Progress

Progress
and
and
Performance
Performance
Measurement
Measurement
and
and
Evaluation
Evaluation
13–1
Where
Where We
We Are
Are Now
Now

13–2
 Structure
Structure of
of aa Project
Project Monitoring
Monitoring
Information
Information System
System

• Creating a project monitoring system

13–3
 Project
Project Progress
Progress Report
Report Format
Format
• Progress since last report
• Current status of project
1. Schedule
2. Cost
3. Scope
• Cumulative trends
• Problems and issues since last report
1. Actions and resolution of earlier problems
2. New variances and problems identified
• Corrective action planned

13–4
 The
The Project
Project Control
Control Process
Process
• Control
– The process of comparing actual performance
against plan to identify deviations, evaluate courses
of action, and take appropriate corrective action.
• Project Control Steps
1. Setting a baseline plan.
2. Measuring progress and performance.
3. Comparing plan against actual.
4. Taking action.

13–5
Baseline
Baseline and
and Tracking
Tracking Gantt
Gantt Charts
Charts

FIGURE 13.1

13–6
 Disparity
Disparity Among
Among Monitoring
Monitoring Systems
Systems
• Time-Phase Baseline Plan
– Corrects the failure of most monitoring systems to
connect a project’s actual performance to its schedule
and forecast budget.
• Systems that measure only cost variances do not identify
resource and project cost problems associated with falling
behind or progressing ahead of schedule.
• Earned Value Cost/Schedule System
– An integrated project management system based on
the earned value concept that uses a time-phased
budget baseline to compare actual and planned
schedule and costs.

13–7
 Glossary
Glossary of
of Terms
Terms

EV Earned value for a task is simply the percent complete times its original budget. Stated differently,
EV is the percent of the original budget that has been earned by actual work completed.

PV The planned time-phased baseline of the value of the work scheduled. An approved cost estimate
of the resources scheduled in a time-phased cumulative baseline [BCWS—budgeted cost of the
work scheduled].

AC Actual cost of the work completed. The sum of the costs incurred in accomplishing work. [ACWP
—actual cost of the work performed].

CV Cost variance is the difference between the earned value and the actual costs for the work
completed to date where CV = EV – AC.

SV Schedule variance is the difference between the earned value and the baseline line to date where
SV = EV – PV.

BAC Budgeted cost at completion. Total budgeted cost of the baseline or project cost accounts.

EAC Estimated cost at completion.

ETC Estimated cost to complete remaining work.

VAC Cost variance at completion. VAC indicates expected actual over- or under-run cost at completion.

TABLE 13.1
13–8
13–9
13–10
13–11
13–12
Actual
Actual Cost
Cost

13–13
Actual
Actual Cost
Cost

13–14
Graph
Graph (PV,
(PV, EV,
EV, AC)
AC)

13–15
Variance
Variance && Performance
Performance Index
Index

13–16
Variance
Variance and
and Index
Index Values
Values Representation
Representation

13–17
Calculating
Calculating for
for the
the Project
Project

13–18
Project
Project Variance
Variance and
and Indexes
Indexes

13–19
Forecasting
Forecasting Project
Project

13–20
Earned-Value
Earned-Value Review
Review Exercise
Exercise

FIGURE 13.5

13–21
Developing
Developing an
an Integrated
Integrated Cost/Schedule
Cost/Schedule System
System
1. Define the work using a WBS. 3. Develop a time-phased
a. Scope budget using work packages
included in an activity.
b. Work packages
Accumulate budgets (PV).
c. Deliverables
4. At the work package level,
d. Organization units collect the actual costs for
e. Resources the work performed (AC).
f. Budgets Multiply percent complete
times original budget (EV).`
2. Develop work and
resource schedules. 5. Compute the schedule
variance (EV-PV) and the
a. Schedule resources
to activities
cost variance (EV-AC).

b. Time-phase work packages

13–22
 Methods
Methods of
of Variance
Variance Analysis
Analysis
• Comparing Earned Value
– With the expected schedule value.
– With the actual costs.
• Assessing Status of a Project
– Required data elements
• Data Budgeted cost of the work scheduled (PV)
• Budgeted cost of the work completed (EV)
• Actual cost of the work completed (AC)
– Calculate schedule and cost variances
• A positive variance indicates a desirable condition,
while a negative variance suggests problems or
changes that have taken place.

13–23
 Methods
Methods of
of Variance
Variance Analysis
Analysis
• Cost Variance (CV)
– Indicates if the work accomplished using labor
and materials costs more or less than was
planned at any point in the project.
• Schedule Variance (SV)
– Presents an overall assessment in dollar terms
of the progress of all work packages in the project
scheduled to date.

13–24
Cost/Schedule
Cost/Schedule Graph
Graph

FIGURE 13.4

13–25
 Developing
Developing AA Status
Status Report:
Report:
AA Hypothetical
Hypothetical Example
Example

• Assumptions
– Each cost account has only one work package, and
each cost account will be represented as an activity
on the network.
– The project network early start times will serve as
the basis for assigning the baseline values.
– From the moment work an activity begins, some
actual costs will be incurred each period until the
activity is completed.

13–26
Graph
Graph :: Forecasting
Forecasting

13–27
13–28
 Forecasting
Forecasting Model:
Model: EAC
EACff

The equation for this forecasting model:

13–29
13–30
Variance
Variance at
at completion
completion (VAC)
(VAC)

13–31
Variance
Variance at
at Completion
Completion

13–32
Work
Work Breakdown
Breakdown Structure
Structure with
with Cost
Cost Accounts
Accounts

FIGURE 13.6

13–33
Digital
DigitalCamera
Camera Prototype
PrototypeProject
Project Baseline
Baseline Gantt
Gantt Chart
Chart

FIGURE 13.7

13–34
Digital
DigitalCamera
CameraPrototype
PrototypeProject
ProjectBaseline
BaselineBudget
Budget($000)
($000)

FIGURE 13.8

13–35
13–36
13–37
13–38
13–39
Digital
DigitalCamera
CameraPrototype
Prototype Status
StatusReports:
Reports: Periods
Periods66 &&77

TABLE 13.2 (cont’d)

13–40
Cost/Schedule
Cost/Schedule Graph
Graph

FIGURE 13.4

13–41
Digital
DigitalCamera
CameraPrototype
PrototypeSummary
SummaryGraph
Graph($000)
($000)

FIGURE 13.9

13–42
 Indexes
Indexes to
to Monitor
Monitor Progress
Progress
• Performance Indexes
– Cost Performance Index (CPI)
• Measures the cost efficiency of work accomplished to date.
• CPI = EV/AC
– Scheduling Performance Index (SPI)
• Measures scheduling efficiency
• SPI = EV/PV
– Percent Complete Indexes
• Indicates how much of the work accomplished represents of
the total budgeted (BAC) and actual (AC) dollars to date.
• PCIB = EV/BAC
• PCIC = AC/EAC

13–43
 Interpretation
Interpretation of
of Indexes
Indexes

Index Cost (CPI) Schedule (SPI)

TABLE 13.3

13–44
 Indexes
Indexes
Periods
Periods 11–7
–7

FIGURE 13.12

13–45
 Forecasting
Forecasting Model:
Model: EAC
EACff

The equation for this forecasting model:

13–46
Monthly
MonthlyStatus
StatusReport
Report

EXHIBIT 13.1

13–47
 Other
Other Control
Control Issues
Issues

Issues
Issues In
In Maintaining
Maintaining Control
Control Of
Of Projects
Projects

Scope
ScopeCreep
Creep

Baseline
BaselineChanges
Changes

Data
DataAcquisition
Acquisition
Costs
Costsand
andProblems
Problems

13–48
Scope
Scope Changes
Changes to
to aa Baseline
Baseline

FIGURE 13.13

13–49
Conference
Conference Center
Center WiFi
WiFi Project
Project
Communication
Communication Plan
Plan

FIGURE 13.14

13–50
 Key
Key Terms
Terms
Baseline budget
Control chart
Cost performance index (CPI)
Cost variance (CV)
Earned value (EV)
Estimated Cost at Completion—Forecasted (EACf)
Estimated Cost at Completion—Revised Estimates (EACre)
Percent complete index—budget costs (PCIB)
Percent complete index—actual costs (PCIC)
Schedule performance index (SPI)
Schedule variance (SV)
Scope creep
To complete performance index (TCPI)
Tracking Gantt chart
Variance at completion (VAC)
13–51