More Project Management Best Practice Tips
To recap parts one and two of this post, we saw:
- how earned value is useful for monitoring both costs and schedule
- the basic formulas used to see if our projects are off track (and by how much)
- the recommendation that earned value be looked at weekly
- the ideal values for cost and schedule index are one (1.0)
- a simple way of communicating earned value information to our clients.
This week I'd like to take a look at the things we can do to manage our projects, especially if the CI and/or SI is much bigger or much smaller than one. Note that I can merely suggest causes -- you will need to diligently look at your projects and their circumstances to arrive at the conclusion right for you. You may want to produce a graph or visual of your progress so you can pinpoint the time at which things started to go south.
CI << 1 and SI = 1
Being on schedule but over budget might represent a significantly underestimated budget (or a tight budget dictated by the project sponsor), a...
Last week we looked at the basic principles and formulas surrounding Earned Value Management. While the full practice of EVM may be very complex, it also provides a simple way to update clients on the status of smaller projects. But before we look at the "how", let's take a look at the "how often".
The frequency will actually depend on many things, but I recommend you start with once a week. If a month passes by and there's a problem, its usually too late to do anything about it. Once a week allows you to keep closer track of expenditures and invoices. Once a week also let's the client see the progress. You can always skip reporting for a week if you didn't work on the project, but you still need to follow up on tracking of expenditures and invoices. I usually log expenditures, invoices, and payments to see the full project picture.
Your weekly report to clients needs to contain the basics of cost and schedule variance, plus an estimate of the remaining expenses. Knowing the cost...
The usual illustrative story of Earned Value goes something like this ... you hire a painter to paint four walls in four days. Each day is budgeted for $1,000 for a total of $4,000. If at the end of 2 days, I tell you the painters spent $1,500, do you know what the status of the project is?
The answer is "No" because you don't know how much work was actually completed. If I were to tell you the painters finished 3.5 walls, would you know? Also "No" because you don't know how much was spent.
Earned Value is a project management...