PROJECT PERFORMANCE AND EVALUATION

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PROJECT PERFORMANCE AND EVALUATION

• Year 3 Project Management
• Dr. Margaret Nelson

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LECTURE OUTLINE

• Project Performance
• Overview
• Setting Criteria
• Monitoring Progress
• Measuring Performance
• Project Evaluation
• Audit
• Review

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PROJECT PERFORMANCE

• 2 Aspects
• Project Processes
• Project Outcomes
• Project Performance Management
• Planning
• Monitoring
• Controlling
• Measuring
• Reviewing Evaluating
• Feed forward

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PERFORMANCE V CONFORMANCE

• Principles of Conformance Management
• Inspection
• Quality control
• Quality assurance
• Approaches to quality management
• empowermentltgtblame orientation
• reactive ltgt proactive

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CONFORMANCE MANAGEMENT
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CRITERIA SETTING

• Based on project objectives
• Linked to business objectives and goals
• Criteria for success
• Key Performance Indicators (KPI) or Key Success
  Indicators (KSI)

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MONITORING PROGRESS

• 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

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MONITORING PROGRESS (2)

• Information System Structure (contd)
• 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?

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PROJECT PROGRESS REPORT FORMAT

• Progress since last report
• Current status of project
• Schedule
• Cost
• Scope
• Cumulative trends
• Problems and issues since last report
• Actions and resolution of earlier problems
• New variances and problems identified
• Corrective action planned

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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
• Setting a baseline plan.
• Measuring progress and performance.
• Comparing plan against actual.
• Taking actions

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MONITORING TIME PERFORMANCE

• Tools used to catch negative variances from plan
  and communicate project schedule status
• Tracking and baseline Gantt charts
• Show expected, actual, and trend data for event
  duration performance.
• http//pubs.logicalexpressions.com/Pub0009/LPMArti
  cle.asp?ID577
• http//www.projectconnections.com/knowhow/template
  _list/subjects/pm_skills/tracking.html?gclidCMyLy
  8W8s4ICFTZLEgodmyxCAw
• Control charts
• Plot the difference in scheduled time on the
  critical path with the actual point on the
  critical path.

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DISPARITY AMONG MONITORING SYSTEMS

• Time-Phase Baseline Plan
• Corrects the failure of most monitoring systems
  to connect a projects actual performance to its
  schedule and forecast budget.
• Systems that measure only cost variances do not
  identify resource and project cost problems
  associated with falling behind or progressing
  ahead of schedule.
• Earned Value Cost/Schedule System
• An integrated project management system based on
  the earned value concept that uses a time-phased
  budget baseline to compare actual and planned
  schedule and costs.

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DEVT OF PROJECT BASELINES

• Purposes of a Baseline (PV)
• An anchor point for measuring performance
• A planned cost and expected schedule against
  which actual cost and schedule are measured.
• A basis for cash flows and awarding progress
  payments.
• A summation of time-phased budgets (cost accounts
  as summed work packages) along a project
  timeline.
• What Costs Are Included in Baselines?
• Labour
• Equipment
• Materials
• Project direct overhead costs (DOC)

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DEVT OF PROJECT BASELINES (2)

• Rules for Placing Costs in Baselines
• Costs are placed exactly as they are expected to
  be earned in order to track them to their point
  of origin.
• Percent Complete Rule
• Costs are periodically assigned to a baseline as
  units of work are completed over the duration of
  a work package.

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PROGRESS MONITORING INDICES

• Performance Indices
• 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) pounds to date.
• PCIB EV/BAC
• PCIC AC/EAC

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OTHER CONTROL ISSUES
Issues In Maintaining Control Of Projects
Baseline Changes
Contingency Reserve
Costs and Problems of Data Acquisition
Scope Creep
Managing the Portfolio of Projects
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SCOPE CHANGES TO A BASELINE
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PROJECT EVALUATION
Evaluate - to judge or calculate the quality,
importance, amount or value of something
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WHAT DO WE MEAN BY PROJECT SUCCESS?

• Appropriate intention
• Predictability of realisation
• Minimisation of client surprise
• Defining project success
• project and process integrity

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GAPS IN PERCEPTION

• problem
• Briefing problem
• Design problem
• Planning problem
• Execution problem
• Project performance gap

• outcome
• Brief
• Complete definition
• Complete description
• Completed facility
• Client surprise

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PROJECT AUDIT

• Audit - to make an official examination
• Health check
• The whole point of a project audit is to get a
  reality-based, accurate picture of a project's
  expenditures, schedule and quality of work. Think
  of it as a super-sized project status report
• Diagnose Treat problems / issues affecting
  project performance
• Helps in addressing the critical issues

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WHY NEEDED?

• Ensure they are performing correctly
• Highlight any areas where there may be shortfalls
  or where additional assessments are needed
• Check improvement plans are adequate and being
  correctly executed
• Verify that the measurements employed are
  appropriate, consistent, correct and complete
• Indicate what corrective actions can be
  instigated to correct deviations
• Provide input, such as lessons learned, into the
  next planning cycle

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PROJECT REVIEW

• Review - When you consider something again in
  order to make changes to it, give an opinion of
  it or study it
• Post Project Review process consists of
  activities performed by a project team at the end
  of the projects life cycle (or at the end of
  significant phases of work) to gather information
  on what worked well and what did not, so that
  future projects can benefit from that learning
• Measures whether the benefits of a project's
  outcomes have been realised
• to measure if expected benefits of the project
  have been realised
• to indicate if the project has caused any
  problems/opportunities while in use
• gauges Clients / User's comments about
  performance, reliability, suitability and ease of
  use of the end product
• planned as part of identifying Follow-on Actions
  but created after the product has finished
• Could have various stages of reviews
• The Office of Government Commerce (OGC) developed
  the Gateway Project Review Process and introduced
  it across Central Civil Government as part of the
  Modernisation Agenda, to support the delivery of
  improved Public Services. The process has been
  operating since January 2001.

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What is the difference between an Audit and a
Review?
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READING LIST

• Gray, C.F. Larson, E.W. (2006), Project
  Management The Managerial Process, NY
  McGraw-Hill International/Irwin.
• Reiss, G. (1995), Project Management Demystified
  Todays Tools and Techniques, 2nd Edition,
• Winch, G. Lecture Notes
• http//www.blackwellpublishing.com/winch/case.pdf
  
• http//www.ce.cmu.edu/pmbook/
• http//www.constructingexcellence.org.uk
• http//www.maxwideman.com/guests/index.htm

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Any Questions?

• Next Week
• Revision and Tutorials