PM592 Week 6 Discussion

7/11/13 Topic Print View

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Week 6: Cost and Schedule Management - Discussion

Forecasting Project Completion Cost (graded)

We have introduced concepts in the earned value management system that allow us to forecast what it will cost tocomplete our project (Estimate To Completion, or ETC). We then use ETC to calculate the total actual project cost(Estimate At Completion, or EAC). In your own words, explain what ETC and EAC are and how the project teamuses this information to ensure project success.

Responses

Response Author Date/Time

Preparing Proactive Forecasts Professor Orr 6/8/2013 12:31:22 PM

My manager alw ays likes to see the forecast and is impressed w hen w e have it before she asks. Have you experienced this?

Regards,

Susan

RE: Preparing Proactive

Forecasts Chukie Okunzua 6/10/2013 5:43:38 AM

The final cost of a project when completed and the amount required to complete the project arevery important tool for determining if the project should proceed or be stopped. This is a vitalinformation that a manager is always eager to know as funding is at the heart of deciding what todo with a project. If a project is already over running its budget which is the case most of the time,the additional cost expected to be incurred if the project is to be completed becomes veryimportant to top management to decide what to do with the project.So every manager is happy tohave this information at her table if before requested.

RE: Preparing

Proactive

ForecastsCauretta Bell 6/15/2013 12:19:16 PM

I am w orking on a project currently at w ork and I w as given a budgetof 600. I am creating a new training

schedule for servers to lear there menu items. He w ould like me to forecast the amount of labor hours

that w ill be spent and forecast the amount of food that w e w ill use. he gave me the project and w hen he

asked me how I w as coming along on the project I w as able to present him w it a schedule that forecast

my labor hours and the date that the training w oukd be held


Forecasts Philip Effiong 6/10/2013 7:38:29 AM

Forecasting the final duration of the project is key to the success or failure of a project since itallows taking corrective actions when the predicted EAC (t) exceeds a certain threshold. Thisforecast is based on the actual time already spent on the work done and a prediction of theduration of the remaining portion of work to be done.

Earned Value Management (EVM) is a well-known technique to control the time and costperformance of a project and to predict the final project duration and cost. It is an easy tool to



generate early warning signals to timely detect problems or to exploit project opportunities.

RE: Preparing

Proactive

ForecastsVarune Ramoutar 6/10/2013 8:04:39 AM

What I have experienced is that my management always requires me to justify my

forecast as well. So in addition to giving a forecast for schedule and budget

completion I must also give a detailed breakdown on how I arrived at those figures

e.g. when creating pressure testing packages for piping systems I had a total of8,000 packages to prepare. It took 5 hours to prepare each package => 8,000 x 5

= 40,000 man hours. I had a staff of 10 persons working 40 hrs per week = 400 hrs

total per week. Thus the entire task should take 40,000 / 400 = 100 weeks. Also

the average cost per man hour = $100 and materials for each test pack was $50

thus the total cost per test pack was (40,000 x $100) + (8000 X $50) =

$4,400,000.

Thus my forecast to complete 8000 test packs was 100 weeks, $4,400,000 using a

staff of 10.

RE: Preparing

Proactive Forecasts Maria Ventura 6/10/2013 11:13:13 PM

Hello class,

Since estimating is considered the process of forecasting a future result in terms ofcost, based upon information available at the time. Forecasting only helps the managerto approximately know where the project is heading. So, you can ask before estimating,what is the budget or ask if there is a budget proposal that is being consider. This willdetermine the proposed EAC. If there is no budget proposal you can ask for therestraints, like the estimated project cost.

Thank you//


Forecasts Nishan Ragoonanan 6/10/2013 2:46:30 PM

My manager is alw ays excited as w ell to see a forecast for the schedule for a project, as w e are alw ays very

interested in the completion date for a project. Since w e're in the softw are development division, a lot of this is highly

subjective as far as estimates go, how ever w e are held to the schedule and w e are throughout the project expected

to continue to update our estimate to complete the project. We base this upon experience rather than metrics, using

seasoned developers to estimate the time required to complete certain w ork packages as w e gain more insight into

the project. The cost to complete is directly based upon labor hours of softw are developers and so its simple to

calculate the cost once w e have the time estimates.


Forecasts Herminio Dionisio 6/11/2013 7:35:10 PM

Modified:6/11/2013 7:47 PM



Forecasting is the process of predicting future project performance based on the actual performance to date. As the

project progresses, there are w ays on how w e w ill be able to analyze how the project perform. Forecast

information is about the project's past performance that could impact the project in the future and is popularly

generated using earned value methods w hich is so valuable if needed as early as possible in crucial decision making

purposes. Through accurate forecasting, project failure can be totally avoided. Corrective and preventive actions

can be effectively perform to minimized the overall impact on project cost and project schedule if detected early

through the use of other methods in forecasting aside from earned value analysis like time series analysis, and the

linear regression analysis to name a few .


Forecasts Bruce Foley 6/12/2013 11:20:15 PM

We use forecasting in our projects to estimate the profit of even doing a job. If w e forecast that the cost of the job is

not of value to us due to time or cost constraints, w e either w ork to f igure out a more time or cost-conscious solution

to the benefit of our organization.

EAC and AETC Serge Ndongo 6/9/2013 6:09:03 PM

The Estimate At Completion (EAC) is simply the current costs of the project so far plus the costs related to the completion of the

project. The Estimate To Completion (ETC) is a projection of the time and or effort required to complete a project.

Project teams use the w ork breakdow n structure to facilitate estimation. They can review the tasks at the bottom of the w ork

breakdow n structure and look for the longest path through the sequence diagram. They can then use experience from previous

projects to estimate the time it w ill take to complete those tasks.

RE: EAC and AETC Esperanca Rosa 6/9/2013 11:59:54 PM

Hi class,

Yes, I have experienced this before. For instance, my manager asked me to handle a smallproject from the beginning. Nothing was settled down or ready for that project, and it was a bigchallenge for me. It was my first time to be in charge of a project. My boss traveled for a week,and I started working right he left. I created my project schedule, costs, and forecast. The mostinteresting thing was that I didn’t have room available with conditions. So this was my priority onthat time (focus).

We had a small room that was full of foolish material, and my first decision was to take out thatmaterial and start refurbish that room for my project. I made an inventory of the resources I wouldneed to prepare the room such as painting, lamps, hard floor, etc. I had six workers that neededconditions to work. The room didn’t even have chairs, tables, computers, phone, and otherimportant things that people needs to be to work. So I prepared everything in one week. When myboss went back, he was delighted with what I have done. He was so surprised and satisfied withthe results I’ve made in one week. He praised me saying that it was a proactive attitude. This wasa great experience for me and gave me confidence to continue working on that project.

To conclude, the estimate for completion of our project was in a great way because we were in agood path to complete our project on time.

Thanks,

Esperanca

Credibility of your Forecast Professor Orr 6/10/2013 10:18:37 AM



What in the processes w e are using makes you believe the numbers in your forecast?

Regards,

Susan

RE: Credibility of your

Forecast Esperanca Rosa 6/10/2013 10:53:42 PM

Modified:6/10/2013 10:54 PM

Hi class,

According to our lecture, in the process we are using makes believe the numbers in our forecastis related to three possible process options or methods.

1- The variances used and monitored, the actual costs to date which can include any variance, andthe budgeted cost.

2- The experience with the project makes team to believe that it will continue to perform well. The CPIis used to define how money has been used (efficiently or inefficiently). This is called trendadjustment.

3- The remainder uncertainty is an issue as soon as it doesn’t have a great control. The teamshould re-estimate the remainder of the project to forecast the estimate to complete it. Afterseeing the new estimates, the team should decide whether they stop or continue the project forthe EAC for the project.

Thanks,

Esperanca

RE: Credibility of

your Forecast Serge Ndongo 6/11/2013 12:55:44 AM

Good post Esperanca, the variances, the experience w ith the project and the constant re-estimation of

the remainder of the project are methods that make us feel confident about the numbers in our forecast

A forecast is: “We expect to get and order for this amount by this date.” It has to have specif icity in time

and value. Therefore w e measure our forecasting accuracy, based on our ability to accurately predict

the time and value. So even if w e get the $1 M order, if w e get it 2 days after it w as originally forecast,

w e have a business management and forecast integrity problem.

RE:

Credibility

of your

Forecast

Chukie Okunzua 6/11/2013 4:38:03 AM

The cummulative CPI has been shown by scientific analysis of data from USdepartment of defence completed contracts to be a stable early indicator ofcost performance in projects. The CPI can be used to statistically forecast the"low-end" range of the finally cost to complete a project. The cummulative CPIand cummulative SPI can be combined to forecast the most likely final cost or"high end" cost of the project. The fact that cummulative CPI and cummulativeSPI have been scientifical proven by statistical analysis of project data over along range of time to be reliable tool for estimating final cost provide a strongmeasure of confidence in the final cost estimated.



RE:

Credibility

of your

Forecast

Nishan Ragoonanan 6/11/2013 12:14:38 PM

I think the cumulative CPI and SPI are good indicators of project performance and

can be utilized to predict the f inal cost and schedule of a project reliably how ever I

w ould f irst w ant to view the CPI and SPI trends throughout the project to determine

if things are truly linear and the CPI and SPI cumulatively w ill give a good forecast.

If the CPI and SPI are quite spikey w ith a lot of f luctuation at milestones in the

project then I'd be reluctant to use them as indicators as there's something else

fundamentally w rong and w e may need to re estimate the remainder of the project

tasks as our original estimates are off in a non linear sense.

RE:

Credibility

of your

Forecast

Tanika Thomas 6/11/2013 9:05:10 PM

In addition to what Serge stated, forecasting isalso based on history for existing companies. Ifusing prior history one has to be in-tune with otherevents going on; for example in New Orleans,Mardi Gras would be a major event that happens40 days before Lent/Easter, but because it fallson different dates, restaurants have to be carefulin using historical information if it does not payattention to other activities or events going onduring the same time frame.

RE:

Credibility

of your

Forecast

Cauretta Bell 6/16/2013 10:30:17 AM

Great example! The manager needs to have a great undersranding of the budget, actual cost

and potential variance. the manager w ith experience w ith the project w ill tend to have a better

understanding at re-estimating the f irecast if it is off slightly based on the experience.


Forecast Dwayne Grant 6/11/2013 7:24:52 PM

The process of using earned value, because it measures the actual costs with the authorizedproject budget. The earned value must be linked to the actual cost to determine what is called thecost efficiency factor, also called the Cost Performance index. Most of information on earnedvalue talks about CPI being the most important factor in measuring project performance.

RE: Credibility of

your ForecastMary Hart 6/11/2013 10:58:38 PM



Modified:6/11/2013 11:16 PM

Well said Dw ayne, I w ould add that the use of budget and cost metrics from the planning stage of the

project w ill also contribute to the credibility of the project forecast. As w e have established the necesary

baseline for using the earned value method.


Forecast Herminio Dionisio 6/11/2013 7:46:23 PM

Earned value management's effectiveness as a performance metric depends on some important factors. The f irst,

and most important is the availability of highly accurate , and up-to-date information on the percentage of w ork

packages completed, w hich is vital for determining the earned value at any point in time. The accuracy of the of the

calculated earned value hinges on an honest reporting system, as w ell as the integrity of the project team members

and managers. The second issue w hen establishing accurate or meaningful EVA results is human factor that comes

into play w hen projecting project activity completion. Managers and project team must gain a better understanding of

the true nature of project status specially in the aspect of cost control that may lead to a serious cost problem.


Forecast Bruce Foley 6/13/2013 10:58:42 PM

In our business w e try to alw ays utilize the CPI to measure our forecast after the project is completed. This has

show n to be the most accurate measure for our organization.

RE: Credibility of

your Forecast Maria Ventura 6/14/2013 11:21:23 AM

Hello class,

The facts of the processes that make the forecast more believable is past trends thatcurrently apply to the criteria. Whether those trends are the same as they were at lastuse or the changes that have occurred since last use. Based on those number of costsand the amount of inflation incurred by the economics of the material development andor demand, the forecast is usually developed by those and if understood and usedproperly the forecast can be as accurate as humanly possible. In addition, maintain anongoing "actual hours" database of the recorded time spent on each aspect of yourprojects. Use the data to help estimate future projects and identify the historicallyaccurate buffer time needed to realistically perform the work.

Thank you//

Drivers for Selecting the Forecasting

Method Professor Orr 6/11/2013 9:26:36 AM

Good comments. Class, w hat are the drivers for selecting the forecasting method?

Regards,

Susan



RE: Drivers for Selecting the

Forecasting Method Varune Ramoutar 6/11/2013 1:53:03 PM

Per our lecture forecasting requires application of mathematical formulas, management

decisions and judgement.

Usually when a project is under budget or performing as we think it should even though theremay have been set backs we forecast by using the budgeted cost for the future tasks i.e.

EAC = ACWP (if task is complete) + Budgeted cost (if task is not started) + Task Budget /

CPI (if task is underway)

If experience on the project leads management to believe that it will continue to perform in the

same way then we utilize trend adjustment as mentioned by Nishan above. Where EAC =

(BAC/CPI)

If management believes that the remaining budget is completely inaccurate and they are totallyuncertain about the future then they will have to stop and re-estimate the remainder of the

project.In this case: EAC = + ACWP (if task is complete) + re-estimate the reminder of the

project (if task is not started) + Task Budget / CPI (if task is underway).

Thus the drivers would be the current status of the project, and the judgement of management

on how it will behave in the future.


Forecasting Method Dwayne Grant 6/12/2013 3:49:04 PM

We all know that you need to select the right earned value formula for the project metric you aretrying to evaluate. So, I decided to take a look at forecasting methods from a macro view in lieu ofa micro view. Planning is the future of any business and forecasting is an estimate of some futurevalue. One articles talks about managers staying abreast of different forecasting techniques, andit does not matter if they have a forecasting system. The goal is to choose the most relevantsituation every time.


Forecasting Method Joel Khan 6/13/2013 8:31:02 AM

To handle the increasing variety and complexity of managerial forecasting problems, many forecasting techniques

have been developed in recent years. Each has its special use, and care must be taken to select the correct

technique for a particular application. The manager as w ell as the forecaster has a role to play in technique

selection; and the better they understand the range of forecasting possibilities, the more likely it is that a company’s

forecasting efforts w ill bear fruit.

The selection of a method depends on many factors—the context of the forecast, the relevance and availability of

historical data, the degree of accuracy desirable, the time period to be forecast, the cost/ benefit (or value) of the

forecast to the company, and the time available for making the analysis.

These factors must be w eighed constantly, and on a variety of levels. In general, for example, the forecaster should

choose a technique that makes the best use of available data. If the forecaster can readily apply one technique of

acceptable accuracy, he or she should not try to “gold plate” by using a more advanced technique that offers

potentially greater accuracy but that requires nonexistent information or information that is costly to obtain. This kind

of trade-off is relatively easy to make, but others, as w e shall see, require considerably more thought.

http://hbr.org/1971/07/how -to-choose-the-right-forecasting-technique/ar/1

http://hbr.org/1971/07/how-to-choose-the-right-forecasting-technique/ar/1




Forecasting Method Herminio Dionisio 6/13/2013 11:26:52 PM

Forecasting takes place at the front end of the project environment. It is a critical, fundamental process for any

business, and project organizations are no exceptions. Forecasting demand, time required for activities, and cost

associated w ith those activities creates critical inputs for project planning and for controlling project progress.

Forecasting is also one of the primary means of tracking progress or for changing direction if changes in the project

environment w arrant it. The main theme underlying in forecasting analysis is that past behavior of data can be used

to predict future behavior. It is a sequence of observations taken at regular intervals over a period time w hich is

w hat w e called trend. It is the movement and behavior of data over time.


Forecasting Method Philip Eff iong 6/14/2013 6:38:48 AM

The choice of a forecasting technique is significantly influenced by the stage of the product life

cycle and sometimes by the type of firm or the industry for which a decision is being made.

In the beginning of a product life cycle, relatively small expenditures are made for research and

market investigation. During the product introduction phase, these expenditures start to increase.

Whereas, In the rapid growth stage, because decisions involve considerable amounts of money, a

high level of accuracy is desirable. And after the product has entered the maturity stage,

decisions are much more routine, involving marketing and manufacturing. These are important

considerations in choosing a sales forecast technique.

After evaluating the particular stages of the product along with firm and industry life cycles, a

further probe is necessary. Instead of selecting a forecasting technique by using whatever seems

applicable, decision-makers should determine what is most appropriate. Some techniques are

quite simple and inexpensive; others are extremely complex, require significant amounts of time

to develop, and may be quite expensive. Some are best suited for short-term projections; others

are better prepared for inter-mediate or long-term forecasts.

http://blog.lokad.com/journal/2007/10/10/selecting-a-forecasting

Project Control Professor Orr 6/12/2013 8:33:53 AM

Class, w hat information w ould you include in a w eekly report?

Regards,

Susan

RE: Project Control Joel Khan 6/12/2013 2:19:02 PM

The need to inform the project team and stakeholders on the progress of the project to date is usually fulf illed, in part,

by some form of status report w hich is usually circulated w eekly. The w eekly status report forms the public portion

of your project communication. This should be supplemented by reports, presentations, and status review meetings

w hich are tailored for the audience. The w eekly status report should include information on the follow ing key areas

of project progress:

Overall indicator (e.g. green, yellow , red)

Things that w ent w ell and Things that w ent w rong

Project phase

http://blog.lokad.com/journal/2007/10/10/selecting-a-forecasting

http://threeo.ca/communicationsmanagementc567.php



Performance to schedule (e.g. SPI index)

Performance to budget

Project risk

Project issues

Project changes

Quality performance

Vendor performance

This list is not meant to be a comprehensive list of every aspect of project performance you could be asked to report

on. It is meant to be a list of the project areas that are the most likely to attract interest from your audience. Use this

list as a starting point and add or remove from it as you feel appropriate, then use it as an order list so that your team

and stakeholders can select the items they are interested in.

The combination of several of these items is often referred to as a "dashboard” or "scorecard”. Organizations w hich

have Project Management Offices (PMOs), or Project Management Centers (PMCs) may have a standardized

scorecard or dashboard in w hich case this article w on’t be of any help. If not, this article offers some suggestions

on how to gather and report information for each of the menu items.

Reference: http://threeo.ca/w eeklystatusreportsc754.php

RE: Project Control Varune Ramoutar 6/12/2013 2:29:15 PM

Here are some items I have seen in weekly progress reports in Oil and Gas construction

projects:

- Overall actual % complete vs overall planned %complete

- Weekly actual % complete vs weekly planned %complete

- Actual work packages complete vs planned work packages complete

- WBS actual % complete vs planned %complete

- Weekly Direct labor vs planned weekly direct labor

- Weekly indirect labor vs planned weekly indirect labor

- Staffing Forecast vs Actual Staffing to date - Critical items complete

- New identified critical items

- Active Risks and risks no longer valid

- Milestones Actual complete vs Milestones Planned complete

- Actual Costs vs Planned Costs

- Cost Risks

RE: Project Control Esperanca Rosa 6/12/2013 10:25:49 PM

Hi Varune,

I agree with your comment. Adding to that, I would say that a weekly report depends onthe type of activity or job that has to be performed. In other words, every weekly reportcan change depending on the objectives of the project or work to be done. As ageologist, we have weekly drilling reports that are based on ongoing well operations’

http://threeo.ca/weeklystatusreportsc754.php


threadcontent.next.ecollege.com/(NEXT(c2554bec91))/Main/CourseMode/Topic/TopicPrintView.ed?topicID=29456104&sortBy=Title&sortOrder=Ascending&… 10/15

activities. There is several information to be taken during operations or drilling activities.For example, the weekly schedule which includes the type of rig, well drilling actualdepth, rig daily rates, mud type and daily costs, individual work hours/day, cement cost,and other important information that has to be monitored and documented for future use.

If you are interested to take a look and see an example, go please to the website:http://wellreports.com/member-features/

Best Regards,

Esperanca

RE: Project Control Mary Hart 6/12/2013 10:42:51 PM

Modified:6/12/2013 11:08 PM

I would inculude:

Summary of important events since last report

MS Project reports as:

Actual cumulative cost Cost variancesActual cumulative BudetBudget variance.Earned value of work completed.(as needed)Analysis of variances.Forcast of next week tasks with resourse allocation.Identify changes and overallocations.Recommendations.

RE: Project Control Nishan Ragoonanan 6/13/2013 1:43:48 PM

One thing not mentioned here that w e include in our w eekly status report are

1. The w ork items planned for the coming w eek

2. Unresolved action items

3. Change requests that came up and are being managed through management of change either through change in

requirements or necessary design changes

RE: Project Control Huyen Bui 6/14/2013 7:14:46 PM

The weekly report should include these key points:

Project Status Reports Criteria

Project Report Timing

Project Status Report Focus

Reporting against Schedule

http://wellreports.com/member-features/



Reporting against Budget

Reporting Risks

Reporting Issues

Other Reporting

Project Information Repository

Typical Report

Conclusion

These information can be extract under graph form from the MS Project

RE: Project Control Philip Effiong 6/15/2013 9:59:45 AM

The Weekly Progress Report describes projects and research. Progress report for week justended - Short description in which you devote at least one paragraph to each of the followingsubtopics -

· - Current activity or goal - Difficulties and failures in meeting current and previous goal(s) relatedto the week's work

· - Analysis of the failure causes or modes

· - Impact on current schedules and deadlines

· - Impact on current interface specifications

· - Additional resources wanted or needed

· - Surplus resources no longer used

· - Goals achieved and unexpected results

RE: Project Control Herminio Dionisio 6/15/2013 4:53:12 PM

While the project w ork is under w ay, it is important to make sure that it proceeds according to plan, and the only

possible w ay to do this is by establishing a reporting system that w ill keep all the project team members and even the

stakeholders informed of the many variables that w ill describe how the project is proceeding as compared to the

plan. A w eekly report must contains all vital information that is easy to understand that even w ithout seeing the

project physically, the reader w ill have a clear picture on how the project progresses. Some of the information that a

w eekly report must contain are; the tw o w eeks look ahead, the pending and uncompleted w orks, the actual w ork

accomplished during that period and most importantly, the variance reports w hich is the differences betw een w hat

w as planned and w hat actually happened. This variance report must be presented both in a numeric form and in a

graphical format for all the variables that are being tracked, and reporting must be in one consistent format from the

beginning of the project for the upper management to become comfortable and familiar as the meeting progresses

along w ith the project.

RE: Project Control Bruce Foley 6/16/2013 6:58:39 PM



Some of the necessary reports inclede: Overall indicator (e.g. green, yellow , red),Things that w ent w ell and

Things that w ent w rong,Project phasePerformance to schedule (e.g. SPI index),Performance to

budget,Project risk,Project issues,Project changes,Quality performance,and Vendor performance

Lessons Learned Report Professor Orr 6/13/2013 9:06:21 AM

Good points. We are now getting into lessons learned – w hat w ould you include in the postmortem report at the end of the

project?

Regards,

Susan

RE: Lessons Learned Report Nishan Ragoonanan 6/13/2013 1:40:14 PM

One thing to start off a postmortem report w ith are our 'w ins' i.e. challenges w e had and how w e overcame them

along w ith the lessons learned from the challenge and how them can be better planned for in future projects.

RE: Lessons

Learned Report Tanika Thomas 6/13/2013 8:39:16 PM

Another thing to include is obstacles that were challenges and things thatdid not work, certain techniques that worked better than others.

RE:

Lessons

Learned

Report

Serge Ndongo 6/13/2013 9:02:05 PM

Other that "the wins" and the "obstacles" as mentioned by Nishan and Tanikato include in the postmortem report, the way the project's steps were decided,the way the team(s) were set up, and the references lists, including anyresearch or outside help that was received can be included as well.

RE:

Lessons

Learned

Report

Chukie Okunzua 6/14/2013 1:12:42 AM

The lessons learned should contain the things that contributed mostto the success or failure of the project and the things that could havebeen done better.



RE:

Lessons

Learned

Report

Esperanca Rosa 6/15/2013 12:11:04 AM

I agree with my classmates, and beside thelessons learned that we all agree, I would say thatdocumentation (keep all the information neededfor future projects) is another aspect that have totaken into consideration.

Thanks,Esperanca

RE: Lessons Learned Report Dwayne Grant 6/14/2013 2:50:57 PM

The post completion project review is also called postmortem, and we all know postmortemmeans the death of a project. Post completion reviews are part of the process to continuouslyimprove future project through gaining valuable experience. Some of the things that should beincluded in the report are technical performance, schedule and cost. It should also includechanges in objects and the reason for those changes. It should also include a list of lessonlearned from the project and recommendations that should be included in future projects.

RE: Lessons Learned Report Huyen Bui 6/14/2013 5:35:17 PM

Depends on w ho w e w rite the report to, if it's an upper management report, I don't think that enclose the problem

w ithout solution is a good idea.

The report should have the condition of the project, any raising ad-hocs along the project, if yes, the lesson learnt

should have answ ered of w hy w here how w ho and w hat is the solution?

RE: Lessons Learned Report Mary Hart 6/15/2013 12:31:12 PM

Modified:6/15/2013 12:31 PM

I w ould include a brief summary of initial plan and "as built" plan.

Within Lessons learned I w ould include f inal results of the deliverables:

-Cost .

-Schedule.

-Resources used.

-Completion time.

-Variances reports and explanation of variances.

Items that contributed to to success or failure of the project.

Information that could be valuable in executing as w ell developing proposals for other projects.

Analysis and recommendations .

Escalation Procedures and Change Control Professor Orr 6/14/2013 9:39:35 AM

Excellent comments. How do escalation procedures f it into change control?



Regards,

Susan

RE: Escalation Procedures

and Change Control Herminio Dionisio 6/15/2013 5:38:09 PM

I have tw o of the best example that must alw ays be stipulated in the contract before it get signed and f inalized. Good

examples of escalation procedures is the price escalation, and the other w hich I considered to be a major risk that

any organization must never forget to include and mention in the contract is about force majeure. If w e are not very

cautious about the contract scope, terms and conditions, w e may end up in a court litigation. Contracts typically

include provisions for price escalation based on predetermined levels of f luctuation in materials or labor, as a w ay of

sharing the risk of uncertain pricing structure in a dynamic market w ith the ow ner. Force majeure is also one big

concern because those are acts or events that are outside the control of human beings. Typically, either or both

parties to a contract are relieved and are not held liable for damages if such action or event occur. Both of these

uncertainties can be managed by the change control board.

RE: Escalation

Procedures and

Change ControlTanika Thomas 6/16/2013 12:45:12 PM

Great explanation. I would have only thought of the price, but not the forcemajeure. Being from New Orleans where many things of such haveoccurred I didn't know that existed. Of course this is a great lesson/course,not just because of project management but personal life experiences canalso be managed with this information acquired. Thanks Hemie

RE:

Escalation

Procedures

and Change

Control

Maria Ventura 6/16/2013 5:43:45 PM

Hello class,

According to my research, Escalation procedures help a PM to monitor and control the project by;1) Assigning team responsibility; the team member will inform as soon as arisk or problem area is discovered. 2) Managing the Plan; Never ignore the risk or problem encountered, insteadhandle it by using a set of guidelines previously prepared by you. 3) Documenting; the escalation plan should include a log to keep track of theproblems, how they were handled and in what priority.4) Be Time Aware; Work with the team and stakeholders on a timely basis tobe able to control and mitigate any risk/problems encountered. 5) Communication; Communicating effectively with the entire team is a keywithin the escalation process throughout the duration of the project.

Source: http://www.brighthubpm.com/monitoring-projects/107352-why-do-project-managers-need-escalation-procedures/

Thank you//

http://www.brighthubpm.com/monitoring-projects/107352-why-do-project-managers-need-escalation-procedures/



Lessons Learned Professor Orr 6/15/2013 1:58:48 PM

What are your most important/valuable Lessons Learned in Week 6?

Regards,

Susan

RE: Lessons Learned Herminio Dionisio 6/15/2013 5:55:10 PM

This is a very interesting w eek for this is w hen w e learned the more detailed uses and applications of Earned Value

Analysis. Project performance reports in variances, performance index, and estimated to completion are very

important to an organization. This is how w e track the progress and performance of the project. As early as 20%

complete, w e can start to perform our analysis on w here the project is heading. This w ill give us the early w arning

signs that w ill enable us to make the necessary corrective and preventive actions needed to put the project back on

its planned track. If w e w ill perform the performance analysis at the middle or late part of the project, that may be too

late for any preventive but most w ill only be corrective actions. As w e all know , a negative cost variance is surely

unrecoverable but can be minimized and controlled, and a negative schedule variance may not be the case that may

only need a more rigid analysis and evaluation.

RE: Lessons

Learned Nishan Ragoonanan 6/16/2013 8:47:37 AM

Hermi, I have to agree, the biggest take aw ay for me this w eek had to be that 20% figure based on

extensive research. Being able to predict at the 20% mark of a project the estimated cost at completion

and the estimated completion schedule is mind opening for me. Of course this all depends on the

accuracy of your initial estimates, how ever w ith a good project team and access to historical data these

estimates can be quite accurate.

RE:

Lessons

LearnedVarune Ramoutar 6/16/2013 7:28:45 PM

For me the biggest lesson is the different w ays w e can forecast a project completion cost

based on the various different factors concerning the project. Not all projects are the same

and thus w e cannot forecast a completion cost for them based on one method.

RE: Lessons Learned Huyen Bui 6/16/2013 8:01:12 PM

I think in this w eek, it's an eye opened for me w ith those to be completed calculation. Nishan and Varun really did a

great job of explaining them. Those are great tools for EVM analysis. Because PM needs to be w ell-planned for the

project as w ell as budget. Not only the SPI and CPI show s us how the project condition in term of schedule and cost,

but it also give PM a sense of preparation if it's behind schedule or over budget

Documents

PM592 Week 6 Discussion