1. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 1 SOFTWARE PROJECT MANAGEMENT COURSE Executing, Monitoring and Controlling Session #7

2. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 2 Selected teams present their Project Plans Team Exercise

3. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 3 PM Course Progress -Leadership -Team Building -Motivation -Earned Value -Mgmt Reporting -Large Projects 37913 1811 Overview Initiation PlanningExecuting, Monitoring & Controlling Research Presentations -Scope -Activity -Resources -Cost Est. -Schedule -Quality -Organization -Comm. -Risk Session 24561012

4. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 4 Agenda Monitoring & Controlling Tracking Status & Earned Value Predicting

5. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 5 Overview Effort Size Schedule Cost Quality ? Estimation Planning TrackingPredicting Productivity

6. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 6 Macro Estimate Phase Planning Typical Planning Cycle Detailed Planning Status Reporting PredictingRe-Planning

7. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 7 Requirements Planning Tracking Current Status Predicting Future Outcomes Applying Control Actions Effort (E) EcEc ScSc QcQc We need a model of product and process dynamics to do this. Project Management Control Loop Current & Predicted Results Work Around and Planning Adjustments Patterns and Trends Analysis Time (t D ) Size (S) Quality (Q) tDtD c EpEp SpSp QpQp tDtD p Difference Between Plan and Predicted C = Current P = Predicted

8. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 8 % of Projects with large schedule slips From SEI Research Connection between planning methods and tools, and project schedule success No planning methods or tools Planning methods but no tools Methods and tools

9. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 9 Monitoring & Controlling is made up of two components; tracking current status and future prediction.

10. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 10 What a project manager does to monitor and control: Measure, on a regular basis, the project's process and product Evaluate current status vs. planned progress Predict project completion schedule, cost and quality Adjust your planning as needed

11. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 11 If you were going to create a detailed planning and tracking spreadsheet for the Code & Unit Test process, what would you plan and track? Remember to define planning that will give you visibility (mini-milestones) into “how well Code & Unit Testing is going”. How could this detailed status be turned into a percent complete for the total Code & Unit Test process? Discuss: Team Exercise

12. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 12 Agenda Monitoring & Controlling Tracking Status & Earned Value Predicting

13. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 13 Estimated final size Staff size Percent complete of product through process phases Errors per month Milestones completed Code unit tested Measure and analyze every month. Develop a plan for each of these measures so you can determine your variation from plan. Requirements status

14. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 14 Float or Slack Time Early Start Early Finish Late Finish Time Line 2468101214 Task Number 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Turning Task Status into Project Schedule Status

15. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 15 % Complete at a given instant. Process Phase 0 20 40 60 80 100 Plan Actual

16. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 16 Earned value is a measure of the value of work you have received for the money you have expended. In other words - a measure of what you got for what you spent. Earned Value Management System is the overall system that uses three variables: Planned Value, Earned Value and Actual Cost Earned Value Management System is the overall system that uses three variables: Planned Value, Earned Value and Actual Cost Using Earned Value Management System to Track Status and to Predict

17. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 17 This is why advanced Project Managers use an EVMS: EVMS effectively measures performance EVMS integrates cost, schedule and scope at the task level EVMS flexible implementation allows tailoring to project complexity EVMS reporting provides easy visual status and trend data (cost vs. time) Earned Value Management System (EVMS)

18. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 18 Earned Value is defined as the value of the work performed. It is calculated by multiplying (% Task Complete) x (Planned Value of the Task). EV = (%Complete) x (Planned Value) Earned Value

19. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 19 Number of Staff Time Effort (staff-time) All Staff Costs Time Cost ($) Cumulative Costs of Staff Time 1 2 3 A three step process 1 st Step: Develop the Planned Value for the project using a Staffing Plan The Planned Value

20. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 20 Cumulative Costs Time Total Cost Planned Value (PV) (Also known as the “S” curve) Planned Value for the Total Project Budget at Completion (BAC)

21. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 21 Planned Value: Choosing the Criteria for Progress Reporting as the Work is Completed Select a criteria for each task –0 / 100% criteria –50% / 50% criteria –% complete criteria

22. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 22 Calculating Planned Value Using % Complete $8,000 - $2K/wk $24,000 - $4K/wk $16,000 - $2K/wk $40,000 - $8K/wk WEEK TASK TASK A TASK C TASK D TASK B Planned Value by week 134567891011122 2,0008,000 Cumulative Planned Value 2,00010,00018,00026,000 6,000 32,000 PV = 32,000

23. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 23 Calculating Earned Value During the Execution Stage of the Project Once you have calculated your planned value and start executing your project, you will need to calculate your actual task earned value each week. It should be no surprise that you calculate the earned value of each task using the same criteria you used to calculate the planned value for the task.

24. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 24 Exercise (Calculating Earned Value) Week 1 –Task A 20% Complete Week 2 –Task A 40%, Task B 20%, Task C not started Week 3 –Task A 60%, Task B 40%, Task C 25%! Week 4 –Task A 80%, Task B 60%, Task C 50% Week 5 –Task A Finished!, Task B 80%, Task C 75%

25. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 25 Calculating Earned Value $8,000 - $2k/wk $24,000 - $4K/wk $16,000 - $2K/wk $40,000 – 8K/wk WEEK TASK TASK A TASK C TASK D TASK B 134567891011122 2,00010,00018,00026,00032,000 Cumulative Earned Value Cumulative Planned Value Slow - $1,600/wk As Planned Late Start Earned Value by Week 1,6005,6007,600 1,6007,20014,80023,40030,000 PV = 32,000 EV = 30,000

26. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 26 Schedule VarianceSV = EV - PV Cost VarianceCV = EV - AC Schedule VarianceSV = EV - PV Cost VarianceCV = EV - AC Determining Project Status Using Earned Value SV: is the project is behind schedule (-) or ahead of schedule (+) CV: is the project is over spent (-) or under spent (+) SV is expressed in dollars worth of work. CV is expressed in dollars.

27. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 27 Cumulative Costs Time Planned Value (PV) Actual Costs (AC) Earned Value - measure of work completed Schedule Variance (SV) Cost Variance (CV) Earned Value Management System Budget at Completion (BAC) Today’s Date

28. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 28 Earned Value Indexes Schedule Performance IndexSPI = EV ÷ PV Cost Performance IndexCPI = EV ÷ AC Schedule Performance IndexSPI = EV ÷ PV Cost Performance IndexCPI = EV ÷ AC SPI and CPI measure how efficiently the work has been accomplished. SPI can be thought of as work efficiency. For example an SPI of.9 says that each dollar’s worth of work scheduled only generated 90 cents worth of results. CPI can be thought of as spending efficiency. For example a CPI of.9 says that each dollar spent generated 90 cents worth of results.

29. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 29 For Example: $8,000 - $2k/wk $24,000 - $4K/wk $16,000 - $2K/wk $40,000 – 8K/wk WEEK TASK TASK A TASK C TASK D TASK B 134567891011122 2,00010,00018,00026,00032,000 Cumulative Earned Value Cumulative Planned Value Slow - $1,600/wk As Planned Late Start Earned Value by Week 1,6005,6007,600 1,6007,20014,80023,40030,000 PV = 32,000 EV = 30,000 AC = 26,000 SPI = 30/32 =.94  CPI = 30/26 = 1.15

30. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 30 Complete an EVMS exercise. Team Exercise

31. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 31 Effort and Productivity What does this tell us about productivity? About cost? Are hours of effort and dollars of cost measuring the same thing? How can we capture meaningful information about both hours and cost?

32. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 32 Effort and Productivity The number of labor dollars spent may not be a measure of the hours worked For hourly workers, overtime may be compensated at a higher rate For salaried workers, overtime may not be compensated at all For salaried workers, a certain amount of unworked time may be charged to the project

33. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 33 One More Index for Productivity Schedule Performance Index SPI = EV÷PV Cost Performance Index in Dollars CPI($) = EV÷AC Cost Performance Index in Hours CPI(H) = EV÷Actual Hours Schedule Performance Index SPI = EV÷PV Cost Performance Index in Dollars CPI($) = EV÷AC Cost Performance Index in Hours CPI(H) = EV÷Actual Hours SPI and CPI measure how efficiently the work has been accomplished. SPI can be thought of as work efficiency. For example an SPI of.9 means that each dollar’s worth of work scheduled only generated 90 cents worth of results. CPI($) can be thought of as spending efficiency. For example a CPI($) of.9 means that each dollar spent only generated 90 cents worth of results. CPI(H) can be thought of as productivity. For example a CPI(H) of.9 means that each dollar’s worth of effort only generated 90 cents worth of results.

34. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 34 For Example: In our example, when we look at cost in terms of dollars spent, we see a very optimistic picture: PV = $32,000 EV = $30,000 AC = $26,000 For every dollar spent, we are getting 15% more results than expected! SPI= 30/32=.94  CPI($)= 30/26= 1.15

35. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 35 For Example: However, If the team is averaging 55 hour work weeks, and being paid for 40, PV = $32,000 EV = $30,000 AC = $26,000 AH = Actual Hours = $26,000 * 55/40 = $35,800 We see that productivity in terms of hours spent is 12% less than expected! SPI= 30/32 =.94  CPI($)= 30/26 = 1.15 CPI(H)= 30/35.8 =.88 !! 

36. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 36 Complete an EVMS exercise. Team Exercise

37. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 37 Agenda Monitoring & Controlling Tracking Status & Earned Value Predicting

38. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 38 ESAC = Planned Schedule ÷ SPI  Estimated Cost at Completion in Dollars (EAC($)) Estimate at Completion (EAC) (Given the current rate of completing work and the current rate of spending, what are our projections at the end of the project, if current variances are expected to continue)  Estimated Schedule at Completion (ESAC) EAC($) = BAC ÷ CPI($) EAC(H) = Planned Effort ÷ CPI(H)  Estimated Cost at Completion in Hours (EEAC(H))

39. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 39 ESAC = Planned Schedule ÷ SPI = 12 weeks ÷.94 = 12.8 weeks (4 days late)   Estimated Cost at Completion in Dollars – EAC($) For Example:  Estimated Schedule at Completion - ESAC EAC($)= BAC ÷ CPI($) = $88K ÷ 1.15 = $76.5K ($11.5K under budget) EAC(H)= Planned Effort ÷ CPI(H) = $88K ÷.88 = $100K ($12K more effort)  or= 88 Staff Wks ÷.88 = 100 Staff Wks (12 Staff Wks more effort)  EAC(H)= Planned Effort ÷ CPI(H) = $88K ÷.88 = $100K ($12K more effort)  or= 88 Staff Wks ÷.88 = 100 Staff Wks (12 Staff Wks more effort)   Estimated Cost at Completion in Hours – EAC(H)

40. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 40 Complete an EVMS exercise. Team Exercise

41. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 41 Keys to Avoiding Trouble Plan ahead of time, balancing completeness with agility Monitor closely and Don't let the scope change without cost and schedule relief Adjust the plan as necessary (don't let little problems become big problems) Understand and manage trade-offs between: scope time cost quality productivity

42. Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 42 Summary of Key Points Monitor and Controlling Tracking Status Using Earned Value On-going measures Predicting Using Earned Value