary Graph (000) FIGURE 13.9 13-22
  23. 23. Digital Camera Project Tracking Gantt Chart Showing Status—Through Period 7 FIGURE 13.10 13-23
  24. 24. Digital Camera Project Rollup atEnd Period 7 (000) FIGURE 13.11 13-24
  25. 25. Indexes to Monitor Progress Performance Indexes  Cost Performance Index (CPI) o Measures the cost efficiency of work accomplished to date o CPI = EV/AC  Scheduling Performance Index (SPI) o Measures scheduling efficiency o SPI = EV/PV  Percent Complete Indexes o Indicates how much of the work accomplished represents of the total budgeted (BAC) and actual (AC) dollars to date o PCIB = EV/BAC o PCIC = AC/EAC 13-25
  26. 26. Interpretation of Indexes TABLE 13.3 13-26
  27. 27. IndexesPeriods 1–7 FIGURE 13.12 13-27
  28. 28. Additional Earned Value Rules RulesApplied to Short-Duration Activities and/or Small-Cost Activities  0/100 percent rule o Assumes 100 % of budget credit is earned at once and only when the work is completed  50/50 rule o Allows for 50% of the value of the work package budget to be earned when it is started and 50% to be earned when the package is completed 13-28
  29. 29. Forecasting Final Project Cost Methods Used to Revise Estimates of Future Project Costs:  EAC re o Allows experts in the field to change original baseline durations and costs because new information tells them the original estimates are not accurate  EAC f o Uses actual costs-to-date plus an efficiency index to project final costs in large projects where the original budget is unreliable 13-29
  30. 30. Forecasting Model: EACfThe equation for this forecasting model: 13-30
  31. 31. To Complete Performance Index (TCPI) BAC - EV TCPI= BAC – AC TCPI = the amount of value eachremaining dollar in the budget mustearn to stay within budget 13-31

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