1

Monitoring and Controlling Monitoring and Controlling the Projectthe Project

Key ConceptsKey Concepts

Plan-Monitor-Control CyclePlan-Monitor-Control Cycle

Data Collection and ReportingData Collection and Reporting

Earned ValueEarned Value

2

Plan-Monitor-Control CyclePlan-Monitor-Control Cycle

Closed loop processClosed loop process Planning-monitoring-controlling effort Planning-monitoring-controlling effort

often minimized to spend time on often minimized to spend time on “the real work”“the real work”

3

Designing the Monitoring SystemDesigning the Monitoring System

Identify special characteristics of Identify special characteristics of performance, cost, and time that performance, cost, and time that need to be controlledneed to be controlled

Real-time data should be collected Real-time data should be collected and compared against plansand compared against plans

Avoid tendency to focus on easily Avoid tendency to focus on easily collected datacollected data

4

Formats of DataFormats of Data

Frequency CountsFrequency Counts Raw NumbersRaw Numbers Subjective Numeric RatingsSubjective Numeric Ratings Indicators and SurrogatesIndicators and Surrogates Verbal CharacterisationsVerbal Characterisations

5

Data AnalysisData Analysis

Aggregation TechniquesAggregation Techniques Fitting Statistical DistributionsFitting Statistical Distributions Curve FittingCurve Fitting Quality Management TechniquesQuality Management Techniques

6

Report TypesReport Types

RoutineRoutine ExceptionException Special AnalysisSpecial Analysis

7

ReportingReporting

Not all stakeholders need to receive Not all stakeholders need to receive same informationsame information

Avoid periodic reportsAvoid periodic reports Impact of Electronic MediaImpact of Electronic Media Relationship between project’s Relationship between project’s

information system and overall information system and overall organisation’s information systemorganisation’s information system

8

Meeting GuidelinesMeeting Guidelines

Should be help primarily for group Should be help primarily for group decision makingdecision making

Distribute written agenda in advance of Distribute written agenda in advance of meetingmeeting

Ensure everyone is properly prepared for Ensure everyone is properly prepared for meetingmeeting

Chair of meeting should take minutesChair of meeting should take minutes Avoid excessive formalityAvoid excessive formality If held to address specific crisis, restrict If held to address specific crisis, restrict

meeting to this issue alonemeeting to this issue alone

9

Earned ValueEarned Value

Percent of task’s budget actually Percent of task’s budget actually spent not good indicator of percent spent not good indicator of percent completioncompletion

10

Earned ValueEarned ValueACWP = Actual Cost Work PerformedACWP = Actual Cost Work PerformedBCWP = Budgeted Cost Work PerformedBCWP = Budgeted Cost Work PerformedBCWS = Budgeted Cost Work ScheduledBCWS = Budgeted Cost Work ScheduledSV = Schedule VarianceSV = Schedule VarianceCV = Cost VarianceCV = Cost VarianceAC = Actual CostAC = Actual CostTE = Planned TimeTE = Planned TimeTA = Actual TimeTA = Actual TimeCPI = Cost Performance IndexCPI = Cost Performance IndexSPI = Scheduled Performance IndexSPI = Scheduled Performance IndexTPI = Time Performance IndexTPI = Time Performance IndexCSI = Cost-Schedule IndexCSI = Cost-Schedule IndexETC = Estimated Cost to CompleteETC = Estimated Cost to CompleteBAC = Budget at CompletionBAC = Budget at CompletionEAC = Estimated Cost to CompleteEAC = Estimated Cost to CompleteFAC = Computed Cost to CompleteFAC = Computed Cost to CompleteVAC = Variance at CompletionVAC = Variance at CompletionLOE = Level of EffortLOE = Level of Effort

11

Earned ValueEarned Value

CV = BCWP - ACWPCV = BCWP - ACWP

SV = BCWP – BCWSSV = BCWP – BCWS

CPI = BCWP/ACWPCPI = BCWP/ACWP

SPI = BCWP/BCWSSPI = BCWP/BCWS

12

Earned ValueEarned Value

13

Earned ValueEarned Value

14

PROJECT CONTROLPROJECT CONTROL

BackgroundBackground Acts which seek to reduce Acts which seek to reduce

differences between plan and differences between plan and actualityactuality

Difficult TaskDifficult Task human behavior involvedhuman behavior involved problems rarely clear cutproblems rarely clear cut

15

Purpose of ControlPurpose of Control

Stewardship of Organisational AssetsStewardship of Organisational Assets physical asset controlphysical asset control human resourceshuman resources financial controlfinancial control

Regulation of Results Through the Regulation of Results Through the Alteration of ActivitiesAlteration of Activities

16

DESIGNING THE DESIGNING THE CONTROL SYSTEMCONTROL SYSTEM

Purpose is to correct errors, not punish the Purpose is to correct errors, not punish the guiltyguilty

Investments in control subject to Investments in control subject to diminishing returnsdiminishing returns

Must consider impact on creativity and Must consider impact on creativity and innovationinnovation

Be careful not emphasise short-run results Be careful not emphasise short-run results at the expense of long-run objectivesat the expense of long-run objectives

Dangers of across the board cutsDangers of across the board cuts

17

Primary Mechanisms by Which Primary Mechanisms by Which PM Exerts ControlPM Exerts Control

Process ReviewsProcess Reviews Personnel AssignmentsPersonnel Assignments Resource AllocationsResource Allocations

18

Components of a Control SystemComponents of a Control System

SensorSensor StandardStandard ComparatorComparator Decision MakerDecision Maker EffectorEffector

19

Types of Control SystemsTypes of Control Systems

Go/No-Go ControlsGo/No-Go Controls predetermined standard must be met predetermined standard must be met

for permission to be granted to continuefor permission to be granted to continue Post-ControlPost-Control

done after project completeddone after project completed purpose is to allow future projects to purpose is to allow future projects to

learn from past project experiencelearn from past project experience

20

SCOPE CREEP AND CHANGE SCOPE CREEP AND CHANGE CONTROLCONTROL

Coping with changes frequently cited Coping with changes frequently cited by PMs as the single most important by PMs as the single most important problemproblem

Common Reasons for Change RequestsCommon Reasons for Change Requests ClientClient Availability of new technologies and Availability of new technologies and

materialsmaterials

21

Purpose of Change Control Purpose of Change Control SystemSystem

Review all requested changesReview all requested changes Identify impact of changeIdentify impact of change Evaluate advantages and disadvantages of Evaluate advantages and disadvantages of

requested changerequested change Install process so that individual with Install process so that individual with

authority may accept or reject changesauthority may accept or reject changes Communicate change to concerned partiesCommunicate change to concerned parties Ensure changes implemented properlyEnsure changes implemented properly Prepare reports that summarize changes Prepare reports that summarize changes

made to date and their impactmade to date and their impact

22

Rules for Controlling Rules for Controlling Scope CreepScope Creep

Include in contract change control Include in contract change control systemsystem

Require all changes be introduced by a Require all changes be introduced by a change orderchange order

Require approval in writing by the Require approval in writing by the client’s agent and senior managementclient’s agent and senior management

Consult with PM prior to preparation of Consult with PM prior to preparation of change orderchange order

Amend master plan to reflect changesAmend master plan to reflect changes