Performance reviews
“Performance Reviews” is a tool/technique for the process “Control Schedule”.
Performance reviews measure, compare, and analyze schedule performance such as actual start and finish dates, percent complete, and remaining duration for work in progress. Various techniques may be used,
among them: – Trend analysis. Trend analysis examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding
performance to date and for comparison to future performance goals in the form of completion dates.
– C ritical path method. Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end
date. Evaluating the progress of activities on near critical paths can identify schedule risk.
– C ritical chain method. Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between
the buffer needed and the buffer remaining can determine whether corrective action is appropriate.
– Earned value management. Schedule performance measurements such as schedule variance (SV) and schedule performance index (SPI), are used to assess the magnitude of variation to the original schedule baseline. The total float and early finish variances are also essential planning components to evaluate project time performance. Important aspects of schedule control include determining the cause and degree of variance relative to the schedule baseline, estimating the implications of those variances for future work to completion, and deciding whether corrective or preventive action is required. For example, a major delay on any activity not on the critical path may have little effect on the overall project schedule, while a much shorter delay on a critical or near-critical activity may require immediate action. For projects not using earned value management, similar variance analysis can be performed by comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed.
“Performance Reviews” is a tool/technique for the process “Control costs”.
Performance reviews compare cost performance over time, schedule activities or work packages overrunning and underrunning the budget, and estimated funds needed to complete work in progress. If EVM is being used, the
following information is determined: – Variance analysis. Variance analysis, as used in EVM, is the explanation (cause, impact, and corrective actions) for cost (CV = EV ? AC), schedule (SV = EV ? PV), and variance at completion (VAC = BAC ? EAC) variances. Cost and schedule variances are the most frequently analyzed measurements. For projects not using earned value management, similar variance analyses can be performed by comparing planned activity cost against actual activity cost to identify variances between the cost baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. Cost performance measurements are used to assess the magnitude of variation to the original cost baseline. An important aspect of project cost control includes determining the cause and degree of variance relative to the cost baseline and deciding whether corrective or preventive action is required. The
percentage range of acceptable variances will tend to decrease as more work is accomplished.
– Trend analysis. Trend analysis examines project performance over time to determine if performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of BAC versus EAC and completion
dates.
– Earned value performance. Earned value performance compares the performance measurement baseline to actual schedule and cost performance. If EVM is not being used, then the analysis of the cost baseline against actual costs for the work performed is used for cost performance comparisons.
Table 7-1. Earned Value Calculations Summary Table Earned Value Analysis Abbreviation Name Lexicon Definition How Used Equation Interpretation of Result The authorized budget assigned to scheduled work.
The measure of work performed expressed in terms of the budget authorized for that work.
The realized cost incurred for the work performed on an activity during a specific time period.
The sum of all budgets established for the work to be performed.
The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.
The amount by which the project is ahead or behind the planned delivery date, at a given point in time, expressed as the difference between the earned value and the planned value.
A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion.
A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.
A measure of schedule efficiency expressed as the ratio of earned value to planned value.
The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.
The expected cost to finish all the remaining project work.
A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the budget available.
Planned Value Earned Value Actual Cost Budget at Completion Cost Variance Schedule Variance Variance at Completion Cost Performance Index Schedule Performance Index Estimate At Completion Estimate to Complete To Complete Performance Index PV EV AC BAC CV SV VAC CPI SPI EAC ETC TCPI The value of the work planned to be completed to a point in time, usually the data date, or project completion.
The planned value of all the work completed (earned) to a point in time, usually the data date, without reference to actual costs.
The actual cost of all the work completed to a point in time, usually the data date.
The value of total planned work, the project cost baseline.
The difference between the value of work completed to a point in time, usually the data date, and the actual costs to the same point in time.
The difference between the work completed to a point in time, usually the data date, and the work planned to be completed to the same point in time.
The estimated difference in cost at the completion of the project.
A CPI of 1.0 means the project is exactly on budget, that the work actually done so far is exactly the same as the cost so far. Other values show the percentage of how much costs are over or under the budgeted amount for work accomplished.
An SPI of 1.0 means that the project is exactly on schedule, that the work actually done so far is exactly the same as the work planned to be done so far. Other values show the percentage of how much costs are over or under the budgeted amount for work planned.
If the CPI is expected to be the same for the remainder of the project, EAC can be calculated using: If future work will be accomplished at the planned rate, use: If the initial plan is no longer valid, use: If both the CPI and SPI influence the remaining work, use: Assuming work is proceeding on plan, the cost of completing the remaining authorized work can be calculated using: Reestimate the remaining work from the bottom up.
The efficiency that must be maintained in order to complete on plan.
The efficiency that must be maintained in order to complete the current EAC.
EV = sum of the planned value of completed work CV = EV ? AC SV = EV ? PV VAC = BAC ? EAC CPI = EV/AC SPI = EV/PV EAC = BAC/CPI EAC = AC + BAC ? EV EAC = AC + Bottom-up ETC EAC = AC + [(BAC ? EV)/ (CPI x SPI)] ETC = EAC ? AC ETC = Reestimate TCPI = (BAC ? EV)/(BAC ? AC) TCPI = (BAC ? EV)/(EAC ? AC) Positive = Under planned cost Neutral = On planned cost Negative = Over planned cost Positive = Ahead of Schedule Neutral = On schedule Negative = Behind Schedule Positive = Under planned cost Neutral = On planned cost Negative = Over planned cost Greater than 1.0 = Under planned cost Exactly 1.0 = On planned cost Less than 1.0 = Over planned cost Greater than 1.0 = Ahead of schedule Exactly 1.0 = On schedule Less than 1.0 = Behind schedule Greater than 1.0 = Harder to complete Exactly 1.0 = Same to complete Less than 1.0 = Easier to complete Greater than 1.0 = Harder to complete Exactly 1.0 = Same to complete Less than 1.0 = Easier to complete
This definition was found in the PMBOK V5
Go back to the Glossary or to the Mapping