1. Project Monitoring and Control

2. Introduction Goal: ensuring that the project is on time and on budget and/or highlight any deviation from the plan Areas –Scope –Schedule –Costs –Risks –Quality –Human Resources

3. Monitoring Scope –Scope creep… request for changes, rework, … Risks –Risk monitoring and control Human Resources –Informal talks, set goals, …

4. Monitoring (II) Time and Costs? Monitoring the schedule –Baselining –“Actual” values Monitoring costs –Earned Value

5. Basic Concepts Baselining –(values at t1, all values at t2, …) Planned versus real Values –(Planned Start, Planned Effort, Planned End, …) –(Actual Start, Actual Effort, Actual End, …)

6. Planned Value The cumulative cost of the approved costs PV(t) = planned value at time t BAC = Budget at completion t BAC PV(t) Planned End

7. Actual Cost The actual cumulative cost of the work done so far + estimation to end t AC(t) Actual End

8. Earned Value Measures real achieved results (in terms on earnings) The sum of the approved cost estimates for activities completed up to a specified date At the end of the project, EV = PV t

9. Computing Earned Value Rule 1. Earned value should be determined by physically examining products Rule 2. –Finished activities: Planned Value –Unstarted activities 0 –For unfinished activities earned value is usually just a guess 50/50 Rule (50 at start and 100 at end) 20/80 Rule (20 at start and 100 at end) 0/100 Rule (0 at start and 100 at end)

10. Example

11. Analysis at date, some values Expresses project progress (in terms on monetary values) Used to compute performances Some simple values –CV = EV - AC –SV = EV - PV –a = T - Ta –b = T - Tb –c BAC AC EV T C PV a b TaTb c

12. Cost Performance Index (CPI) Compares budgeted cost of work performed to actual cost Indicated the efficiency of the project –CPI = EV/AC How much we are actually getting for each euro we thought we would spend.

13. Schedule Performance Index (SPI) Compares work performed to work planned –SPI = EV/PV How fast does the project progress w.r.t. how fast we expected it to be?

14. Interpreting EV-indicators Typically indicators are stable after 20% of the project CPI > 1 project is on budget CPI < 1 project is over budget SPI > 1 project is ahead of time SPI < 1 project is behind schedule

15. To Complete Performance Index The efficiency that must be achieved to complete the remaining work with the remaining money –TCPI = (BAC - EV) / (BAC - AC)