Introduction • Goal: ensuring that the project is on time and on budget and/or highlight any deviation from the plan • Areas • Scope • Schedule • Costs • Risks • Quality • Human Resources
Monitoring • Scope • Scope creep… request for changes, rework, … • Risks • Risk monitoring and control • Human Resources • Informal talks, set goals, …
Monitoring (II) • Time and Costs? • Monitoring the schedule • Baselining • “Actual” values • Monitoring costs • Earned Value
Basic Concepts • Baselining • (values at t1, all values at t2, …) • Planned versus real Values • (Planned Start, Planned Effort, Planned End, …) • (Actual Start, Actual Effort, Actual End, …)
BAC PV(t) t Planned Value • The cumulative cost of the approved costs • PV(t) = planned value at time t • BAC = Budget at completion PlannedEnd
Actual Cost • The actual cumulative cost of the work done so far + estimation to end AC(t) t ActualEnd
Earned Value • Measures real achieved results (in terms on earnings) • The sum of the approved cost estimates for activities completed up to a specified date • At the end of the project, EV = PV t
Computing Earned Value • Rule 1. Earned value should be determined by physically examining products • Rule 2. • Finished activities: • Planned Value • Unstarted activities • 0 • For unfinished activities earned value is usually just a guess • 50/50 Rule (50 at start and 100 at end) • 20/80 Rule (20 at start and 100 at end) • 0/100 Rule (0 at start and 100 at end)
Expresses project progress (in terms on monetary values) Used to compute performances Some simple values CV = EV - AC SV = EV - PV a = T - Ta b = T - Tb c Analysis at date, some values BAC C PV c AC a b EV Tb Ta T
Cost Performance Index (CPI) • Compares budgeted cost of work performed to actual cost • Indicated the efficiency of the project • CPI = EV/AC How much we are actually getting for each euro we thought we would spend.
Schedule Performance Index (SPI) • Compares work performed to work planned • SPI = EV/PV • How fast does the project progress w.r.t. how fast we expected it to be?
Interpreting EV-indicators • Typically indicators are stable after 20% of the project • CPI > 1 project is on budget • CPI < 1 project is over budget • SPI > 1 project is ahead of time • SPI < 1 project is behind schedule
To Complete Performance Index • The efficiency that must be achieved to complete the remaining work with the remaining money • TCPI = (BAC - EV) / (BAC - AC)