Project Financing in India

Project Monitoring & Project Controlling
Andreas Range
Dresden, July 7th 2016

Andreas Range
Introduction
Office
Berlin
Job Tenure Level
10,5 years @ Accenture Senior Manager
Role Professional Background

Analytics - Information Management
Reporting &
Planning Expert
Percentage of people
who joined after me
90%
Clients
Organization
Accenture Digital
Copyright © 2016 Accenture. All rights reserved. 2

Agenda
 Accenture Profile
 General Overview Project Management @ Accenture
 Project Calculation & Project Planning
 Project Monitoring & Controlling

375,000 employees at Accenture serve more than
4,000 clients around the world
About Accenture
Facts1
375,000+
 Leadership: ~6.200 Managing Directors
 31.0 billion USD revenues in FY15
 Geographic Regions:
More than 305,000 people serving clients in more than 120 countries1
 Americas
 Asia Pacific
 Europe / Middle East / Africa
200+
Offices and operations in
$31.0B
Net revenues for fiscal year 2015
more than 200 cities in 54 countries
Communications, Financial Health & Public Products Resources

Media & Services Services
Technology Clients
 4,000 clients in more than 120 countries
 89 of the Fortune Global 100
Accenture Strategy
 3/4 of the Fortune Global 500
Accenture Digital  28 of the DAX-30 companies
 99 of our top 100 clients have been clients
Accenture Technology for at least 5 years, 92 have been clients
for at least 10 years
Accenture Operations
1 As of Aug 31, 2015

Did you know?
About Accenture

Agenda

Project Management focuses on measurement-driven
results, repeatable processes and clear communication.
Project Management – Introduction
 “A project is a temporary endeavor undertaken to create and deliver a unique product,
service or result."
 “Project Management is the application of knowledge, skills, tools, techniques and
processes to help clients make better decisions and to complete deliverables that meet
a project’s requirements.”
Where
Where do
am I
I want to
operating
be?
now?
Principles:
1. Be clear on where you’re going
2. Plan carefully on how you will get there
3. Deliver on promises made in your project plan

It is helpful to use the SQERT model when thinking
about Project dimensions
SQERT Model
Quality
Quality Action Plan
Effort Time
Estimates and
High Level Schedule
Resource Plan Project
Scope Risk
Work Breakdown
Risk Management Plan
Structure
©Accenture 2006. All Rights Reserved. For Internal Use Only. 9

Our comprehensive methodology provides tools to help
manage projects effectively on schedule and on budget
Accenture Project Management Approach Real Life
Scope Management Schedule Management
 Project Management Plan  Project Schedule

 Change control process  Schedule Monitoring
 Scope Management Plan Scope
Schedule
Management
Management
Subcontractor Management Quality Management
 Seamless integration Quality  Quality assurance planning and review

Subcontractor Management
 Performance tracking and assessment  Deliverable Management
Management
 Subcontractor Management Plan  Quality Management Plan
Data Management Cost Management

Data
Cost
 Secure management of documentation Management  Budget management process
Management
 Configuration management  Metrics tracking
 Cost Management Plan
Contract Management Issue Issue Management

Contract Management
Management
 Contract Modification Process  Issue identification
 Contract Management Plan  Issue Management Plan
Risk
Oversight and Monitoring Oversight and Management Risk Management
Monitoring
 Management Dashboard  Risk radar and assessment
 Common processes / tools  Risk Management Plan
Copyright © 2016 Accenture. All rights reserved. 10 10

Agenda

The general planning process includes four process
steps – we focus on the estimation of a project’s scope
Project Planning– Scope Management
4. Determine
1. Confirm Project 2. Estimate 3. Schedule
Resource
Scope Scope Work
Needs
Stakeholder Goals Work Break Down Project Plan Roles and

and Expectations Structure (WBS) Responsibilities
Project Scope Detailed time/cost Entry/Exit Criteria Resource work

Definition Estimates for each profile
area within scope
Business Case Risk Analysis Delivery Strategy

and Solution
Metrics

There are three key project management processes
supporting a project’s life cycle.
Project Management Process
The three key processes Plan, Monitor and Control are co-dependent and
continuously cycle throughout all of the stages of the project.

The project management method is part of Accenture
Delivery Methods (ADM), our master project approach
Accenture Delivery Methods (ADM) Real Life

Planning and calculation are the initial steps in setting
up a project – adaptions are possible within the lifecycle
Project Calculation & Project Planning Real Life
Project Calculation Project Planning

 Project calculation is used for the  Project planning is an essential
estimation of efforts for the completion part zu ensure that the adequate
of tasks which builds the baseline for team members execute the right
solid project controlling. tasks at the right time.
 Without a precise estimation of efforts  Project planning includes:
a project can...  Project Plan
 ...exceed the time and budget planning  Milestones
 ...radically reduce the profit margin  Planning of resources
 ...decrease the team morale
Example ADM Estimator MS Project task structure

There are two different examples of how a WBS could
be structured for a project
Project Planning – Define WBS
“ WBS (Work Breakdown Structure) …

 is a description of the project’s scope as defined by the program management.
 is used for defining the scope of a project in terms of its outcomes and deliverables.
”
 becomes the structure of your work plan within MS Project.
vs.
Facilitates Project Reporting by Phase Facilitates Project Reporting by Module
Project Project
Design Build Test Deploy Module 1 Module 2 Module 3
Management Management
Module 1 Module 1 Design Design
Module 2 Module 2 Build Build

A combination of top-down and bottom-up estimating
models are used to approximate the amount of work
Top-Down and Bottom-Up Estimating
Top-Down  +/- 25% accuracy, depending on project lifecycle status.

 In early lifecycle stages, you may want to consider
increasing the contingency percentage beyond 20%.
 8-12 factors.
 Extensive use of approximations and “rule-of-thumb”
assumptions.
 Typically used during initial selling stage activities.
 +/- 10% accuracy.

 60-100 factors.
 Less use of approximations and assumptions. Use
iteratively throughout a project’s lifecycle to constantly
refine and fine-tune an estimate, as more detailed
Bottom-Up requirements are identified.
 Used primarily after the initial selling stage activities.

ADM Estimators provide Input for Workplan and Cost /
Pricing Models
ADM Estimators – Benefits ADM Real Life
Tasks, Activity &

Role Navigation GPS
ADM Estimator Microsoft Project

Top Down / Bottom Up
ADM
Estimator
(e.g. Custom or GPS
SAP) Tasks & Hours
GPS
Levels, Bill Codes,

Duration GPS
18
ADM Estimators are tightly Integrated with Accenture
Delivery Methods
ADM Project Management – Plan Example Real Life
ADM Estimators support project Inputs Outputs

managers at different stages of a  Project Scope Definition  Detailed Project
project by helping:  Iteration Strategy Assumptions
 Define scope of work and factors  Strawman Estimate /  Bottom-up Estimate
 Document detailed assumptions Assumptions  Work Plan (via export to MS
 Generate task-level estimates  Project Road Map Project)
 Complete budget, schedule and  Sponsor Goals &
resource
©Accenture 2006. All Rights estimates
Reserved. For Internal Use Only.
Expectations 19
Agenda

Monitoring and controlling are necessary to initiate
measures at the right time of the project lifecycle
Project Monitoring & Controlling
Definition: „...the monitoring a project‘s proceedings along an as-is vs. to-be comparison.
In case of any occurring problems adequate corrective measures have to be initiated.“
Project Monitoring Project Controlling
 The Monitor process involves the  The Control process involves the
following activities and deliverables: following activities and deliverables:
ACTVITIES DELIVERABLES ACTVITIES DELIVERABLES
Daily ‘Touch-Points’ N/A Management of • Change Request
with Team changes to project Form
Weekly Status • Meeting Minutes scope
Meetings • Status Report Escalation of issues The following is in
• Issue Log and risks that require dashboard format:
• Risk Register intervention from roles • Status Report
Reviews and QA of • Quality Assurance higher in the project • Issue Log
deliverables Report structure • Risk Register
• Minutes from ad hoc
Tracking against • Milestone Report Meetings
Project Work • Risk Register
Schedule
Identifying Risks and • Risk Register
Issues • Issue Log

During the project lifecycle adaptions in the project
triangle (SQERT) can be necessary
Three Dimensions of Project Controlling
“
3 Dimensions
PLANNING and
”
MONITORING
1
Target Control
Management of Scope, e.g. definition of results are iterative activities
per each project phase / approval
Target
(in scope)
2 Time Control
Time Schedule, e.g. milestone trend analysis
3
Project
Cost Control
Cash Outflow/ Inflow, e.g. Earned Value Analysis Time Cost
(in time) (in budget)
“ PLANNING
has to be adapted as precisely as it
”
was created

In order to monitor a project's progress it is
recommended to define and evaluate SMART goals
Target Control – SMART Goals
S SPECIFIC
M MEASURABLE
Accenture Additions:
Quality
What is the required quality?
A ACHIEVABLE
Unambiguous
Are all addressees on the same page?
Prioritized
Prioritization possible for planning / releases?
R RELEVANT Traceable
Where does the objective/ request come from?
T TIME-BOUND

Examples: Milestone Trend Analysis / Gantt-Chart
Time Control Real Life
Example 1: Example 2:
Milestone Trend Analysis Progress Control via Gantt-Chart
Milestone Dates
Reporting Time

There are three types of earned value metrics: base,
summary, and forecast metrics
Cost Control
Basics Example
 Industry standard to measure the project Measurement Workbook
progress:
− Forecasting of the date of completion and final
costs.
− Shows time and budget deviations.
 Three different types of earned value metrics
exist:
Base Summary Forecast
 Provides the  Provide  Forecasts

basis to information project
calculate all to assess status at
other the current completion.
metrics. state of the  Derived
 Used in project from a
conjunction  Based on combination
with the Earned of base and
summary Value (EV) summary
and forecast base metric. metrics.
metrics.
Cost & Schedule Macro Results
There are different types of base metrics in place – the
0/100 formula is recommended for EV calculation
Base Metrics
Metric Definition and Formula
Budget at Completion (BAC)  Budget for the task, summary task, phase or other WBS component
 BAC = Baseline budget expressed in days or hours, not dollars
Actual Cost (AC)  Actual cost of any work that has been performed
 AC = Amount of effort already spent or “burned” expressed in terms
of days or hours not dollars
Earned Value (EV)  Total amount of effort, in hours or days, for tasks that are 100% complete
 EV = 0 if task is NOT complete, EV = BAC, if task is complete
Planned Value (PV)  Budgeted amount of effort, measured in hours for tasks scheduled to be
100% complete
 PV = BAC if task is due prior to status date
PV = 0 if task is due after status date
Earned Value Calculation Methods:
 0/100 formula Accenture Recommendation
– Tasks must be 100% complete, then earned value equals Budget at Completion (BAC)
 Other methods for calculating Earned Value include:
– 50/50 formula
– Ratio to earned standards
– Milestones
– Percent complete
– Milestones / Percent complete
There are different types of summary metrics –
therefore variances and indices are calculated
Summary Metrics
Cost Variance (CV)  The difference between the actual costs and the budgeted (baseline)
costs
 CV = Earned Value – Actual Cost (EV-AC)
Schedule Variance (SV)  Determines whether the project is on, ahead, or behind schedule
 SV = Earned Value – Planned Value (EV-PV)
Cost Performance Index (CPI)  The ratio of budgeted cost to actual cost used to predict the magnitude of
a possible cost overrun or under-run at a given point in time
 CPI = Earned Value/Actual Cost (EV/AC)
Schedule Performance Index (SPI)  The ratio of budgeted cost to planned cost used to predict the magnitude
of a possible cost overrun or under-run at a given point in time
 SPI = Earned Value/Planned Value (EV/PV)

Different types of forecasting metrics can be used for
project performance and completion estimations
Forecast Metrics
To-Complete Performance Index (BAC-EV)/(BAC-AC)
(TCPI) (Budget at Complete – Total Earned Value)/(Total Budget at Complete –
Actual Cost)
Statistical Estimate to Complete (BAC – EV)/CPI
(STAT ETC) (Budget at Complete – Earned Value)/Cost Performance Index
Statistical Estimate at Completion AC + STAT ETC
(STAT EAC) Actual Cost + Statistical Estimate to Complete
Statistical Variance at Completion BAC – STAT EAC
(STAT VAC) Budget at Complete – Statistical Estimate at Completion

There are various further tools and methods that can be
used for the monitoring and controlling of a project
Further Project Monitoring & Controlling Dimensions Extract
 Supplier / Consultantancy Margin Targets
 Control of Contingency
FINANCIALS  Control of Travel Expenses
 Business Case Monitoring
 Qualitative Risk Assessment

RISKS  Quantitative Risk Assessment
 Includes Opportunities and Threats
 Communication Plan
 Stakeholder Management (Key Stakeholder Matrix)
COMMUNICATION  Change Management Instruments (Workshop)
 Target Group Refinement
 Quality Assurance (Interviews, Surveys,…)

 Quality Management and Configuration
QUALITY  Management as a Planning Function
 Test Statistics
 Employee / Project Survey

 Control of Overtime
HR  Individual Development / Motivation and
Performance Evaluation
 Monitoring of Supplier Contracts

 Cost Control
SOURCING  Regular Check of Conditions
 Spend Management

Special tools are used for the calculation of cost and
revenues
Financials Monitoring & Controlling – Examples Real Life

Additional examples exist for the monitoring and
controlling of risks
Risk Monitoring & Controlling – Example Real Life
Risk Register
= High Risk after Mitigation
= Medium Risk after Mitigation
= Low Risk after Mitigation
Damage
Nr. Risk Risk name Project Date Source before Mitigation strategy, Remarks
entry
Risk Description Short name Project Evaluation Damage will Probability Consequence Risk Dependency to
of risk name Date occur 1: 25% 1: < 10 T€ Classification stream
approximatel 2:50% 2: 10 - 50 T€ value
y on date 3:75% 3: 50 - 100 T€ RCV1
(mmm. yy) 4:100% 4: 100 - 300 T€
5: > 300 T€
1 asdf Parallelise IT IT 19.11.08 rad Mrz. 09 3 3 Detailed resource planning of both

concept (R2) project phases
and template 9
(R1)
2 asdf Less IT 19.11.08 rad Jun. 10 2 5 Wait of detailed IT architecture

ressources information
for run SAP 10
in futur
3 asdf Scope of BM 14.08.08 Unknown Sep. 08 2 3 Scope has to be roughly defined in
divisional business early stage of concept phase.
planning requirements 6 Implementation is included in
2009.

When planning and controlling resources if is important
to keep some facts in mind
Resource Monitoring – Recommendations
Loading Resources Monitoring Resources Levelling Resources
 Assign & monitor experienced  Examples of over-utilization –  Do not plan for an absolute
resources to critical path tasks during planning: 100% utilization of all
to mitigate the risk of schedule − Fulltime assignment on >1 resources.
slippage. task during the same time.  At Accenture it is important for
 If resource availability permits, − Assignment to a summary resources to have time for non-
assign the same resource to task and 1+ of the subtasks. project activities important to
work on inter-related tasks in our organization and to the
 Examples of over-utilization –
the work plan. morale of the resources (such
after project start:
 Take advantage of the context as PTO, training, community
− Increased duration of tasks. meetings, etc.).
the resource has specific to the
work and increase efficiency. − Increased assignment units  Consider the morale of
for resources. individuals.
 Avoid assigning multiple
resources to a task. − Decreased unit availability
for resources.
Select and monitor the A flexible project structure is Maximize resource utilization
resource with the right required as from time to time without exceeding their
experience and skills for the there are likely to be availability.
task. resources that are over or
under-utilized.

Keeping a few rules in mind can help you to manage
your daily project work in a successful manner
11 Golden Rules in Practice
#1 – Only completion is final
#2 – Climb the wall. Problems are your business
#3 – Escalate problems quickly
#4 – Give managers a chance to manage
#5 – Problems need owners
#6 – Ask (the right) questions
#7 – Issues and risks are different
#8 – Always have a work plan
#9 – Know your status – KPIs (CV, SV, CPI, SPI)
#10 – Stay clear on scope
#11 – Write it down
Andreas Range
Accenture GmbH
Friedrichstraße 78
10117 Berlin
Mobil: +49175 57 63316
E-Mail: Andreas.Range@accenture.com

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Project Monitoring & Project Controlling

Dresden, July 7th 2016

Role Professional Background

Copyright © 2016 Accenture. All rights reserved. 2

 General Overview Project Management @ Accenture

 Project Calculation & Project Planning

 Project Monitoring & Controlling

Copyright © 2016 Accenture. All rights reserved. 3

Communications, Financial Health & Public Products Resources

1 As of Aug 31, 2015

Copyright © 2016 Accenture. All rights reserved. 4

Copyright © 2016 Accenture. All rights reserved. 5

 General Overview Project Management @ Accenture

 Project Calculation & Project Planning

 Project Monitoring & Controlling

Copyright © 2016 Accenture. All rights reserved. 6

Copyright © 2016 Accenture. All rights reserved. 8

©Accenture 2006. All Rights Reserved. For Internal Use Only. 9

Scope Management Schedule Management

 Project Management Plan  Project Schedule

 Seamless integration Quality  Quality assurance planning and review

Data Management Cost Management

Contract Management Issue Issue Management

Copyright © 2016 Accenture. All rights reserved. 10 10

 General Overview Project Management @ Accenture

 Project Calculation & Project Planning

 Project Monitoring & Controlling

Copyright © 2016 Accenture. All rights reserved. 11

Stakeholder Goals Work Break Down Project Plan Roles and

Project Scope Detailed time/cost Entry/Exit Criteria Resource work

Business Case Risk Analysis Delivery Strategy

Copyright © 2016 Accenture. All rights reserved. 12

Copyright © 2016 Accenture. All rights reserved. 13

Copyright © 2016 Accenture. All rights reserved. 14

Project Calculation Project Planning

Example ADM Estimator MS Project task structure

Copyright © 2016 Accenture. All rights reserved. 15

“ WBS (Work Breakdown Structure) …

Module 1 Module 1 Design Design

Module 2 Module 2 Build Build

Copyright © 2016 Accenture. All rights reserved. 16

Top-Down  +/- 25% accuracy, depending on project lifecycle status.

 +/- 10% accuracy.

Copyright © 2016 Accenture. All rights reserved. 17

Tasks, Activity &

ADM Estimator Microsoft Project

Levels, Bill Codes,

ADM Estimators support project Inputs Outputs

 General Overview Project Management @ Accenture

 Project Calculation & Project Planning

 Project Monitoring & Controlling

Copyright © 2016 Accenture. All rights reserved. 20

Copyright © 2016 Accenture. All rights reserved. 21

Copyright © 2016 Accenture. All rights reserved. 22

Copyright © 2016 Accenture. All rights reserved. 23

Copyright © 2016 Accenture. All rights reserved. 24

Base Summary Forecast

 Provides the  Provide  Forecasts

©Accenture 2006. All Rights Reserved. For Internal Use Only. 27

©Accenture 2006. All Rights Reserved. For Internal Use Only. 28

 Qualitative Risk Assessment

 Quality Assurance (Interviews, Surveys,…)

 Employee / Project Survey

 Monitoring of Supplier Contracts