monitoring and information systems
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Monitoring and Information Systems. Project monitoring defined The plan-monitor-control cycle Designing the monitoring system Behavioral aspects of monitoring Earned value analysis Earned value examples. Project Monitoring Defined. - PowerPoint PPT PresentationTRANSCRIPT
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Monitoring and Information Systems Project monitoring defined The plan-monitor-control cycle Designing the monitoring system Behavioral aspects of monitoring Earned value analysis Earned value examples
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Project Monitoring Defined Collecting, recording, and
reporting information concerning any and all aspects of project performance that the project manager or others wish to know
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Effective Monitoring Precedes Control In Chapter 11, we’ll look at Project
Control Ensuring that actuals mesh with the
plan But effective control requires good
information Such pertinent and timely information
comes from an accurate monitoring system
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Monitoring Has Several Uses Project Monitoring has secondary uses
Project auditing “Lessons learned” Reporting to client and senior management
But the primary use is project control Ensuring that decision-makers have timely
information enabling effective control over the project
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The Planning-Monitoring-Controlling Cycle Effective monitoring and control begins
with good project planning What are the critical areas? How and when can progress be measured? Who gathers and reports info, to whom?
The plan-monitor-control cycle continues through the entire project
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Project Control Information Flow, Figure 10-1
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Designing the Monitoring System 1. Start with the key factors to be
controlled Pareto analysis: a relatively few
activities determine most of the project’s success
Use the project plan to identify items to be monitored
Although other areas might be added also
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Designing the Monitoring System (cont’d) 2. Develop measurement systems
Measure results, not activity; outputs, rather than inputs
Extract performance, time and cost goals from project plans
Avoid tendency to focus on that which is easily measurable
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Designing the Monitoring System (cont’d) 3. Collecting Data: Most data falls into
one of five categories, as follows (with examples) Frequency counts: tally of occurrences . . . Raw numbers: dates, dollars, percents,
specs . . . Subjective ratings: numerical ranking, red-
yellow-green assessments . . . Indicators: surrogate measures of merit . . . Verbal measurement: oral or written
characterizations . . .
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Designing the Monitoring System (cont’d) 4. Reporting on Data Collected: To turn
data into information, it must be contextualized: Reporting must be timely Data must be analyzed
Trends: Getting better or worse? Comparables: Performance compared to specs,
past performance, standard hours, etc. Statistical analysis Causation and correction
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Reporting and Information Flows, Figure 10-5
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Some Behavioral Aspects of Monitoring Systems Effective monitoring reduces
surprises, and this can increase trust, morale
Some reporting bias is inevitable, but dishonesty is unacceptable
“Shooting the messenger” today just creates concealment tomorrow
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Earned Value Analysis (EVA) Needed: An objective way to
measure overall project performance
The problem comparing actual expenditures to baseline plan is that it ignores the amount of work actually completed
Thus, Earned Value Analysis A sort of cost accounting for projects
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Five Important Terms BCWS: The plan, integrating schedule
and budget BCWP: What you planned to spend for
work actually done ACWP: Actual dollars spent at a point in
time, for the work actually done STWP: Time scheduled for work
performed ATWP: Actual time for work performed
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More Terms BAC: Budget at completion
EAC: Estimated cost at completion
ETC: Estimated cost to complete
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Five Relationships Cost Variance (CV) = BCWP - ACWP
Schedule Variance (SV) = BCWP - BCWS
Time Variance (TV) = STWP - ATWP
Estimated Cost to Complete (ETC) =
(BAC – BCWP)/CPI
Estimate Cost at Completion (EAC) =
ACWP + ETC
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Indices Help Visualize Performance Projects on cost, on schedule will
have indices = 1.0 Indices below 1.0 are unfavorable
Cost Performance Index (CPI) = BCWP/ACWP
Schedule Performance Index (SPI) = BCWP/BCWS
Cost-Schedule Index (CSI) = CPI X SPI
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Possible Arrangements, Figure 10-8
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Example Assume a work package expected to be
finished today, at cost of $1500. But you’re only 2/3 complete, and you’ve spent $1350.
CPI = BCWP/ACWP = $1000/$1350 = .74
SPI = BCWP/BCWS = $1000/$1500 = .67
CSI = CPI/SPI = .74 X .67 = .49
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Example (cont’d) Then you can calculate the estimated cost to
complete the project (ETC) and the estimated cost at completion (EAC)
ETC = (BAC – BCWP)/CPI
= $(1500 – 1000)/.74
= $676
EAC = ACWP + ETC
= $1350 + $676
= $2026
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Another Earned Value Example A 10-day project, today is day 7
Activity Predecessor
Duration
(Days)
Budget($)
Actual Cost(s)
% Complet
e
a - 3 600 680 100
b a 2 300 270 100
c a 5 800 80
d b 4 400 25
e c 2 400 0
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PERT AON Diagram, Figure 10-9
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Example Baseline Budget Using 50-50 Rule, Figure 10-10
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Example Status at Day 7, Figure 10-11
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Example Earned Value Chart Day 7, Figure 10-12
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MSP Budget Sheet, Figure10-13
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Case: Earned Value at Texas Instruments
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Case: Earned Value at Texas Instruments (cont’d) Graphic presentation clearly depicts
project’s history More crucial, though, is using EVA as
a management tool. This requires: Timely, accurate data collection Expeditious data analysis Appropriate and efficient corrective
action