A Guide to Project Management

A Guide to Project Management

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Unformatted text preview: r project documents often contain information pertaining to the project context that should be considered when assessing project performance. 10.3.2 Tools and Techniques for Performance Reporting .1 Performance reviews. Performance reviews are meetings held to assess project status and/or progress. Performance reviews are typically used in conjunction with one or more of the performance-reporting techniques described below. .2 Variance analysis. Variance analysis involves comparing actual project results to planned or expected results. Cost and schedule variances are the most frequently analyzed, but variances from plan in the areas of scope, resource, quality, and risk are often of equal or greater importance. .3 Trend analysis. Trend analysis involves examining project results over time to determine if performance is improving or deteriorating. .4 Earned value analysis. Earned value analysis in its various forms is the most commonly used method of performance measurement. It integrates scope, cost (or resource), and schedule measures to help the project management team assess project performance. Earned value analysis involves calculating three key values for each activity: The Planned Value (PV), previously called the budgeted cost of work scheduled (BCWS), is that portion of the approved cost estimate planned to be spent on the activity during a given period. The Actual Cost (AC), previously called the actual cost of work performed (ACWP), is the total of costs incurred in accomplishing work on the activity during a given period. This Actual Cost must correspond to whatever was budgeted for the PV and the EV (example: direct hours only, direct costs only, or all costs including indirect costs). The EV, previously called the budgeted cost of work performed (BCWP), is the value of the work actually completed. These three values are used in combination to provide measures of whether or not work is being accomplished as planned. The most commonly used measures are the cost variance (CV) (CV= EV AC), and the schedule variance (SV) (SV = EV PV). These two values, the CV and SV, can be converted to efficiency indicators to reflect the cost and schedule performance of any project. The cost performance index (CPI = EV/AC) is the most commonly used cost-efficiency indicator. The cumulative CPI (the sum of all individual EV budgets divided by the sum of all individual ACs) is widely used to forecast project costs at completion. Also, the schedule performance index (SPI = EV/PV) is sometimes used in conjunction with the CPI to forecast the project completion estimates. .5 Information distribution tools and techniques. Performance reports are distributed using the tools and techniques described in Section 10.2.2. A Guide to the A Guide to the Project Project Management Management Body of Body of KnowledgeE L KnowledgeE PL MP AM SA S A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulev...
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This document was uploaded on 09/27/2013.

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