Parametric Performance Monitoring and Control (PPMC)

1. Parametric Performance Monitoring and Control (PPMC) Presented by:Karen McRitchie Galorath Incorporated100 North Sepulveda BoulevardSuite 1801El Segundo, California 90245 KMcRitchie@galorath.com Ó Galorath Incorporated 2004

2. Estimate&Plan Baseline Knowledge &Experience To-dateActuals Measure& Analyze Monitor&Control Baseline(s) &Final Actuals SEER: Project Management Context Ó Galorath Incorporated 2004

3. SEER: Process Focus (CMMI) • 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 Ó Galorath Incorporated 2004

4. SEER: Methods • 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 Ó Galorath Incorporated 2004

5. SEER: Tools • 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+ currently in development SEER-SEM SEER-SEM Calibration Mode PPMC Ó Galorath Incorporated 2004

6. What is PPMC? 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 Ó Galorath Incorporated 2004

7. 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 Ó Galorath Incorporated 2004

8. 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. Ó Galorath Incorporated 2004

9. Combining Earned Value and Parametrics Ó Galorath Incorporated 2004

10. 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) Planned Earned Spent Ó Galorath Incorporated 2004

11. Earned Value and PPMC Terminology Ó Galorath Incorporated 2004

12. The PPMC Approach • PPMC extends the use of SEER-SEM to projects underway Ó Galorath Incorporated 2004

13. 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 Ó Galorath Incorporated 2004

14. 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 Ó Galorath Incorporated 2004

15. 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 Ó Galorath Incorporated 2004

16. Snapshots • Snapshots are entered in matched sets in a dedicated input view Ó Galorath Incorporated 2004

17. 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 Ó Galorath Incorporated 2004

18. PPMC Reporting Options Ó Galorath Incorporated 2004

19. Looking at Progress Over Time See how actual and earned effort measure up to the baseline plan See CPI and SPI trends over time Click on any month to see specific information CPI = Cost Performance Index; The ratio of earned to actual cost of work performed SPI = Schedule Performance Index; The percent of the investment that has been completed Ó Galorath Incorporated 2004

20. 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 Ó Galorath Incorporated 2004

21. Summary • 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 Ó Galorath Incorporated 2004

22. Thank you! For more information: info@galorath.com www.galorath.com Ó Galorath Incorporated 2004