W#07_Ros_Project Performance Report

Problem Recognition, Definition and Evaluation

Every project need to have communication strategies and tools because frequent communication with a project team is very important specially when the project team split it into more than one areas.  One of  major process in project communication  is Project Performance Reporting. Performance reporting involves collecting and disseminating performance information in order to provide stakeholders or project management with information about how resources are being used to achieve project objectives (http://www.softwareresearch.net/fileadmin/src/docs/teaching/SS05/PM/PMBOK10.PDF).

Company internal net (called:portal) with server based is one of current tools for communicating with project team members in the difference work place area (head office and site). The main function  is only information sharing files for project documents.

The idea is to put visual report in front page of the project portal which can show current project status to the project team.

The problem statement in this week blog is to explore summary of project performance report upload in the project portal to give early project sign for project team level.

Development of Feasible Alternatives

Feasible alternative for this problem statement are:

1. S-curve.

2. SPI and CPI chart.

Development of the Outcomes and comparison of the Alternatives

Alternative 1 – S Curve

The S curve can be considered as an indicator or a trigger project performance and it’s used for many applications related project management.

S curve was developed to describe comparison of plan (BCWS), actual (BCWP) and forecast (ETC) in % complete.  Forecast (ETC) mentioned in the below curve means remaining % work of the project.  ACWP would be reported separately in a project control report.

From the curve above seen that actual progress lags 4% from the plan. It’s because delay progress in WBS#3 and WBS#4.  Responsible person for WBS#3 and W#4 should take necessary action to catch up the schedule in next following period.

Alternative 2 CPI and CPI chart

 CPI and SPI as determined data to be compared during project period.

From the above sample CPI and SPI chart shown trend of CPI and SPI rate per report period.

Cost Performance Index (CPI index): Represents the amount of work is being completed on a project for every unit of cost spent. CPI is computed by EV / AC. A value of above 1 means that the project is doing well against the budget.

Schedule Performance Index (SPI index): Represents how close actual work is being completed compared to the schedule. SPI is computed by EV / PV. A value of above 1 means that the project is doing well against the schedule.

Selection of Criteria

The selection criteria was selected based on high level  of project Work Breakdown Structure (WBS).  The visibility of WBS performance also can use as early sign and task for each responsible person in project organization.

Selection of the Preferred Alternative

Alternative 1 – S curve was selected because the report provided details status for each high level project WBS. The S curve represent the status of each WBS and the impact to the overall project performance.

Performance Monitoring and Post Evaluation of Results

S curve have more information compared to control charts. The S curve by high level WBS calculated as summarized from lowest WBS level.  Its mean, the responsible person in the project organization can analyze and make progress acceleration start from the lowest WBS level.  The above selected project performance report can be used as data for the program performance report by using the same standard WBS.

References

–       Humphreys, G.C. (2011). Project Management Using Earned Value Second Edition, 545-556. USA: Humphreys & Associates, Inc.

–       Project Management Communication Tools.  Retrieved from: http://suite101.com/article/project-management-communication-tools-a138898

–       W19_Hari_Performance Dashboard.  Retrieved from: http://aacecasablanca.wordpress.com/2012/06/13/w19_hari_performance-dashboard/

–       Performance Report in Project Management.  Retrieved from: http://pmstudycircle.com/2012/03/performance-report-in-project-management/#axzz20hVYud84.

–       Project Communication.  Retrieved from: http://www.softwareresearch.net/fileadmin/src/docs/teaching/SS05/PM/PMBOK10.PDF

–       Earned Value Analysis in Project Management.  Retrieved from: http://www.brighthubpm.com/monitoring-projects/57944-calculating-cost-performance-index-and-schedule-performance-index/

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1 Response to W#07_Ros_Project Performance Report

  1. drpdg says:

    Very nice posting, Bu Ros but I am a bit concerned that your gauges are not set up correctly, which tells me you still don’t fully understand our dashboard graphics.

    First, your data date line is in the MIDDLE of a reporting period. To make sense, it should be at the END of the report period.

    Secondly, you only show an Early Date curve. VERY rarely will any project hit the early dates. In order to be really useful as an analysis tool, you need to get in the habit of putting in BOTH the early and late date curves. I don’t have my Humphrey’s with me here in KL, but there are two very useful graphics he provides showing us how we can use this to analyse both float and resource flexibility.

    Lastly, in your option 2, you show green being greater than 1. This is not correct. What you want to see is the green area should be the acceptable range +/-1. That is, the green area should be 0.95 to 1.05. The yellow area should 0.85 to 0.95 on the low side and 1.05 to 1.10 on the high side. And red should be 1.10 on the high side. What you are doing with the graph you have is to encourage your project managers to pad their budgets to make themselves look good. This is the whole purpose of the CPI vs SPI chart……. You want them close to the bullseye, neither too low or TOO HIGH. You want them to have a plan then work that plan.

    Bottom line, great topic, but your analysis tells me you don’t fully understand what we are trying to achieve with earned value yet. My best advice would be to review the Chapters in Humphrey’s where he shows how to read and interpret what your S curve is showing you.

    BR,
    Dr. PDG, Kuala Lumpur, Malaysia

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