UNIT - 5

Performance Measurement
and
Evaluation
 PERFORMANCE MEASUREMENT AND
EVALUATION
• Performance measurement is the ongoing, regular
collection of information for monitoring how a
program, policy or strategy is doing.
• It is a systematic way of mapping the evidence of
the progress making towards expected results.
• Evaluation is a specific, in-depth way to gather and
analyze information and draw conclusions about the
performance of a policy, program or strategy.
• Evaluations may also be focused at the project
level.
Project Evaluation and Control
 The Project Control Cycle
1. Setting a Goal

4. Taking Action 2. Measuring

and Recycling Progress
the Process

3. Comparing Actual
with Planned
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Project Evaluation and Control Techniques

1.S – Curve Analysis

[Link] Analysis
[Link] Gantt Charts
Limit : Above Methods not directly link with project
progress to schedule and budget baseline.
To overcome this the technique developed is ---------
4. Earned Value Management (EVM)
 The Project S-Curve
Cumulative Cost ($

60
in thousands)

40 $10,000 Negative Var

Cumulative
20 Budgeted Cost
Cumulative
Actual Cost
5 10 15 20 25 30 35 40 45 50
Elapsed Time (in weeks)
13-6
 The Project S-Curve
• S-curve is a mathematical graph that depicts relevant cumulative
data for a project—such as cost or man-hours—plotted against
time
• The reason it’s called an s-curve is because the shape of the
graph typically forms a loose, shallow “S.”
• Typically used to track the progress of a project- project is on
schedule and on budget
• Growth of the project in the beginning stages is usually slow,
• The point of maximum growth is called the point of inflection
• After the point of inflection, the growth begins to plateau,
forming the upper part of the “s” known as the upper asymptote
—and the “mature” phase of the project
• Real-time cumulative data of various project elements —such as
cost—can be compared with projected data.
 Milestone Analysis
Milestones are events or stages of the project
that represent a significant accomplishment.
Milestones
…show completion of important steps
…signal the team and suppliers
…can motivate the team
…offer reevaluation points
…help coordinate schedules
…identify key review gates
…delineate work packages
 Tracking Gantt Chart

Project status is updated by

linking task completion to the
schedule baseline
 A Gantt chart
• A Gantt chart is a project management tool that illustrates
work completed over a period of time in relation to the time
planned for the work.
• project management timelines and tasks are converted into
HORIZONTAL BARS (also called Gantt bars) to form a bar chart
• Gantt charts are useful for planning and scheduling projects.
• They help you assess how long a project should take,
determine the resources needed, and plan the order in which
you'll complete tasks
• BASELINE GANTT CHART is used to compare the current
project progression where as TRACKING GANTT CHART
focuses more on tracking the progress against the original
plan.
 Earned Value Management
Cost
Project S-
Curves
Cost

Performance Schedule
Earned Cost
Value
Performance Schedule

Performance Schedule
Tracking Control Charts
Copyright © 2010 Pearson
Education, Inc. Publishing as 13-11
Prentice Hall
 Earned Value Terms
EVM :The Authorised budgeted value of the work that have
completed to date on the project
 Planned value (PV)
 Earned value (EV)
 Actual cost of work performed (AC)
 Schedule performance index (SPI)
 Cost performance index (CPI)
 Budgeted cost at completion (BAC)
 Steps in Earned Value Management

1. Clearly define each activity including its resource

needs and budget
2. Create usage schedules for activities and
resources
3. Develop a time-phased budget Variance(PV)
4. Total the actual costs of doing each task (AC)
5. Calculate both the budget variance(Cost
Variance) (CV) and schedule variance (SV)
13-13
 Value
Earned Value Example 8=80%(10)
Activity Jan Feb Mar April Plan %C Value
Staffing 8 7 15 100 15
Blueprint 4 6 10 80 8
Prototype 2 8 10 60 6
Design 3 3 33 1
Mon Plan 8 7 6 17 38 ∑ 30
Cmltv 8 15 21 38
Mon Act 8 11 8 13 Earned Value
30=15+8+6+1
Cmltv Act 8 19 27 40
Planned Value
Cumulative 38=15+10+10+3
40=8+11+8+13
Copyright © 2010 Pearson
Education, Inc. Publishing as 13-14
Prentice Hall
 Human Factors in
Project Evaluation & Control
Human factors in project management are
a set of human characteristics that
influence the outcome of projects
including areas such as motivation,
emotions, rational thought, habits, politics
and culture.
 Human Factors in
Project Evaluation & Control
• Project coordination and relations among
stakeholders
• Adequacy of project structure and control
• Project uniqueness, importance, and public exposure
• Success criteria and consensus
• Avoidance of ‘initial over optimism’ and conceptual
difficulties
• A good control system cannot make up for
inadequate or inaccurate initial plans. Without
effective baselines, project control will not work.
 Critical Success Factors in the
Project Implementation Profile
critical success factors refer more specifically to
conditions, events, and circumstances that
contribute to project results.
 Critical Success Factors in the
Project Implementation Profile
1. Project mission
2. Top management support
3. Project plans & schedules
4. Client consultation
5. Personnel: recruitment, selection and training of project team
members
6. Technical tasks: having the right technical skill
7. Client acceptance & Communication
8. Monitoring & feedback :anticipate problems & oversee corrective
measures
9. Communication channels
10. Troubleshooting : Taking correct steps if problem pop - up
Project Close-Out and
Termination
 Project Termination
• All projects have fixed start date and
completion date.
• Project termination is a process that occurs
whether a project is successful
• There are various business, technical and
political reasons to terminate a project.
 Project Termination
All activities consistent with closing out the
project

Extinction
Addition
Integration
Starvation
 Extinction
The following are the possible reasons for which a
project may be terminated by Extinction
• The project has successfully completed scope and
the client has accepted it.
• It has been superseded by the external
developments like technological advancement,
market crisis etc.
• It has failed to achieve it’s goal.
• It has no longer support from the Senior
Management.
• It is also sometimes referred to as “termination by
murder“. The important point to notice is that all
project activity ceases in this kind of termination.
 Addition

By Addition
• The project is a major success. It becomes the
formal part of the parent organization.
• The transition or? transfer of the resources
such as the project personnel, materials and
equipment to the newly created unit within
the parent? organization.
 Integration
By Integration
• The project is successfully completed. The?
project product is integrated to the operations
of the client.
• This is the most common mode and most
complex operation. The resources are
released and distributed in the parent
organization.
 Starvation

By Starvation
• The project is terminated by budget
decrement.
• It is also known as withdrawal of “life support”.
• The reason of this termination is generally to
shadow the failure of non-accomplishment of
the goals. This can save face of the senior
management and avoid embarrassment.
 Elements of Project
Closeout Management

Gaining Harvesting the

Finishing Handing
Over the Acceptance Benefits
The Work
Product for the Reviewing
Product How
It All Went

Putting it All to Bed

Disbanding the Team

 Finishing the work
• As the project nears completion, there is a natural tendency
for members of the team to do sufficient work to meet time
and de facto quality standards, while leaving a number of
small elements of the work outstanding.
• There may also be issues that have emerged at various times
during the life of the project and have yet to be resolved.
• An orderly closeout requires that some kind of checklist of
these tasks and issues be prepared and used as a control
mechanism.
• Such short-term activity lists are sometimes referred to as
punch-lists.
 Handing over the product
• Whatever the nature of the project, some form of “handover” will
be required.
• In the case of large items of capital equipment, it would be
unthinkable to let the handover take place without careful planning,
and this same care is often required on projects of all types.
• The managers or end users of the product (or providers of the
service) that has been created or modified in the course of the
project won’t share the same insights and knowledge about it that
the project team has generated.
• Handover includes not simply the transfer of the physical
deliverables, but also the training of users, the sharing of technical
designs and important design concepts, the provision of drawings
and specifications, and much more besides.
Gaining acceptance for the product
• Projects need a clear cut-off to signal the end of handover and the transfer of
full operational responsibility from the project team to the customer.
• Gaining acceptance is not as simple or straightforward as it might appear at first
because the customer may Lack confidence in his or her ability to manage the
product or service effectively without ongoing support.
• Doubt his or her ability to deliver the benefits from the product or service on
which the business case was built, and there will no longer be anyone else with
whom to share the blame.
• Be receiving adverse comments from end users who were never convinced of
the merits of the project in the first place.
• Have come to realize in the course of the project that what they really want
isn’t the product or service that the project has delivered, and as long as no
acceptance has been signed, it might be possible to improve the match.
• So planning for project acceptance needs to start much earlier in the life of the
project— ideally during project initiation.
 Harvesting the benefits
• project will be successful only when the intended benefits are harvested
• Some benefits are easy to quantify and measure, such as sales and
revenue from a new line of products. Others are easy to quantify, but less
easy to measure, such as cost savings from an improved
interdepartmental business process.
• Still more are difficult both to quantify and to measure, such as the
benefits of company-wide education in risk management.
• The project manager and sponsor need to ensure that three conditions
exist before the project is finally put to bed:
1) The criteria by which benefits of the product or service will be
measured or assessed are clear.
2)The points in time at which the measurement or assessment will be
carried out are established.
3) A named person has accepted responsibility for carrying out the
measurement or assessment in the agreed way at the agreed points in
time.
 Reviewing how it all went

• it is important that the different groups of

stakeholders all agree at the outset, precisely what
will constitute “project success.”
• The object of the lessons-learned review is to reflect
on the events that took place in the course of the
project and to consider what might have been done
differently to improve the results obtained.
• The review is likely to be based on a comparison
between the actual results and conduct of the
project, and the project charter and project plan
 Putting it all to bed

• In addition to drawings and technical documentation, there

are other project records to complete and archive,
including financial records, personnel records, and essential
records of meetings, reviews, contracts, and so on.
• If the project has had the use of dedicated resources, such
as offices or technology, then these need to be returned or
passed on.
• Anticipated benefits need to be included in business plans,
and in the operating plans and budgets of all departments
that are the beneficiaries of the product or service.
 Disbanding Project Team
• Deputing/Releasing staff to respective offices
• Highly informal or Structured
• Never be handled in an offhand or haphazard
manner
Lessons Learned Meetings
 Lessons Learned Meetings
Common Errors
 Misidentifying systematic errors
 Misinterpreting lessons based on events
 Failure to pass along conclusions

Meeting Guidelines
Establish clear rules of behavior
Describe objectively what occurred
Fix the problem, not the blame
 Closeout Paperwork

• Documentation
• Legal
• Cost
• Personnel

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 Why are Closeouts Difficult?

Project sign off can be a de-motivator

Constraints cause shortcuts on back-end
Low priority activities
Lessons learned analysis seen as bookkeeping
Unique view of projects

Copyright © 2010 Pearson

Education, Inc. Publishing as 14-37
Prentice Hall
 Dynamic Factors to Monitor

1. Static
2. Task-team
3. Sponsorship
4. Economics
5. Environment
6. User
Copyright © 2010 Pearson
Education, Inc. Publishing as 14-38
Prentice Hall
 Early Warning Signs of Project Failure

• Lack of viable commercial objectives

• Lack of sufficient authority to make decisions
• New product developed for stable market
• Low priority assigned to the project by
management

Copyright © 2010 Pearson

Education, Inc. Publishing as 14-39
Prentice Hall
 Early Termination Decision Rules

 Costs exceed business benefits

 Failure to meet strategic fit criteria
 Deadlines continue to be missed
 Technology evolves beyond the project’s
scope
Copyright © 2010 Pearson
Education, Inc. Publishing as 14-40
Prentice Hall
 The Top 10 Signs of Project Failure

1. Best practices and lessons learned are ignored

2. Project lacks people with appropriate skills
3. Sponsorship is lost
4. Users are resistant
5. Deadlines are unrealistic
6. Business needs change
7. Chosen technology changes
8. Project changes are poorly managed
9. Scope is ill-defined
10. Project managers don’t understand users’ needs

14-41
 Project Termination Issues

Emotional Intellectual

Staff Client Internal External

Copyright © 2010 Pearson

Education, Inc. Publishing as 14-42
Prentice Hall
 Claims & Disputes
Two types of claims
• Ex-gratia claims
• Default by the project company
Resolved by
• Arbitration
– Binding
– Non-binding
• Standard litigation
Copyright © 2010 Pearson
Education, Inc. Publishing as 14-43
Prentice Hall
 Protecting Against Claims

 Consider claims as part of the project plan

 Verify stakeholders know their risks
 Keep good records throughout the life cycle
 Keep clear details of change orders
 Archive all correspondence

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 Final Report Elements
Project performance
Administrative performance
Organizational structure
Team performance
Project management techniques
Benefits to the organization and customer

14-45
The End