13–1

Topic:
Topic: Progress
Progress and
and
Performance
Performance
Measurement
Measurement and
and
Evaluation
Evaluation

13–2
 Presented
Presented By
By
• Asim Ali (017)
• Gohar Ali (002)
• Mubashir Hassan khan (046)
• Iqbal Hussain (031)
• Mian Shehryar (001)

13–3
 Structure
Structure of
of aa Project
Project Monitoring
Monitoring
Information
Information System
System

• Creating a project monitoring system

involves determining:
– What data to collect
– How, when, and who will collect the data
– How to analyze the data
– How to report current progress to management

13–4
 Project
Project Monitoring
Monitoring Information
Information System
System
• Information System Structure
– What data are collected?
• Current status of project (schedule and cost)
• Remaining cost to compete project
• Date that project will be complete
• Potential problems to be addressed now
• Out-of-control activities requiring intervention
• Cost and/or schedule overruns and the reasons for them
• Forecast of overruns at time of project completion

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 Project
Project Monitoring
Monitoring System…
System… (cont’d)
(cont’d)
• Information System Structure (cont’d)
– Collecting data and analysis
• Who will collect project data?
• How will data be collected?
• When will the data be collected?
• Who will compile and analyze the data?
– Reports and reporting
• Who will receive the reports?
• How will the reports be transmitted?
• When will the reports be distributed?

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 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

13–7
 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.
• Tools
– Tracking and baseline Gantt charts
– Control charts

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Baseline
Baseline and
and Tracking
Tracking Gantt
Gantt Charts
Charts

FIGURE 13.1

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Project
Project Schedule
Schedule Control
Control Chart
Chart

FIGURE 13.2

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NEXT
NEXT PRESENTER:
PRESENTER: MIAN
MIAN
SHEHRYAR
SHEHRYAR
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13–12
Snapshot
Snapshot practice:
practice: Status
Status Report
Report at
at Microsoft*
Microsoft*
• It is a document that describes the progress of a project within a specific
time period and compares it against the project plan
• Project manager use status report to keep stakeholder informed of
progress and moniter costs, risk and work
• Project status report allow project manager and stakeholder to visualize
project data through charts and graphs
• The status report for project generally includes
1.The work that’s been completed
2.The plan for what will be follow?
3.The summary of the project budget and schedule
4.Any issues and risks and what being done about them
 When bill gates was in charge of microsoft project teams sent reports
each months to top executive bill gates read quickly and decide potential
delay or changes he did not want. He cutting too much product feature
and specification. He respond directly to relevant manager.
13–13
 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.

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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

into a network

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 Development
Development of
of Project
Project Baselines
Baselines
• Purposes of a Baseline (PV)
– An anchor point for measuring performance
• A planned cost and expected schedule against
which actual cost and schedule are measured.
• A basis for cash flows and awarding progress payments.
• A summation of time-phased budgets (cost accounts as
summed work packages) along a project timeline.

• What Costs Are Included in Baselines?

– Labor, equipment, materials, project direct overhead
costs (DOC)

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 Development
Development of
of Project
Project Baselines
Baselines (cont’d)
(cont’d)
• Rules for Placing Costs in Baselines
– Costs are placed exactly as they are expected to be
“earned” in order to track them to their point of origin.
– Percent Complete Rule
• Costs are periodically assigned to a baseline as units of work
are completed over the duration of a work package.

13–17
NEXT
NEXT PRESENTER:
PRESENTER:
MUBASHIR
MUBASHIR HASSAN
HASSAN KHAN
KHAN
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 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.

13–19
 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.

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 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.

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Work
Work Breakdown
Breakdown Structure
Structure with
with Cost
Cost Accounts
Accounts

FIGURE 13.6

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Digital
DigitalCamera
Camera Prototype
PrototypeProject
Project Baseline
Baseline Gantt
Gantt Chart
Chart

FIGURE 13.7

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NEXT
NEXT PRESENTER
PRESENTER :: IQBAL
IQBAL
HUSSAIN
HUSSAIN
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 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

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 Additional
Additional Earned
Earned Value
Value Rules
Rules
• Rules applied to short-duration activities and/or
small-cost activities
– 0/100 percent rule
• Assumes 100 % of budget credit is earned at once and only
when the work is completed.
– 50/50 rule
• Allows for 50% of the value of the work package budget to
be earned when it is started and 50% to be earned when the
package is completed.
– Percent complete with weighted monitoring gates
• Uses subjective estimated percent complete in combination
with hard, tangible monitoring points.

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 Forecasting
Forecasting Final
Final Project
Project Cost
Cost
• Methods used to revise estimates of future
project costs:
– EACre
• Allows experts in the field to change original baseline
durations and costs because new information tells them
the original estimates are not accurate.
– EACf
• Uses actual costs-to-date plus an efficiency index to project
final costs in large projects where the original budget is
unreliable.

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NEXT
NEXT PRESENTER:
PRESENTER: GOHAR
GOHAR
ALI
ALI
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 Forecasting
Forecasting Model:
Model: EAC
EACff

The equation for this forecasting model:

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13–30
 Snapshot
Snapshot practice:
practice: Trojan
Trojan decommissioning
decommissioning
Project
Project
• Portland general electric company has been charged with
decommissioning the Trojan nuclear plant. This is very long and complex
project extending over two decades. The first segment of the project was
completed and awarded the project of the year 2000 by the (PMI). The
remaining of the project on going
• SPI(schedule performance index) suggest to resolving the issues with
creative way and creative solution for technical problem should solve
these delay problem
• Some techniques that they use to solve this problem is partnering and
incentive arrangement with vendor and labor union
• Trojan nuclear plant was a pressurized water reactor nuclear power plant
located in Oregon and the only commercial nuclear power plant
• From the design stage plant there was much public opposition
• Due to irregular service the plant was closed permanently in 1992 by its
operator Portland general electric. It produce more than 12% of electric
of the Oregon.
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 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

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 Snapshot
Snapshot practice:
practice: AA Pseudo
Pseudo Earned
Earned Value
Value
• It is a project management technique for measuring project performance
and progress
• Consultant suggested for us forest service company to use earned value to
monitor 50 plus concurrent timber sale projects
• Earned value was tried for approximately nine month. After this duration the
process was to be reviewed by a task force. The task force concluded that
the earned value system provide good for monitoring and forecasting project
progress but the cost and problem of collecting timely percent complete data
were unacceptable because of low funds.
• Task force concluded that progress and performance could be measured
using pseudo version of percent complete approach but not give much
accuracy for the total project because it required much more funds
• This approach required that we must divide large work package to smaller
work package by this use our control will be closer and we can identify
problem sooner
• Weeks duration for work package become ideal
• Pseudo version only required phone call and yes/no answer to assign
percent complete 13–34
Thank
Thank you
you !!

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