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ManagerNewz DirectoryHow To Manage Cost And Schedule Performance
By Craig Borysowich
Expert Author
Article Date: 2008-06-30
To monitor and control the costs, schedule and technical performance of the project team.
Method
Identify and document the project-specific standards and procedures for such things as status reporting, time reporting, and project tracking.
Make sure that no work is undertaken until it is properly planned and thought through. If work is to proceed when a contract has not been signed, make sure that, as a minimum, a signed contract equivalent has been received from the customer. See also:
Checklist for Authorizing Work
Starting Without a Contract
Have each team member complete his or her Project Tracking Document by entering the actual effort expended against each task during the reporting period, reviewing and re-estimating the remaining effort to completion on each task, and re-forecasting the expected completion date for each task.
Checklist for Tracking Project Status
Have each team member use the Project Weekly Status Report template to prepare an individual weekly status report. Make sure that each report is brief (point form), focused on the key information to be communicated, and directly related to the team member's scheduled activities as defined in his or her Project Tracking Document. Sit down with each team member to go over his or her Weekly Status Report, identify and resolve any variances from plan, assess the team member's continuing commitment, and review whether there are any new risk factors present.
Summarize all individual status reports to the team or project level to provide key accomplishments, objectives, and problems (if any) for the week. Attach statistics and/or charts or configuration management reports showing the screen, report and function counts to provide a quantitative view of progress.
Checklist for Weekly Status Reporting
Use the Project Monthly Status Report template to prepare a monthly status report. Distribute the Project Monthly Status Report (minus any company confidential attachments) to the Delivery Line Manager, the Acceptor, and the Acceptor's Line Manager (i.e., the core members of the Project Steering Committee), as part of the regular progress review process.
Use the project's financial management tool to update the Project Financial Plan. Review all costs and estimates to complete for the remainder of the project and make sure that these costs and estimates are still accurate and achievable.
Project Financial Plan
Analyze cost and schedule variances from plan and take corrective action to resolve significant variances, such as replanning the remaining work or taking actions to improve performance. If cost or schedule performance appears to be slipping, the first step is to explore alternate approaches to resolve the problem within the currently approved version of the Project Work Plans. However, if the customer's view of the Project Work Plans is no longer feasible, the approved Work Plans must be modified. All changes to the formally approved Work Plans must be approved in accordance with the formal Change Control procedures.
Project Replanning Checklist
Arrange for an independent project review on a regular basis, to assess and increase the probability of project success.
Manage the payment process so as to maximize project profitability. Make sure that the payment process, criteria, and payment schedule are clearly summarized and communicated to project team members and accounting staff. Trigger invoices at the earliest possible opportunity. Deliver the invoice to the customer by hand for major receivables so that you can confirm it is acceptable, or at least by courier so that you have documented proof of delivery. Collect the payment from the customer (by hand if necessary) and get it into the corporate account the same day that it is available.
Comments
About the Author:
Craig Borysowich has over 18 years of Technology Consulting experience with both public and private sector clients, including ten years in Project Leadership roles. His extensive background in working with large scale, high-profile systems integration and development projects that span throughout a customer’s organization allows him to help consulting organizations world-wide to deliver better quality projects more consistently.
