Project Evaluation and Control 13-01 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 13Project Evaluation

and Control

13-01Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 13 Learning ObjectivesAfter completing this chapter, students will be able to:Understand the nature of the control cycle and four key

steps in a general project control model.Recognize the strengths and weaknesses of common

project evaluation and control methods.Understand how Earned Value Management can assist

project tracking and evaluation.Use Earned Value Management for project portfolio

analysis.Understand behavioral concepts and other human issues in

evaluation and control.Understand the advantages of Earned Schedule methods

for determining project schedule variance, schedule performance index, and estimates to completion.

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The Project Control Cycle

FIGURE 13.2

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13-03

Project S-Curves

FIGURE 13.3


Project Sierra’s S-Curve Showing Negative Variance

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FIGURE 13.4



Milestone AnalysisMilestones are events or stages of the project that represent a significant accomplishment.

Milestones…show completion of important

steps…signal the team and suppliers…can motivate the team…offer reevaluation points…help coordinate schedules…identify key review gates…delineate work packages

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FIGURE 13.5

Gantt Chart with Milestones


FIGURE 13.6

Assessing Project Blue’s Status Using Tracking Gantt Chart


FIGURE 13.7

Tracking Gantt with Project Activity Deviation

Project status is updated by linking task completion to the schedule baseline



Earned Value Management

Schedule

Cost

PerformanceTracking Control Charts

Cost

Performance Schedule

Earned Value

Project S-Curves

Cost

Performance Schedule

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Earned Value Terms

Planned value (PV)

Earned value (EV)

Actual cost of work performed (AC)

Schedule performance index (SPI)

Cost performance index (CPI)

Budgeted cost at completion (BAC)

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Steps in Earned Value Management1. Clearly define each activity including

its resource needs and budget

2. Create usage schedules for activities and resources

3. Develop a time-phased budget (PV)

4. Total the actual costs of doing each

task (AC)

5. Calculate both the budget variance (CV) and schedule variance (SV)

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FIGURE 13.11

Project Baseline, Using Earned Value


FIGURE 13.12

Earned Value Milestones


Earned Value ExampleActivity Jan Feb Mar April Plan %C Value

Staffing 8 7 15 100 15

Blueprint 4 6 10 80 8

Prototype 2 8 10 60 6

Design 3 3 33 1

Mon Plan 8 7 6 17 38 ∑ 30

Cmltv 8 15 21 38

Mon Act 8 11 8 13

Cmltv Act 8 19 27 40Planned Value 38=15+10+10+3

Earned Value 30=15+8+6+1

Value 8=80%(10)

Cumulative 40=8+11+8+13



Earned Value ExampleSchedule VariancesPlanned Value (PV) = 38 = 15+10+10+3Earned Value (EV) = 30 = 15+8+6+1Schedule Performance Index = .79 = 30/38 = EV/PVEstimated Time to Completion = (1/.79)x4=5

Cost VariancesActual Cost of Work Performed (AC) = 40 =

8+11+8+13Cost Performance Index = .75 = 30/40 = EV/ACEstimated Cost to Completion = 50.7 = (1/.75)x38

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FIGURE 13.16

Earned Value Report for Project Atlas on March 7


Earned Value Performance Metrics


FIGURE 13.18 Source: Lipke (2003)


Completion Values in EVMAccurate and up-to-date information is

critical in the use of EVM

0/100 Rule

50/50 Rule

Percentage Complete Rule

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Human Factors in Project Evaluation & Control

Optimistic progress reports

Level of detail

Process evaluation

Non-technical performance measurement

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Critical Success Factors in theProject Implementation Profile1. Project mission2. Top management support3. Project plans & schedules4. Client consultation5. Personnel6. Technical tasks7. Client acceptance8. Monitoring & feedback9. Communication channels10. Troubleshooting

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Summary1. Understand the nature of the control cycle and four key

steps in a general project control model.2. Recognize the strengths and weaknesses of common

project evaluation and control methods.3. Understand how Earned Value Management can assist

project tracking and evaluation.4. Use Earned Value Management for project portfolio

analysis.5. Understand behavioral concepts and other human issues

in evaluation and control.6. Understand the advantages of Earned Schedule methods

for determining project schedule variance, schedule performance index, and estimates to completion.

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Documents

Project Evaluation and Control 13-01 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall