Progress and Performance Measurement and Evaluation

Q1: How does a Tracking Gantt Chart help communicate project processes?

Ans: It is a common and well-established fact that visual formats of a project make better tools for understanding rather than something is written down. Tracking Gantt charts is a visual format tool for communicating project schedule status i.e. how much the project has been completed, what is the current status of the project and on these lines we can set our strategy for the better completion of the remaining project. Adding actual and revised time estimates to the Gantt charts give quick overview of the project status and the report date.

Q2: How does earned value give a clearer picture of the project schedule and cost status than a simple plan versus actual plan?

Ans: The earned value system starts with a time phased cost that provide the project budget baseline which is called the planned budget value of the work schedule(PV). Given this time phased baseline, comparisons are made with actual and planned schedule and costs using earned value.The earned value provides the missing links not found in conventional cost budget systems. At any point in time a status report can be developed for the project.

Q3: Schedule variance (SV) is in dollars and does not exactly represent time. Why is it still useful?

Ans: Schedule variance presents an overall assessment of all work packages in the project schedule to date. It is important to note schedule variance contains no critical path project information. Schedule variance measures progress in dollars rather than in time units. Schedule variance however is very useful in assessing the direction all the work in the project is taking _ after 20 or more percent of the project has been completed.

Q4:How would a project manager use a CPI?

Ans: the CPI is known as the Cost Performance Index. it is basically used to measure to measure the efficiency of the work accomplished to date.

The formula for CPI is: CPI=EV/AC. The CPI is the most accepted and widely used index. It has been tested over time and found to be the most accurate, reliable and stable. Indexes are typically used at the cost account level and above. In practice, the database is also used to develop indexes that allow the project manager and customer to view progress from several angles.

Q5: What are the differences between BAC and EAC?

Ans: BAC can be defined as budgeted cost at completion. The total budgeted cost of the baseline or project cost accounts.

EAC can be defined as the estimatedcost at completion. From these definitions we can see that BAC cost is the estimated cost before the starting of the project whereas EAC is the actual cost after the completion of the project. If EAC is greater than BAC we can assume that more money has been spent on the project than necessary.

Q6: Why is it important for project mangers to resist changes to the project baseline? Under what conditions would a project manager make changes to a baseline? When would a project manager not allow changes to a baseline?

Ans: Changes during the life cycle of a project are inevitable and will occur. Some changes canbe very beneficial to project outcomes; changes having a negative impact are the ones we wish avoid.Careful project definition can minimize the need for change. Change comes from external source or from within.Generally project managers monitor scope changes very carefully. They should allow scope changes only if it is clear that the project will fail without the change,the project will be improved significantly with the change, or the customer wants it and will pay for it. The effect of change on the scope and baseline should be accepted and signed off by the project manager. Careful care should be taken to not use baseline changes to disguise poor performance on past or current work. Under these situations the project manager should not allow changes to project baselines.