CSSE 37220.Oct.2008

Monitoring and reporting project status

Chapter 10, pages 317-342

OutlineControl vs. riskOther kinds of reportingEV

Why do we need to monitor progress?70% of projects are:

• Over budget• Behind schedule

52% of all projects finish at 189% of their initial budget

• Average of 16% of SW projects are on-time and budget

Source: The Standish Group

How and What to Update?Determine a set period of time and day of weekReport actual work accomplished during this periodReport start and finish datesReport days of duration accomplished and remainingReport resource effortReport percent complete

Types of progress reportingCurrent period reportsCumulative reportsException reportsStoplight reportsVariance reports

NumericalGraphical

Milestone trend charts

EVAEarned Value Analysis (EVA) is:

an industry standard way to:measure a project’s progress,forecast its completion date and final cost, andprovide schedule and budget variances along the way.

Baseline vs. actual cost curve

Let’s talk termsBCWS - Budgeted Cost of Work ScheduledACWP - Actual Cost of Work PerformedBCWP - Budgeted Cost of Work Performed

Variance (EV – PV)Positive

Indicates ahead of schedule or less cost than plannedMay not always be good

NegativeIndicates behind schedule or more cost than plannedMay not always be bad

Full story

http://evm.nasa.gov/images/key_data.gif

Performance indicesSchedule Performance Index

SPI = BCWP/ BCWSCost Performance Index

CPI = BCWP/ ACWP

Let’s do an example…PROJECT STATUS: Make 1000 widgets over 50 days (20 per day)

INPUT: Total Expected Output = 1000

INPUT: Budgeted Unit Cost = $.50

Total Project Budget is 1000 x $.50 = $500.

http://www.earnedvalueanalysis.com/index.cfm?nextpage=example

EV InputBCWS: How much did we expect to pay for the work

that was scheduled?

Total Project Days = 10 Unit Production Per Day = 20 widgets/day Budgeted Unit Cost = $.50/widget BCWS = 10 days x

20 widgets/day x $.50/widget budget = $100

EV InputBCWP: How much did we expect to pay for the work

that was actually done?

Actual Current Output = 150

Budgeted Unit Cost = $.50/widget

BCWP = 150 widgets x $.50/widget budgeted = $75

EV InputACWP: What was the actual cost of the work that was

completed?

Actual Current Output = 150 Actual Unit Cost = $.60/widget

ACWP = 150 widgets x $.60/widget actual = $90

EV AnalysisSV: Schedule Variance = BCWP – BCWS

The Question: Are we ahead or behind production schedule?

SV = BCWP – BCWS = $75 - $100 = -$25

EV AnalysisSPI: Schedule Performance Index = BCWP/BCWS

The Question: How far ahead or behind schedule are we?

SPI = BCWP/BCWS = 75/100 = 0.75 (LT 1, so behind schedule)

EV AnalysisCV: Cost Variance is measured as follows:

If BCWP > ACWP, the project is UNDER budget! If BCWP < ACWP, the project is OVER budget!

The Question: Are we on or off budget?

CV = BCWP - ACWP = $75 - $90

= -$15 (negative means over budget)

EV AnalysisCPI: Cost Performance Index

The Question: How far on or off budget are we?

CPI = BCWP / ACWP = 75/90 = 0.8333 (less than 1 means over budget)

Project forecastEAC: Estimate at Completion

Method 1: BCWP at a point + Estimates to completion. Method 2: The ratio of BAC / CPI. Method 3: (Wilkens) [(BAC - BCWP)/CPI] + ACWP

The Question: At the rate going, how much will all of this cost?

This is a SIMPLIFIED estimate of EAC      EAC = BAC / CPI = $500 / 0.8333 = $600

Questions?