Lecture 7 - Management and Control

monitoring and control

detect & correct budget, schedule and quality deviations

monitoring

set of procedures and management practices used to collect info about performance, based on set of performance metrics

performance analysis

process of determining performance variances based on monitored/forecasted performance

project control

adjust project to meet its goals by assessing performance, analyzing causes of problems, and desgining and implementing changes for problems

Performance Measurement Baseline (PMB)

approved, integrated scope-schedule-cost plan for project work, to measure and manage execution performance (excl. management reserves, incl. contingency reserves)

Project Budget Baseline (PBB)

total budget for project, including all reserves and not completely defined work

Contract Budget Base (CBB)

project is chartered by a contract

Budget at Completion (BAC)

total approved budget for entire project

Contingency budget/reserve

budget within PMB that covers known risks

management reserves

budget within PBB that covers unknown risks (approx. 3-5% of costs)

progress ratio (%)

ratio of actual performed quantity over total scheduled quantity

measuring project progress

don’t base it on costs, but on physical output

Earned Value Management (EVM)

integrating cost, schedule, and work peformed by attributing monetary values to each

Budgeted Cost of Work Scheduled (BCWS)

value of work scheduled to be accomplished in given time period (Planned Value (PV))

Actual Cost of work Performed (ACWP)

costs actually incurred in accomplishing work performed within control time (Actual Cost (AC))

Budgeted Cost of Work Performed (BCWP)

Monetary value of work actually performed within control time (Earned Value (EV))

Cost Variance (CV)

EV - AC = BCWP - ACWP

CV > 0

underrun (gain of value)

CV < 0

overrun (loss of value)

Cost Performance Index (CPI)

EV / AC = BCWP / ACWP

CPI > 1

Underrun

CPI < 1

overrun

Schedule Variance (SV)

EV- PV = BCWP - BCWS

SV > 0

ahead (gain of time)

SV<0

behind (loss of time)

Schedule Performance Index (SPI)

EV / PV = BCWP / BCWS

Limitations of SV / SPI

in the end SV = 0 and SPI = 1, which is incorrect (as it doesnt reflect excess)

Earned Schedule (ES)

point in time where EV was the value of PV in planning

SV(t)

ES - AT = Earned Schedule - Actual Time

SPI(t)

ES / AT = Earned Schedule / Actual Time

Earned Schedule (ES) - calculation

C = ( EV - PV( c ) ) / PV(c + 1) - PV(c ) : C = #completed time increments where EV exceeds PV

Cost Estimate At Completion (CEAC)

expected total cost of completing project

CEAC calculation

cost spent + (work remaining * expected unit cost)

expected unit cost

costs spent / work accomplished

Original Estimate Appraoch (OEA)

AC + (BAC - EV) = BAC - CV

Revised Estimate Appraoch (RAO)

AC + (BAC - EV) / CPI = BAC / CPI

Time Estimation At Completion (TEAC)

expected duration of completing project

TEAC (calculation)

AT + (PD - ES)

Critical Ratio (CR)

SPI * CPI

Project Control

monitoring to alert us when there’s a problem

Re-Baselining (RB)

set of actions to revise original baseline schedule/budget in case of cost and duration not manageable (crashing / fast-tracking)