Project Management (x470)

1. Project Management (x470) Module 04 : Knowing Wherethe Project Is

2. Class Road Map

3. Session 5 Agenda

4. Project Execution Knowing What the Project Is

5. To provide goal-centered feedback to detect and correct the course • What data is relevant? • Where is it best collected? • Who should analyze and act on it? • When should it be done? Knowing Where the Project Is:Why Metrics? Measurements mated with analysis and action!

6. Traffic Light Reporting Knowing Where the Project Is:Project Performance Data

7. Knowing Where the Project Is:Traffic Light Reporting Need to define what the colors mean!

8. Knowing Where the Project Is:Sample Metric StatusDefinition

9. Knowing Where the Project Is:Sample Metric StatusDefinition 2

10. Knowing Where the Project Is:Sample Metric TrendDefinition

11. Project Trend Problem Statement Metric Scope Schedule Corrective Action Executive Summary Status Cost Overall Health Challenges Next Steps Results Working Knowing Where the Project Is:Project Dashboard Significant results for the reporting period. Significant work to be started for the next reporting period. Significant work in progress for the reporting period. Major issues, constraints, etc.

12. Knowing Where the Project Is:Simplified Project Dashboard

13. Knowing Where the Project Is:Multiple Project Reporting

14. Trigger point for Schedule ‘color’ can be tighter • Trigger point for Cost color can be looser Knowing Where the Project Is:Flexibility Matrix and Status Trigger

15. Planned Value (PV) – the physical work scheduled to be performed, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Scheduled - BCWS) Schedule and cost status reporting tool! • Earned Value (EV) – the physical work actually accomplished, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Performed - BCWP) Knowing Where the Project Is:Earned Value Management • Actual Cost (AC) - the actual cost incurred to accomplish the earned value. (Actual Cost of Worked Performed - ACWP)

16. Money Spent = $1350 % Complete = 2/3 Task Budget = $1500 Today A work on a project task is expected to cost $1500 to complete and the workers were scheduled to finish today. As of today however, the workers have actually expended $1350 and the best estimate is the task is 2/3 complete. Determine the Planned Value, Actual Cost and Earned Value at this point in time. PV = 1500 Knowing Where the Project Is:Earned Value Example AC = 1350 EV = (2/3)(1500) = 1000

17. Knowing Where the Project Is:Earned Value Formulae

18. Other Formulae • Actual plus new Estimate To Complete • EAC = AC + ETC • Actual plus budget (PV) for remaining deliverables • EAC = AC + (BAC – EV) • Actual plus budget for remaining deliverables modified by the performance index • EAC = AC + (BAC – EV)/CPI AC EAC = (BAC) X EV The estimate at completion is the best estimate of the total cost at the completion of the project. The EAC is a periodic evaluation of the status of the project - usually on a monthly basis or until a significant change has been identified. Knowing Where the Project Is:Estimate at Completion

19. Time of measurement PV SV AC CV CUMMULATIVE COST, $ Knowing Where the Project Is:Earned Value Status Reporting EV TIME

20. Knowing Where the Project Is:Using Earned Value I

21. Project: Software enhancement for a drug company Baseline: Entire effort priced at $200K and scheduled for completion June 10th As of June 10: Project cost to date is $195K. One activity is left in the project estimated to cost S25K. Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount. Knowing Where the Project Is:Using Earned Value II

22. Given: BAC = $200K, PV = $200K, AC = $195K Last Activity Cost = $25K Solution: EV = 200K – 25K = $175K CV = EV – AC = 175K- 195K = -$20K SV = EV – PV = 175K – 200K = -$25K CV% = (CV / EV) 100% = (-20/175) 100% = -11% SV % = (SV / PV) 100% = (-25/200) 100% = -12.5% CPI = EV / AC = 175 / 195 = .897 SPI = EV / PV = 175 / 200 = .875 Knowing Where the Project Is:Using EV II Solution

23. EAC1 = (AC/EV) x BAC = (195/175)200K = $223K EAC2 = AC + (BAC – EV) = 195K + 200K – 175K = 220K EAC3= AC + (BAC – EV)/CPI = 195K + (200K-175K)/.897 = $223K ETC = EAC – AC = 223 – 195 = 28K Knowing Where the Project Is:Using EV II Solution (cont.)

24. Project: Construction of a new house Baseline: Entire effort priced at $1.2M and scheduled for completion January next year. As of July 1: First project activity is a site survey with a budget of $80K. By July 1st, half of the site survey is expected to be completed. Cost to date is $60K and work is already 80% complete. Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount. Knowing Where the Project Is:Using Earned Value III

25. Knowing Where the Project Is:Using Earned Value IV

26. Week 1 Using Earned Value IV

27. Using Earned Value IV

28. Knowing Where the Project Is:Using Earned Value IV (cont…)

29. Knowing Where the Project Is:Using Earned Value: HW Gantt Chart Week 1 Week 2 29

30. Objective Manage changes to project via an approved change control process Deliverable Approved / rejected change request document Updated project and product process deliverables Knowing Where the Project Is:Project Change Control

31. Resources • Enhancement of stakeholders’ ability to contribute as individual and team’s ability to function as a team • Team building activities • Reward and recognition • Training Project Manager Deliverables Project Team Development Projects are managed through its people!

32. Formalized review process with participation from management on issue resolution Gate review Status review Check-in, stay in-touch Maintain an open environment Tracking intensity proportionate to project importance / priority Knowing Where the Project Is:Monitor & Control “Best Practices”