1. Project Evaluation and Control
Chapter 13
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2. The Project Control Cycle
Setting a Goal
Taking Action and Recycling the Process
Measuring Progress
Comparing Actual with Planned
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3. The Project S-Curve Elapsed Time (in weeks) 10 5 45 40 35 30 25 20 1550 60
Cumulative Cost ($ in thousands)
Cumulative Budgeted Cost
Cumulative Actual Cost
$10,000 Negative Var
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4. 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
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5. Tracking Gantt Chart
Project status is updated by linking task completion to the schedule baseline
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6. Earned Value Management
Project S-Curves
Cost
Performance
Schedule
Cost
Performance
Schedule
Earned Value
Schedule
Cost
Performance
Tracking Control Charts
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7. Earned Value Terms Planned value (PV) Earned value (EV)
Actual cost of work performed (AC)
Schedule performance index (SPI)
Cost performance index (CPI)
Budgeted cost at completion (BAC)
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8. Steps in Earned Value Management
Clearly define each activity including its resource needs and budget
Create usage schedules for activities and resources
Develop a time-phased budget (PV)
Total the actual costs of doing each task (AC)
Calculate both the budget variance (CV) and schedule variance (SV)
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9. Earned Value MilestonesPV EV AC
Slip
Overspend
Schedule
Performed
Actual
Budget
Cost
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10. Earned Value Example Value 8=80%(10) Activity Jan Feb Mar April Plan
Staffing 8 7 15
100
Blueprint 4 6 10 80
Prototype 2 60
Design 3 33 1
Mon Plan 17 38 ∑ 30
Cmltv 21
Mon Act 11 13
Cmltv Act 19 27 40
Earned Value 30=
Planned Value 38=
Cumulative 40=
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11. Earned Value Example Schedule Variances
Planned Value (PV) = 38 =
Earned Value (EV) = 30 =
Schedule Performance Index = .79 = 30/38 = EV/PV
Estimated Time to Completion = (1/.79)x4=5
Cost Variances
Actual Cost of Work Performed (AC) = 40 =
Cost Performance Index = .75 = 30/40 = EV/AC
Estimated Cost to Completion = = (1/.75)x38
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12. 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
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13. Human Factors in Project Evaluation & Control
Optimistic progress reports
Level of detail
Process evaluation
Non-technical performance measurement
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14. Critical Success Factors in the Project Implementation Profile
Project mission
Top management support
Project plans & schedules
Client consultation
Personnel
Technical tasks
Client acceptance
Monitoring & feedback
Communication channels
Troubleshooting
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15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall