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Effective Project Evaluation and Control Methods

Learn about setting project goals, tracking progress, comparing actual and planned costs, using project control cycles, and milestone analysis. Understand Earned Value Management steps and critical success factors.

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Effective Project Evaluation and Control Methods

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  1. Project Evaluation and Control Chapter 13

  2. Setting a Goal • Taking Action and Recycling the Process • Measuring Progress • Comparing Actual with Planned The Project Control Cycle

  3. 60 40 Cumulative Budgeted Cost 20 Cumulative Actual Cost 10 15 20 25 30 35 40 45 50 5 Elapsed Time (in weeks) The Project S-Curve Cumulative Cost ($ in thousands) $10,000 Negative Var

  4. Milestone Analysis Milestones are events or stages of the project that represent a significant accomplishment. • Milestones • show completion of important steps • signal the team and suppliers • can motivate the team • offer reevaluation points • help coordinate schedules • identify key review gates • delineate work packages

  5. Tracking Gantt Chart Project status is updated by linking task completion to the schedule baseline

  6. Cost Project S-Curves Cost Performance Schedule Cost Earned Value Performance Schedule Performance Schedule Tracking Control Charts Earned Value Management

  7. Earned Value Terms • Planned value (PV) • Earned value (EV) • Actual cost of work performed (AC) • Schedule performance index (SPI) • Cost performance index (CPI) • Budgeted cost at completion (BAC)

  8. Steps in Earned Value Management • Clearly define each activityincluding its resource needs and budget • Create usage schedulesfor activities and resources • Develop a time-phased budget(PV) • Total the actual costsof doing each task (AC) • Calculate both the budget variance (CV) and schedule variance (SV)

  9. AC Actual Overspend Cost PV EV Budget Slip Schedule Performed Schedule Earned Value Milestones

  10. Earned Value Example Value 8=80%(10) Earned Value 30=15+8+6+1 Planned Value 38=15+10+10+3 Cumulative 40=8+11+8+13

  11. Earned Value Example Schedule Variances Planned Value (PV) = 38 = 15+10+10+3 Earned Value (EV) = 30 = 15+8+6+1 Schedule Performance Index = .79 = 30/38 = EV/PV Estimated Time to Completion = (1/.79)x4=5 Cost Variances Actual Cost of Work Performed (AC) = 40 = 8+11+8+13 Cost Performance Index = .75 = 30/40 = EV/AC Estimated Cost to Completion = 50.7 = (1/.75)x38

  12. Completion Values in EVM Accurate and up-to-date information is critical in the use of EVM • 0/100 Rule • 50/50 Rule • Percentage Complete Rule

  13. Human Factors in Project Evaluation & Control • Optimistic progress reports • Level of detail • Process evaluation • Non-technical performance measurement

  14. Critical Success Factors in theProject Implementation Profile • Project mission • Top management support • Project plans & schedules • Client consultation • Personnel • Technical tasks • Client acceptance • Monitoring & feedback • Communication channels • Troubleshooting

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