8 Part 8: Annex

8.1 Method References

8.1.10 Project Planning and Control

Usage

Preparing Commercial Project Status Report, Planning Project

Reference

Bal00, Röt01, PMI

Purpose

The objective of project planning and control is the definition of projects and to monitor their progress towards a specific goal. Project planning and control may be performed with the following methods:

Gantt Chart and Network Planning Technique

The goal of the network planning technique is to schedule activities and at the same time take into account their dependencies. "Dependency" means for example that an activity may start only when another activity is finished.

As a notation for project plans, the "Gantt chart" is used. Gantt charts exist in different forms, as a so-called Meta Potential Method, as Program Evaluation and Review Technique or as Critical Path Method. These different notations are integrated by modern project planning tools.

As a basis for time scheduling, the network planning technique offers varying calculation methods: When entering the dependencies of the activities on each other, the durations of the activities and the earliest and latest project starting and end dates, it is for example possible to calculate critical paths. Critical paths consist of activities that depend on each other and whose delay will lead to an overall delay of the project.

Milestone Trend Analysis

A Milestone Trend Analysis (MTA) illustrates graphically the changed assessment of planned values at the various reporting times and the changed ratio between planned and actual values.

Earned Value Method

The "Earned Value Method" graphically presents a comparison between planned and actual values of the schedule and cost situation related to the progress of the work in a project. It combines performance progress measurement methods with cost tracking and time control.

In the EVV diagram three different views of the project progress are compared with each other:

• Planned value: Budget value of the planned performance,
• Actual Value: Actual value of the performance provided,
• Performance: Budget value of the performance provided.

From this parameters the value variance (actual value minus performance) and the performance variance (planned value minus performance) on a key day are determined.

Cost-Benefit Analysis

See the description of »Cost-Benefit Analysis .