PROJECTS SCHEDULING AND COST CONTROLS

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PROJECTS SCHEDULING AND COST CONTROLS

Professional Development Day

September 27th, 2014

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Why do we need to Control

Time and Cost?

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“Plans are nothing;

Planning is everything.”

Dwight D. Eisenhower

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“Back to Basics”

“What’s the Logic Behind it?”

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• PROJECT MANAGEMENT PROCESS GROUPS PMBOK - fifth Edition

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“1.2 What is a Project?

A project is a temporary endeavor undertaken to create a unique product, service or result. The temporary nature of projects indicates that a project has a definite beginning and end. The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists.”

[PMBOK 5^th Edition]

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“Planning is the process of thinking about and organizing the activities required to achieve a desired goal.”

“A Schedule or a timetable, as a basic time-management tool, consists of a list of times at which possible tasks, events, or actions are intended to take place, or of a sequence of events in the chronological order in which such things are intended to take place.”

[wikipedia.org, 26 Sep 2014]

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Triple Constraints:

• Time

• Cost

• Scope

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Balancing between the competing project constraints which include but are not limited to:

• Scope

• Quality

• Schedule

• Budget

• Resources

• Risk

Scope

Budget

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PMBOK - fifth Edition

6. Project Time Management 6.7 Control Schedule

7. Project Cost Management 7.4 Control Costs

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6 - Project Time Management

6.7 Control Schedule

6.7.1 Control Schedule Inputs

6.7.2 Control Schedule Tools and Techniques 6.7.2.1 Performance reviews

Trend analysis

Critical Path Method (6.6.2.2) Critical Chain Method (6.6.2.3)

Earned Value Management (7.4.2.1) 6.7.2.2 Project Management Software

6.7.2.3 Resource Optimization Techniques 6.7.2.4 Modeling Techniques

6.7.2.5 Leads and Lags

6.7.2.6 Schedule Compression 6.7.2.7 Scheduling Tool

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6.7.3 Control Schedule: Outputs 6.7.3.1 Work Performance Information 6.7.3.2 Schedule Forecasts

6.7.3.3 Change Requests

6.7.3.4 Project Management Plan Updates Schedule baseline

Schedule Management Plan Cost Baseline

6.7.3.5 Project Documents Updates Schedule Data

Project Schedule Risk Register

6.7.3.6 Organizational Process Assets Updates

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7 - Project Cost Management 7.4 Control Costs

7.4.1 Control Cost: Inputs

7.4.1.1 Project Management Plan Cost Baseline

Cost Management Plan 7.4.1.2 Project Funding Requirements 7.4.1.3 Work Performance Data

7.4.1.4 Organizational Process Assets

7.4.2 Control Costs Tools and Techniques 7.4.2.1 Earned Value Management

Planned Value (PV) Earned Value (EV) Actual Cost (AC)

Schedule Variance (SV) Cost Variance (CV)

Schedule Performance Index (SPI) Cost Performance Index (CPI)

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7.4.2.2 Forecasting

7.4.2.3 To-Complete Performance Index (TCPI) 7.4.2.4 Performance Reviews

Variance Analysis Trend Analysis

Earned Value Performance 7.4.2.5 Project Management Software

7.4.2.6 Reserve analysis

7.4.3 Control Costs Outputs

7.4.3.1 Work Performance Information 7.4.3.2 Cost Forecasts

7.4.3.3 Change Requests

7.4.3.4 Project Management Plan Updates 7.4.3.5 Projects Documents Updates

7.4.3.6 Organizational Process Assets Updates

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EAC: Estimate at Completion BAC: Budget at Completion ETC: Estimate to Complete

EV: Earned Value AC: Actual Cost

CPI: Cost Performance Index

SPI: Schedule Performance Index

EAC = AC + ETC

EAC = AC + (BAC - EV) EAC = BAC / CPI

EAC = AC + (

^{𝐵𝐴𝐶 −𝐸𝑉}_{𝐶𝑃𝐼 −𝑆𝑃𝐼}

)

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“How to reach such a sophisticated Graph having

an overall percentage in a simple way?”

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0 2 4 6 8 10 12 14

0 0.5 1 1.5 2 2.5 3

14-Jan 14-Feb 14-Mar 14-Apr 14-May 14-Jun 14-Jul 14-Aug 14-Sep 14-Oct 14-Nov 14-Dec 15-Jan 15-Feb 15-Mar

Plan Cum Plan

A simple 1 task project as a Demo

Plan

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0 0.5 1 1.5 2 2.5 3

Plan Actual Cum Plan Cum Actual

Plan Vs. Actual

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Cum Plan Cum Actual

EAC = AC + ETC

What’s the trend?

What’s the Forecast?

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Cum Plan Cum Actual

EAC = AC + (BAC - EV)

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0 2 4 6 8 10 12 14

Cum Plan Cum Actual

Want to finish ahead of Schedule?

Extra Coast !!

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0 2 4 6 8 10 12 14

Cum Plan Cum Actual

EAC = AC + ((𝐵𝐴𝐶 −𝐸𝑉)/(𝐶𝑃𝐼 −𝑆𝑃𝐼))

Most Logical, but difficult??

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ELNG – IDKU Project, Marine Contract, EGYPT

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