Project evaluation and control

Flashcard maker : Lily Taylor
Classical project success criteria
Iron triangle/ triple constraints:
– Time
– Budget
– Performance
To this should be added
– Client acceptance
Additional approach to project assessment (from short to long-term importance):
– Project efficiency (meeting budget and schedule)
– Impact on customer (meeting specifications, client acceptance)
Business success (commercial success?)
Preparing for the future (was project good investement?)
Six criteria of IT Project Success
– System quality (build quality)
– Information quality
– Use (superficial customer acceptance)
– User satisfaction
– Individual impact (what value is added)
– Organizational impact
General model of organizational control / controle cycle
1. Setting a goal
2. Measuring progress
3. Comparing actual with planned performance
4. Taking action
Project control techniques
– Project S-curve
– Milestone analysis
project S-curve
Represents the typical form of the relationship between time passed and budget expended.
S-curve benefits and drawback
Benefits
– Simplicity
– Provides a way to show real-time tracking information
Drawbacks
– Do not allow us to make reasonable assumptions as to the cause of the variance between planned and actual.
Milestone
An event or stage of the project that represents a significant accomplishment on the road to the project’s completion.
Milestone analysis benefits
1. Signal the completion of important project steps.
2. Can motivate the project team.
3. Offer points at which to reevaluate client needs and any potential change requests.
4. Help coordinate schedules with vendors and suppliers.
5. Identify key project review gates.
6. Signal other team members when their participation is expected to begin.
7. Can delineate the various deliverables developed in the WBS and thereby enable the project team to develop a better overall view of the project.
Problems with milestones
Are only a form of reactive control.
Tracking Gantt chart
Allows the project team to constantly update the project’s status by linking task completion to the schedule baseline.
Tracking Gantt benefits and drawbacks
Benefits
– Easy to understand
– Easy to assimilate and interpret
– Can be updated very quickly
Drawbacks
– Don’t identify the underlying source of the problems
– Does not allow for future projections of the project’s status
Earned value management (EVM)
Recognizes that it is necessary to jointly consider the impact of time, cost and project performance on any analysis of current project status. This method inks all three primary project success metrics (cost, schedule, and performance).
Planned value (PV)
A cost estimate of the budgeted resources scheduled across the project’s life cycle (cumulative baseline).
Earned value (EV)
This is the real budgeted cost, or “value,” of the work that has actually been performed to date.
Actual cost of work performed (AC)
The cumulative total costs incurred in accomplishing the various project work packages.
Schedule performance index (SPI)
The earned value to date divided by the planned value of work scheduled to be performed (EV/PV). This value allows us to calculate the projected schedule of the project to completion.
Cost performance index (CPI)
The earned value divided by the actual, cumulative cost of the work performed to date (EV/AC). This value allows us to calculate the projected budget to completion.
Budgeted cost at completion (BAC)
This represents the total budget for a project.
Creating project baseline (EVM)
1. The WBS is used to identify the individual work packages and tasks.
2. The time-phased budget allows us to determine the correct sequencing and the points in the project when budget money is like to be spent.
Steps in Earned Value Management (EVM)
1. Clearly define each activity or task that will be performed on the project, including its resource needs as well as a detailed budget.
2. Create the activity and resource usage schedules.
3. Develop a “time-phased” budget that shows expenditures across the project’s life.
4. Total the actual costs of doing each task to arrive at the actual cost of work performed (AC).
5. Calculate both a project’s budget variance and schedule variance while it is still in process.
Estimate at Completion (EAC)
The expected total cost of the project to completion based on performance across the various tasks up to the status date.
Issues in the effective use of EVM
Depends highly on accurate and up-to-date information on the project.
Methods for assigning completion values
1. 0/100 rule
2. 50/50 rule
3. Percentage complete rule
10 critical success factors
1. Project mission
2. Top management support
3. Project plans and schedules
4. Client consultation
5. Personnel
6. Technical tasks
7. Client acceptance
8. Monitoring and feedback
9. Communication
10. Troubleshooting
Root cause analysis
a structured process designed to help people understand the causes of past problems to prevent recurrence.
Root cause analysis steps
1. Define the problem
2. Create a causal understanding of the problem
3. Identify solutions that act on known causes of the problem
4. Implement the best solutions

Focus on implementing effective solutions, not labeling a root cause.

Root cause best practices
1. Based on business goals develop threshold criteria for initiation of RCA.
2. Precisely define each major problem and quantify the business impact.
3. Allocate adequate time and resources for each RCA that are in line with the associated risk.
4. Complete each RCA consistently.
5. Don’t categorize problems or their causes.
6. Institute a rigorous validation process that uses evidence to verify causes and weed out uncertainty.
7. Based on the causes, use the talents of people, to help identify the best solutions.
8. Prioritize solutions based on criteria.
9. Develop solutions that are clear and descriptive enough to be implemented by a third party.
10. Focus monitoring metrics on implementation timing and effectiveness of the solutions and report regularly on your RCA’s successes.

Get instant access to
all materials

Become a Member