Department of CS Eng. MSSE Program, 1994-2009 Fissure 1 SOFTWARE PROJECT MANAGEMENT COURSE Executing, Monitoring and Controlling Session #7

Department of CS & Eng. MSSE Program, © 1994-2009 Fissure 1

SOFTWARE PROJECT MANAGEMENT COURSE

Executing, Monitoringand Controlling

Session #7


• Selected teams present their Project Plans

Team Exercise


PM Course Progress

-Leadership-Team Building-Motivation-Earned Value-Mgmt Reporting-Large Projects

3 7 9 13 1 8 11

Overview

Initiation

Planning Executing, Monitoring & Controlling

ResearchPresentations

-Scope-Activity-Resources-Cost Est.-Schedule-Quality-Organization-Comm.-Risk

Session

2 4 5 6 10 12


Agenda

• Monitoring & Controlling• Tracking Status & Earned Value• Predicting


Overview

Effort

SizeSchedule

CostQuality

?

Estimation Planning

TrackingPredicting

Productivity


Macro Estimate

Phase Planning

Typical Planning Cycle

Detailed Planning

Status Reporting

PredictingRe-Planning


RequirementsPlanning

Tracking Current Status

Predicting Future

Outcomes

Applying Control Actions

Effort (E)Ec

ScQc

We need a model of product and process dynamics to do this.

Project Management Control Loop

Current &PredictedResults

Work Around and Planning Adjustments

Patterns andTrends Analysis

Time (tD)Size (S)Quality (Q)

tDc

Ep

Sp Qp

tDp

Difference BetweenPlan and Predicted

C = CurrentP = Predicted


% of Projects with large schedule slips

From SEI Research

Connection betweenplanning methodsand tools, and projectschedule success

No planning methods or tools

Planning methods but no tools

Methods and tools


Monitoring & Controlling is made up of two components; tracking current status and future prediction.


What a project manager does tomonitor and control:

Measure, on a regular basis, the project's process and product

Evaluate current status vs. planned progress

Predict project completion schedule, cost and quality

Adjust your planning as needed


If you were going to create a detailed planning and tracking spreadsheet for the Code & Unit Test process, what would you plan and track?

Remember to define planning that will give you visibility (mini-milestones) into “how well Code & Unit Testing is going”.

How could this detailed status be turned into a percent complete for the total Code & Unit Test process?

Discuss: Discuss:

Team Exercise


Agenda



Estimated final size

Staff size

Percent completeof product throughprocess phases

Errors per month

Milestones completed

Code unit tested Measureandanalyzeeverymonth.

Develop a plan for each of these measures so you can determine your variation from plan.

Requirements status


Float or Slack

Time

Early Start Early Finish Late Finish

Time Line

2 4 6 8 10 12 14

Task

Num

ber

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Turning Task Status into Project Schedule Status


% Complete at a given instant.

Process Phase0

20

40

60

80

100

Plan

Actual


Earned value is a measure of the value of work you have received for the money you have expended.

In other words - a measure of what you got for what you spent.Earned Value Management System is the overall system that uses three variables: Planned Value, Earned Value and Actual Cost

Using Earned Value Management System to Track Status and to

Predict


This is why advanced Project Managers use an EVMS:• EVMS effectively measures performance

• EVMS integrates cost, schedule and scope at the task level

• EVMS flexible implementation allows tailoring to project complexity

• EVMS reporting provides easy visual status and trend data (cost vs. time)

Earned Value Management System (EVMS)


Earned Value is defined as the value of the work performed. It is calculated by multiplying(% Task Complete) x (Planned Value of the Task).

EV = (%Complete) x (Planned Value)

Earned Value


Num

ber o

f Sta

ff

Time

Effort(staff-time)

All

Staff

Cos

ts

Time

Cost($)

Cum

ulat

ive

Cost

s of S

taff

Time

12

3A three step process

1st Step: Develop the Planned Value for the project using a

Staffing Plan

The PlannedValue


Cum

ulat

ive

Cost

s

Time

Total Cost

Planned Value (PV)(Also known as the “S” curve)

Planned Value for the Total ProjectBudget at Completion (BAC)


Planned Value: Choosing the Criteria for Progress Reporting

as the Work is Completed• Select a criteria for each task

– 0 / 100% criteria– 50% / 50% criteria– % complete criteria


Calculating Planned ValueUsing % Complete

$8,000 - $2K/wk

$24,000 - $4K/wk

$16,000 - $2K/wk

$40,000 - $8K/wk

WEEK TASK

TASK A

TASK C

TASK D

TASK B

Planned Value by week

1 3 4 5 6 7 8 9 10

11

12

2

2,000 8,000 8,000 8,000

Cumulative Planned Value2,00010,00018,00026,000

6,000

32,000

PV = 32,000


Calculating Earned Value During the Execution Stage of the

ProjectOnce you have calculated your planned value and start executing your project, you will need to calculate your actual task earned value each week.

It should be no surprise that you calculate the earned value of each task using the same criteria you used to calculate the planned value for the task.


Exercise(Calculating Earned Value)

• Week 1– Task A 20% Complete

• Week 2– Task A 40%, Task B 20%, Task C not started

• Week 3– Task A 60%, Task B 40%, Task C 25%!

• Week 4– Task A 80%, Task B 60%, Task C 50%

• Week 5– Task A Finished!, Task B 80%, Task C 75%


Calculating Earned Value

$8,000 - $2k/wk

$24,000 - $4K/wk

$16,000 - $2K/wk

$40,000 – 8K/wk

WEEK TASK

TASK A

TASK C

TASK D

TASK B

1 3 4 5 6 7 8 9 10 11 122

2,00010,00018,00026,00032,000

Cumulative Earned Value

Cumulative Planned Value

Slow - $1,600/wk

As Planned

Late Start

Earned Value by Week 1,600 5,600 7,600 7,600 7,600

1,600 7,20014,80023,40030,000

PV = 32,000EV = 30,000


Schedule Variance SV = EV - PVCost Variance CV = EV - AC

Determining Project Status Using Earned Value

SV: is the project is behind schedule (-) or ahead of schedule (+)CV: is the project is over spent (-) or under spent (+)

SV is expressed in dollars worth of work.CV is expressed in dollars.


Cum

ulat

ive

Cost

s

Time

Planned Value (PV)

Actual Costs (AC)

Earned Value - measure of work completed

Schedule Variance (SV) Cost Variance (CV)

Earned Value Management SystemBudget at Completio

n (BAC)

Today’s Date


Earned Value Indexes Schedule Performance Index SPI = EV ÷ PV Cost Performance Index CPI = EV ÷ AC

SPI and CPI measure how efficiently the work has been accomplished. •SPI can be thought of as work efficiency. For example an SPI of .9 says that each dollar’s worth of work scheduled only generated 90 cents worth of results.•CPI can be thought of as spending efficiency. For example a CPI of .9 says that each dollar spent generated 90 cents worth of results.


For Example:

$8,000 - $2k/wk

$24,000 - $4K/wk

$16,000 - $2K/wk

$40,000 – 8K/wk

WEEK TASK

TASK A

TASK C

TASK D

TASK B

1 3 4 5 6 7 8 9 10 11 122

2,00010,00018,00026,00032,000

Cumulative Earned Value

Cumulative Planned Value

Slow - $1,600/wk

As Planned

Late Start

Earned Value by Week 1,600 5,600 7,600 7,600 7,600

1,600 7,20014,80023,40030,000

PV = 32,000EV = 30,000AC = 26,000

SPI = 30/32 = .94 CPI = 30/26 = 1.15


Complete an EVMS exercise.

Team Exercise


Effort and Productivity

• What does this tell us about productivity? About cost?

• Are hours of effort and dollars of cost measuring the same thing?

• How can we capture meaningful information about both hours and cost?


Effort and Productivity• The number of labor dollars spent may not be

a measure of the hours worked• For hourly workers, overtime may be

compensated at a higher rate• For salaried workers, overtime may not be

compensated at all• For salaried workers, a certain amount of

unworked time may be charged to the project


One More Index for Productivity Schedule Performance Index SPI = EV÷PVCost Performance Index in Dollars CPI($) = EV÷ACCost Performance Index in Hours CPI(H) = EV÷Actual Hours

SPI and CPI measure how efficiently the work has been accomplished. •SPI can be thought of as work efficiency. For example an SPI of .9 means that each dollar’s worth of work scheduled only generated 90 cents worth of results.•CPI($) can be thought of as spending efficiency. For example a CPI($) of .9 means that each dollar spent only generated 90 cents worth of results.•CPI(H) can be thought of as productivity. For example a CPI(H) of .9 means that each dollar’s worth of effort only generated 90 cents worth of results.


For Example:In our example, when we look at cost in terms of dollars spent, we see a very optimistic picture:

PV = $32,000 EV = $30,000 AC = $26,000

For every dollar spent, we are getting 15% more results than expected!

SPI = 30/32 = .94 CPI($) = 30/26 = 1.15


For Example:However, If the team is averaging 55 hour work weeks, and being paid for 40,

PV = $32,000 EV = $30,000 AC = $26,000 AH = Actual Hours = $26,000 * 55/40 = $35,800

We see that productivity in terms of hours spent is 12% less than expected!

SPI = 30/32 = .94 CPI($) = 30/26 = 1.15 CPI(H) = 30/35.8 = .88 !!



Team Exercise


Agenda



ESAC = Planned Schedule ÷ SPIEstimated Cost at Completion in Dollars (EAC($))

Estimate at Completion (EAC)(Given the current rate of completing work and the current rate of spending, what are our projections at the end of the project, if current variances are expected to continue)

Estimated Schedule at Completion (ESAC)

EAC($) = BAC ÷ CPI($)

EAC(H) = Planned Effort ÷ CPI(H)Estimated Cost at Completion in Hours (EEAC(H))


ESAC = Planned Schedule ÷ SPI= 12 weeks ÷ .94 = 12.8 weeks (4 days late)

Estimated Cost at Completion in Dollars – EAC($)

For Example:Estimated Schedule at Completion - ESAC

EAC($) = BAC ÷ CPI($)= $88K ÷ 1.15 = $76.5K ($11.5K under budget)

EAC(H) = Planned Effort ÷ CPI(H)= $88K ÷ .88 = $100K ($12K more effort)

or = 88 Staff Wks ÷ .88 = 100 Staff Wks(12 Staff Wks more effort)

Estimated Cost at Completion in Hours – EAC(H)



Team Exercise


Keys to Avoiding Trouble

Plan ahead of time, balancing completeness with agility

Monitor closely

Don't let the scope change without cost andand schedule relief

Adjust the plan as necessary (don't let little problemsbecome big problems)

Understand and manage trade-offs between:

• scope• time• cost• quality• productivity


Summary of Key Points

• Monitor and Controlling• Tracking Status Using Earned Value• On-going measures• Predicting Using Earned Value

Documents

Department of CS Eng. MSSE Program, 1994-2009 Fissure 1 SOFTWARE PROJECT MANAGEMENT COURSE Executing, Monitoring and Controlling Session #7