Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Day 23

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Day 23

ELC 347/BUS 348/PSA 347

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallCh 1 -2

AgendaQuestions?Any of the first five sections of the IP project can be

resubmitted for rescoring prior to December 13. The recorded score will the average of the original score and the score on the resubmitted section. Please notify me via email which sections you will be resubmitting.

IP part 6 Due Dec 9Assignment 8 Due Student Evaluations Project Evaluation and Control


Remaining Schedule Dec 5 Assignment 8 due

Group Work DayDec 9 Chapter 14 (~30 min)

IP Part 6 Due Dec 12 IP Presentation Due (20 Min) Dec 16 Exam 3 (8 AM to 8 PM) Dec 18 IP Project Due @ Midnight

IP Project Peer Evaluations DUE

3

9-4

Put your team members’ names in the spaces provided, one name at the top of each column.

Names:

Ratings:

On time for all group meetings:

Helped keep the group cohesive:

Number of useful ideas contributed:

Quantity of work done:

Quality of work done:

+ + + +

Add Total Scores Here:


Chapter 13Project Evaluation

and Control

13-05Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall


Chapter 13 Learning ObjectivesAfter completing this chapter, students will be able to:Understand the nature of the control cycle and four key

steps in a general project control model.Recognize the strengths and weaknesses of common

project evaluation and control methods.Understand how Earned Value Management can assist

project tracking and evaluation.Use Earned Value Management for project portfolio

analysis.Understand behavioral concepts and other human issues in

evaluation and control.Understand the advantages of Earned Schedule methods

for determining project schedule variance, schedule performance index, and estimates to completion.

13-06


The Project Control Cycle

FIGURE 13.2

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-07


Project S-Curves

FIGURE 13.3



Project Sierra’s S-Curve Showing Negative Variance

13-09

FIGURE 13.4



Milestone AnalysisMilestones 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

13-010


FIGURE 13.5

Gantt Chart with Milestones



FIGURE 13.6

Assessing Project Blue’s Status Using Tracking Gantt Chart



FIGURE 13.7

Tracking Gantt with Project Activity Deviation

Project status is updated by linking task completion to the schedule baseline


Gantt tracking.mpp


Earned Value Management

Schedule

Cost

Performance Tracking Control

Charts

Cost

Performance

Schedule

Earned Value

Project S-Curves

Cost

Performance

Schedule

13-14


Earned Value Terms Planned value

Cost estimate

Earned value

Real cost to date based on activity performance <> value

Actual cost of work performed

Cumulative total cost

Schedule performance index

EV/PV

Cost performance index

EV/AC

Budgeted cost at completion


Steps in Earned Value Management1. 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)

13-16


FIGURE 13.11

Project Baseline, Using Earned Value



FIGURE 13.12

Earned Value Milestones


Earned Value ExampleActivity Jan Feb Mar April Plan %C Value

Staffing 8 7 15 100 15

Blueprint 4 6 10 80 8

Prototype 2 8 10 60 6

Design 3 3 33 1

Mon Plan 8 7 6 17 38 ∑ 30

Cmltv 8 15 21 38

Mon Act 8 11 8 13

Cmltv Act 8 19 27 40Planned Value 38=15+10+10+3

Earned Value 30=15+8+6+1

Value 8=80%(10)

Cumulative 40=8+11+8+13Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-19


Earned Value ExampleSchedule VariancesPlanned Value (PV) = 38 = 15+10+10+3Earned Value (EV) = 30 = 15+8+6+1Schedule Performance Index = .79 = 30/38 =

EV/PVEstimated Time to Completion = (1/.79)x4=5

monthsCost VariancesActual Cost of Work Performed (AC) = 40 =

8+11+8+13Cost Performance Index = .75 = 30/40 = EV/ACEstimated Cost to Completion = 50.7 = (1/.75)x38

EVM.xls EVM.mpp


FIGURE 13.16

Earned Value Report for Project Atlas on March 7



Earned Value Performance Metrics


FIGURE 13.18 Source: Lipke (2003)


Completion Values in EVMAccurate and up-to-date information is

critical in the use of EVM

0/100 Rule

50/50 Rule

Percentage Complete Rule

13-23


Human Factors in Project Evaluation & Control

Optimistic progress reports

Level of detail

Process evaluation

Non-technical performance measurement

13-24


Critical Success Factors in theProject Implementation Profile1. Project mission2. Top management support3. Project plans & schedules4. Client consultation5. Personnel6. Technical tasks7. Client acceptance8. Monitoring & feedback9. Communication channels10. Troubleshooting

13-25


Summary1. Understand the nature of the control cycle and four key

steps in a general project control model.2. Recognize the strengths and weaknesses of common

project evaluation and control methods.3. Understand how Earned Value Management can assist

project tracking and evaluation.4. Use Earned Value Management for project portfolio

analysis.5. Understand behavioral concepts and other human issues

in evaluation and control.6. Understand the advantages of Earned Schedule methods

for determining project schedule variance, schedule performance index, and estimates to completion.

13-26


Documents

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Day 23