Parametric Performance Monitoring and
Control (PPMC)
Presented by:
Karen McRitchie
Galorath Incorporated
100 North Sepulveda Boulevard
Suite 1801
El Segundo, California 90245
KMcRitchie@galorath.com
Galorath Incorporated 2004
1
SEER: Project Management Context
Estimate
&
Plan
Measure
&
Analyze
Galorath Incorporated 2004
Monitor
&
Control
2
s
Ba
ne
eli
Measure
&
Analyze
Estimate
&
Plan
ate
-d als
To ctu
A
Project Planning
• Establish Estimates
• Develop a Project Plan
• Obtain Commitment to the Plan
Project Monitoring and Control
• Monitor Project Against Plan
• Manage Corrective Action to
Closure
Measurement and Analysis
• Align Measurement and Analysis
Activities
• Provide Measurement Results
Kno
Expwled
erie ge &
nce
SEER: Process Focus (CMMI)
Monitor
&
Control
s) &
BaselinAec(tu
als
Final
Galorath Incorporated 2004
3
s
Ba
ne
eli
Galorath Incorporated 2004
Measure
&
Analyze
Estimate
&
Plan
ate
-d als
To ctu
A
Project Planning
• History-Based Sizing
• Direct Measure Sizing
• Parametric Estimation
• 4-D Planning
Project Monitoring and Control
• 4-D Earned Value Management
• Status Indication
• Performance-based Forecasting
Measurement and Analysis
• Estimation Accuracy
Assessment and Improvement
• Calibration
• Knowledge Base Management
• Benchmarking
Kno
Expwled
erie ge &
nce
SEER: Methods
Monitor
&
Control
s) &
BaselinAec(tu
als
Final
4
SEER: Tools
SEER-SEM
Calibration Mode
currently in development
Galorath Incorporated 2004
ne
eli
Measure
&
Analyze
Estimate
&
Plan
s
Ba
Kno
Expwled
erie ge &
nce
SEER-SEM
te
-da als
To ctu
A
Project Planning
• SEER-AccuScope
• SEER-SEM
• Project Miner (SEER-SEM option)
• SEER-H
• SEER-IC
• SEER-DFM
• SEER-SEM Client for Microsoft
Project
Project Monitoring and Control
• Parametric Performance Monitoring
and Control (SEER-SEM option)
Measurement and Analysis
• SEER-CommonRepository
• SEER-ScatterPlot+
Monitor
&
Control
s) &
BaselinAec(tu
als
Final
PPMC
5
What is PPMC?
Monitor
&
Control
Parametric Performance Monitoring and Control
A set of add-on features to SEER-SEM that enable project monitoring and
control of software development projects
Features include:
• Inputs for actual effort and project progress as well as project metrics
• Algorithms to combine parametric and earned value
• Reporting to provide information on project status
PPMC employs 4D Earned Value Management
• Activity Completion
• Expenditures
• Artifact Completion
• Defect Discovery/Removal
Galorath Incorporated 2004
6
Why PPMC?
Earned Value Management is considered a best practice for monitoring
and controlling the progress of a software project
EVM has limitations:
• A single focus on activity completion as the basis for earning value
• Difficulty in providing realistic performance based estimate at completion
(EAC)
PPMC adds monitoring and control capabilities to SEER-SEM
PPMC combines:
• Accepted algorithms currently used for cost and schedule estimation during
the project planning process
• Accepted equations currently used for traditional Earned Value Management
Parametric Performance Monitoring and Control
Galorath Incorporated 2004
7
The common question
Once a project has started, it is only natural to want to enter your
project metrics
The most common question:
• Can I put in my actual effort once the project is underway and will the
tool recalibrate my estimate?
The right answer is NO - it’s not enough just to give actual hours
• Just because you spent 50% of a planned budget doesn’t mean your
are 50% done
What the project manager needs to know:
• How much more money, how long?
• How can the project be adjusted to meet objectives?
To do this, you need assess the project status in terms of progress,
not just expenditures – Earned Value
Earned value compares work complete to original estimates.
Galorath Incorporated 2004
8
3500
3500
3000
3000
2500
2500
Hours
Hours
Combining Earned Value and Parametrics
2000
1500
2000
1500
1000
1000
500
500
0
0
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627
Month
Month
Plan
Plan
Actual Expenditure
Earned Effort
Actual Expenditure
3500
3000
Hours
2500
2000
1500
1000
500
0
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627
Month
Plan
Galorath Incorporated 2004
Actual Expenditure
Remaining Effort
9
Traditional EVM – Measures and Metrics
Fundamental Measures
• Budgeted Cost of Work Scheduled (BCWS)
• Budgeted Cost of Work Performed (BCWP)
• Actual Cost of Work Performed (ACWP)
Variances
• Schedule Variance (SV)
• Cost Variance (CV)
• Time Variance (TV)
Performance Indices
• Schedule Performance Index (SPI)
• Cost Performance Index (CPI)
• To-Complete Performance Index (TCPI)
Galorath Incorporated 2004
10
Earned Value and PPMC Terminology
Galorath Incorporated 2004
Earned Value Terminology
What it means
BCWS - Budgeted Cost of Work
Scheduled
The planned costs (baseline plan)
SEER-SEM calls this the Baseline Plan
ACWP – Actual Cost of Work
Performed
What you paid
SEER-SEM calls this Actual Effort or Actual Cost
BCWP – Budgeted Cost of Work
Performed
The earned value
SEER-SEM calls this Schedule Accomplishments
EAC – Estimate At Complete
The latest estimated cost at completion
ETC – Estimate to Complete
Funds needed to complete the investment
SPI – Schedule Performance
Index
The percent of the investment that has been completed
CPI – Cost Performance Index
The ratio of earned to actual cost of work performed
TCPI - To Complete Performance
Index
The latest cost efficiency assumed to complete
CV - Cost Variance
The difference between earned and actual cost of work
performed
SV – Cost Variance
The difference between actual and planned work
TV – Time Variance
The variance between the actual and planned schedules
11
The PPMC Approach
PPMC extends the use of SEER-SEM to projects underway
Galorath Incorporated 2004
12
Tracking a Project
Once a project is started, the PPMC process may begin
Start with a SEER-SEM estimate
Establish a baseline estimate
Take project “snapshots” periodically
Evaluate earned value metrics
Replan as required
Galorath Incorporated 2004
13
The Baseline
A baseline freezes the current
estimate
The baseline provides the
yardstick against which the
project is tracked and evaluated
Allows you to do trades with the
current estimate while
maintaining the planning baseline
A baseline can be updated at any
time
The current estimate may be set
back to the baseline at any time
Galorath Incorporated 2004
14
The Snapshot
Snapshots are a picture of the project’s metrics at any give point in
time
The snapshot includes two key components:
• Work Complete
• Actual Effort
Work Complete describes the progress in terms of milestone
completion
Actual Effort includes hours as well as size and defect metrics
Snapshots are flexible in terms of interval or frequency
• Regular snapshots – e.g. monthly or quarterly
• As needed – e.g. before a key review
Galorath Incorporated 2004
15
Snapshots
Snapshots are entered in matched sets in a dedicated input view
Galorath Incorporated 2004
16
Reporting
PPMC reports and charts are based on the most recent snapshot
entered
Work complete metrics are used to evaluate remaining effort and
schedule (Estimate To Complete)
Estimate At Complete = Actual Effort + ETC
Galorath Incorporated 2004
17
PPMC Reporting Options
Galorath Incorporated 2004
18
Looking at Progress Over Time
See how actual and earned
effort measure up to the
baseline plan
Click on any
month to see
specific
information
Galorath Incorporated 2004
See CPI and SPI trends over
time
CPI = Cost
Performance Index;
SPI = Schedule
Performance Index;
The ratio of earned
to actual cost of work
performed
The percent of the
investment that has
been completed
19
Other Metrics
Track defect
discovery and
removal rates
against expected
rates
Heath and Status Indicator
shows status and trends from
the previous snapshot
Thresholds are user definable
Increased defect
reporting rate
shows a
worsening trend
Galorath Incorporated 2004
20
s
Ba
ne
eli
Measure
&
Analyze
Estimate
&
Plan
ate
-d als
To ctu
A
Parametric Performance
Monitoring and Control enables
powerful evaluation of a project’s
progress
Utilizes EVM best practices
Capitalizes on parametric model’s
ability to replan and forecast
based on current project
assumptions
Flexible – doesn’t require regular
care and feeding, you can use it
only when you need to
Completes the project
management continuum
Kno
Expwled
erie ge &
nce
Summary
Monitor
&
Control
)&
BaselinAec(tsuals
Final
Galorath Incorporated 2004
21
Thank you!
For more information:
info@galorath.com
www.galorath.com
Galorath Incorporated 2004
22