Project Execution Monitoring and Controlling Kreimir Fertalj Faculty

Project Execution, Monitoring and Controlling Krešimir Fertalj Faculty of EE and Computing, Zagreb DAAD 2012, Opatija

Introduction q Project management institute (PMI) q Book of Knowledge (PMBOK) q Practical view q Identification of project processes q Management through 4 iterations: plan-do-check-act q Process interactions Planning Closing Initiating Executing Monitoring and controlling DAAD 2012, Fertalj: Project Executing, Monitoring and Control 2

Executing Process Group q Executing Process Group n Coordinating people and resources n Execution of project activities n Integration of activities according to project plan n Scope management and change management DAAD 2012, Fertalj: Project Executing, Monitoring and Control 3

Executing Processes (2) q Beginning Vendor Solicitation n obtaining bids, proposals, quotations n for the services or the goods to be purchased for the project completion q Determing Vendor Source n making a decision as to which identified vendor will be the source of the service or good being procured n based upon the selection criterion determined by the performing organization q Administering Contracts n the contract typically is a document that represents the offer and acceptance of both parties n some organizations may utilize centralized contracting or a contracting office DAAD 2012, Fertalj: Project Executing, Monitoring and Control 4

Executing Processes (3) q Mapping to Quality Assurance n verify that the project work results are mapping to the organization's quality assurance program as described in the quality management plan q Dispersing Project Information n dissemination of information according to the communications plan q Ensuring Team Development n may involve classroom learning, shadowing between project team members, or on-the-job training DAAD 2012, Fertalj: Project Executing, Monitoring and Control 5

Workload management q Performance measurement n Time tracking n Analysis of workload structure Person Date Project Work Hours Description q Improving Efficiency 1. Delegating (to somebody else) 2. Reduction (of tasks that would not be accomplished at all) 3. Prioritizing (A, B, C; 1, 2, 3; high, medium, low; . . . ) 4. Combination of 3 i 1 5. Separation/deviding of task lists 6. Optimization of sequencing of tasks within the same priority DAAD 2012, Fertalj: Project Executing, Monitoring and Control 6

Monitoring and Controlling Process Group q Monitoring and Controlling Process Group n Monitoring – collecting, recording, and reporting information concerning project performance that project manger and others wish to know n Controlling – uses data from monitor activity to bring actual performance to planned performance DAAD 2012, Fertalj: Project Executing, Monitoring and Control 7

Controlling Processes q Verify project work and the response to that work n Ensure the project goes according to plan – by monitoring n Ensure the actions to implement when evidence proves the project is not going according to plan q Ensuring Quality Control (QC) n measures work results against quality standards n If the work results are not of quality - determine why the results are inadequate and how to eliminate the causes q Providing Scope Verification n verifying that the work results are within the scope n typically done at project phase completion, with the customer n If the scope has not been met - the project may be halted, reworked, or delayed DAAD 2012, Fertalj: Project Executing, Monitoring and Control 8

Controlling Processes (2) q Implementing Scope Change Control n change management plan - to ensure unneeded changes to the project scope do not occur n eg. scope creep, by implementing advanced functionality not being planned nor approved q Leading Configuration Management n ensures the description of the project's product is precise, complete, and that it meets the demands of the stakeholder requirements n monitors, guards, and documents changes to the scope n (part of) change control system q Overseeing Change Control n Needed changes must be proven, documented, and analyzed for impacts on cost, schedule, and risks n may involve a Change Control Board that reviews, approves, or rejects the proposed changes DAAD 2012, Fertalj: Project Executing, Monitoring and Control 9

Controlling Processes (3) q Managing Cost Control n requires accurate estimates and then a check and balance against those estimates n procurement management, cash flow, and fundamental accounting practices are required n hinges on hidden and fluctuating expenses such as shipping, exchange rates for international projects, travel, and incidentals q Enforcing Schedule Control n constant monitoring of the project's progress n approval of phase deliverables, and task completion n slippage must be analyzed early in the project to determine the root cause of the problem n may indicate inaccurate estimates, hidden work, or a poor WBS n also consider outside influences and their affect on the project-for example, weather, market conditions, cultural issues, etc. DAAD 2012, Fertalj: Project Executing, Monitoring and Control 10

Controlling Processes (4) q Monitoring Risk Response n requires risk ownership and monitoring n pay special attention to the possible risks and the mitigation plans n risk responses, should they be acted on, may cause secondary risks, cost increases, and schedule delays ! q Ensuring Performance Reporting n report and record accurate completions of work n Earned Value Management (EVM) n schedule baselines n cost baselines n milestones DAAD 2012, Fertalj: Project Executing, Monitoring and Control 11

Balancing the Control System q Regular intervals q More control – lower risk – higher costs q Basic principles n Monitor work, not employees n To increase efficiency n To verify completness (by inspecting the results) q Key questions n What is the actual project status ? n Which are the reasons for deviations from plan ? n Is there a need for corrections, by which measures ? DAAD 2012, Fertalj: Project Executing, Monitoring and Control 12

Progress Reporting System q Data collection n daily, weekly, monthly n dynamic adjustment depending on execution n good information infrastructure required q Tracking techniques n Status review • Review meetings (project team, PM board, steering commitee) • Status reports n Forms • Eg. planned start, real start, current date and status, planned finish … • Description of work n Gantt tracking • Percent complete DAAD 2012, Fertalj: Project Executing, Monitoring and Control 13

Some problems q “ 90% completed“ syndrome q Emphasis on good/bad information n “good news” syndrome – upward information filtering q Consequences n Bad estimates n Wrong decisions n “Garbage in - garbage out” DAAD 2012, Fertalj: Project Executing, Monitoring and Control 14

Controlling techniques q Ignoring q Corrective actions n npr. urging, or forcing of “good will” q Revision of plan n Resource leveling n Rescheduling q Increased monitoring n Adjustment of frequency of data gathering and reporting n Level of tracking details q Cost control 15

Examples q Business projects, student projects, seminars, degree theses, … 16

Cost control

Earned Value Management q Earned value management (EVM) n is a project performance measurement technique • that integrates scope, time, and cost data. q Given a baseline, one can determine n how well the project is meeting scope, time, and cost goals • by entering actual information • and then comparing it to the baseline. q The baseline information includes: n Scope data (WBS tasks) n Time data (start and finish estimates for each task) n Cost data (cost estimates for each task) DAAD 2012, Fertalj: Project Executing, Monitoring and Control 19

Earned Value Analysis q PV (Planned Value) n Value of work planned for a given period (“up to now”) q EV (Earned Value) n Value of work actually q AC (Actual Cost) n Real costs q BAC (Budget at Completion) n Planned project value, approved total budget q EAC (Estimate at Completion) n a forecast of how much the project will cost upon completion n AC + ETC (Estimate to Complete) DAAD 2012, Fertalj: Project Executing, Monitoring and Control 20

Earned Value Analysis – basic idea © Wysocki: Effective Project Management, Wiley, 2003. DAAD 2012, Fertalj: Project Executing, Monitoring and Control 21

Earned Value Analysis (1) q (Cost Variance) CV = EV – AC n CV<0 – over budget, CV>0 – within budget q (Schedule Variance) SV = EV – PV n SV<0 – behind schedule, SV>0 – before schedule © Wysocki: Effective Project Management, Wiley, 2003. DAAD 2012, Fertalj: Project Executing, Monitoring and Control 22

Earned Value Analysis (2) q "S" curve q Performance Indices q CPI (Cost Performance Index) n CPI = EV / AC n CPI < 1 – over budget q SPI (Schedule Performance Index) n SPI = EV / PV n SPI < 1 – behind schedule DAAD 2012, Fertalj: Project Executing, Monitoring and Control © Wysocki: Effective Project Management, Wiley, 2003. 23

Example q q q Building a fence For each side : 1 day, 1000 $ Finish-Finish activity dependancy Status at the end of day 3 ? S --- Actual Start, F — Actual Finish, PS --- Planned Start, PF --- Planned Finish Status on Day 3 Activity Side 1 Side 2 Day 1 2 3 4 Completed, 1000 spent S----F S----PF Side 3 Side 4 DAAD 2012, Fertalj: Project Executing, Monitoring and Control -------F Completed, 1200 spent PS—S--PF 50% completed, 600 spent PS------PF Not started 24

Results q Planned value n PV = 1000 + 1000 = 3000 q Earned value n EV = 1000 + 500 = 2500 q Actual costs n AC = 1000 + 1200 + 600 = 2800 q Budget n BAC = 1000 + 1000 = 4000 q Cost variance n CV= EV – AC = - 300 (over budget) q Schedule variance n SV = EV – PV = 2500 – 3000 = - 500 (behind schedule) q Estimate at complete n CPI = EV / AC = 0. 89 n EAC = BAC / CPI = BAC / (EV/AC) = 4479 DAAD 2012, Fertalj: Project Executing, Monitoring and Control 25

References q A Guide to the Project Management Body of Knowledge, 4 th Edition, PMI, 2010 q Rita Mulcahy, PMP Exam Prep, 7 th Edition, RMC Publications, Inc. , 2011 q Fleming, Quentin W. and Joel M. Koppelman, Earned Value Project Management, 4 th Edition, PMI, Newtown Square, PA 2010 q T. T. Wilkens: Earned Value, Clear and Simple n http: //handle. dtic. mil/100. 2/ADA 402619 q Earned Value web page n www. acq. osd. mil/pm DAAD 2012, Fertalj: Project Executing, Monitoring and Control 26