Progress and Performance Measurement and Evaluation

Chapter 7
Progress and Performance Measurement and

Evaluation
Structure of a Project
Monitoring Information System
Creating a project monitoring system
involves determining:
◦ What data to collect
◦ How, when, and who will collect the data
◦ How to analyze the data
◦ How to report current progress to
management
13–2
Project Monitoring Information
System
Information System Structure

◦ What data are collected?
◦ Current status of project (schedule and cost)
◦ Remaining cost to compete project
◦ Date that project will be complete
◦ Potential problems to be addressed now
◦ Out-of-control activities requiring intervention
◦ Cost and/or schedule overruns and the reasons for them
◦ Forecast of overruns at time of project completion
13–3
Project Monitoring System… (cont’d)
Information System Structure (cont’d)

◦ Collecting data and analysis
◦ Who will collect project data?
◦ How will data be collected?
◦ When will the data be collected?
◦ Who will compile and analyze the data?
◦ Reports and reporting
◦ Who will receive the reports?
◦ How will the reports be transmitted?
◦ When will the reports be distributed?
13–4
Project Progress Report Format
Progress since last report
Current status of project
1. Schedule
2. Cost
3. Scope
Cumulative trends
Problems and issues since last report
1. Actions and resolution of earlier problems
2. New variances and problems identified
Corrective action planned
13–5
The Project Control Process
Control
◦ The process of comparing actual performance against plan to identify
deviations, evaluate courses of action, and take appropriate corrective
action.
Project Control Steps
1. Setting a baseline plan.
2. Measuring progress and performance.
3. Comparing plan against actual.
4. Taking action.
Tools
◦ Tracking and baseline Gantt charts
◦ Control charts
13–6
Baseline and Tracking Gantt Charts
FIGURE 13.1
13–7
Project Schedule Control Chart
FIGURE 13.2
13–8
Developing an Integrated Cost/Schedule System
1. Define the work using a WBS. 3. Develop a time-phased budget

a. Scope using work packages included
in an activity. Accumulate
b. Work packages budgets (PV).
c. Deliverables 4. At the work package level,
d. Organization units collect the actual costs for the
e. Resources work performed (AC). Multiply
percent complete times
f. Budgets original budget (EV).`
2. Develop work and 5. Compute the schedule
resource schedules. variance (EV-PV) and the cost
a. Schedule resources variance (EV-AC).
to activities
b. Time-phase work packages into
a network
13–9
Cost/Schedule Graph
FIGURE 13.4
13–10
Earned-Value Review Exercise
FIGURE 13.5
13–11
Indexes to Monitor Progress
Performance Indexes
◦ Cost Performance Index (CPI)
◦ Measures the cost efficiency of work accomplished to date.
◦ CPI = EV/AC
◦ Scheduling Performance Index (SPI)
◦ Measures scheduling efficiency
◦ SPI = EV/PV
◦ Percent Complete Indexes
◦ Indicates how much of the work accomplished represents of the total
budgeted (BAC) and actual (AC) dollars to date.
◦ PCIB = EV/BAC
◦ PCIC = AC/EAC
13–12
Interpretation of Indexes
Index Cost (CPI) Schedule (SPI)

>1.00 Under cost Ahead of schedule
=1.00 On cost On schedule
<1.00 Over cost Behind schedule
TABLE 13.3
13–13
Forecasting Final Project
Cost
Methods used to revise estimates of future
project costs:
◦ EAC
re
◦ Allows experts in the field to change original baseline durations
and costs because new information tells them
the original estimates are not accurate.
◦ EAC
f
◦ Uses actual costs-to-date plus an efficiency index to project final
costs in large projects where the original budget is unreliable.
13–14
Forecasting Model: EACf
The equation for this forecasting model:
13–15
Monthly Status Report
EXHIBIT 13.1
13–16
Other Control Issues
Issues In Maintaining Control Of Projects
Scope Creep
Baseline Changes
Data Acquisition
Costs and Problems
13–17
Glossary of Terms
EV Earned value for a task is simply the percent complete times its original budget. Stated differently,
EV is the percent of the original budget that has been earned by actual work completed.
PV The planned time-phased baseline of the value of the work scheduled. An approved cost estimate
of the resources scheduled in a time-phased cumulative baseline [BCWS—budgeted cost of the
work scheduled].
AC Actual cost of the work completed. The sum of the costs incurred in accomplishing work. [ACWP
—actual cost of the work performed].
CV Cost variance is the difference between the earned value and the actual costs for the work
completed to date where CV = EV – AC.
SV Schedule variance is the difference between the earned value and the baseline line to date where
SV = EV – PV.
BAC Budgeted cost at completion. Total budgeted cost of the baseline or project cost accounts.
EAC Estimated cost at completion.
ETC Estimated cost to complete remaining work.
VAC Cost variance at completion. VAC indicates expected actual over- or under-run cost at completion.
TABLE 13.1
13–18
13–19
Consider the table and progress report :
Activity Predeccessor Time(days) Estimated cost
A None 1 $50
B None 2 $100
C A 2 $200
D C 2 $100
Project started on Monday and we received the following progress repot

at the end of Tuesday (day2)
Activity A is completed 100% and the cost 60$
Activity B is completed 80% and the cost incurred is 110$
Activity C is completed 20% and the cost incurred is 30$
13–20
Calculate:
1. Draw gantt chart
2. Calculate PV,EV,AC by considering the progress report
3. Calculate scheduled variance(SV)
4. Cost variance(CV)
5. Scheduled performance index(SPI)
6. Cost performance index(CPI)
7. Calculate estimated cost at completion (EAC)
8. DRAW cost/schedule graph showing PV,EV,AC,SV,CV,EAC,BAC
13–21
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Chapter 7

Progress and Performance Measurement and

Information System Structure

Information System Structure (cont’d)

1. Define the work using a WBS. 3. Develop a time-phased budget

Index Cost (CPI) Schedule (SPI)

Issues In Maintaining Control Of Projects

EAC Estimated cost at completion.

ETC Estimated cost to complete remaining work.

Project started on Monday and we received the following progress repot

Activity A is completed 100% and the cost 60$

Activity B is completed 80% and the cost incurred is 110$

Activity C is completed 20% and the cost incurred is 30$

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