Session 17 notes:

Corrective Action and Preventive Action

Corrective Action:

 It occurs after a problem happens in a process

 It is a reactive activity, which happens after the damage has been done
 In includes assessment of root cause and a plan to prevent the recurrence
Preventive Action:

 It happens when a risk is identified, before a problem actually takes place(preventing

the problem to happen)
 It is a proactive activity, as action is taken when risk is identified
 Should be done in Project Monitoring and Controlling stage, to identify risks early on
and keep the project on track

Earned Value Management EVM

It is a project management technique for the objective measurement of project
performance and progress in an objective manner. It includes:
• Schedule and cost variances
• Assessing schedule, cost, and work status
• Single system to integrate multiple assessments into a
single reporting structure
Key EVM Technology:

 Planned Value (PV) : How much is the scheduled work worth

 Actual Cost(AC) : How much was paid for the work performed
 Earned Value(EV): How much is the work we have already performed worth
 Budget At Completion(BAC) What is the total planned budget for the project
EVM-Variances

 Cost Variance(CV): Have we spent what we expected to spend for the work we
performed
 Schedule Variance(SV); Have we accomplished as much as we planned to do
 Cost Performance Index(CPI): How cost efficient the project has been
 Schedule Performance Index(SPI): How good schedule performance has been
Relationship between these:
o CV= EV-AC
o SV= EV- PV
o BAC= Sum of all PVs
o CPI= EV/AC
 o SPI= EV/PV
o EAC= BAC/CPI or BAC-EV

Project Monitoring & Control

Monitor and Control Risk is the process of implementing risk response plans, tracking
identified risks, monitoring residual risks, identifying new risks and evaluating risk process
effectiveness throughout the project.

Control Procurements: Administer Procurements is the process of managing procurement

relationships, monitoring contract performance, and making changes and corrections as
needed. Payment terms should be defined within the contract and should link progress
made with compensation paid

Scope control
Monitoring the status of project and product scope and managing changes to the scope
baseline

Integrated change control

Reviewing all change requests, approving changes, and controlling changes to the
deliverables and organizational process assets.

Project Closure
It includes:

 Project Management Plan

 Deliverables
 Process Assets
 Expert Judgement
 Meetings
 Analytical Techniques
The closure outputs are

 Final Product
 Expected Result
 Process Assets Update
 Project Reports updated
 Project closure reports
 Closed contracts and Purchase orders
 Releasing of all resources and equipment