Monday, April 20, 2015

Fundamentals of Project Planning and Management - Coursera

WEEK 1:

Supplemental Case Studies:
WEEK 1 Slides
HealthCare.gov case
Virginia Festival of the Book case
Work Breakdown Structure (WBS)
How to Create a Work Breakdown Structure
The WBS is our Friend
Google Hangout (Youtubes)

April 17 Google Hangout: Course Introduction


Course Overview


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What Is a Project?


video

How Do We Define a Project?


video

Considering the Organization and Stakeholders


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Project Success and Failure


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Introduction to Case Studies


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Project Life-Cycle


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WEEK 2:

WEEK 2 Slides

Why Plan?


video

Detailed Scoping


video

Identifying Dependencies


video

Determine the Completion Date and Critical Path


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How Do We Schedule?


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What If I Don’t Like Planning? Making Changes

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Reflecting on Common Mistakes


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Project Management in Action: Virginia Festival of the Book


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Supplemental Tutorial: Getting Started with Microsoft Project


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Supplemental Tutorial: Tracking Progress and Updating Project Plan in Microsoft Project


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April 28 Google Hangout


Creating a Work Breakdown Structure WBS in MindView Mind Mapping Software:











WBS (Work Breakdown Structure):














WBS Example:








Constructing a Schedule (WBS Example):


































Supplemental Tutorial: Getting Started with Microsoft Project:










Supplemental Tutorial: Tracking Progress and Updating Project Plan in Microsoft Project:



























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WEEK 3:

What Is Risky About Projects?


video

Identifying and Assessing Project Risks


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A More Realistic Timeline Part 1


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A More Realistic Timeline Part 2


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Cost Risk Analysis


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Planning for Ambiguity


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Project Management in Action: Lumi Juice


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Supplemental Tutorial: Modeling Schedule Uncertainty Part 1 - Tornado Charts in Microsoft Excel


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Supplemental Tutorial: Modeling Schedule Uncertainty Part 2 - Monte Carlo Simulations in Microsoft Excel


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There is 25% chance that the project will be completed up to 12 weeks and there is closer to 75% chance that it will take us longer.


Around 95% chance of completing this project within 16 weeks. 


Supplemental Tutorial: Modeling Schedule Uncertainty Part 1 - Tornado Charts in Microsoft Excel











To create Tornado Chart:


















Supplemental Tutorial: Modeling Schedule Uncertainty Part 2 - Monte Carlo Simulations in Microsoft Excel







Click on OK.














































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WEEK 4:

From Plan to Action 


video


Earned Value


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Those Who Execute


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Agile, Scrum, and Kanban


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Course Wrap Up


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May 14 Google Hangout



Schedule Performance Index (SPI):
Schedule Performance Index gives you information about the schedule performance of the project. In simple words, the Schedule Performance Index tells you how efficiently you are actually progressing compared to the planned progress.
Formula to calculate Schedule Performance Index (SPI):


Below is the formula to calculate SPI:
Schedule Performance Index = (Earned Value)/(Planned Value)
SPI = EV/PV

With the above formula you can conclude that:
  • If the SPI is greater than one, this means more work has been completed than the planned work. In other words, you are ahead of schedule.
  • If the SPI is less than one, this means less work is completed than the planned work. In other words, you are behind schedule.
  • If the SPI is equal to one, this means all work is completed.
While calculating the Schedule Performance Index, make sure that you consider all tasks. Sometimes you may only consider the tasks on the critical path and ignore the rest, which causes the wrong result. Therefore, ensure that non-critical activities are not ignored.

A mathematical example of Schedule Performance Index:

You have a project to be completed in 12 months and the total cost of the project is $100,000 USD. Six months have passed and $60,000 USD has been spent, but on closer review you find that only 40% of the work is completed so far.
Find the Schedule Performance Index (SPI) and deduce whether the project is ahead or behind schedule.
Given in question:
Actual Cost (AC) = $60,000
Planned Value (PV) = 50% of $100,000 = $50,000
Earned Value (EV) = 40% of $100,000 = $40,000

Now,

Schedule Performance Index (SPI) = EV / PV = $40,000 / $50,000 = 0.8

Hence,
Schedule Performance Index is 0.8
Since the Schedule Performance Index is less than one, you are behind the planned schedule.

Cost Performance Index (CPI):

The Cost Performance Index in an indication of the cost performance of the project.
The Cost Performance Index helps you analyze the efficiency of the cost utilized by the project. It measures the value of the work completed compared to the actual cost spent on the project. In simple words, the Cost Performance Index informs you of how much you are earning for each dollar spent on the project.
Formula to calculate the Cost Performance Index: Below is the formula to calculate the CPI:
Cost Performance Index = (Earned Value)/(Actual Cost)
CPI = EV/AC
With the above formula you can conclude that:
  • If the CPI is less than one, you are earning less than the spending. In other words, you’re over budget.
  • If the CPI is greater than one, you are earning more than the spending. In other words, you are under budget.
  • If the CPI is equal to one, this means earning and spending are equal. Or you can say that you are proceeding exactly as per the planned budget spending, although this rarely happens.
A mathematical example of Cost Performance Index: You have a project to be completed in 12 months and the total cost of the project is $100,000 USD. Six months have passed and $60,000 USD has been spent, but on closer review you find that only 40% of the work is completed so far. Find the Cost Performance Index (CPI) for this project and deduce whether you are under budget or over budget.
Given in question:

Actual Cost (AC) = $60,000
Planned Value (PV) = 50% of $100,000 = $50,000
Earned Value (EV) = 40% of $100,000 = $40,000

Now,

Cost Performance Index (CPI) = EV / AC = $40,000 / $60,000 = 0.67

Hence,

Cost Performance Index is 0.67
Since the Cost Performance Index is less than one, this means you are earning $0.67 USD for every $1 USD spending. In other words, you are over budget.

A consistently high or low value of SPI or CPI is an indication that something is wrong with either your planning and/or cost estimates.
In this case, check all assumptions and estimates for their correctness and take corrective action if needed.

What is the difference between Cost Variance, Schedule Variance and Cost Performance Index, and Schedule Performance Index?

You have studied the variances and indexes. Now you will be thinking that if you get the same information from both sets of parameters (i.e. variances and indexes), why can’t we just discard one set of parameters? Why aren't only schedule variance and cost variance taken into account, or schedule performance index and cost performance index? There is a difference between variance and index. In variance you find the difference between the two values, and in indexes you get the ratio between the two values.
In cost or schedule variance, the result comes in dollar form. If this number is negative, you say that the project is in bad shape. However, if this number is positive, you say that the project is in good shape. The problem with variance is that you cannot compare the health of the project with another project if your organization has many projects. Therefore, you use the Performance Indexes to compare the health of the project among many projects. The Performance Index is the ratio between the parameters, and only a glimpse of these ratios will be sufficient for you to get an idea about the health of the projects. Performance Indexes make it easier for you to compare the relative health of the projects. Here is where concepts related to Earned Value Management (EVM) complete. In the next blog post we will discuss forecasting techniques: Estimate at Completion (EAC) and Estimate to Complete (ETC). If you are interested in learning all mathematical formulas for the PMP exam, you can try my PMP Formula Guide to learn and practice more mathematical questions.
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