Initiate
Plan
Execute
Monitor
And
Control
Monitoring & Controlling the Project
Close
7-1
Outline:
 Overview
 Earned value analysis
 Project control / tracking techniques
 Scope creep and change control
 Quality / collection and presentation of project data.
Homework: 25, 26, 27, 28
#27 end of 6th week = MSP date 2/10/01 (end of 6th week), do not compute critical ratio
use the default 5-day work week
use start date 1/1/01
#28 Repeat problem 27 using MSP
7-2
Monitoring
Project Plan
Control
7-3
EV
PV
PV
AC
EV
AC
7-4
Dollars
Cost schedule plan
(baseline)
Performance
Cost bad
Sched. bad
ACWP
Actual cost
BCWS
BCWP
Schedule
variance
Cost
variance
Value completed (Earned Value)
Now
Time
7-5
Dollars
Performance
bad
Cost
Sched. good
ACWP
BCWS
baseline
BCWP
=EV
Now
Time
7-6
Dollars
BCWP = EV
Performance
Cost good
Sched. good
BCWS
baseline
ACWP
Now
Time
7-7
Dollars
Performance
bad
Cost
Sched. bad
BCWS
baseline
ACWP
BCWP = EV
Now
Time
7-8
Dollars
Performance
Cost good
Sched. bad
BCWS
baseline
BCWP = EV
ACWP
Now
Time
7-9
Dollars
Performance
Cost good
Sched. good
BCWS
baseline
BCWP
=EV
ACWP
Now
Time
7-10
 Earned Value Analysis compares the current project status with
the original (baseline) plan.
 It computes several performance metrics for individual activities
and for the entire project.
 It focuses on cost and schedule performance
 It’s a useful tool/input for project control.
 Popular project management software computes these metrics.
 Project EV is calculated by summing up the individual task EV’s.
7-11

Expert estimated value of work performed to date, if available.

There are a variety of rules (see page 248).

Work off budget / schedule values, if available.
EV = BAC X (portion of work completed)
EV = BAC X (actual work completed / total amount of work)
7-12




Expert believes value of work performed to date is $120,000.
Task is complete, expected to cost $1,500 (budgeted), best
estimate is the task is 2/3 finished.
Day 50 of 100 day, $100,000 budgeted task, manager estimated
value of work performed is $40,000.
Project X is at the end of its 5th week. Activity D is 30%
complete. Activity D budgeted cost is $1000.
3
8
D5
3
7-13
Planned cost of work on a task or project up to a
given point in time.
PV = BAC X (portion of time that has elapsed)
PV = BAC X (time passed / total time scheduled)




Budgeted / scheduled amount, to date.
Determined from the baseline plan or budget.
Works off budgeted cost numbers.
BCWS.
7-14
• Activity was scheduled to have spent $100,000 at this point in the plan
/ budget.
• Work on a project task was expected to cost $1500 and the workers
were originally scheduled to have the task compete today.
• Work on a project task is uniformly distributed, total task budget is
$2000. The task is scheduled to last 8 weeks, the current time is end of
week 5. Task is scheduled to begin end of week 2.
7-15




Cost/Spending Variance
earned value (EV) – actual cost (AC)
Schedule Variance
earned value (EV) – planned cost (PV)
CPI (Cost Performance Index)
earned value (EV)/actual cost (AC)
SPI (Schedule Performance Index)
earned value (EV)/planned cost (PV)
7-16
Day 75 of a 75 day task, Task “data conversion of payables for external vendors”.
Task planned cost total on day 75, $100,000
Actual spend to date, $90,000.
Best estimate 50% complete.
($100,000 = PV).
Earned Value (EV) =0.50 X $100,000 = $50,000.
Cost/spending variance = EV – AC = $50,000 - $90,000 = - $40,000.
Schedule variance = EV – PV = $50,000 - $100,000 = - $50,000.
CPI = EV/AC = 50/90 = 0.56 Cost Performance Index
SPI = EV/PV = 50/100 = 0.50 Schedule Performance Index (we are worse on schedule than
cost)
ETC = (BAC – EV) / CPI = (100,000 – 50,000) / .56 = $90,000.
EAC = ETC + AC = $90,000 + $90,000 = $180,000.
ETC = Estimated cost To Completion
EAC = Estimated total cost At Completion
BAC = Budget At Completion
AC = Actual Cost to date
7-17
Current date = end of day 18
Activity
a
b
c
d
e
f
g
8
0
a
8
6
4
9
11
3
1
a
c
a
b
d,e,f
14
b
8
Pred
Duration (days)
8
14
19
e
17
f
19
20
g
0
4
c
4
13
d
7-18
Task e
Task e = 11 days, current date is end of day 18
At end of day 18, we are scheduled/planned to be 10/11 complete.
This is used in the PV computation.
7-19
% of planned
Activity
Budget ($)
Duration (days)
Actual ($)
% Complete
ES
EF
finish on 2/1/01
a
8
250
300
100.00%
0
8
1
b
6
100
100
100.00%
8
14
1
c
4
300
200
100.00%
0
4
1
d
9
500
600
100.00%
4
13
1
e
11
400
450
50.00%
8
19
10/11
f
3
350
375
20.00%
14
17
1
g
1
450
0
0.00%
19
20
0
BAC
$2,350.00
AC
$2,025.00
EV
$1,420.00
PV (budget)
$1,863.64
Current Date
2/1/01 For activity e notice the duration is 11 days
Beg of day
17 at the end of day 18, 1/11 is scheduled to remain (since the task EF is 19)
End of day
18 10/11 of the task is scheduled/planned complete.
Project Start
Break task into 11 (its duration)
parts. End of day 18 we are
10/11 finished.
1/15/01
Cost/Spend var
$(605.00)
Schd var
$(443.64)
notice
CPI
0.70 more has been spent than the baseline plan
SPI
0.76 given what has been spent, less progresss has been made than should have been
ETC
$1,326.23 (BAC-EV) / CPI
EAC
$3,351.23 ETC + AC
7-20
Double Click
End of day 2/1
Current Date Line
Put end of day date
here for MSP
calculations
7-21
Used in MSP
Calculations
MSP
Enter Project Basic Information
Start Here
Enter activity names, predecessors, durations.
Start of the project is 01/15/2001.
Steps:
1. Enter tasks and durations
2. Project Information
Start date: 1/15/01
3. Project, Change Working Time
Work weeks, Details
to 7-day work week
set day(s) to these specific working times
8am to 12pm and 1pm to 5pm
4.
Enter Predecessors
7-22
MSP
View the Network Diagram
Helpful Notes:
Also, under project information, statistics check that duration is 20d.
Look at the Gantt chart and make sure activity a’s duration days count up to 8.
7-23
MSP
Enter Budgeted Data for Each Task
View, Table, Cost
Enter budget amounts as Fixed costs
Budget Amounts Entered
7-24
MSP
Save the Baseline Data
1. So progress at a date can be compared to the planned and budgeted data.
Tools, Tracking, Set and Save Baseline, OK.
2. Turn off MSP automatic calculation of actual costs to date.
Tools, Options, Calculations.
MSP 2010
Project
Set Baseline
MSP 2010
File
Help
Options
Schedule (scroll down)
Calculation options
Un-check Actual costs
Un-check
Un-check
7-25
MSP
Enter Project Progress Data
View, Table, Tracking
Enter % Comp amounts and Act. Costs
7-26
MSP
View automatically calculated project metrics.
1.
Enter current project date.
Project menu, Project Info., enter current date.
2.
View, Table, More Tables, Earned Value, Apply.
7-27
MSP
Summary of Tasks
Enter base information, activities, durations.
Set the start date.
Set a 7 day work week.
Project Guide, Tasks, Define general working times.
Enter predecessor(s).
Enter task budget amounts as fixed costs.
MSP 2010
View, Table, Cost
Save Baseline
Tools, Tracking, Set Baseline.
Project
Set Baseline
Enter Project Progress Data
Turn off auto actual cost calculations
Tools, Options, Calculations
MSP 2010
File
Help
Options
Schedule (scroll down)
Calculation options
Un-check Actual costs
Un-check
Enter Actual Costs and Task Percent Complete
View, Table, Tracking
Enter current project progress date
Project menu, Project information
Get Metrics
View, Table, More Tables, Earned Value
7-28
 Project control  taking corrective actions to keep the project
on target toward meeting its performance goals (time, cost,
deliverables).
 There are many ways to exert control; the PM must decide
which is most appropriate.
 Process Reviews
 Reports
 Personnel Assignment
7-29
Change
Order








Approved
Review suggested changes
Assess all impacts to project goals
Evaluate advantages and disadvantages
Consider alternative changes that are better
Allow responsible parties to make decision in light of all information
Communicate changes to everyone involved
Implement changes
Summarize all changes and impacts in report
7-30
Quality is the degree to which our deliverables and
objectives fulfill the project requirements.
Change requests
Assuring
Corrective actions
Training
Planning
measurements
Controlling
7-31
Controlling
•Check sheets, frequency counts
•Histograms
•Pareto chart
•Control charts
•Cause and effect diagram
•Others
7-32
Log-in
Lock up
Speed
Use
7-33
Problem
Type
f
p
P
Log-in
110
0.26
0.26
Lock up
105
0.25
0.51
Speed
103
0.24
0.75
35
0.08
0.83
Use
7-34
7-35
7-36
7-37
7-38
Source:
http://cokepm.com/pmbok3/premium/8.3PerformQualityControl.htm
7-39
7-40
7-41
a quantitative measure used by project management personnel to determine schedule
performance during or after the completion of a project. It is calculated using a simple
algebraic equation where the earned value (EV) represents the actual amount of time
taken to either complete the project or progress to the project’s current stage. The planned
value (PV) represents the amount of time which reaching the project’s current progress
should have taken to achieve according to the project management’s schedule. Schedule
variance (SV) is found by subtracting PV from EV. EV-PV=SV
Schedule variance and its exact number may indicate many possible things to project
management. A number approaching zero would indicate that the scheduling and
timeframes generated by project management were accurate within a small margin of
error. A figure that is well into negative numbers would mean that either project
management over estimated the amount of time needed or they overestimated the budget
and workforce measured in raw man hours that would necessary to complete the project.
This is not a good thing either as it represents an unnecessary expenditure of resources. A
schedule variance figure high in positive numbers could represent many things. It could
indicate that project management underestimated the amount of time needed to complete
the project, or it might indicate that the budget and workforce was insufficient. It could also
mean that project management or the workforce suffered setbacks, foreseen or otherwise,
which may or may not have been avoidable.
This term is defined in the 3rd edition of the PMBOK but not in the 4th.
7-42
Source:
http://project-management-knowledge.com
The term cost variance, also known by the abbreviation of CV, refers specifically to the true
measurement of cost performance on a particular project. The cost variance represents the
algebraic difference between the earned value of a project (also known by the abbreviation
of EV), and the actual cost of the project (also known by the abbreviation AC). The
equation to determine the cost variance would be broken down as follows: CV = EV minus
AC. If the resulting value for the cost variance is a number greater than zero (or “positive
value”), then it is considered to be a favorable cost variance condition. A value that is less
than zero, or a resulting “negative” value, represents a cost variance that is considered
less than favorable. Because the cost variance is so dependent on the earned value and
the actual cost, in order to maintain a favorable cost variance, it is to the project team’s
advantage to minimize actual costs to the extent possible.
This term is defined in the 3rd and the 4th edition of the PMBOK.
Source:
http://project-management-knowledge.com
7-43
Envirosafe Project case
(30 minutes)
 Divide into small groups
 Read case
 Discuss why the project was late and over budget; root causes
 Recommend control procedures and other changes that should
prevent future problems
1-44