MGT2 TASK 3 XEMBA

MGT2 – TASK 3

Xemba Translations

PART A: Five Current Risks to the Project

Part B: Project Performance Metrics

Part C: Executive Summary

Alan Oviatt, Project Manager

17 August 2015

Alan Oviatt 17 August 2015

2 Xemba Translations

Table of Contents PART A: ADDENDUM -‐ FIVE CURRENT RISKS CREATE AN ADDENDUM TO THE RISK ASSESSMENT MATRIX -‐‑ DOCUMENT FIVE CURRENT RISKS TO THE PROJECT ................. 3

PART B: PROJECT PERFORMANCE METRICS EXPLAIN THE METRICS YOU WOULD USE TO MEASURE THE PROJECTS PERFORMANCE. ............................................................................... 4

THE CONTROL SCHEDULE PROCESS .................................................................................................................. 4 CRITICAL PATH ............................................................................................................................................. 5 PLANNED VALUE ........................................................................................................................................... 5 EARNED VALUE ............................................................................................................................................ 5 ACTUAL COST ............................................................................................................................................... 5 SCHEDULE VARIANCE AND COST VARIANCE ....................................................................................................... 5 COST PERFORMANCE INDEX AND SCHEDULE PERFORMANCE INDEX ....................................................................... 5 BUDGET AT COMPLETION ............................................................................................................................... 5 ESTIMATE AT COMPLETION ............................................................................................................................. 5

PART B1: METRICS JUSTIFICATION JUSTIFY WHY THESE METRICS WOULD BE APPROPRIATE TO USE FOR THIS PROJECT. ............................................................................. 6

PART B2: CURRENT STATUS .................................................................................................................. 6 CONTROL SCHEDULE ..................................................................................................................................... 6 PLANNED VALUE ........................................................................................................................................... 7 EARNED VALUE ............................................................................................................................................ 7 COST PERFORMANCE MEASURES – PROJECT EFFICIENCY ..................................................................................... 9 SCHEDULE PERFORMANCE MEASURES – PROJECT EFFECTIVENESS ....................................................................... 10 ESTIMATE AT COMPLETION (EAC) ................................................................................................................. 10

PART B3: ANALYZE THREE PROBLEMS BASED ON THESE METRICS ...................................................... 12 CONTROL SCHEDULE PROCESS ...................................................................................................................... 12 CRITICAL PATH RESOURCE LEVELING .............................................................................................................. 12 BUDGET AT COMPLETION – ESTIMATE AT COMPLETION ..................................................................................... 14

PART C: EXECUTIVE SUMMARY ........................................................................................................... 14 INTRODUCTION ........................................................................................................................................... 14 DETAILED ANALYSIS ..................................................................................................................................... 14 PROJECT COST PERFORMANCE ANALYSIS ........................................................................................................ 15 PROJECT SCHEDULE PERFORMANCE ANALYSIS ................................................................................................. 15 SUMMARY ................................................................................................................................................. 16



Part A: Addendum - Five Current Risks Create an addendum to the Risk Assessment Matrix -‐‑ Document five current risks to the project

Description of Risk Impact

Likelihood of

Occurrence (L,M,H)

Degree of

Impact (L,M,H)

Initial Action if Event Occurs Responsibility

Strategy for Prevention and Mitigation

Project is at Risk for Finishing Over Budget

Could impact the scope, quality, and/or schedule of the Project

H H

Project Scope, Schedule and Resource assessment must be done immediately

Project Manager

Remove firewall expenses from the Project budget to the IT budget as proposed by the CEO. Scope review may reveal possible cuts to tighten the budget. Resource review could reveal reassignments for cost efficiency without sacrificing quality or schedule

Resources may not be adequately assigned

Team members may lack capability to meet project expectations, causing delays or quality issues

M H

If work performance data reveals this risk, provide improved support, training, an additional resource.

Project Manager, Team Leads

Resources should be thoroughly vetted for qualifications technically and socially (working well with others) prior to any staffing assignment

Quality Control may not be properly assigned

No QA team has been identified. Teams are conducting their own testing. Testing is limited and quality is risked

L M

Delays occur due to component failures or integration problems

Project Manager

Develop a Quality Management Plan to strictly monitor phase transitions and ensure quality objectives are being met.

System compatibility at risk due to too many owners or leads of components

Possible compatibility issues in software, hardware components could cause serious delays, cost overruns to repair

M H

Project plan stalls as challenges to integration are worked out as cause analysis is completed and change requests submitted

Jackson, Elizabeth, Marcel, Clemencia

Business Requirements Documentation must include hardware and software requirements for system integration. Planned procurements must be listed. Communication plan must include strong link between team leads



Natural disaster including severe weather

All systems go down due to storms, power outages, security faults, or other.

L H

Project already delayed because of fire at computer warehouse, will be further delayed

Team Members, Vendor

Emergency plan to address plan processes. What can be moved up in the schedule without sacrificing quality or budget. Ensure strong cloud services for backups. Have backups for vendors.

Customers may not accept the new system

Reduced customer service will result in loss of customers, will impact company profitability

L H

The new telecommuter scenario may be a problem. R.E. & C. Law Partners, a large client, has already expressed their requirement of on-site translators for emergency situations.

Project Sponsor, Project Manager

Assigned translators for certain clients must rotate work on-site, not from home. Work with clients to ensure a comfortable transition to the new model, assuring them on-site support is not going away.

Reliability of home service Internet connections may be a risk

Job performance may be negatively affected by lack of bandwidth, or intermittent Internet availability, web-based meetings disrupted

M M

During pilot phase, ensure telecommuters are properly trained in best practices and bandwidth resources to ensure best performance and efficiency

Hugh, Training Department

Telecommuter’s must know and understand the requirements, this should be part of their training and connectivity support must be adequately provided. FAQ’s might be added to help limit broadband strain such as streaming media and gaming during web meetings or business sessions.

Key: L = low, M = medium, H = high

Part B: Project Performance Metrics Explain the metrics you would use to measure the projects performance.

The following tools, techniques and metrics will be used to assess project performance. Team Leads will report progress at monthly milestone meetings where metrics will be applied to evaluate planned objectives and schedule to earned value. These metrics will be a combination of Schedule Management and Cost Management all using the Earned Value Management method.

The Control Schedule Process (CSP) – includes inputs from the Project Management Plan and Performance Reviews reported at the monthly milestone meetings to yield work performance measurements. Variance Analysis measures against the project schedule, and what-‐if scenarios help adjust for leads and lags in the time line. The CSP gives us a Percentage Complete to date down to the task level.



Critical Path – will be reviewed and analyzed for additional risks given the current status, the network diagram is updated to expose the current status of each task, and the project is adjusted with schedule compression where necessary.

Planned Value (PV) – reveals what the project’s value is at a given point in the schedule and provides the budget cost of the work scheduled to this point.

Earned Value (EV) – will be compared to the planned value to provide us an accurate forecast potential performance issues in the project. An EV Report will be part of every monthly executive report from now until the close of the project.

Actual Cost (AC) – refers to the actual total of money spent to date in the project and is sometimes known as ACWP or the actual cost of work performed.

Schedule Variance and Cost Variance (SV and CV) – Schedule variance is indicated as SV = EV – PV while cost variance is defined CV = EV – AC. A negative number would indicate that the project is behind schedule and behind budget. Positive values are desirable.

Cost Performance Index and Schedule Performance Index (CPI and SPI) -‐ Having calculated the previously mentioned values, we can use these measurements to determine both efficiency (CPI) and effectiveness (SPI). These indices are defined as:

• CPI = EV/AC • SPI = EV/PV

As in CV and SV, a positive number greater than or equal to one (1) indicates a favorable condition meaning that the project is currently under or at budget and on or ahead of schedule. Any measurement less than one (1) indicates the opposite condition is true.

Budget at Completion (BAC) – is the total budget assigned to the project and is calculated using the formula: BAC = Effort – Hours x Hourly Rate

Estimate at Completion (EAC) – reflects the estimated cost of the project upon completion. With the CPI and SPI measured, we will be able to calculate the cost and dates for project completion. There are three methods of calculating EAC:

1. If variances are within a normal range and not expected to broaden in the future: EAC = AC + (BAC – EV)

2. Estimates not valid – Additional input from team for completion estimates are needed, or bottoms up estimation: EAC = AC + ETC (Estimate to Completion)

3. Variances will continue into the future: EAC = AC + (BAC – EV)/CPI



Part B1: Metrics Justification Justify why these metrics would be appropriate to use for this project.

The Project Charter and Project Scope Document have detailed constraints, costs, schedule and Work Breakdown Structure. These metrics add a visual component to progress and performance of the plan providing at-‐a-‐glance alerts to potential issues impacting cost, quality, or schedule. The selected metrics are reasonably simple and designed for small project application to help keep major variables in check. There are more complicated formulas available and “deep dive” analysis, but these would not be appropriate for this project given its scope and remaining time and effort.

Based on the risks established in this case, it is likely the EAC will be the primary tool to drive the project as close to on-‐time and on-‐budget as possible. New estimates will be needed and monitored going forward. Schedule compression and what-‐if scenarios will help identify effective improvements.

Part B2: Current Status Discuss the project’s current status based on these metrics

The project schedule baseline was determined to begin on Friday, January 2nd and end 123 workdays later on Thursday June 25th. We are now 76 Days into the project putting us at Monday April 20th, for this latest status report.

The data collected from the partial status reported as of 76 days provides the performance measurements used below.

Control Schedule

The table shows reported roll-‐up numbers from project leads for each component of the WBS. The project is 59% complete with only 38% of the days remaining.

Task # Task Effort % Complete Hours

Remaining

1.0 Computer Inventory & Requirements 375.95 100% 0

2.0 Technical Support 197.33 81% 36.67 3.0 Computing Support 258 74% 66 4.0 Document Servers 356 68% 114 5.0 Shared Drives 351.2 65% 122.4 6.0 FTP Sites 621.67 37% 390.8 7.0 Firewalls 417.6 23% 320 8.0 Web -‐Based Meetings 430 60% 170

Totals 3007.75 59% 1219.87



Planned Value

The table below shows the planned value of labor costs as the project progresses until it reaches a total planned labor value of $173,329.43 on June 26th. An additional budget for systems of $73,670.57 yields a total PV of $247,000:

Week Date PV Cumulative 1 9-‐Jan $-‐ $-‐ 2 16-‐Jan $-‐ $-‐ 3 23-‐Jan $-‐ $-‐ 4 30-‐Jan $10,150.00 $10,150.00 5 6-‐Feb $-‐ $10,150.00 6 13-‐Feb $-‐ $10,150.00 7 20-‐Feb $4,500.00 $14,650.00 8 27-‐Feb $3,000.00 $17,650.00 9 6-‐Mar $18,290.00 $35,940.00 10 13-‐Mar $2,971.43 $38,911.43 11 20-‐Mar $5,400.00 $44,311.43 12 27-‐Mar $-‐ $44,311.43 13 3-‐Apr $4,680.00 $48,991.43 14 10-‐Apr $30,554.00 $79,545.43 15 17-‐Apr $7,600.00 $87,145.43 16 24-‐Apr $-‐ $87,145.43 17 1-‐May $25,764.00 $112,909.43 18 8-‐May $11,420.00 $124,329.43 19 15-‐May $15,200.00 $139,529.43 20 22-‐May $2,800.00 $142,329.43 21 29-‐May $12,000.00 $154,329.43 22 5-‐Jun $1,400.00 $155,729.43 23 12-‐Jun $2,800.00 $158,529.43 24 19-‐Jun $2,800.00 $161,329.43 25 26-‐Jun $12,000.00 $173,329.43

Earned Value

The table below shows and EV of $93,781.83 as of this report, data collected somewhere between April 16th and 20th.



Cost Performance Measures – Project Efficiency

The project appears to be at risk of completing over budget as the CV line is declining at an increasing rate (possibly due to severe weather that hampered Web-‐based testing). CPI is showing a sharply declining trend-‐line below 1.0 indicating a further over-‐budget condition.



Schedule Performance Measures – Project Effectiveness

The project appears to have been tracking well for the first four weeks before faltering during the week of March 6th, as the project begins to fall behind. There is a recovery period over the next month, the most recent data shows the project is beginning to lag once again.

Estimate at Completion (EAC)

Project Management best practices, in this case, suggest we use a bottom-‐up approach to establishing EAC. Since variances are not in a “normal” nor do we expect the existing variances to carry forward to the end of the project, therefore, we will ask team leaders to provide additional data to establish a more accurate EAC, which they have done in this report. The following table shows total cost, budget cost, actual cost, remaining cost, total variance, and percent complete.



(Critical path descriptions in red text)



With the project budget amounts defined, actual costs have deviated due to extreme weather conditions, vendor shortfall, and other reasons. The new forecasted cost of labor for the project (EAC) is $191,901.29, a difference of an additional $18,571.86.

Depending on equipment, ETC, (Estimate-‐to-‐Close -‐ how much more money will be needed to complete the project) shows an additional $29,971.86 will be needed for desktop computers or $32,771.86 if laptops are purchased.

BAC EAC ETC Total ETC Labor Costs $173,329.43 $191,901.29

$18,571.86

Equipment Costs $73,670.57 $85,070.57 Desktops $11,400.00 $29,971.86

$87,870.57 Laptops $14,200.00 $32,771.86

Part B3: Analyze Three Problems Based on These Metrics Discuss how three problems could affect project implementation and post-‐‑project success. Discuss how you would mitigate or remove each problem.

Control Schedule Process

A closer look at the task scheduling reveals resource leveling across tasks during competing timelines. This practice creates focus conflict, quality issues, duration drag and threatens an on-‐time delivery of the project. During the Technical Support tasks, Document Server tasks and Shared Drive tasks, Marcel, Jackson, and Valene have primary or secondary responsibilities throughout.

Valene is used to install Document Servers (her area of expertise), then act as her own Quality Assurance as she tests her install. This is inconsistent with best-‐practices for quality control. She might be better utilized focusing on installation, while being removed from testing.

Task focus could be enhanced by having Jackson work with Phoebe on Document Server tasks and Ben and Kendrick and Jackson focus on Shared Drive tasks, using Marcel as support where needed instead of all of them spread across all tasks.

Critical Path Resource Leveling

The project is behind schedule and over budget. In order to complete the task on schedule and on budget, we should consider crashing the Critical Path by adding resources and Fast Tracking several activities.

FTP Tasks lies on the Critical Path and could benefit from resource leveling. The primary responsibility is being carried by Zeke with help from Clemencia. Kendrick has finished his work and is available to the project. Using Kendrick would have a positive impact on both schedule by reducing CP by more than five days, and cost, reducing EAC by nearly $3,000.



Measuring Cost Savings Using Current Data for FTP Tasks:

Resource Cost Per Hour

Work Completed

Cost Completed

Work Remaining

Cost Remaining Total Labor

Zeke $65.00 153 $9,945.00 245 $15,925.00 $25,870.00 Clemencia $80.00 104 $8,320.00 114 $9,120.00 $17,440.00

359 $25,045.00 $43,310.00

Cost Savings Using Hypothetical Data with Kendrick and Resource Leveling for Remaining FTP Tasks:

Resource Cost Per Hour

Work Completed

Cost Completed

Work Remaining

Cost Remaining Total Labor

Zeke $65.00 153 $9,945.00 120 $7,800.00 $17,745.00 Clemencia $80.00 104 $8,320.00 119 $9,520.00 $17,840.00 Kendrick $40.00 0 $-‐ 120 $4,800.00 $4,800.00

359 $22,120.00 $40,385.00

A savings of: $2,925.00

Estimating Critical Path Savings:

Calculating days saved is a little more complicated.

• CP Task 40 started on 4/10 and was to finish on 4/12 but the report received some time between 4/16 and 4/20 says the task is 50% complete.

• CP Task 41 was to begin 4/17 but this report shows it has not yet been started. This could be due to the fact that data was collected on 4/16 before the report was prepared or because the task is late.

For our purposes, we will assume CP Task 40 was completed on time and that CP Task 41 began on 4/17.

• Kendrick is used on the 60 hour CP Task 41 and is able to contribute 20 hours to the task, reducing its finish by 2.5 days (8 hour workdays x 2.5 = 20 hours).

• CP Task 45 is moved forward from 4/26 (a Sunday, by the way) to 4/22. Again, Kendrick is used on the 128-‐hour task, contributing 42.66 hours and reducing its completion by 5.33 days, or by Friday, May 1st, instead of Friday May 7th.

• CP Task 46 is moved forward to Monday May 4th from Friday May 8th and again makes use of Kendrick, contributing 14 hours to the task. Task 46 now takes only three days to complete bringing FTP task completion to May 7th from May 21st.



At this point, CP Firewall Task 50 can be moved forward to May 11th from May 21st. Estimating 160 hours, Malinda, assisted by Marcel will finish the work in 10 days, no later than May 25th. CP Firewall Task 51, consequently, moves forward to May 25th and is completed by June 5th instead of June 18th.

A review of additional free slack of the remaining tasks scheduled to end prior to the CP deadline of 6/18 will now also be brought forward.

Budget at Completion – Estimate at Completion

ETC is as high as $32,771.86. We have seen how making better use of resources may contribute $3,000 or more toward normalizing project costs. An additional mitigation could be Recognizing the importance of Firewall security, the CEO has stated that Firewall expenses could be removed from the Project Budget and placed properly into the annual IT Budget. Firewall Baseline Budget is 31,800. Making better use of resources may also contribute $3,000 or more toward meeting BAC.

Part C: Executive Summary Prepare an executive summary for the project sponsor that communicates your analysis and recommendations from parts A and B.

Introduction

Despite several disruptions including severe weather and a warehouse fire, the project is scheduled to complete on time and within 10% of budget. Schedule can be improved through resource leveling and task activity fast-‐tracking to absorb lags. Planned Budget can be achieved through a combination of better use of resources and a re-‐allocation of the Firewall costs to the annual IT Budget as proposed by the CEO. These changes will ensure the project completes ahead of schedule and slightly under budget.

Additionally, a Quality Management Plan must be developed to strictly monitor phase transitions and ensure quality objectives are being met and a Business Requirements Document to better define hardware and software requirements for system integration. The project is also missing a detailed Procurement Plan and a comprehensive Communication Plan that includes stronger linkage between team leads. These measures are required to make certain project scope and schedule constraints are controlled and to avoid further financial set backs.

Detailed Analysis

Budget and schedule became problematic early on as severe weather created problems for the web-‐based testing team interrupting and prolonging their tasks while adding an additional estimated $10,000 to project overhead. An equipment vendor suffered a warehouse fire delaying delivery of computers. Finally, it was determined an additional 12 computers were in need of upgrade adding an additional $12,000 to $14,000 to the project budget.



Budgeted Costs

Estimate at Close

Amount Needed

Total Needed

Labor Costs $173,329.43 $191,901.29

$18,571.86 Equipment Costs $73,670.57 $85,070.57 Desktops $11,400.00 $29,971.86

$87,870.57 Laptops $14,200.00 $32,771.86

Budget relief comes from moving the Firewall budget of $31,800 to be absorbed by the annual IT Budget. Additional improvements can be made by improving resource allocation to tasks. These changes would allow the project to meet its financial constraints.

Project Cost Performance Analysis

As we reach the high cost phases of the project, efficiency is currently declining. The above changes will allow these metrics to move back into favorable condition.

Project Schedule Performance Analysis

The project ran into delays which have a domino effect on the schedule. Critical Path activity fast-‐tracking and resource leveling will allow the project to re-‐align itself for an on-‐time delivery. Time can also be made up by closing lags and tightening the overall schedule.



The project is estimated to close on or before schedule and be available for a July 1st implementation.

Summary

The project is currently 59% complete and will take an additional $18,571.86 in labor to complete, and an additional $11,400 or $14,200 in equipment to complete.

Final Projected Costs Analysis % Complete 59% BAC 173,329.43

EAC

$191,901.29 ETC (EAC -‐ BAC) -‐$18,571.86

EV = % Complete x BAC

$102,264.36

MGT2 TASK 3 XEMBA

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