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Project - Programme - Portfolio Management - View On Reporting
Project - Programme - Portfolio Management - View On Reporting
Project - Programme - Portfolio Management - View On Reporting
2011
note:
•It is not the author’s intention to be aligned with whatever existing
methodology, nor framework;
•‘projects’– in this presentation, ‘projects’ can mean
projects, programme, or portfolio
Abbreviations:
PMO - project management office
Abbreviations:
ECV - expected commercial value
•Measuring is knowing;
•Define what information is required to be able to assess your project on
‘total project quality management’?;
•A ‘best’ tool is Balanced Scorecards (Kaplan/Norton);
Abbreviations:
BSC - Balanced Scorecards (Kaplan & Norton)
Abbreviations:
SPI - schedule performance index
CPI - cost performance index
note:
An organisation with project tradition, has advantages when building
up a project minded attitude and a benchmark data-warehouse to
assess the projects and improve the project’s success rate, thus
organisation’s strategy outcome.
Project management – view on reporting Juni 2011 page 14 • View on Reporting
view on reporting - TIME
– Explain reason:
• E.g. technology, resources, errors, training, management
variance CPI
• Metrics & status : 0
-25 -15 -5 5 15 25
SPI value should be 1 -5
Abbreviations:
SPI - schedule performance index
BCWP - budgeted cost of work performed
BCWS - budgeted cost of work scheduled
Project management – view on reporting Juni 2011 page 17 • View on Reporting
view on reporting – EVA - COST : CPI
“How is cost against cost”
• The CPI shows the ratio of budgeted (or baseline) costs of work performed
to actual costs of work performed, up to the project status date or today's
date. delta CPI %
CPI & SPI
CPI = BCWP / ACWP delta SPI %
10
5
• Metrics & status :
variance CPI
0
CPI value should be 1 -25 -15 -5 5 15 25
Variances: -5
budget
-15
variance SPI
index of 1.0 or greater is on/above target and considered satisfactory
5
• Metrics & status :
variance CPI
0
CSI value should be 1 -25 -15 -5 5 15 25
-5
-10
-15
variance SPI
index of 1.0 or greater is on/above target and considered satisfactory
Variances:
CSI <> 1 means project is less likely to be ‘recoverable’
Abbreviations:
EVA - earned value analysis
CSI - cost schedule index
BCWP - budgeted cost of work performed
ACWP - actual cost of work performed
Project management – view on reporting Juni 2011 page 19 • View on Reporting
view on reporting – budget milestones (or phases)
90%
2500
Rationale: 80%
70%
•quality check of budget planning; 2000
60%
% variance
ManDays
Explanation: 1500 97% 50%
10
numb e r sta ff
5 p ro je c t p ro g re ss : m a nd a ys
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
re po rting c yc le 5
%
baseline (abs)
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Rationale: baseline (abs)
actual (abs)
re po rting c yc le
10
num b e r sta ff
400
5
350
Planned (Man Hrs)
300
Manhrs Week
250
0
200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
150 baseline (abs) re po rting c yc le
100
50
0
33
36
39
51
11
14
26
29
32
50
42
45
48
2
5
8
17
20
23
35
38
41
44
47
Rationale:
•quality check of planning: most realistic plannings have a specific wave-profile:
•Explanation: unrealistic growth (variations) of staff on project
•A possible understanding why project has deviations vs baseline
•Explanation: planned resources vs actual resources
•Identifies reason of ‘late’ of project : not enough man-hours ‘produced’
•Reason of deviations have to be identified and explained
Project management – view on reporting Juni 2011 page 22 • View on Reporting
view on reporting – budget milestones (or phases)
Baseline budget (€ or man-days) vs actual value (cumulated , %)
100
90
80
70
60
%
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline
re po rting c yc le
actual
Rationale:
Tracking of progress (man-days, % complete, €, and other) vs baseline
Explanation: visual follow up, easy to understand, and to communicate;
A possible understanding why project has deviations vs baseline
Explanation: using other tools, understand why project has deviations
tasks;
• Activities started but unfinished (stays “open”/
<100% work complete)
Open tasks
Graphical view on number of tasks
started on time, late, or still open 10
after due date (according
planning) 8
250 10
baseline [€]
200 actual [€]
baseline budget
50
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
re po rting c yc le
Rationale:
•Visual quality status check of project progress (man-days and €)
•Explanation: in an eye blink, a status report to communicate;
•A projection of estimated budget at completion is available;
•Additionally, contingency (both € and man-days) can be added on chart;
and if used, it can be shown as a decreasing line.
1000
monthly hours
500
0
jan/00 jan/00 jan/00 jan/00 jan/00 jan/00 jan/00 jan/00
Rationale: re p o rting c yc le
1500
Level:
•Project
1000
monthly hours
•Programme
•portfolio
500
0
mrt/11 apr/11 mei/11 jun/11 jul/11 aug/11 sep/11 okt/11
re p o rting c y c le
Rationale:
Resources planning:
•Explanation: based on pipeline (projection) a clear view on expected variances on
resources (function) for the next phases (in time).
•Better ‘serieux’ of overall planning;
•Better ratio on successful outcome of project (assigned staff) , and outcome of
programme / strategy;
•Better understanding of cashflow (actual fiscal year) , cash reservation (for next fiscal
year);
Rationale:
An important project quality success indication is the number of met requirements.
This can be:
Functional requirements , tangible and intangible, operations, up-time , availability, mean time between failures,
matching with technology policy, …
Rationale:
An important organisation’s quality success indication is the number of skilled / trained staff to meet the required
technology skills ?
This can be:
Technology, skills, tangible or intangible, …
•Define clear skills requirements (technology, other skills), based on defined strategy;
•Identify , quantify , ‘name it ! ‘
•List requirements;
•Build metrics;
•Test or assess during review meetings;
•Report;
•Validate the met requirements versus the requirements defined;
•Prioritise the training initiatives (or hire the required skills);
•PDCA;
•Set up improvement programme.
Explanation:
•optimising or reducing elapsed time
by logically flow of milestones.
Abbreviations:
CPM – Critical Path Method
FQT – final qualification testing
FAT – factory acceptance test
POC – proof of concept
Project management – view on reporting Juni 2011 page 31 • View on Reporting
Metrics: progress (cumulative)
100
90
80
70
60
%
50
%
40
behind
30
20
# cycles late
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline
re po rting c yc le
actual
Period late or early;
Indication of % deviation, or better, time of deviation (ahead or late vs
baseline schedule);
Use other diagrams to examine reason (e.g. over-/ under-estimated tasks,
insufficient # staff,…
p ro je c t p ro g re ss : m a nd a ys
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline (abs)
re po rting c yc le
actual (abs)
Use other diagrams to examine reason : lack of staff staff (not assigned ,
illness,…)
p ro je c t p ro g re ss : 'd e ve lo p m e nt' - m a nd a ys
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline (abs)
re po rting c yc le
actuals 'development' staff
Use other diagrams to examine reason : lack of staff staff (not assigned ,
illness,…)
300 8
7
250
6
200
monthly hours
5
development (planned work)
150 4
development (assigned staff - max
3
100 manhours)
development actuals (manhours/week)
2
50 developpment ( # assigned staff)
1
0 0
mrt/11 apr/11 mei/11 jun/11 jul/11 aug/11 sep/11 okt/11
re p o rting c yc le
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline (abs)
re po rting c yc le
actuals 'functional analyst' staff
Use other diagrams to examine reason : lack of staff staff (not assigned ,
illness,…)
p ro je c t p ro g re ss : ma nd a y s
• Schedule: How is actual
against baseline (cumulative) 100
90
%
40
• % variance (+ / - ) 30
20
• Period late or early; 10 baseline
0 actual
– Indication of % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
of deviation (ahead or
late vs schedule);
• Use other diagrams to examine reason (e.g. over-/ under-estimated tasks,
wrong schedule techniques, EVA
Rationale:
•quality check of project progress and project management
•Explanation: typically, in a troubled project, tasks start, without finishing
predecessor / prior tasks;
•Reporting of progress to ‘all’ stakeholders , eventually with coloured ‘deliverables’;
4000000
cost & benefit prognosis
3000000
2000000
costs (assued)
1000000
benefits (assumed)
0
initial 2011 2011 2012 2012 2013 2013 2014 2014
- Q2 - Q4 - Q2 - Q4 - Q2 - Q4 - Q2 - Q4
4000000
cost & benefit prognosis
3000000
2000000
costs (assued)
1000000
benefits (assumed)
benefits (actual)
0 costs (actual)
initial 2011 2011 2012 2012 2013 2013 (benefits
Lineair 2014(actual))
2014
- Q2 - Q4 - Q2 - Q4 - Q2 Lineair (costs (actual)) - Q4
- Q4 - Q2
-1000000
Project / Application Life Cycle
beta 64 5 2 57 2 go
gamma 9 2 1 6 5 hold
echo 50 5 3 42 3 hold
foxtrot 66 10 2 58 1 go
Limit reached*
foxtrot 58 10 5,8 23 drop
gamma 6 2 3 25 drop
* : productivity index is used to rank projects until out of resources (€ 15 m) in development costs is reached.
* : value of the portfolio is NPV = € 121m from these 3 projects.
Abbreviations:
ECV – Expected Commercial Value
€D Commercial
No
Failure
Technical Failure
1950
1950
1750
1750
1550
1550
1350
1350
1150
1150
950
950
750
750
550
550
350
350
150
150
Baseline
Baseline Forecas
Fo recastt Actual
Actual
100
80
60
%
40
20
baseline [€]
0
actual [md]
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline budget
re po rting c yc le
baseline [md]
What?
• Measure of project progress;
• Forecast completion date and final cost;
• Provide schedule and budget variances:
Key:
• Where are we on schedule?
• Where are we on budget?
• Where are we on work accomplished?
Abbreviations:
EVA – Earned Value Analysis
How?
• It compares the ‘planned’ amount of work with what has actually been
completed, to determine if COST , SCHEDULE, and WORK ACCOMPLISHED
are progressing as planned
Example:
30% time spent
30% € spent
Equals 30% work performed ?
Not necessarily !
Abbreviations:
EVA – Earned Value Analysis
Abbreviations:
EVA – Earned Value Analysis
BCWS – budgeted cost of work performed
planned cost of the total amount of work scheduled
to be performed by milestone date
ACWP – actual cost of work performed
cost incurred to accomplish the work that has bee done to
date
BCWP – budgeted cost of work performed
planned (not actual) cost to complete the work that has
been done
Example:
Schedule Variance = BCWP – BCWS
Cost Variance = BCWP - ACWP
Project management – view on reporting Juni 2011 page 48 • View on Reporting
Total Quality Project Management : schedule sanity check
“How realistic is the schedule”
Indication for quality of p ro je c t p ro g re ss : m a nd a ys
schedule; 10
• Slope is sinusoidal:
• Increase and decrease of
num b e r sta ff
number of team members in 5
project is controlled manner;
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
baseline (abs) re po rting c yc le
p ro je c t p ro g re ss : m a nd a ys
10
Rationale:
‘Very’ Early warning
num b e r sta ff
5
Explanation
A quality check for a realistic schedule. For
example a project schedule with this curve is
doomed to fail. The number of mandays is equal for
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 both schedules.
baseline (abs) re po rting c yc le
Deliverables Chart
Purpose: sep/11
Deliverables dates
•Interdependencies communication jun/11
apr/11
Business Requirements
Functional Design
feb/11
Coding & Testing
Launch
jan/11
nov/10
baseline 28/02/2011 31/03/2011 30/04/2011 31/05/2011
re po rting c yc le
Rationale:
Early warning
Explanation
When a (first) milestone has been missed, very probably, following milestones will be
delayed too.
Inclusive the closure milestone.
This chart will help to show and understand the moving milestones (pushed away in
time) and indicates a new ‘closure’ date.
Purpose:
•Follow up of average costs of IT profiles;
Average day
•Influence contract negotiations of –external- IT staff ; rate (€) per
month.
•Control of budget.
Totaal
910
900
890
Astitel
880
Totaal
870
860
850
840
Rationale: 707 708 709 710 711 712 801 802 803 804
cost improvement
Explanation
Follow up of contract costs of IT staff, and potentially re-negociate contracts;
In case of increasing contract costs, it could have impact on project budget;
This chart will help to show and understand the evolution of average hiring costs of IT
staff.
Purpose:
inte rna l ve rsus e xte rna l p ro je c t sta ff
•Follow up of number of external 15
project staff;
•Influence contract negotiations of
10
–external- IT staff ;
# project staff
•Optimising of available staff
5
0
baseline apr/11 jun/11 aug/11 okt/11 dec/11
Project Life Cycle
Rationale:
cost improvement
Explanation
Follow up of contract costs of IT staff, and potentially re-negociate contracts;
In case of increasing contract costs, it could have impact on project budget;
This chart will help to show and understand the evolution of number of external staff,
the hiring costs of IT staff. And more important , it could help to optimising resources,
when done on programme/portfolio level: future needs of external staff
Rationale:
knowing when to make a technology switch (‘warning’)
Explanation
Assessing the existing technology applied in IT infrastructure (hardware and software);
List the known expenses for each of the configuration item;
Controlling the total cost of ownership of each configuration item;
Knowing at the right moment when to switch to other technology;
Plan(-ned) investment: less unlucky surprises;
Add to roadmap: know what resources will be needed (fiscal year, staffing, priority);
Project management – view on reporting Juni 2011 page 53 • View on Reporting
TQPM : Balanced scorecard (new product project selection)
Driver:
ECV – expected commercial value
ROI – return on investment
Abbreviations:
NPV – net present value
ECV – expected commercial value
Project management – view on reporting Juni 2011 page 58 • View on Reporting
TQPM : Balanced scorecard (new product project selection)
Some ‘play-’rules:
• Projects are scored by the gatekeepers (senior management) at
the gate meeting using these six factors on a scorecard (0-10
scales);
• The scores are tallied, averaged across the evaluators, and
displayed for discussion;
• The project attractiveness score (PAS) is the weighted or un-
weighted addition of the scores, taken out of 100;
• A PAS score of 60/100 is usually required for a go decision.
BUT:
• It is not necessary to have all these graphical analysis tools, use
what is needed to execute your project, programme, portfolio.
Questions ?
? ? ?? ? ?? ? ?