Project+/Executing

KICK OFF MEETING

• meet with sponsor to review the output
• a meeting at the beginning of the project or major phase of the project
• align peoples' understanding of project objectives, procedures, and plans
• begin the team-building and bonding process.

WEEKLY TASKS

• check scope
• check evolution and status deliverables
• check schedule
• analyze variances, compare estimates to actuals
• handle scope changes
• list, track, try to resolve open issues
• report project status
• push for activity close-out and deliverable sign-off
• decide if it's necessary to kill project

EVM (Earned Value Management)

EVM (Earned Value Management)

• a method for integrating scope, schedule and resources
• used for measuring project performance
• compares
  • amount of work that was planned (PV)
  • what was actually earned (EV)
  • what was actually spent (AC)
• determines if cost and schedule performance are as planned.

EVA (Earned Value Analysis)

• most commonly used method of performance measurement
• integrates scope, cost and schedule measures
• assesses project performance
• used to identify any divergence from planned outcomes

EV (Earned Value)

• EV = PV * % complete (from course prep)
• formerly BCWP (Budgeted Cost Work Performed)
• value of work actually completed

PV (Planned Value)

• formerly BCWS (Budgeted Cost Work Scheduled)
• portion of approved cost estimate planned to be spent on activity during given period.
• physical work scheduled to be performed

AC (Actual Cost)

• formerly ACWP (Actual Cost Work Performed)
• total costs incurred in accomplishing work during given period.
• occurred to accomplish earned value

BAC (Budget at Completion)

• the original total budget allocated to a project.
• sum of all budgets allocated to a project

EAC (Estimate at Completion)

• 3 formulas to calculate EAC
  • EAC = AC + ETC
  • EAC = AC + BAC - EV (variances are atypical)
  • EAC = BAC/CPI (from course prep) (variances are expected to occur again at same rate).
• value expressed as either dollars or hours
• represents the projected final costs of work when completed
• actual costs incurred plus estimated cost of remaining work.

CPI (Cost Performance Index)

• CPI=EV/AC
• ratio of worth to cost
• measure of cost-efficiency or efficiency of the budget
• CPI < 1.0 means that the task is over budget

CV (Cost Variance)

• CV=EV-AC
• difference between worth and cost of completed work
• identifies the area where spending more than budgeted
• CV < 0 means the task is over budget

ETC (Estimate to Complete)

• ETC=BAC-EV
• expected additional cost needed to complete an activity or project

SV (Schedule Variance)

• SV=EV-PV
• difference between worth and supposed-to-be worth of completed work
• identify schedule problems
• measure of schedule efficiency
• SV < 0 means the task is behind schedule

SPI (Schedule Performance Index)

• SPI=EV/PV
• schedule efficiency ratio of earned value accomplished against the planned value
• describes what portion of the planned schedule was actually accomplished.
• SPI < 1.0 means the task is behind schedule

TCPI (To Complete Performance Index)

• Two possible formula:

TCPI = (BAC – EV)/(BAC – AC); based on BAC (original BAC only money available)

TCPI = (BAC – EV)/(EAC – AC); based on EAC (new revised EAC approved)

• ratio of remaining work to remaining budget
• efficiency that must be achieved to complete remaining work with remaining money
• TCPI>1 = must increase performance to stay within budget

CAPS (Control Account Plans)

• management control unit in which earned value performance measurement takes place
• formerly called Cost Account Plan
• EVM CAPs continuously measure project performance by relating 3 independent variables
  • Planned Value
  • Earned Value
  • Actual Costs

Formulas Summary:

• CV=EV-AC
• EAC (Estimate at Completion):
  • EAC = AC + ETC
  • EAC = AC + BAC - EV
  • EAC = BAC/CPI (from course prep)
• CPI=EV/AC
• SV=EV-PV
• SPI=EV/PV
• TCPI=(BAC-EV)/(BAC-AC)
• Funds Remaining (BAC or EAC - AC)
• EV=PV*%complete (from course prep)

Formula Mnemonics For Basic Formulas (CV,SV,CPI,SPI)

• "V" in left-most means variance which means subtract
• "I" in left-most means index which means divide
• "EV" on left side of equation after "="
• if cost "AC" is right-most, otherwise "PV"
• CV=EV-AC
• SV=EV-PV
• CPI=EV/AC
• SPI=EV/PV

Formula Mnemonics For TCPI

• Two possible formula:

TCPI = (BAC – EV)/(BAC – AC); BAC based

TCPI = (BAC – EV)/(EAC – AC); EAC based

• remember both num and denom start with BAC-
• no PV
• "I" in left-most means index which means divide
• "EV" on left side of equation after "="

- baseline

• original project plan plus approved changes. Must have to use EVA.

CHANGE CONTROL

Two Methods Used To Monitor Scope Changes

• track number of scope changes
• track dollar value of extra work performed

Before Approval From The Stakeholders On A Project Scope Modification

• analyze budget issues and their impact on "common problems"
• analyze project plan issues and their impact
• research alternatives for the proposed scope change

Value Engineering

• used to evaluate proposed changes

When Change Occurs, PMS Must

• identify cause
• write a status report to document change
• determine how scope change will impact cost and/or schedule
• quantify alternative solutions
• ask users to distinguish between mandatory and optional scope changes
• determine whether to inform the sponsor
• gain stakeholder approval

Objectives Of Change Control Process

• insure that changes are beneficial
• know when change has occurred
• manage changes as they occur

Preventing Scope Creep

• scope is well documented and verified in the planning phase
• team well informed of products and quality procedures
• develop and follow a requirements management process

LARGE & MULTI-LOCATION PROJECT STRATEGIES

What May Be Needed

• communication standards
• work standards
• sub-teams
• focus on milestones

TEAM MANAGEMENT

Best Practices

• Shared Challenge
• Team Identity
• Balanced Task Assignment
• Team Support
• Trust Your Team
• Earn Respect
• Be a Team Player
• Leadership Principles

Conflict Handling Modes

• confrontation mode
  • problem solving approach
  • allows parties to work through their differences
  • usually most effective
• smoothing mode
  • de-emphasize areas of differences
  • emphasize areas of agreement
  • often used when personalities clash
• forcing mode
  • win-lose approach
  • favored by the autocratic
• withdrawal mode
  • little gets accomplished

Task Related Conflict

• often healthy
• different approaches to create deliverables discussed
• better solutions can be achieved

Emotional Conflicts

• develop group ground rules to avoid

Common Causes Of Performance Problems Include

• team is unfocused or pulling in different directions
• team is fragmented into special interest or social groups

EXECUTIVE SUPPORT

Re-enforce by

• identify source of doubts
• use interpersonal skills
• act without creating negative impact
• use allies and influence

RESOURCE MANAGEMENT

Issues

• Contract Labor
• Outsourcing
• Material Resources and Suppliers
• Resource Leveling

PROJECT DELAYS

Issues Related To Extending Schedule

• impact on other project goals
• impact on the rest of the organization
• impact on the project team
• impact on the vendors

INTERIM PROJECT REQUIREMENT REVIEWS

INTERIM PROJECT REQUIREMENT REVIEWS - Process

• held with the sponsors and users
• held after the initial requirements are completed
• held after requested changes to the scope are defined
• most reviews are face-to-face with affected stakeholders
• may be held on a periodic basis or as needed
• Reasons To Hold Non-Periodic Reviews
  • organizational changes
  • misunderstandings arise
  • quality problems
  • budget problems

INTERIM PROJECT REQUIREMENT REVIEWS - Reasons for

• provides a quality assurance measure for project performance
• provides an independent evaluation of project performance/documentation
• examines the overall health of the project
• recommends actions to address any significant problems
• Emphasize Important Project Goals
  • main goals understood?
  • are products being delivered on time?
  • quality okay?
  • budget okay?

INTERIM PROJECT REQUIREMENT REVIEWS - Acceptable Outcomes

• approve requirements list as is
• agree on revisions then resubmit for review and approval
• agree on revisions then move forward with the planning phase

TURNOVER PHASE

Transition Work

• user docs
• user training
• help-desk training

REFERENCES

• A Guide to the Project Management Body of Knowledge (fifth ed.), Project Management Institute, 2013, ISBN 978-1-935589-67-9
• Earned Value Analysis in Project Management — an Easy Cheat Sheet