CHAPTER 9
Progress and Performance
Measurements
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Structure of a Projectmonitoring System
Creating a project monitoring system
involves determining:
• What data is collected
• The collection and analysis of this data
• The reporting of the data and types of
reports
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What Data is Collected
• Current status of project (schedule and cost)
• Remaining cost to compete project
• Date that project will be complete
• Potential problems to be addressed now
• Out-of-control activities requiring intervention
• Cost and/or schedule overruns
• Forecast of overruns at project completion
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The Collection and Analysis
of this Data
• Who will collect the project data?
• How will the data be collected?
• When will the data be collected?
• Who will compile and analyse the data?
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Reporting of the Data
• Who will receive the reports?
• How will the reports be transmitted?
• When will the reports be distributed?
Types of reports
• Full
• Exception
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Controlling Project Costs,
Resources and Schedules
Step 1: Setting a baseline plan
Step 2: Measuring progress and
performance
Step 3: Comparing plan against actual
Step 4: Taking action
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Step 1: Setting a Baseline Plan
• The baseline plan provides the anchor
point for measuring performance.
• The baseline is derived from the cost and
duration information found in the Work
Breakdown Structure (WBS) and timesequence data from the network and
resource scheduling decisions.
• The first baseline plan is usually the
approved PMP prior to project Execution.
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Step 2: Measuring Progress
and Performance
• Time and budgets are quantitative
measures of performance that readily fit
into the integrated information system.
• Additionally, think about qualitative
measures and stakeholder satisfaction.
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Step 3: Comparing Plan
Against Actual
• Because plans seldom materialise as
expected, it becomes imperative to
measure deviations from the plan to
determine if action is necessary.
• Being able to compare planned values
(PV) against actual values (AC) is key.
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Step 4: Taking Action
• If deviations from plans are significant,
corrective action will be needed to bring the
project back in line with the original or
revised plan.
• Leverage the change/variation process to
control change in the project environment.
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Monitoring Time (Schedule)
Performance
Tracking Gantt Chart
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Monitoring Time (Schedule)
Performance (cont.)
Project Schedule Control Chart
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Per cent Complete Rule
Per cent Complete Rules used to
assess actual status
• Actual % complete.
• 0/100 % complete rule.
• Interval % complete.
• 50/50 rule.
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Developing an Earned Value
Cost/Schedule System (cont.)
1. Define the work using a WBS
a. Scope
b. Work packages
3. Develop a time-phased
budget using work packages
included in an activity
Accumulate budgets (PV)
c. Deliverables
4. At the work package level,
collect the actual costs for
the work performed (AC)
d. Resources
e. Budgets
2. Develop work and resource
schedules
a. Schedule resources
to activities
b. Time-phase work packages
into a network
Multiply percent complete
times original budget (EV)
5. Compute the schedule
variance (EV-PV) and the
cost variance (EV-AC)
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Developing an Earned Value
Cost/Schedule System (cont.)
Review Sir Ganttalot Media Clips
• http://www.youtube.com/watch?v=UggTFk2EiUg
• http://www.youtube.com/watch?v=jJi1FxC2e64
• http://www.youtube.com/watch?v=-MJEYc48Cjs
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Developing an Earned Value
Cost/Schedule System (cont.)
Comparing Earned Value
• With the expected schedule value
• With the actual costs
Assessing Status of a Project
Required data elements
• Data budgeted cost of the work scheduled (PV)
• Budgeted cost of the work completed (EV)
• Actual cost of the work completed (AC)
Calculate Schedule and Cost Variances
• Positive variance indicates a desirable condition, while negative
variance suggests problems or changes that have taken place
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Other Control Issues
• Scope creep
– Remember its one of the key reasons for
project failure
• Baseline changes
– Keeping track of Scope plus agreed
changes to baseline in order to make an
accurate report on final project
performance and deliverables.
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Further Project Performance
Considerations
Not just constrained to scope, time, cost and
earned value consider:
• Quality
• Safety
• Environment
• Human dimension
• Customer
How would you report on these?
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Key Terms
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control chart
Cost Performance Index (CPI)
Cost Variance (CV)
Earned Value (EV)
estimated cost at completion—forecasted (EACf)
estimated cost at completion—revised estimates (EACre)
exception report
full reporting
milestones
Per cent Complete Index—actual costs (PCIC)
Per cent Complete Index—budget costs (PCIB)
planned value (PV)
quality
Schedule Performance Index (SPI)
Schedule Variance (SV)
scope creep
To Complete Performance Index (TCPI)
tracking Gantt chart
Variance at Completion (VAC)
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