PM8_07APR10 - Chapter MonitoringandControl 1 ControlSystems

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Chapter  Monitoring and Control
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
    2 Control Systems Formal systems: accounting, periodic status reports,  scheduled milestone meetings, internal audits, client  reviews, and external benchmarks Informal systems: meetings, e-mail, and just walking around  and asking project team members questions
Background image of page 2
    3 Control System Issues How frequently should performance data be collected, and  from what sources? Which performance metrics should be used? How should data be analyzed to detect current and future  deviations? How frequently, and to whom, should the results of the  analysis be reported?   
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
    4 Controlling Projects Key decisions in controlling performance in project  management: What is the optimal review frequency? What are appropriate acceptance levels at each review  stage?  “Both over-managed and under-managed development  processes result in lengthy design lead time and high  development costs.” R.H. Ahmadi, R. Wang. 1999. Managing Development Risk  in Product Design Processes.  Operations Research  47,  235-246
Background image of page 4
    5 Types of System Variation Common cause variation: “in-control” or normal variation Special cause variation: variation caused by forces  that are  outside  the system  Treating common cause variation as if it were  special cause variation is called “tampering” Tampering always degrades the performance  of a system – W.E. Deming
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
    6 Control System Example 1 Week 2:  Task expenses = 460 worker-hours 370 380 390 400 410 420 430 440 450 460 470 1 2 3 4 Week Week Planned Cost (BCWS) Actual Cost Cumulative Actual Cost (ACWP) 1 400 420 420 2 400 460 880 Is the task  “out of  control”? Actual Planned
Background image of page 6
    7 Control System Example 1  Week 3: Task expenses = 500 worker-hrs Week Planned cost (worker-hours) Actual cost (worker-hours) Cumulative cost (worker-hours) 1 400 420 420 2 400 460 880 3 400 500 1380 Again, is the  task “out of  control”? 0 100 200 300 400 500 600 1 2 3 4 Week Worker-hours Actual Planned
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
    8 Earned Value Analysis Integrates cost, schedule, and work performed Based on three metrics that are used as building blocks: ACWP: Actual cost of work performed BCWS: Budgeted cost of work scheduled (Planned Value) BCWP: Budgeted cost of work performed (Earned Value)
Background image of page 8
    9 Estimation of BCWP Estimating BCWP requires the manager to estimate the  proportion of work completed  during each period. This may  be difficult if value accrues mainly at the end, e.g. software  development project. Fixed rules to estimate BCWP generally take the form: X% completed at the start of a task (1-X)% completed at the end of a task
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
    10 Performance Metrics for Example 1 Week BCWS ACWP Percent of work  completed (PWC) BCWP 1 400 420 23% 368 2 800 880 50% 800 3 1,200 1,380 85% 1,360 4 1,600 1,500 100% 1,600
Background image of page 10
    11
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/20/2010 for the course IEOR E4510 taught by Professor Mosherosenwein during the Spring '10 term at Columbia.

Page1 / 44

PM8_07APR10 - Chapter MonitoringandControl 1 ControlSystems

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online