Project Performance Management - Tracking, Analysis and Reporting

1. PROJECT PERFORMANCE
TRACKING, ANALYSIS AND
REPORTING
SUPREME MANAGEMENT CONSULTANTS
CHARLES COTTER
11-12 OCTOBER 2013
RANDBURG TOWERS

2. TRAINING PROGRAMME OVERVIEW
 The Project Performance Framework
 Key Performance Indicators and Monitoring of Outcomes: Guide to
Identification and Selection
 Developing and Analyzing Project Performance Objectives: Outputs
and Outcomes
 Project Performance Benchmarking
 Measuring and Monitoring Project Performance
 Reporting & Documenting Project Performance
 Research Methods in Project Performance Management
 Establishing Baselines and Gathering Data
 Project Information Management Systems in Project Performance
Management

3. THE FUNDAMENTAL CONCEPTS
 Defining Project/Project Management
 Defining Performance Management
 The Project Management Triple Constraint
 The Project Management Life-cycle
 The Performance Management process/cycle

4. DEFINING PROJECT/PROJECT MANAGEMENT
According to Gray & Larson (2008) a project is
defined as a complex, non-routine, one-time effort
limited by time, budget, resources and performance
specifications designed to meet specific needs.
PMBOK (2000) define project management as the
application of knowledge, skills, tools and techniques
to project activities to meet project requirements.

5. DEFINING PERFORMANCE
MANAGEMENT
 Performance
management can be seen as a comprehensive
management system aimed at constantly improving and
monitoring the performance of others.
 It therefore concerns itself with improving productivity, delivering
a better quality service/product and is aimed at achieving the
goals of both the institution and the employee.

6. PROJECT MANAGEMENT TRIPLE
CONSTRAINT

7. PROJECT MANAGEMENT LIFECYCLE

8. THE PERFORMANCE MANAGEMENT
CYCLE

9. MODEL OF VALUE

10. MEASURES TO DETERMINE THE VALUE OF A
PROJECT – BALANCED SCORECARD PERSPECTIVE

11. PHASES OF PROJECT PERFORMANCE
MONITORING AND TRACKING
•
Preventative - Prior to Initiation
 Project Selection
 Risk Management
•
Concurrent – Project Implementation
 Project Monitoring Information System
 Project Control Process
 Earned Value Management
 Control Charts
•
Reactive – Post Project Evaluation
 Post project metrics

12. PROJECT SELECTION TOOLS –
NUMERIC MODELS
Financial Models:
Payback period
Return on Investment (ROI)
Net Present Value (NPV)
Internal Rate of Return (IRR)

13. PROJECT SELECTION TOOLS –
NUMERIC MODELS
Scoring Models:
Factor model
Decision Matrix
Cost Breakeven Analysis

14. RISK MANAGEMENT PROCESS
Risk Identification
Risk Analysis
Risk Control
Risk Evaluation

15. LEARNING ACTIVITY
Syndicate Group Discussion
Complete the activity
Provide feedback

16. PROJECT MONITORING INFORMATION
SYSTEM
Creating a Data Collection structure
and process
Analysis of the data
Reporting current process

17. DATA COLLECTION
 Data collection determined by which metrics will be used
for project control
 What data to collect?
 How will data be collected?
 Who will collect the data?
 When will data be collected?

18. DATA ANALYSIS
 Methods – electronic and/or manual
 Process
 Collation
 Analysis
 Interpretation
 Verification

19. DATA REPORTING
 Form – written or oral
 Format:
 Progress since last report
 Current status of project – schedule, cost and scope
 Cumulative trends
 Problems and issues – new variances and resolutions
 Corrective action planned

20. PROJECT CONTROL PROCESS

21. LEARNING ACTIVITY
Syndicate Group Discussion
Complete the activity
Provide feedback

22. DEFINING EARNED VALUE MANAGEMENT
(EVM)
 Earned Value Management (EVM) is a project management
technique for measuring project performance and
progress.
 It integrates scope, cost and schedule measures to
assess the performance of a project.
 Based on the three measures a baseline cost and
schedule is developed and actual performance is
measured with regards to the baseline values.

23. EARNED VALUE MANAGEMENT
 Mastering the terminology:
 Planned Value (PV)
 Earned Value (EV)
 Actual Cost (AC)
 Schedule Variance (SV)
 Cost Variance (CV)
 Schedule Performance Index (SPI)
 Cost Performance Index (CPI)
 Critical Ratio (CR)

24. EARNED VALUE MANAGEMENT CONCEPTS
 Budget at Completion (BAC): The original cost estimate, budget or quotation.
 Planned Value (PV): This is the authorized budget allocated to the work to be
accomplished for an activity. It is also known as budgeted cost of work scheduled
(BCWS)
 Earned Value (EV): This is the value of work performed expressed in terms of the
approved budget assigned to work for an activity. It is also known as budgeted cost of
work performed (BCWP). BCWP = % complete X BAC
 Actual Cost (AC): This is the actual cost incurred in accomplishing the work performed
for an activity. It is also known as Actual Cost of Work Performed (ACWP).

25. WORKED EXAMPLE

26. EARNED VALUE MANAGEMENT CONCEPTS
 Schedule Variance (SV): Schedule variance is calculated as SV = EV –PV
 Cost Variance (CV): Cost variance is calculated as CV = EV-AC
 Schedule Performance Index (SPI): This represents efficiency of the time utilized on the project.
It is calculated as measure of progress achieved compared to progress planned for a project. SPI =
EV/PV
 Cost Performance Index (CPI): This represents the efficiency of the resource (cost) utilized on the
project. It is calculated as measure of value of work completed compared to the actual cost or progress
made on the project. CPI = EV/AC
 Estimate at completion (EAC) is the expected total cost of a task or project, based on performance
as of the status date. EAC is also called forecast at completion, and is calculated like this: EAC =
ACWP + (BAC - BCWP) / CPI.
 Critical Ratio (CR): This indicator combines both the cost performance index (CPI) and schedule
performance index (SPI) to represent the project status. This indicator takes care of cost and schedule
trade-offs.

27. THE SIGNIFICANCE OF THE
CRITICAL RATIO
 Indicates whether project performance is stable or not over
project duration.
 Predicts
future
performance.
performance
from
a
stable
project
 Indicates whether project has experienced special cause
variation during the project duration.
 Indicates any special trend or pattern observed in project
performance.

28. TUTORIAL VIDEO CLIPS
http://www.youtube.com/watch?v=7WsfuvHegxE
http://www.youtube.com/watch?v=UggTFk2EiUg
http://www.youtube.com/watch?v=jJi1FxC2e64
http://www.youtube.com/watch?v=-MJEYc48Cjs

29. WORKED EXAMPLE

30. WORKED EXAMPLE

31. LEARNING ACTIVITY
Syndicate Group Discussion
Complete the activity
Provide feedback

32. LIMITATIONS OF EVM
 EVM indexes are point estimates; they represent the
performance of the project at a particular reporting
instance. They do not provide information about project
performance over a period of a time.
 They
do not
performance.
capture
the
trend
of
project

33. CONTROL CHARTS
 Control Charts are a quality tool which displays process
data over time against the process control limits.
Control limits define the area three standard deviations (by
default) on either side of the centerline, or mean, of data
plotted on a control chart where expected variation is
observed.
 A control chart is used to determine whether a given
process is stable (contains only common cause variation)
or it is subjected to special cause variation.

34. BASIC COMPONENTS OF A CONTROL
CHART
 Centerline representing the mean value of the data points
 Horizontal border lines, Upper Control Limit (UCL) and Lower
Control Limit (LCL) that define the limits of common cause variations
 Data points plotted over time

35. TYPES OF VARIATION
 Common
Cause
Variation
(or
Controlled
Variation): These variations are present in the process
due to its inherent nature. These are predictable and
expected variations.
 Special
Cause
Variation
(or
Uncontrolled
Variation): These variations are introduced in the process
by non–random events /factors external to process. If
special cause variation is present in the process then
process is said to be in unstable state.

36. LEARNING ACTIVITY
Syndicate Group Discussion
Complete the activity
Provide feedback

37. POST-PROJECT EVALUATION
 Perform a Post Implementation Review of the project
 Close-out report
 Assessment of the project against actual performance,
quality of management (focusing on quality and risk
management)
 The lessons learnt that can be applied to future projects

38. CONCLUSION
 Summary
 Questions
 Contact details:





Charles Cotter
+27 84 562 9446
charlescot@polka.co.za
Linked In
Twitter: @Charles_Cotter