Project Monitoring Control

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Software Project Management

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Arial:

Project Monitoring and Control 8/7/2013 1

Calibri:

Project Monitoring and Control Monitoring – Collecting, recording, and reporting information concerning project performance that project manger and others wish to know Controlling – Uses data from monitor activity to bring actual performance to planned performance 8/7/2013 2

Constantia:

Project Monitoring and Control Why do we monitor? What do we monitor? When to we monitor? How do we monitor? 8/7/2013 3

Wingdings 2:

Why do we monitor? Simply because we know that things don’t always go according to plan (no matter how much we prepare) To detect and react appropriately to deviations and changes to plans 8/7/2013 4

Times New Roman:

What do we monitor? Men (human resources) Machines Materials Money Space Time Tasks Quality/Technical Performance 8/7/2013 5

Symbol:

W hat do we monitor ? Inputs Time Money Resources Material Usage Tasks Quality/Technical Performance Outputs Progress Costs Job starts Job completion Engineering / Design changes Variation order (VO) 8/7/2013 6

Wingdings:

When do we monitor? End of the project Continuously Regularly Logically While there is still time to react As soon as possible At task completion At pre-planned decision points (milestones) 8/7/2013 7

Flow:

Where do we monitor? At head office? At the site office? On the spot? Depends on situation and the ‘whats’ 8/7/2013 8

Project Monitoring and Control:

How do we monitor Through meetings with clients, parties involved in project (Contractor, supplier,etc.) For schedule – Update CPA, PERT Charts, Update Gantt Charts Using Earned Value Analysis Calculate Critical Ratios Milestones 8/7/2013 9

Project Monitoring and Control:

Meetings – Some monitoring issues What problems do you have and what is being done to correct them? What problems do you anticipate in the future? Do you need any resources you do not yet have? Do you need information you do not have yet? Do you know anything that will give you schedule difficulties? Any possibility your task will finish early/late? Will your task be completed under/over/on budget? 8/7/2013 10

Project Monitoring and Control:

Project Control Cycle 8/7/2013 11 PLAN Specifications Project Schedule Project budget Resource plan Vendor contracts MONITOR Record status Report progress Report cost COMPARE Actual status against plan Schedule Cost ACTION Correct deviations from plan RE-PLAN as necessary

Why do we monitor?:

Project Control Control – process and activities needed to correct deviations from plan Control the triple constraints time (schedule) cost (budget, expenses, etc) performance (specifications, testing results, etc.) 8/7/2013 12

What do we monitor?:

Techniques for monitoring and control Earned Value Analysis Critical Ratio 8/7/2013 13

What do we monitor?:

Earned Value Analysis A way of measuring overall performance (not individual task) is using an aggregate performance measure - Earned Value Earned value of work performed (value completed) for those tasks in progress found by multiplying the estimated percent physical completion of work for each task by the planned cost for those tasks. The result is amount that should be spent on the task so far. This can be compared with actual amount spent. 8/7/2013 14

When do we monitor?:

Earned Value Analysis Methods for estimating percent completion The 50-50 estimate. 50% is assumed when task is begun, and remaining 50% when work completed. 0-100% rule. This rule allows no credit for work until task is complete, highly conservative rule, project always seem late until the very end of project when everything appears to suddenly catch up Critical input rule. This rule assigns progress according to amount of critical input that has been used. Labor or skilled dependent, machine critical input – buy machine complete task – may be misinformation Proportional rule. This rule divides planned (or actual) time-to-date by total scheduled time(or budgeted (or actual ) cost-to-date by total budgeted cast] to calculate percent complete. This is commonly used rule. 8/7/2013 15

Where do we monitor?:

Earned Value Analysis Refer to earned value chart – basis for evaluating cost and performance to date If total value of the work accomplished is in balance with the planned (baseline) cost, and actual cost then top mgmt has no particular need for a detailed analysis of individual tasks Earned value concept – combines cost reporting & aggregate performance reporting into one comprehensive chart 8/7/2013 16

How do we monitor:

Earned Value Analysis Baseline cost to completion – referred to as budget at completion (BAC) Actual cost to date – referred to as estimated cost at completion (EAC) Identify several variances according to two guidelines A negative variance is ‘bad’ Cost and schedule variances are calculated as earned value minus some other measure 8/7/2013 17

Meetings – Some monitoring issues:

Earned Value Chart – basis for evaluating cost & performance to date 8/7/2013 18

Project Control Cycle:

Earned Value Analysis - Variances 4 types of variances; Cost (spending) variance (CV) – difference between budgeted cost of work performed (earned value) (BCWP) and actual cost of that work (ACWP) Schedule variance (SV) – difference between earned value (BCWP) and cost of work we scheduled to perform to date (BCWS) Time variance (TV) –difference between time scheduled for work performed (STWP) and actual time to perform it (ATWP) 8/7/2013 19

Project Control:

Earned Value Variance - Formula CV = BCWP – ACWP (negative value - cost overrun) SV = BCWP – BCWS (negative value - behind schedule) TV = STWP – ATWP (negative value - delay) Index (Ratios) Cost Performance Index (CPI) = BCWP/ACWP Schedule Performance Index (SPI) = BCWP/BCWS Time Performance Index (TPI) = STWP/ATWP 8/7/2013 20

Techniques for monitoring and control:

EXAMPLE Assume that operations on a Work Package cost RM 1,500 to complete. They were originally scheduled to finish today. At this point, we actually spent RM1,350. And we estimate that we have completed two thirds (2/3) of the work. What are the cost and schedule variances? CV = BCWP – ACWP = 1500 (2/3) – 1350 = - 350 SV = BCWP – BCWS = 1500 (2/3) – 1500 = - 500 CPI = BCWP/ACWP = 1500(2/3)/1350 = 0.74 SPI = BCWP/BCWS = 1500(2/3)/1500 = 0.67 Spending higher than budget, and given what we have spent, we are not as far along as we should be (have not completed as much work as we should have ) 8/7/2013 21

Earned Value Analysis:

C ont………. Possible to have one of indicators to be favorable while the other unfavorable Might be ahead of schedule and behind costs Six possibilities (see figure next slide) 8/7/2013 22

Earned Value Analysis:

Summary Need proper project monitoring and control mechanisms Tools available to help in monitoring and controlling activities There are human control and management aspects not covered here 8/7/2013 23

Earned Value Analysis:

Thank u……. 8/7/2013 24

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