1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-1 Project Evaluation and Control Project Termination and Closeout Chapter 13-14

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-2 The Project Control Cycle 1.Setting a Goal 4.Taking Action and Recycling the Process 2.Measuring Progress 3.Comparing Actual with Planned

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-3 Tools of monitoring project performance Project S-Curve Milestone Analysis Tracking (Gantt) Charts Earned Value Management (Earned Value Analysis)

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-4 The Project S-Curve Elapsed Time (in weeks) 10 5 4540353025201550 20 60 40 Cumulative Cost ($ in thousands) Cumulative Budgeted Cost Cumulative Actual Cost $10,000 Negative Var

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-5 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

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-6 Tracking Gantt Chart Project status is updated by linking task completion to the schedule baseline

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-7 Project S-Curves Cost PerformanceSchedule Earned Value Management Schedule Cost Performance Tracking Control Charts Cost PerformanceSchedule Earned Value

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-8 Earned Value Terms  Planned value (PV) – cost estimation across project life cycle  Earned value (EV) – real budgeted cost  Actual cost of work performed (AC)  Schedule performance index (SPI)  Cost performance index (CPI)  Budgeted cost at completion (BAC)

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-9 Steps in Earned Value Management 1.Clearly define each activity including its resource needs and budget 2.Create usage schedules for activities and resources 3.Develop a time-phased budget (PV) 4.Total the actual costs of doing each task (AC) 5.Calculate both the budget variance (CV) and schedule variance (SV)

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-10 Earned Value Milestones PV EV ACWP Slip Overspend Schedule Performed Actual Budget Schedule Cost

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-11 Earned Value Example ActivityJanFebMarAprilPlan%CValue Staffing871510015 Blueprint4610808 Prototype2810606 Design33331 Mon Plan8761738∑30 Cmltv8152138 Mon Act811813 Cmltv Act8192740 Planned Value 38=15+10+10+3 Earned Value 30=15+8+6+1 Value 8=80%(10) Actual Cost 40=8+11+8+13

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-12 Earned Value Example Schedule Variances Planned Value (PV) = 38 = 15+10+10+3 Earned Value (EV) = 30 = 15+8+6+1 Schedule Performance Index (SPI) = EV/PV = 30/38 =.79 Estimated Time to Completion (ETC) = (1/.79)x4 = 5 Cost Variances Actual Cost of Work Performed (AC) = 40 = 8+11+8+13 Cost Performance Index (CPI) = EV/AC = 30/40 =.75 Estimated Cost to Completion (ECC) = (1/.75)x38 = 50.7

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-13 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

14. Termination & Closeout Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall13-14

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-15 Project Termination All activities consistent with closing out the project  Extinction: no real afterlife  Addition: institutionalization  Integration to the functional organization  Starvation: loosing the resources

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-16 Elements of Project Closeout Management (natural termination) Putting it All to Bed Disbanding the Team Finishing Handing Gaining Acceptance for the Product Harvesting the Benefits Reviewing How The Work Product Over the It All Went

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-17 Reviewing how it all went Lessons learned analysis Common Errors  Misidentifying systematic errors  Misinterpreting lessons based on events  Failure to pass along conclusions Meeting Guidelines Establish clear rules of behavior Describe objectively what occurred Fix the problem, not the blame

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-18 Putting it all to bed: Closeout Paperwork Documentation Legal Cost Personnel

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-19 Why are Closeouts Difficult? Project sign off can be a de-motivator Constraints cause shortcuts on back-end Low priority activities Lessons learned analysis seen as bookkeeping Unique view of projects

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall14-20 Final Report Elements  Project performance  Administrative performance  Organizational structure  Team performance  Project management techniques  Benefits to the organization and customer