Malte Foegen

Project Management
08 Project Monitoring and Control

IT M a t u r i t y

Services

Project Monitoring and Control Overview

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Provide understanding of the projects progress so that appropriate corrective actions can be taken when the projects performance deviates significantly from the plan.

Monitor Project against the Plan (SG 1)

Manage Corrective Actions to Closure (SG 2)

Project Planning

Project-Plans

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Actual performance and progress of the project are monitored against the project plan.
Monitor Project against the Plan (SG 1) Monitor Project Planning Parameters (SP 1.1)

Monitor Commitments (SP 1.2)

Monitor Project Risks (SP 1.3)

Monitor Data Management (SP 1.4)

Monitor Stakeholder Involvement (SP 1.5)

Conduct Progress Reviews (SP 1.6)

Conduct Milestones Reviews (SP 1.7)

Project Planning
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Project-Plans
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Typical WP for Monitoring the Project against the Plan

Monitor Project against the Plan (SG 1) SP 1.1 Monitor Project Planning Parameters 1. Records of project performance 2. Records of significant deviations SP 1.5 Monitor Stakeholder Involvement 1. Records of stakeholder involvement SP 1.7 Conduct Milestones Reviews 1. Documented milestone reviews results SP 1.6 Conduct Progress Reviews 1. Documented project reviews results SP 1.2 Monitor Commitments 1. Records commitment reviews SP 1.3 Monitor Project Risks 1. Records of project risk monitoring SP 1.4 Monitor Data Management 1. Records of Data Management

Project Planning
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Project-Plans
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Corrective actions are managed to closure when the projects performance or results deviate significantly from the plan.
Manage Corrective Actions to Closure (SG 2)

Analyse Issues (SP 2.1)

Take Corrective Actions (SP 2.2) Manage Corrective Actions (SP 2.3)

Project-Plans
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Typical WP for Managing Corrective Actions to Closure

Manage Corrective Actions to Closure (SG 2) SP 2.1 Analyse Issues 1. List of issues needing Corrective actions SP 2.2 Take Corrective Actions 1. Corrective actions plan SP 2.3 Manage Corrective Actions 1. Corrective actions results

Project-Plans
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Relationships between Project Planning (PP) and Project Monitoring and Control (PMC)
Project Planning (PP) SP 1.2 Establish Estimates of Work Product and Task SP 1.4 Determine Estimates of Effort and Cost SP 2.1 Establish the Budget and Schedule SP 2.4 Plan for Project Resources SP 2.5 Plan for Needed Knowledge and Skills SP 2.7 Establish the Project Plan SP 1.1 Monitor Project Planning Parameters Time Plan (PP SP 2.1) Costs, Effort (PP SP 1.4) Attributes of the work results and Duties (PP SP 1.2) Resources (PP SP 2.4) Knowledge and Skills (PP SP 2.5) Project Monitoring and Control (PMC)

Plan & Track

Commitment Management Risk Management Data Management Stakeholder Involvement Issue Management For student use only

SG 3 / SP 3.3 Obtain Plan Commitment SP 2.2 Identify Project Risks SP 2.3 Plan for Data Management SP 2.6 Plan Stakeholder Involvement

SP 1.2 Monitor Commitments SP 1.3 Monitor Project Risiks SP 1.4 Monitor Data Management SP 1.5 Monitor Stakeholder Involvement SG 2 Manage Corrective Action to Closure

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Project Monitoring and Control is necessary to identify actions such that the project stays on track.
Why do we do it?
Provide an understanding of the project's progress Take appropriate corrective actions Provide status information for all stakeholders

Advice and Guidance

Use defined measurements from Measurement and Analysis to monitor the projects progress Determine major deviations and record the deviations and decisions Add all gathered issues to the Issue List When re-planning is needed revise estimates and plans For closed issues think about lessons learned for the related corrective actions and take those into account for planning and risk management processes
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The project manager is responsible for tracking the project constantly.

Who makes it?
RUP: Project Manager The Project Manager plans, manages and allocates resources, shapes priorities, coordinates interactions with customers and users, and keeps the project team focused Team Members Must support the project manager in estimations, risk analysis, stakeholder identification, and the team must commit to the plan

When will we do it?

permanent

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Project Monitoring and Control is done throughout the life cycle. Measurements can help understand the progress.
Measurement and Analysis Project Monitoring and Control

Project Planning

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Project Monitoring and Control is a key element of the PlanDo-Check-Act control circuit
Plan

PP Act PMC SG 2

Do

REQM, RD, TS, PI Check

PMC SG 1
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Tracking of Cost and Schedule Performance

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How is this project doing?

120000

100000

80000

60000

Projected Actual

40000

20000

0 Jan 03 Feb 03 Mrz 03 Apr 03 Mai 03 Jun 03 Jul 03 Aug 03 Sep 03 Okt 03 Nov 03 Dez 03

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Lets Take A Look Under The Hood

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The %-complete approaches to answer the question Have we done what we said wed do? are subjective, incomplete and draw false conclusions
The classic approach: % complete estimating % of Budget spent % of work done % of time elapsed

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Earned Value Analysis is an industry standard to monitor and control schedule and budget.
Earned Value Analysis is an industry standard way to:
measure a projects progress, forecast its completion date and final cost provide schedule and budget variances along the way

By integrating three measurements, Earned Value provides consistent, numerical indicators with which you can evaluate and compare projects.

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Earned Value Analysis answers all three questions: schedule performance, budget performance and completion performance.
It compares the
PLANNED amount of work with what has actually been COMPLETED

to determine if
COST SCHEDULE WORK ACCOMPLISHED

are progressing as planned.

Work is Earned or credited as it is completed.

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Earned Value provides an Early Warning signal for prompt corrective action

Bad news does not age well.

Still time to recover

Timely request for additional funds

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Some New Terms

BCWS - Budgeted Cost of Work Scheduled
Planned cost of the total amount of work scheduled to be performed by the milestone date.

ACWP - Actual Cost of Work Performed

Cost incurred to accomplish the work that has been done to date.

BCWP - Budgeted Cost of Work Performed

The planned (not actual) cost to complete the work that has been done.

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BCWS - Budgeted Cost of Work Scheduled

120000 100000 80000 60000 40000 20000 0 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez 03 03 03 03 03 03 03 03 03 03 03 03 BCWS

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ACWP and BCWP - Actual Cost of Work Performed and Budgeted Cost of Work Performed

120000 100000 80000 60000 40000 20000 0 May-03 Nov-03 Jan-03 Jun-03 Jul-03 Dec-03 Mar-03 Aug-03 Sep-03 Feb-03 Oct-03 Apr-03 56000 49000 BCWP ACWP

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The Whole Story

120000 100000 80000 56000 60000 40000 20000 0 Nov-03 Jan-03 Jun-03 Jul-03 Oct-03 May-03 Dec-03 Mar-03 Feb-03 Apr-03 Aug-03 Sep-03 55000 49000 BCWS BCWP ACWP

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Some Derived Metrics

SV: Schedule Variance (BCWP-BCWS)
A comparison of amount of work performed during a given period of time to what was scheduled to be performed. A negative variance means the project is behind schedule

CV: Cost Variance (BCWP-ACWP)

A comparison of the budgeted cost of work performed with actual cost. A negative variance means the project is over budget.

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All indicators at a glance

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More Derived Metrics

SPI: Schedule Performance Index
SPI=BCWP/BCWS SPI<1 means project is behind schedule

CPI: Cost Performance Index

CPI= BCWP/ACWP CPI<1 means project is over budget

CSI: Cost Schedule Index (CSI=CPI x SPI)

The further CSI is from 1.0, the less likely project recovery becomes.

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Performance Metrics
SPI: BCWP/BCWS 49,000/55,000 = 0.891

CPI: BCWP/ACWP 49,000/56000 = 0.875

CSI: SPI x CPI .891 x .875 = 0.780

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The cost performance index can be used to make projections

EAC: Estimate at Completion
EAC = BAC / CPI The EAC gives an idea of the final cost of a project.

Example:
EAC = 102,000 / 0.875 = 116,571

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Making Projections

120000 100000 80000 60000 40000 20000 0 Nov-03 Jan-03 Jun-03 Apr-03 Jul-03 May-03 Dec-03 Aug-03 Sep-03 Mar-03 Feb-03 Oct-03 103865 102000 90882

Today

BCWS BCWP ACWP

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Estimate to Complete

140000 120000 100000 80000 60000 40000 20000 0

116,571 102000

Today

BCWS BCWP ACWP

Ja n03 M ar -0 3 M ay -0 3 Ju l-0 3 Se p03 No v03

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At the end
The project will be 14% over budget The project will be 3 months late (25% time overrun)

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Requirements of Earned Value

Proper WBS Design
Work Items must be small

Work measurement
work-hours, dollars, units, etc.

Good Project Management Practices

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Overall result of the next series of exercises:

Evaluate Scrum against CMMI PP and PMC practices. Deliver a spreadsheet with the following structure: CMMI
PP SP 1.1

Text - What
Establish a WBS to estimate the scope of the project

Scrum - How
<Fill out>

OK ?
Yes/ No

Suggestion how to do with Scrum

<fill out of no>

Break up in your teams. Task and Results:

(7 min) Establish the tasks to do the exercise above (7 min) Use planning poker to estimate the effort for your tasks

Goal:
Understand exercise and practice planning and estimating
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Break up in your teams. Task and Results:

(12 min) Develop a spreadsheet that allows to handle the Earned Value (3 min) Test your sheet to ensure that it works

Goal:
Understand how to use and implement Earned Value Be prepared to use Earned Value to track your exercise

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Exercise
17

Evaluate Scrum against CMMI PP and PMC. Step 2: Set up a spreadsheet to calculate Earned Value. (15 min).

Exercise

Evaluate Scrum against CMMI PP and PMC. Step 1: Estimate tasks and efforts. (15 min)

Break up in your teams. Task and Results:

Do your tasks and track the efforts After 30 min, provide an estimate at completion (EAC)

Goal:
Understand Scrum Understand PP and PMC Practice an evaluation Apply Earned Value

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All formulas
BCWS - Budgeted Cost of Work Scheduled ACWP - Actual Cost of Work Performed BCWP - Budgeted Cost of Work Performed SV: Schedule Variance (BCWP-BCWS) CV: Cost Variance (BCWP-ACWP) SPI: Schedule Performance Index (BCWP/BCWS) CPI: Cost Performance Index (BCWP/ACWP) CSI: Cost Schedule Index (CSI=CPI x SPI) BAC = Budget at completion (=BCWS until project completion) EAC = BAC / CPI

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Exercise
18

Exercise

Evaluate Scrum against CMMI PP and PMC. Step 3: Do the evaluation. (<your estimated time> min)

Trademarks and Service Marks

Capability Maturity Model; Capability Maturity Modeling; Carnegie Mellon, CMM; and CMMI are registered in the U. S. Patent and Trademark Office by Carnegie Mellon University. IDEAL; Personal Software Process; PSP; SCAMPI; SCAMPI Lead Assessor; SCAMPI Lead Appraiser; SEI; SEPG; Team Software Process; and TSP are service marks of Carnegie Mellon University. iNTACS is a registered trademark by the International Assessor Certification Scheme Special permission to use CMMI for Development, Version 1.2 (CMU/SEI-2006-TR-008 ESC-TR-2006-008), copyright 2006 by Carnegie Mellon University, in the combination of CMMI and ITIL is granted by the Software Engineering Institute. The SEI and CMU do not directly or indirectly endorse wibas IT Maturity Services GmbHs work. IT Maturity Services is a registered trademark by wibas IT Maturity Services GmbH

wibas IT Maturity Services is official SEI Partner of the Software Engineering Institute of the Carnegie Mellon University for SCAMPI appraisals and CMMI training. For inquiries, call: wibas IT Maturity Services GmbH Yvonne Fischer Customer Relations Manager Otto-Hesse-Str. 19 B 64293 Darmstadt Germany Tel: 0049 - 6151 - 50 33 49 - 21 Fax: 0049 - 6151 - 50 33 49 - 33 yfischer@wibas.de

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Revision History
Target status: finished Template-Version: 2.11 Rev. no. 1.0 1.1 1.2 1.3 1.4 State Finished Finished Finished Finished Finished Date 15.10.2004 22.01.2006 23.12.2007 19.01.2008 07.02.2009 Comments Initial version Updated layout Updated layout Added formula overview for Earned Value Updated exercises Responsible Malte Foegen Malte Foegen Malte Foegen Malte Foegen Malte Foegen

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Otto-Hesse-Str. 19 B 64293 Darmstadt Germany Phone +49 / 6151 / 50 33 49 - 0 Fax +49 / 6151 / 50 33 49 33 www.wibas.de Hintermettlen 7 6318 Walchwil Suisse Phone +41 / 41 / 51122 - 90 Fax +41 / 41 / 51122 - 91 www.wibas.ch

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