Project Management x470

Executing, Monitoring & Control

UC Berkeley Extension, Business and Management

Week 4 - May 14, 2011

Jennifer RussellJennifer Russell415.385.1749415.385.1749jr@mastodonconsulting.comjr@mastodonconsulting.com

Ray JuRay Ju415.845.8880415.845.8880rayju@sbcglobal.netrayju@sbcglobal.net

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Agenda

• Team Time

• Quiz

• Monitor and Control

• Human Resources Management

• Earn Value Management

• Quality Management

• Planning Project Final

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Challenges of Execution / Monitoring and Control

• Project implemented to deliverable, time, cost and process baselines

• Deliverable completion status• Issues / action items management • Corrective actions• Change control• Risk monitoring and control• Tracking intensity• Maintaining an open environment

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Monitoring and Controlling

““We cannot live without change. We cannot live without change. The race for survival in this world The race for survival in this world is not to the strongest, but to the is not to the strongest, but to the most adaptive.” most adaptive.”

Jong-Yong Yun, Vice-Jong-Yong Yun, Vice-Chairman, SamsungChairman, Samsung

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Monitoring and Controlling Processes

Monitor and Control

Project Work

Integrated Change Control

Scope Verification

Scope Control

Schedule Control

Cost ControlPerform Quality Control

Manage Project Team

Performance Reporting

Manage Stakeholders

Risk Monitoring &

Control

Contract Administration

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Monitor & Control Project Work

• Monitor project processes • Actions taken to control project

performance• Monitoring performed throughout the

project• Collecting, measuring and distributing

performance information and assessing measurements and trends to effect process improvements

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Integrated Change Control

• Influencing the factors that create changes to ensure that changes are agreed upon

• Determining that a change need to occur or has occurred

• Managing the actual changes when and as they occur

• Scope, Schedule and Cost Control• Process control• Scope Change Request template in

workbook

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Project Baseline Change Control

Scope Mgm’t

Scope Verification

Accepted Deliverables

Scope Control Updates to Scope Statement, WBS and other scope documents

Time Mgm’tSchedule Control Updates to schedule and

other Time Management documents

Cost Mgm’tCost Control Updates to Cost Baseline and

other documents

Knowledge Area

Monitoring and Control Process

Key Deliverbles

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Scope Verification

• Process of obtaining formal acceptance of the completed project scope (deliverables) by the stakeholders

• Deliverables and work results review

• Documented acceptance of phase or major deliverable completion by the sponsor/client

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Project Human Resource Management

Process Group Process Name Process Major Deliverable/s

Monitoring & Controlling

Manage Project Team

Requested Changes

Recommended Corrective and Preventive Actions

HumanResource

• Team member performance

• Issue / conflict resolution

• Staff change management

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Type Of Conflicts

• Scheduling• Priorities• Manpower resources• Technical opinions and

trade-offs • Administrative

procedures

• Costs • Personality clashes• Equipment and facilities• Capital expenditures• Responsibilities• Others?

““The success or failure of a project The success or failure of a project manager is related to the ability to manager is related to the ability to anticipate and deal with change.”anticipate and deal with change.”

Trouble Happens; Keep Your Cool.Trouble Happens; Keep Your Cool.

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Views of ConflictsOld New

Conflict is dysfunctional and cause by personality differences or a failure of leadership

Conflict is an inevitable consequence of organizational interaction

Conflict is to be avoided Conflict can be beneficial

Conflict is resolved by physical separation or management intervention

Conflict is resolved by identifying the causes and problem solving by the people involved and their immediate manager

Treat conflicts as expressions of stakeholders’ needs and expectations!

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Conflict Resolution Modes• Confrontation (Problem

Solving) Facing the conflict directly, which involves a problem-solving approach whereby affected parties work through their disagreements.

• Compromising Bargaining and searching for solutions that bring some degree of satisfaction to the parties in a dispute. Characterized by a “give-and-take” attitude.

• Withdrawal Retreating or withdrawing from an actual or potential disagreement.

• Forcing Exerting one’s viewpoint at the potential expense of another. Often characterized by competitiveness and a win-lose situation.

• Smoothing De-emphasizing or avoiding areas of difference and emphasizing areas of agreement.

Conflict Resolution Objectives1. Solve the conflict / problem2. Do it in a way that builds relationships

No tricks!

Pause and think before reactingKeep the meeting under controlListen to all involved partiesExpress your views in a way that resonates with the other parties

Be willing to say when you were wrong

Not act as a superman and leveling the discussion only once in a while

Know the organization Clarify the nature of the

conflict Understand the conflict

motives / feelings / mental models (specially yours)

Suggest procedures for resolving differences

Facilitate the communications process

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Communication Project Communication Management

Process Group Process Name Process Major Deliverable/s

Monitoring & Controlling

Performance Reporting

1. Performance Reports– Comparison to baseline– Bar chart, S-curves,

histograms, tables, traffic light– Earned Value Management

2. Forecasts

Manage Stakeholders

Resolve issues

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Project Communication Management

• Collection and dissemination of performance information to stakeholders with info on how resources are being used to meet project goals– Status reporting (where project stands vs.

baselines)– Progress reporting (accomplishments)– Forecasting (prediction of future performance)– Risks (present and future) assessment – Special problems / management assistance

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Project DashboardProjectProject MetricMetric StatusStatus TrendTrend Problem StatementProblem Statement Corrective Corrective

ActionAction  ScopeScope        

ScheduleSchedule        

CostCost        

Overall Overall HealthHealth

       

Executive SummaryExecutive Summary

ResultsResults     Next StepsNext Steps

WorkingWorking     ChallengesChallenges

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Sample Metric Status Definition

Scope

Green No scope change.

Yellow Change within 10% of original scope

Red Change over 10% of original scope. Need re-baseline.

Schedule

Green On track for scheduled completion

Yellow Within 10% of scheduled completion

Red Over 10% scheduled completion. Need re-baseline.

Cost

Green Completion within budget

Yellow Completion within 10% of budget

Red Completion over 10% of budget. Need re-baseline.

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Sample Metric Trend Definition

Color Definition

Green

Less than 25% probability that a project risk that impacts a parameter target (scope, time, cost) will occur

Yellow

25% to 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur.

RedGreater than 50% probability that a project risk that impacts a parameter target (scope, time, cost) will occur

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Flexibility Matrix and Status Trigger

• Trigger point for Schedule color can be tighter

Parameter High Medium Low

Scope Yes

Schedule Yes

Cost Yes

Trigger point for Cost color can be looser

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Project Reports

Proj IDProject Name

Project Manager

Major Issues

Sched Status

Tech Status

Budget Savings StaffingCust Satis.

Sched Comp.

Overall

DISRUPTED PROJECTS

12      R R Y Y Y Y Y R R

 32     Y G Y Y G G G G Y

TOP INITIATIVES (TI)

8      G G G G G G G G G

 18     G G G G G G G G G

INFRASTRUCTURE IMPERATIVES

6      G G G G G G G G G

43      G G G G G G G G G

Earned Value Management (EVM)

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Earned Value Management (EVM)

• Planned Value (PV) – the physical work scheduled to be performed, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Scheduled - BCWS)

• Earned Value (EV) – the physical work actually accomplished, including the estimated value of this work. (a.k.a. Budgeted Cost of Work Performed - BCWP)

• Actual Cost (AC) - the actual cost incurred to accomplish the earned value. (Actual Cost of Worked Performed - ACWP)

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Earned Value ExampleA work on a project task is expected to cost $1500 to complete and the workers were scheduled to finish today. As of today however, the workers have actually expended $1350 and the best estimate is the task is 2/3 complete. Determine the Planned Value, Actual Cost and Earned Value at this point in time.

Planned Value (PV) = $1500 (work scheduled/planned to be Planned Value (PV) = $1500 (work scheduled/planned to be completed)completed)

Actual Cost (AV) = $1350

Earned Value (EV) = 1500(2/3)= $1000 (work actually completed)

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Earned Value Formulae

Cost Variance (CV) CV = EV - AC

Schedule Variance (SV) SV = EV - PV

Cost Variance in % CVP = (CV/EV)100%

Schedule Variance in % SVP = (SV/PV)100%

Cost Performance Index (CPI)

CPI = EV/AC

Schedule Performance Index

(SPI)

SPI = EV/PV

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Estimate at Completion

EAC = ACEV

X

The estimate at completion is the best estimate of the total cost at the completion of the project.

The EAC is a periodic evaluation of the status of the project - usually on a monthly basis or until a significant change has been identified.

(BAC) Other Formulae

a. Actual plus new estimate to complete

EAC = AC + ETC

b. Actual plus remaining budget (PV)

EAC = AC + (BAC – EV)

c. Actual plus remaining budget modified by the performance index

EAC = AC + (BAC – EV)/CPI

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Using Earned ValueProject: Software enhancement for a drug company

Baseline: Entire effort priced at $200K and scheduled for completion June 10th

As of June 10: Project cost to date is $195K. One activity is left in the project estimated to cost $25K.

Find cost and schedule variance amounts, cost and schedule variance percentages, cost and schedule performance indexes, and estimate at completion amount.

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Using EV SolutionGiven:BAC = $200K, PV = $200K, AC = $195KLast Activity Cost = $25KSolution:EV = 200K – 25K = $175K

CV = EV – AC = 175K- 195K = -$20KSV = EV – PV = 175K – 200K = -$25KCV% = (CV / EV) 100% = (-20/175) 100% = -11%SV % = (SV / PV) 100% = (-25/200) 100% = -12.5%CPI = EV / AC = 175 / 195 = .897SPI = EV / PV = 175 / 200 = .875

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Using Earned Value

Deliverable Predecessor DurationScheduledCost / Day

A - 3 $1,000

B - 5 $2,000

C A 4 $4,000

D B 7 $1,000

E C 6 $2,000

F D 8 $3,000

Deliverable

End of Week 1

Actual % Completed

CumulativeActual Cost

A 60% $1,500

B 30% $3,000

C 10% $2,000

D 0% 0

E 0% 0

F 0% 0

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Using Earned

Value V: Gantt Chart

A

C

E

B

D

F

1 2 3 4 5 6 7 8 9 10

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Week 1Week 1

Schedule and Cost End of Week 1

Task Pred.Duration (Days)

Scheduled Cost / Day

Actual % Done

Cumulative Actual Cost

PV EV

A   3 $1,000 60% $1,500 $3,000 $1,800

B   5 $2,000 30% $3,000 $10,000 $3,000

C A 4 $4,000 10% $2,000 $8,000 $1,600

D B 7 $1,000 0% $0 $0 $0

E C 6 $2,000 0% $0 $0 $0

F D 8 $3,000 0% $0 $0 $0

          $6,500 $21,000 $6,400

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Using Earned Value

Task PV EV AC SV = EV-PV

CV = EV-AC

SI = EV/PV

CI = EV/AC

EAC = AC*BAC/EV

A 3000 1800 1500 -1200 300 0.6 1.2

73125

B 10000 3000 3000 -7000 0 0.3 1

C 8000 1600 2000 -6400 -400 0.2 0.8

D 0 0 0

E 0 0 0

F 0 0 0

21000 6400 6500 -14600 -100 0.305 0.98

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Quality Management

• Project quality management includes the process required to ensure that the project satisfies the needs for which it is undertaken.

– Conformance to requirements: the project’s processes and products meet written specifications

– Fitness for use: a product can be used as it was intended

Quality Processes• Quality planning:

– identifying which quality standards are relevant to the project and determining how to satisfy them

– Clear scope statement, acceptance criteria

• Quality assurance:– applying the planned, systematic quality activities to ensure all processes

needed to meet requirements are employed.

• Quality control:– monitoring specific project results to determine whether they comply with

applied quality standards, and identifying ways to eliminate causes of unsatisfactory performance.

"You can use an eraser on the drafting table or a sledge hammer on the construction site.” -- Frank Lloyd Wright                                                                                              

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Product vs. Project Quality

• Project Quality: – Applies to all aspects of the project,

regardless of the product

• Product Quality– Product quality measures and techniques are

specific to the particular type of product produced by the project

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Quality Planning

• Identify which variables have the most influence on the overall outcome of a process

• Cost-benefit tradeoffs

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Quality Assurance

• Continuous quality improvement

• Benchmarking

• Audits

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Quality Control• Cause-and-effect diagrams trace complaints about

quality problems back to the responsible production operations– They help you find the root cause of a problem– Also known as fishbone or Ishikawa diagrams

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Quality Control Charts

• A control chart is a graphic display of data that illustrates the results of a process over time

• Quality control charts allow you to determine whether a process is in control or out of control– When a process is in control, any variations in the results

of the process are created by random events; processes that are in control do not need to be adjusted

– When a process is out of control, variations in the results of the process are caused by nonrandom events; you need to identify the causes of those nonrandom events and adjust the process to correct or eliminate them

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Pareto Diagram

• Pareto analysis is also called the 80-20 rule, meaning that 80 percent of problems are often due to 20 percent of the causes

• In the below chart, Log-in Problems account for about 55% of the complaints and together with System lock-ups accounts for about 80%

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Planning for Final Presentation

• Everyone participates

• 45-60 minutes = 30-45 minutes + 15 Q&A

• Demonstrate use of tools, templates and processes

• 12 – 18 slides

• Addendum for any supporting documents

• Presenting to your sponsor audience for approval to move project forward

Grading Rubric1. Appearance 40%

Is this presentation

• Visually Appealing

• Interesting to you

• Words legible to read

• Graphics / animation support and not distract

 

2. Content 60%

Does this presentation

• Make sense

• Follow good Project Management methodology and process

• Put the pieces into the proper order

• Provide enough details for you to make an informed decision

 

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