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 project
And planned it

6. Once you have selected a project
And planned it
And hired the team

7. Once you have selected a project
And planned it
And hired the team
And started the work

8. Once you have selected a project
And planned it
And hired the team
And 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 Reports
What 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
Report
It 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 what
information is needed to
satisfy you and your
stakeholders.

15. Think about the
Information System
Structure

16. What data are
collected?

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 intervention
What data are
What data are requiring intervention
collected?
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 Reports
What 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 Format
Progress since last report
Current status of project
Schedule
Cost
Scope
Problems and issues since last
report
Actions and resolution of
earlier problems
New variances and
problems identified
Corrective action planned

21. How long
should a
project
status
report be?

22. 1 page

23. <example>

24. More info
www.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 Reports
What 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 identify
deviations, evaluate courses of action, and take appropriate
corrective 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 Reports
What 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 Chart
Figure 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 Chart
Figure 13.2 Project Schedule Control Chart
(Gray & Larson, 2006, p415)

36. What is a Project Monitoring System
Examples of Progress Reports
What 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 to
connect a project’s actual performance to its schedule
and forecast budget
Picture by
Pensiero

40. Systems that measure only cost variances do not
identify resource and project cost problems associated
with falling behind or progressing ahead of schedule
Picture by
Pensiero

41. Earned Value Cost/Schedule System
An integrated project management system based on the earned value
concept that uses a time-phased budget baseline to compare actual
and planned schedule and costs
Picture by airgap

42. What is a Project Monitoring System
Examples of Progress Reports
What 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 Management
Earned Value Management

44. What is Earned Value Management (EVM)?

45. What is Earned Value Management (EVM)?
A project performance measurement technique
that integrates scope, time, and cost data.

46. What is Earned Value Management (EVM)?
A project performance measurement technique
that integrates scope, time, and cost data.
Given a baseline (original plan plus approved changes), you can
determine 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 technique
that integrates scope, time, and cost data.
Given a baseline (original plan plus approved changes), you can
determine how well the project is meeting its goals.
You must enter actual information periodically to use EVM.

48. Terms to learn
PV Planned Value CV Cost Variance
AC Actual Cost SV Schedule Variance
EV 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 costs
AC Actual Cost incurred in finishing work on an
activity during a given period

51. An estimate of the value of the
EV 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 planned
SV 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 actual
CPI 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 planned
SPI 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 quiz
What can we say
if CPI > 1
TABLE 13.1

57. Quick EVM quiz
What can we say
if CPI > 1
If the CPI is greater
than 1 or more than
100%, the project is
under budget

58. Quick EVM quiz
What is EV minus
AC?

59. Quick EVM quiz
What is EV minus
AC?
EV – AC = SV
Earned Value (what was done)
Minus
Actual Cost (what has been paid)
=
Schedule Variance

61. Scenario Example

62. Scenario Example
“Purchasing & Installing Web Server”
Duration 1 week,
Budget $10,000.

63. 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

66. Earned Value Chart for Project after 5-Months

68. Max Wideman

69. Rules for Earned Value Numbers
Negative 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

70. Table 13.3 Interpretation of Indexes
(Gray & Larson, 2006, p429)

71. An alternative
Source:
http://www.mountaingoatsoftware.com/release_burndown

72. Week 2
Week 2
lecture
lecture

73. So, what do you do when your plan changes?

74. There are methods used to revise
estimates of future project costs
EVM allows experts in the field to change original baseline durations
and costs because new information tells them the original estimates
are not accurate
EVM uses actual costs-to-date plus an efficiency index to project final
costs in large projects where the original budget is unreliable

75. What is a Project Monitoring System
Examples of Progress Reports
What 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

76. Developing an Integrated Cost/Schedule System

77. WBS
Resource
plan
Plan
Schedule
Budget
Collect
Monitor
Calculate
Compute

78. 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

79. 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)

80. Integrate
d Cost/
Schedules
Figure 13.3 Project Management Information Systems Overview
(Gray & Larson, 2006, p419)

81. What is a Project Monitoring System
Examples of Progress Reports
What 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

82. Project Baselines

83. Week 4
Week 4
lecture
lecture

84. a Baseline is an anchor
point for measuring
performance
Photo by
_Robert C_ @
flickr

85. a planned cost and expected schedule
against which actual cost and schedule
are measured
Gold by Куртис Перри

86. a basis for cash flows and
awarding progress payments
Photo by quaziefoto
@ flickr

87. a summation of time-phased
budgets (cost accounts as
summed work packages) along a
project timeline
Picture by
Network Osaka @

89. What Costs Are Included in Baselines?
Labor
Equipment
Materials
Project direct overhead costs (DOC)

90. Figure 13.14 Scope Changes to a Baseline
(Gray & Larson, 2006, p436)

91. What is a Project Monitoring System
Examples of Progress Reports
What 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

92. Review
Project monitoring system include; data collection; analysis and
reporting.
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 incorporated
scope, 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.

93. References
Horodyski, K. (1995). Managing and developing teams. Footscray, Vic.: Open
Training 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

94. BetterProjects.net
Awesome title page picture by
Derek Farr ( DetroitDerek )