building on best practices in project management: … building on best practices in project...

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Building on Best Practices in Project Management: PMBOK Standards

NCAMPO 2013 Conference Winston-Salem, NC May 15 - 17, 2013

Majed Al-Ghandour, Ph.D., PE, CPM Program Development Branch

NCDOT

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Outline • Introduction about STIP & PMU

• PMBOK

• Project Management Best Practices

• EVM (Earned Value Management)

• Reporting as a Performance Measures

• Conclusions & Recommendations

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Introduction – NCDOT STIP • The Project Management Unit (PMU)- (NCDOT) is

responsible for authorization of funds for various State Transportation Improvement program (STIP) projects:

• Preliminary Engineering (PE).

• Right-of-Way acquisition (ROW).

• Utility relocation, Construction (CON).

• Mitigation, and Landscape development. • Draft STIP (2013 – 2023 ) includes over 2,293 projects (~ $16 billions).

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TABLE 1 Summary of the Draft STIP FY 2013-2023

As May 2013

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KEY TO HIGHWAY FUNDING SOURCES

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APD - Appalachian Development BOND - Revenue Bond BRGI - Bridge Inspection C - City CMAQ - Congestion Mitigation DOD - Department of Defense DP - Discretionary or Demonstration FA - Bridge Replacement On-Federal-Aid System FLPF - Federal Lands Program (Forest Highways) FLPI - Federal Lands Program (Indian Reservation Roads) FLPP - Federal Lands Program (Park Roads) FLPR - Federal Lands Program (Refuge Roads) HES - High Hazard Safety HFA - Highway Fund Appropriation

KEY TO HIGHWAY FUNDING SOURCES

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HP - Federal-Aid High Priority HRRR - High Risk Rural Roads IM - Interstate Maintenance IM(E) - Interstate Maintenance Exempt IMPM - Interstate Preventative Maintenance L - Local Matching Share MOB - Mobility Funds NFA - Bridge Replacement Off-Federal-Aid System NFAM - Municipal Bridge Replacement Program NHS - National Highway System NHS(E) - National Highway System Exempt NRT - National Recreation Trails

KEY TO HIGHWAY FUNDING SOURCES …continued

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O - Others PLF - Personal Automobile License Plate Funds RR - Rail-Highway Safety S - State S(E) - State Exempt SF - State Ferries SG - Safety Grant S(M) - State Match S(5) - State (Highway) Trust Funds SRTS - Safe Routes to School STHSR - Stimulus High Speed Rail


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STP - Surface Transportation Program STPDA - Surface Transportation Program - Direct Attributable STPEB - Surface Transportation Program, Enhancements (Bike) STPEL - Surface Transportation Program, Enhancements (Local) STPEP - Surface Transportation Program, Enhancements (Pedestrian) STPER - Surface Transportation Program, Enhancements (Roadside) T - Highway Trust Funds T2001 - State Rail Funds TIFIA - Transportation Infrastructure Finance and Innovation Loan


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• Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Fourth Edition, 2008, p. 6)

• Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals

What is Project Management?

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The Triple Constraint of Project Management

Successful project management means meeting all three goals (scope, time, and cost) – and satisfying the project’s sponsor!

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“A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition”.

http://www.pmi.org/PMBOK-Guide-and-Standards.aspx








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Project Management Framework

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Why PMBOK? • Project Management Body of Knowledge (PMBOK) is a Guide for

applying the standards enables PMU to track the STIP life cycle through Process: • Initiating, • Planning, • Executing, • Monitoring, • Controlling and • Closing Process.

• The PMU utilizes state of the art of the project management concepts

that monitor and control the successful delivery of STIP Projects.

• PMU applies PMBOK process on STIP Projects to provide project performance measurement such as an Earned Value Management (EVM).

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Best Practice 1: Manage the Project Scope and monitor the schedule and budget

Best Practice 2: Use EVM (Earned Value Management)

Best Practice 3: Ensure the project is closed with compliance “Closing and acceptance”

Project Management Best Practices

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• Look at the amount of money your project has actually consumed and determine whether your actual spending is more than originally estimated based on the work that has been completed. • If so, be proactive. Either work with the team to determine how the remaining work will be completed to hit your original budget or else raise a risk that you may exceed your allocated budget.

Monitor the Budget Best Practice 1

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STIP Budget & Schedule View

Budget View

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Schedule View

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Project Status Report

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Project Status Report …continued

Project Count by R/W Year

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Project Status Report …continued

Project Count by LET Year

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95.44% 89.99%

Dashboard KPI

Provide a Monthly Report Details What is Authorized?

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Let List Construction Cost

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https://apps.dot.state.nc.us/traffictravel/progloc/ProgLocSearch.aspx

SAP/PS

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Schedule

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Earned Value Management is a project performance measurement technique that integrates scope, time, and cost data (combines schedule and cost performances). • EVM analyzes project performance to answer these questions:

1. What did we get for the money we spent? 2. Is the project on schedule? (ahead/behind schedule) 3. Is the project on budget? (under/over budget) 4. What do we currently expect the TOTAL project to cost (a forecast)? 5. How much more will the project cost?

What is EVM? Best Practice 2

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Basic Measurements that are required to measure Earned Value Management: PV: Planned Value Cost: Budget: The approved total cost estimate planned to be spent on the project of the work scheduled (STIP Latest Estimate), as of today AC: Actual Cost: Expenditures (total direct and indirect costs), as of today EV: Earned Value: As of today, the value of the work actually accomplished

What is EVM? …continued

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RP: Rate of Performance: The ratio of actual work completed to the percentage of work planned (RP=actual completed/planned) BAC: Budget at Completion: The original total budget for the project BAC: Budget * Engineering Contingency factor CV: Cost Variance: CV=EV-AC Negative means the performing the work cost more than planned (over budget) Positive means the performing the work cost less than Planned (under budget)


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CPI: Cost Performance Index: CPI=EV/AC >1 is good getting $x of value out of every $1 spent (Project is under budget) Efficiency in utilizing the resources <1 is bad getting $x of value out of every $1 spent (Project is over budget) =1 the planned and actual costs are equal (Project is exactly as budget)


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Forecast the Future Performance Trends: EAC: Estimated At Completion: A forecast of total costs that will be accrued by project completion based on past cost performance trends. EAC=AC+BAC-EV/CPI ETC: Estimated To Completion: From today on, how much MORE do we expect it to cost to finish the project (a forecast) ETC=EAC –AC Variance at Completion (VAC). The difference between the new Estimate at Completion and the original Budget at Completion. VAC= EAC – BAC


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• Schedule: SV: Schedule Variance: SV=EV-PV

Negative means it took longer than planned to perform the work (behind schedule) Positive means it took less time than planned to perform the work (ahead schedule)

SPI: Schedule Performance Index: SPI=EV/PV >1 the project is ahead of schedule <1 is bad the project is behind schedule =1 the project is on schedule


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How do you start? • Create a detailed project schedule with budget

allocated for each tasks

• Baseline the project schedule

• On Status reporting date, Enter: • a) % Complete and • b) Actual Cost (AC)

• Generate Earned value Chart

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Earned Value Chart

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Earned Value Chart for Project after Five Months

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• Negative numbers for cost and schedule variance indicate problems in those areas

• CPI and SPI less than 100% indicate problems

• Problems mean the project is costing more than planned (over budget) or taking longer than planned (behind schedule)

Rules of Thumb for Earned Value Numbers

WBS Closure

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Best Practice 3

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Flow Charts

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Year 2013: $5,729,739 From 2006 to 4/2013: $150,942,056

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Conclusions & Recommendations (1 of 3)

• Mapping the STIP Process to the PMBOK Knowledge Areas.

• Using PMBOK (Project Management Body of

Knowledge ) standards to track the STIP life cycle through process:

• Initiating, • Planning, • Executing, • Monitoring, • Controlling and • Closing Process.

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Conclusions & Recommendations (2 of 3) • Using Business Intelligent Reporting for EVM analysis.

• Project is under budget Efficiency in utilizing the

resources.

• Project is ahead of schedule project team is very efficient in utilizing the time allocated to the project.

• Closing projects are very crucial.

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Conclusions & Recommendations (3 of 3)

• Finally, we also recommend to use EVM answers these

questions: 1. What did we get for the money we spent? 2. Is the project on schedule? (ahead/behind schedule) 3. Is the project on budget? (under/over budget) 4. What do we currently expect the TOTAL project to

cost (a forecast)? 5. How much more will the project cost?

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Contact Information & Questions

Majed N. Al-Ghandour, Ph.D., P.E., CPM, M.ASCE Assistant Branch Manager, Engineering Manager Program Development Branch - NCDOT 1534 Mail Service Center Raleigh, NC 27699-1534 Tel.: 919-707-4621 Fax: 919-733-3585 Emails: [email protected]

THANK YOU

mailto:[email protected]

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