7 Monitoring and controlling.pdf - Building Professional in...

Unformatted text preview: Building Professional in Project Management. TM MENA Chapter PMI MENA CHAPTER Chairman PMI MENA Chapter: Dr. Gamal Nassar gamal_nassar_cec @yahoo.com Education & Certification : Eng. Suzanne Bedier Tech. Manager (Mterial Development, Evaluation & Exams): Eng. Amal Ismail •Contact Adminstration : •[email protected] •[email protected] 7 Lebanon St, ElEl-Mohandseen Giza TeleFax: TeleFax: +3461062 & 3461046 Mob: +0127448007 & 0106986614 Building Professional in Project Management. TM MENA Chapter Monitoring & Controlling Process Group 7 Lebanon St, ElEl-Mohandseen Giza TeleFax: TeleFax: +3461062 & 3461046 Mob: +0127448007 & 0106986614 Develop Project Management Plan Scope Planning Scope Definition Activity Definition 5.1 5.2 6.1 4.3 Activity Resources Estimating 6.3 Create WBS 5.3 Risk Management Planning 11.1 Develop Project Charter 4.1 Risk Identification 11.2 Develop Preliminary Project Scope Statement 4.2 Activity Duration Estimating 6.4 Cost Estimating 7.1 Cost budgeting 7.2 Qualitative Risk Analysis 11.3 Perform Quality Assurance 8.2 Develop Project Team 9.3 Information Distribution 10.2 Request Seller Responses 12.3 Select Sellers 12.4 4.4 Human Resource Planning Schedule Development 6.5 9.1 Quantitative Risk Analysis 11.4 Direct and Manage Project Execution Activity Sequencing 6.2 Acquire Project Team 9.2 Quality Planning 8.1 Risk Response Planning 11.5 Communications Planning 10.1 Plan Purchases and Acquisitions 12.1 Scope Verification 5.4 Scope Control Schedule Control 5.5 6.6 Plan Contracting 12.2 Close Project 4.7 Monitoring and Controlling Project Work Integrated Change Control Contract Closure 4.5 4.6 12.6 Cost Control 7.3 Perform Quality Control 8.3 Manage Project Team 9.4 1-<#> Performance Reporting 10.3 Mange Stakeholders 10.4 Risk Monitoring and Control 11.6 Contract Administration 12.5 ٣ PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP 1-<#> Slide No.٤ PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP 1-<#> Slide No.٥ PMP PMP PMP PMP Planning & Control Cycle PMP PMP PMP PMP PMP Objectives PMP Corrective Actions PMP PMP PMP Planning PMP PMP PMP PMP Execution PMP PMP PMP PMP PMP Results PMP Slide No.٦ 1-<#> Follow up & Monitoring PMP PMP PMP PMP PMP PMP PMP Monitoring & Controlling Processes PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP The Monitoring & Controlling Processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken (when necessary), to control the execution of the project PMP PMP PMP PMP PMP PMP Slide No.٧ PMP PMP PMP PMP PMP PMP Monitoring & Controlling Processes PMP PMP PMP PMP The key benefits of this process group are: PMP PMP PMP PMP • Project performance is observed and measured regularly to identify variances from the project management plan. PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP • Provide feedback between project phases to implement corrective or preventive actions to bring the project into compliance with the project management plan. • Monitor and control the work being done as well as the entire project effort. Slide No.٨ PMP PMP PMP PMP PMP PMP Monitoring & Controlling Processes PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP The Monitoring & Controlling Processes includes: • Monitoring the ongoing project activities against the project management plan and the project performance baseline • Influencing the factors that could circumvent integrated change control so only approved changes are implemented PMP PMP PMP PMP Slide No.٩ PMP PMP PMP PMP Monitor & Control Project work PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP The Monitor & Control Project work process is concerned with: • Comparing actual project performance against the project management plan. • Assessing performance to determine whether any corrective or preventive actions are indicated and then recommending those actions as necessary. • Analyzing, tracking, and monitoring project risks. • Providing information to support status, progress, and forecast reports. • Monitoring implementation of approved changes when and as they occur. Slide No.١٠ PMP PMP PMP Establishing Performance Measurements PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z Performance Reporting involves collecting and reporting information regarding project progress and project accomplishments to: ¾ Stakeholders ¾ Project Team Members ¾ Management Team z Reporting might include information concerning project Quality, Cost, Scope, Project Schedule, Procurement, and Risk. PMP Slide No.١١ PMP PMP PMP PMP Performance Reporting PMP PMP PMP PMP PMP There are five tools and techniques in this process: PMP 9 Performance Review PMP PMP 9 Variance analysis PMP PMP 9 Trend analysis PMP PMP 9 Earned Value analysis PMP PMP 9 Information Distribution PMP PMP PMP PMP PMP PMP Slide No.١٢ PMP PMP PMP Performance Reporting PMP PMP continue continue PMP PMP PMP PMP PMP z Performance Review PMP Performance reviews are project status meetings held with the project team and stakeholders to collect status and report on project progress. PMP PMP PMP PMP PMP PMP z Variance Analysis Variance analysis compares the expected project plan results with the actual results as the project progress to determine if variance exist PMP PMP PMP PMP PMP PMP PMP Slide No.١٣ PMP PMP PMP PMP C/SCSC PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP ost & SSchedule chedule C ontrol SSystem ystem C riteria C Cost Control Criteria PMP PMP PMP PMP PMP PMP PMP PMP Slide No.١٤ PMP PMP PMP PMP C/SCSC PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP BAC ‰ BCWS = PV ‰ ‰ BCWP = EV ‰ ‰ ACWP = AC ‰ ‰ EAC ‰ ‰ ETC ‰ ‰ CPI ‰ ‰ CV ‰ ‰ SPI ‰ ‰ SV ‰ ‰ CVP ‰ ‰ SVP ‰ Slide No.١٥ ‰ ‰ : : : : : : : : : : : : Budget At Completion Budget Cost Work Schedule Budget Cost Work Performed Actual Cost Work Performed Estimated Cost At Completion Estimated Cost to Complete Cost Performed Index Cost Variance Schedule Performed Index Schedule Variance Cost Variance % Schedule Variance % PMP Performance Measurement PMP PMP PMP Cost PMP PMP EAC PMP PMP VA C ETC BAC PMP PMP ACWP PMP CV PMP SV BCWS PMP BCWP PMP PMP Projected Schedule Slippage (at completion) Schedule Slippage (to date) PMP PMP Time Key: PMP PMP Data Date PMP PMP PMP PMP PMP Slide No.١٦ BCWS (PV): Budget Cost of Works Scheduled BCWP (EV): Budget cost of Works Performed ACWP (AC): Actual Cost of Works Performed SV: Schedule Variance CV: Cost Variance ETC: Estmitae to Complete BAC: Budget At Completion EAC: Estimate At Completion (LRE- Lasted Revised Estimate) VAC: Variance At Completion PMP PMP PMP PMP Earned Value Terms PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Data Element Term Acronym Scheduled Work Planned Value PV Earned Value Earned Value EV Actuals Actual Cost AC Authorized Work Budget at Completion BAC Forecasted Cost Estimate at Completion EAC Work Variance Schedule Variance SV Cost Variance Cost Variance CV Completion Variance Variance at Completion VAC PMP PMP PMP PMP PMP PMP PMP PMP PMP Slide No.١٧ 1-<#> PMP PMP PMP PMP Planned Value (PV) PMP PMP PMP PMP PMP Work schedule to be accomplished PMP PMP Performance Measurement Baseline PMP PMP PMP PMP 80000 60000 PMP 50000 PMP 40000 PMP 30000 PMP 20000 PMP 10000 PMP PMP BAC 70000 PV CURRENT PMP PV JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY 0 JANUARY PMP FEBRUARY MARCH APRIL MAY 1-<#> Slide No.١٨ JUNE JULY 0 2500 8000 13000 42000 62000 70700 PMP PMP PMP PMP Earned Value (EV) PMP PMP PMP PMP PMP PMP Budgeted value of completed or in-process work PMP PMP PMP 80000 PMP 70000 PMP 60000 CURRENT Perf ormance Measurement Baseline BCWS JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY PMP PMP PMP PMP PMP 50000 BCWS BCWP 40000 30000 20000 PMP PMP PMP 10000 0 JANUARY PMP FEBRUARY MARCH APRIL MA Y 1-<#> Slide No.١٩ JUNE JULY 0 2500 8000 13000 42000 62000 70700 BCWP 0 3600 8000 10000 38000 PMP PMP PMP PMP Actual Cost (AC) PMP PMP PMP PMP PMP PMP Actual expenditures for completed or in-process work. PMP Performance Measurement Baseline PMP 80000 PMP 70000 PMP 60000 CURRENT PMP PMP PMP PMP 40000 PMP 30000 PMP ACWP 50000 BCWS JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY BCWS BCW 20000 PMP PMP PMP PMP 10000 0 JANUARY FEBRUARY MARCH APRIL 1-<#> Slide No.٢٠ MAY JUNE JULY 0 2500 8000 13000 42000 62000 70700 BCWP 0 3600 8000 10000 38000 ACWP 0 6000 8000 8000 48000 PMP PMP PMP PMP Schedule Variance PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z Comparing the EV, the amount originally budgeted for the work that has been completed or is in-process, to the PV, the amount budgeted for the work that was planned to have been accomplished z SV = EV – PV z A negative result means less work has been performed than was planned PMP PMP Slide No.٢١ PMP PMP PMP PMP SV Example PMP PMP PMP PMP PMP PMP PMP PMP PMP z PV = $42,000 z EV = $38,000 z AC = $48,000 PMP PMP PMP z SV = EV – PV = $38,000 – $42,000 = - $4,000 PMP PMP PMP PMP PMP PMP z SV% = SV / PV = - $4000 / $42,000 = - 0.095 PMP = - 9.5% PMP Slide No.٢٢ PMP PMP PMP PMP Cost Variance PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z Comparing the amount originally budgeted for the work completed or in-process, the EV, to the actual costs of that work, the AC z CV = EV – AC z A negative CV means more dollars were spent to accomplish the work than was planned PMP PMP PMP PMP PMP PMP Slide No.٢٣ PMP PMP PMP PMP PMP Cost Variance Example PMP PMP PMP PMP PMP PMP PMP PMP z PV = $42,000 z EV = $38,000 z AC = $48,000 PMP PMP PMP z CV = EV - AC = $38,000 – $48,000 = - $10,000 PMP PMP PMP PMP z CV% = CV / EV PMP = - $10,000 / $38,000 PMP = - 26% PMP PMP Slide No.٢٤ PMP PMP PMP PMP Performance Indices PMP PMP PMP PMP PMP PMP PMP PMP z Dfn: Cost- and schedule-performance efficiency calculations; expressed in $ PMP – Cost Performance Index (CPI) PMP PMP • CPI = EV/AC PMP PMP PMP – Schedule Performance Index (SPI) PMP PMP • SPI = EV/PV PMP PMP PMP PMP Slide No.٢٥ PMP PMP PMP PMP CPI Example PMP PMP PMP PMP z PV = $42,000 PMP PMP z EV = $38,000 PMP PMP z AC = $48,000 PMP PMP z CPI = EV / AC PMP PMP = $38,000 / $48,000 = 0.79 PMP PMP PMP z $0.79 worth of work was actually done for each $1.00 spent PMP PMP PMP PMP PMP Slide No.٢٦ PMP PMP PMP PMP SPI Example PMP PMP PMP PMP PMP PMP PMP PMP PMP z PV = $42,000 z EV = $38,000 z AC = $48,000 PMP PMP z SPI = EV / PV PMP = $38,000 / $42,000 = 0.90 PMP PMP PMP PMP PMP z $0.90 worth of work has been done for each $1.00 worth of work that was planned to be done PMP PMP PMP Slide No.٢٧ PMP PMP PMP PMP Estimate at Completion (EAC) PMP PMP PMP PMP PMP PMP PMP PMP z Def: The management’s assessment of the cost of the project at completion PMP – After variance analysis, the estimated cost at PMP PMP PMP completion is determined PMP PMP PMP PMP PMP PMP PMP PMP Slide No.٢٨ PMP PMP PMP PMP EAC Calculations PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z An EAC is a forecast of the most likely total value based on project performance and risk quantification. z EAC is the projected or anticipated total final value for a schedule activity, WBS component, or project when the defined work of the project is completed. z One EAC forecasting technique is based upon the performing organization providing an estimate at completion: PMP PMP PMP PMP Slide No.٢٩ PMP PMP PMP PMP EAC Calculations PMP “continue” continue” PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z EAC using a new estimate. EAC equals the actual costs to date (ACC) plus a new ETC that is provided by the performing organization. z This approach is most often used when past performance shows that the original estimating assumptions were fundamentally flawed or that they are no longer relevant due to a change in conditions. z Formula: EAC = ACC + ETC PMP PMP Slide No.٣٠ PMP PMP PMP PMP EAC Calculations PMP “continue” continue” PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z The two most common forecasting techniques for calculating EAC using earned value data are some variation of: z EAC using remaining budget. EAC equals ACC plus the budget required to complete the remaining work, which is the budget at completion (BAC) minus the earned value (EV). This approach is most often used when current variances are seen as atypical and the project management team expectations are that similar variances will not occur in the future. Formula: EAC = ACC + BAC – EV PMP PMP Slide No.٣١ PMP PMP PMP PMP EAC Calculations PMP “continue” continue” PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z EAC using CPIC. EAC equals actual costs to date (ACC) plus the budget required to complete the remaining project work, which is the BAC minus the EV, modified by a performance factor (often the CPIC). This approach is most often used when current variances are seen as typical of future variances. Formula: EAC = ACC + ((BAC – EV) / CPIC) z Each of these approaches can be the correct approach for any given project and will provide the project management team with a signal if the EAC forecasts are not within acceptable tolerances. PMP PMP Slide No.٣٢ PMP PMP PMP PMP EAC Example PMP PMP PMP PMP PMP z One methodology: PMP – EAC = BAC / CPI PMP PMP – BAC = $80,000 PMP PMP – CPI = 0.79 PMP PMP – EAC = $80,000 / 0.79 = $101,265 PMP PMP PMP PMP PMP PMP PMP PMP Slide No.٣٣ PMP PMP PMP PMP Variance at Completion PMP PMP PMP PMP PMP PMP PMP z BAC = $80,000 z EAC = $101,265 PMP PMP PMP z VAC = BAC – EAC = $80,000 – $101,265 PMP PMP PMP = - $21,265 PMP PMP PMP PMP PMP z Based on past performance, project will exceed planned budget by $21,265 PMP PMP Slide No.٣٤ PMP PMP PMP PMP Earned Value Examples PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PV EV AC $1 $1 $1 On schedule On cost $2 $2 $1 On schedule Under cost $1 $1 $2 On schedule Over cost $1 $2 $2 Ahead of schedule On cost $1 $2 $3 Ahead of schedule Over cost $1 $2 $1 Ahead of schedule Under cost $3 $2 $1 Behind schedule Under cost $2 $1 $3 Behind schedule Over cost $2 $1 $1 Behind schedule On cost Slide No.٣٥ PMP PMP PMP PMP Sample Cost Problem PMP PMP PMP PMP PMP BAC BAC ==$$40k 40k zz EV EV==$$20k 20k zz PMP PMP PMP PV PV==$$28k 28k zz AC AC==$$26k 26k zz PMP PMP PMP Calculate Calculate % %of ofWork WorkScheduled Scheduled % %of ofBudget BudgetSpent Spent % %of ofWork WorkAccomplished Accomplished Cost CostVariance Variance Schedule ScheduleVariance Variance PMP PMP PMP PMP PMP PMP PMP PMP PMP Slide No.٣٦ PMP PMP PMP PMP Sample Solution PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Calculate z % of Work Scheduled PV / BAC = $ 28K / $ 40K = 70 % z % of Budget Spent z % of Work Accomplished EV / BAC = $ 20K/$ 40K= 50 PMP PMP PMP PMP PMP AC / BAC = $ 26K / $ 40K = 65 % z Cost Variance EV – AC = $ 20K – $ 26K = - $ 6K z Schedule Variance EV – PV = $ 20K – $ 28K = - $ 8K PMP PMP Slide No.٣٧ PMP PMP PMP PMP Scope Verification PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP ƒ The Scope Verification is the process of obtaining the stakeholders’ formal acceptance of the completed project scope and associated deliverables. ƒ Verifying the project scope includes reviewing deliverables to ensure that each is completed satisfactorily. PMP PMP PMP PMP Slide No.٣٨ PMP PMP PMP PMP Scope Verification PMP PMP PMP PMP PMP PMP PMP Scope Verification PMP Quality Control PMP PMP Is primary concerned with PMP PMP PMP PMP Acceptance PMP Correctness PMP PMP The work results PMP PMP PMP Slide No.٣٩ PMP PMP PMP PMP PMP PMP Manage Project Team PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP z Manage Project Team involves tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance. PMP PMP PMP PMP z Observe team behavior, manage conflict, resolve issues, and appraise team member performance PMP PMP PMP PMP Slide No.٤٠ PMP PMP PMP Manage Project Team Tools & Techniques PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Issue Log z Document persons responsible for resolving specific issues by a target date. z Help the project team monitor issues until closure. z Address obstacles that can block the team from achieving its goals. PMP PMP PMP PMP PMP Slide No.٤١ PMP PMP PMP PMP Contract Administration PMP PMP PMP PMP PMP PMP PMP PMP The contract administration process ensures that the seller’s performance meets contractual requirements and that the buyer performance goes according to the terms of the contract. PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Contract Administration includes the application of : – Direct and manage Project Execution. – Performance reporting to monitor contractor cost, schedule, and technical performance. – Perform Quality Control – Integrated Change Control – Risk Monitoring and Control. Slide No.٤٢ PMP PMP PMP Contract Administration : Tools & Techniques PMP PMP PMP PMP PMP PMP PMP PMP PMP Payment System The payment system includes appropriate reviews and approvals by project management team, and payments are made in accordance with the terms of the contract. PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Claims Administration If the buyer and seller cannot agree on compensation, It may hav e have to be handled in accordance with the dispute resolution procedures established in the contract. Records Management System The system is used to maintain an index of contract documents and correspondence, and assist with retrieving and archiving tha thatt documentation. PMP Slide No.٤٣ PMP PMP PMP PMP Contract Administration : Outputs PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Organizational Process Assets (Updates) z Correspondence: Complete and accurate written record of all written and oral contract communications, as well as actions taken and decisions made. z Payment Schedules and requests: This assumes that the project is using an external payment system. z Seller performance evaluation documentation: z Prepared by the buyer, document the seller’s ability to continue to perform work on the current contract. z Indicate if the seller can be allowed to perform work on future projects or rate how well the seller is performing. z These documents can form the basis for early termination of the seller’s contract. Slide No.٤٤ PMP PMP PMP PMP PMP Manage Stakeholders PMP PMP PMP PMP PMP PMP PMP PMP Managing communications to satisfy the needs of, and resolve issues with, PMP PMP PMP project stakeholders PMP PMP PMP PMP Project Manager … PMP responsible for stakeholder management PMP PMP PMP Slide No.٤٥ PMP PMP PMP PMP Union Union PMP Vendor Vendor PMP PMP PMP PMP PMP PMP PMP Client Client PMP PMP PMP PMP PMP PMP PMP PMP PMP Contractor Contractor PMP PMP Sponsor Sponsor PMP Slide No.٤٦ 1-<#> PMP PMP PMP PMP PMP Manage Stakeholders PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Actively managing stakeholders: • Increase the probability that the project will not veer off track due to unsolved issues • Enhance the ability of persons synergistically • Limits disruptions during the project PMP PMP PMP PMP PMP Slide No.٤٧ to operate PMP PMP PMP PMP PMP Manage Stakeholders PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Communications Management Plan : Stakeholder requirements and expectations provide an understanding of stakeholder goals, objectives, and level of communication during the project The needs and expectations are identified, analyzed, and documented in the communication management plan. PMP PMP PMP Slide No.٤٨ PMP PMP PMP PMP PMP Manage Stakeholders PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP PMP Issue Logs : Document and monitor the resolution of issues An issue is clarified and stated in a way that it can be resolved. An owner is assigned and a target date is usually established for closure. Unso...
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