Report PerformanceReport PerformanceMonitor & Control RiskMonitor & Control Risk

Administer ProcurementAdminister Procurement

MONITORING & CONTROLLINGMONITORING & CONTROLLING PROCESSPROCESS

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IS EVERYONE ON BOARD? FASTEN YOUR SEAT BELTS.

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Monitoring & Controlling Processes Monitoring & Controlling Processes GroupGroup The Monitoring and Controlling The Monitoring and Controlling

Process Group consists of those Process Group consists of those processes performed to observe processes performed to observe project execution so that project execution so that potential problems can be taken, potential problems can be taken, when necessary, to control the when necessary, to control the execution of the project.execution of the project.

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Monitoring & Controlling Processes Monitoring & Controlling Processes GroupGroupThe key benefit of this Process Group is that The key benefit of this Process Group is that

project performance is observed and project performance is observed and measured regularly to identify variances measured regularly to identify variances from the project management plan.from the project management plan.

The Monitoring and Controlling Process Group The Monitoring and Controlling Process Group also includes, for example:also includes, for example:

Monitoring the ongoing project activities Monitoring the ongoing project activities against the project management plan and against the project management plan and the performance baselinethe performance baseline

Influencing the factors that could circumvent Influencing the factors that could circumvent integrated change control so that only integrated change control so that only approved changes are implementedapproved changes are implemented

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Monitoring & Controlling Processes Monitoring & Controlling Processes GroupGroup

This continuous monitoring provides This continuous monitoring provides the project team insight into the the project team insight into the health of the project and highlights health of the project and highlights any areas that require additional any areas that require additional attentionattention

The Monitoring and Controlling Process The Monitoring and Controlling Process Group not only monitors and controls Group not only monitors and controls the work being done within the the work being done within the Process Group, but also monitors and Process Group, but also monitors and controls the entire project effort. controls the entire project effort.

REPORT PERFORMANCEREPORT PERFORMANCE

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Report Performance Report Performance Report Performance is the process Report Performance is the process of collecting and distributing of collecting and distributing performance information, including performance information, including status reports, progress status reports, progress measurements, forecasts. measurements, forecasts.

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Report PerformanceReport Performance The Performance Reporting process involves the The Performance Reporting process involves the

periodic collection and analysis of baseline versus periodic collection and analysis of baseline versus actual data to understand and communicate the actual data to understand and communicate the project progress and performance as well as to project progress and performance as well as to forecast the project results forecast the project results

Performance reports need to provide information Performance reports need to provide information detailed enough for each audience. detailed enough for each audience.

The format range from a simple status report to The format range from a simple status report to more elaborate reports.more elaborate reports.

A simple status report might show:A simple status report might show: Performance Data such as percent completePerformance Data such as percent complete Information on scope, schedule, cost, and quality.Information on scope, schedule, cost, and quality.

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Report PerformanceReport Performance

More elaborate reports may include:More elaborate reports may include:-Analysis of past performance;-Analysis of past performance;-Current status of risk and issues;-Current status of risk and issues;-Work completed during the period;-Work completed during the period;-Work to be completed next;-Work to be completed next;-Summary of changes approved in the -Summary of changes approved in the period;period;-and other relevant information which -and other relevant information which must be reviewed and discussedmust be reviewed and discussed

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Report PerformanceReport Performance

A complete report should also include A complete report should also include forecasted project completion (including forecasted project completion (including time and cost). These reports may be time and cost). These reports may be prepared regularly or on an exception prepared regularly or on an exception basisbasis

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Transformation• Variance Analysis• Forecasting Methods• Communication Methods• Reporting Systems

Outputs• Performance Reports• Change Requests• Organizational Process Assets updates)

Inputs• Project Management Plan • Work Performance Data• Work Performance Measurements• Organizational Process Assets

Report Performance

CAN 2008Direct and Manage Project

Execution

Close Project

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Report Performance - InputsReport Performance - InputsA. Project Management Plan that contains A. Project Management Plan that contains

the performance management baseline the performance management baseline (scope, schedule, cost parameters as (scope, schedule, cost parameters as well as technical and quality parameters)well as technical and quality parameters)

B. Work Performance DataB. Work Performance DataDeliverable statusDeliverable statusSchedule progressSchedule progressCosts incurredCosts incurred

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Report Performance - InputsReport Performance - InputsC. Work Performance MeasurementsC. Work Performance Measurements

•Planned vs. actual schedule performancePlanned vs. actual schedule performance•Planned vs. actual cost performancePlanned vs. actual cost performance•Planned vs. actual technical performancePlanned vs. actual technical performance

D. Organizational Process AssetsD. Organizational Process Assets•Report templatesReport templates•Policies and procedures that define the Policies and procedures that define the measures and indicators to be usedmeasures and indicators to be used

•Organizationally defined variance limits Organizationally defined variance limits

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Just checking that you are not sleeping

MONITOR AND MONITOR AND CONTROL RISKCONTROL RISK

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Monitor and & Control RiskMonitor and & Control Risk

Risk monitoring and control is the Risk monitoring and control is the process of identifying, analyzing, and process of identifying, analyzing, and planning for newly arising risks, and planning for newly arising risks, and keeping track of the identified risks keeping track of the identified risks and those on the watchlist, and those on the watchlist, reanalyzing existing risks, monitoring reanalyzing existing risks, monitoring trigger conditions for contingency trigger conditions for contingency plans, monitoring residual risks, and plans, monitoring residual risks, and reviewing the execution of risk reviewing the execution of risk responses while evaluating their responses while evaluating their effectiveness. effectiveness.

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Risk Monitoring & ControlRisk Monitoring & Control The Risk Monitoring and Control The Risk Monitoring and Control

process applies techniques such process applies techniques such as variance and trend analysis, as variance and trend analysis, which require the use of which require the use of performance data generated performance data generated during project execution.during project execution.

Risk monitoring and Control, as Risk monitoring and Control, as well as the other risk management well as the other risk management processes, is an ongoing process processes, is an ongoing process for the life of the project. for the life of the project.

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Risk Monitoring & ControlRisk Monitoring & ControlOther purposes of the Risk Monitoring Other purposes of the Risk Monitoring

and Control are to determined if:and Control are to determined if:•Project assumptions are still validProject assumptions are still valid•Risk, as assessed, has changed from Risk, as assessed, has changed from its prior state, with analysis of its prior state, with analysis of trendstrends

•Proper risk management policies Proper risk management policies and procedure are followedand procedure are followed

•Contingency reserves of cost or Contingency reserves of cost or schedule should be modified in line schedule should be modified in line with the risks of the projectwith the risks of the project

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Monitor and Control RiskMonitor and Control RiskRisk Monitoring and Control can involve Risk Monitoring and Control can involve choosing alternative strategies such as choosing alternative strategies such as executing a contingency or fallback plan, executing a contingency or fallback plan, taking corrective actions, and modifying the taking corrective actions, and modifying the project management plan. project management plan. The risk response owner reports periodically The risk response owner reports periodically to the project manager on the effectiveness of to the project manager on the effectiveness of the plan, any unanticipated effects, and any the plan, any unanticipated effects, and any mid-course correction needed to handle the mid-course correction needed to handle the risk appropriately.risk appropriately.

Risk Monitoring and Control also includes Risk Monitoring and Control also includes updating the organizational process assets updating the organizational process assets including project lessons-learned databases including project lessons-learned databases and risk management templates for the and risk management templates for the benefits of future projects.benefits of future projects.

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Tools and Techniques• Risk Reassessment• Risk Audits• Variance and Trend Analysis• Technical Performance Measurement•Reserve Analysis• Status Meetings

Outputs• Risk Register (Update)• Change Requests•Organizational Process Assets Updates•Project Management Plan Updates• Project document updates

Inputs• Risk Register • Risk Management Plan• Work Performance Data• Performance Reports

Risk Monitoring and Control

CAN 2008Direct and

Manage Project

Execution

Close Project

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Just checking that you are not sleeping

ADMINISTER ADMINISTER PROCUREMENTPROCUREMENT

MONITORING AND MONITORING AND CONTROLLINGCONTROLLING

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Administer ProcurementAdminister Procurement Administer Procurements is the Administer Procurements is the

process of managing procurement process of managing procurement relationships, monitoring contract relationships, monitoring contract performance, making changes and performance, making changes and corrections needed.corrections needed.

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Administer Administer ProcurementProcurement Both the buyer and the seller Both the buyer and the seller

administer the contract for similar administer the contract for similar purposes. Each party ensures they purposes. Each party ensures they are meeting their contractual are meeting their contractual obligations and that their own legal obligations and that their own legal rights are protected.rights are protected.

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Administer ProcurementAdminister Procurement The Administer Procurement The Administer Procurement

process ensures that the seller’s process ensures that the seller’s performance meets contractual performance meets contractual requirements and that the buyer requirements and that the buyer performs according to the terms of performs according to the terms of the contract. On larger projects with the contract. On larger projects with multiple products, services, and multiple products, services, and results providers, a key aspect of results providers, a key aspect of contract administration is managing contract administration is managing interfaces among the various interfaces among the various providers. providers.

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Administer ProcurementAdminister Procurement The legal nature of the contractual The legal nature of the contractual

relationship makes it imperative that the relationship makes it imperative that the project management team is acutely aware project management team is acutely aware of the legal implications of action taken of the legal implications of action taken when administering any contract. Because of when administering any contract. Because of the legal considerations, many organizations the legal considerations, many organizations treat contract administration as an treat contract administration as an administrative function separate from the administrative function separate from the organization. organization.

While a procurement contract administrator While a procurement contract administrator may be on the project team member, this may be on the project team member, this individual typically reports to a supervisor individual typically reports to a supervisor from a different department.from a different department.

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Administer ProcurementAdminister Procurement Administer Procurement Administer Procurement

includes application of the includes application of the appropriate project appropriate project management processes to the management processes to the contractual relationship (s), and contractual relationship (s), and integration of the outputs from integration of the outputs from these processes into overall these processes into overall management of the project.management of the project.

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Administer ProcurementAdminister ProcurementThe project management processes that are The project management processes that are applied include:applied include:

Direct and Manage Project Execution to authorize Direct and Manage Project Execution to authorize the contractor’s work at the appropriate timethe contractor’s work at the appropriate time

Report Performance to monitor contractor cost, Report Performance to monitor contractor cost, schedule, and technical performanceschedule, and technical performance

Perform Quality Control to inspect and verify the Perform Quality Control to inspect and verify the adequacy of the contractor’s productadequacy of the contractor’s product

Perform Integrated Change Control to assure that Perform Integrated Change Control to assure that changes are properly approved, and that all those changes are properly approved, and that all those with a need to know are aware of such changes with a need to know are aware of such changes

Monitor and Control Risk to ensure that risks are Monitor and Control Risk to ensure that risks are mitigated mitigated

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Administer ProcurementAdminister Procurement

The Contract Administration process The Contract Administration process reviews and documents how well a seller is reviews and documents how well a seller is performing or has performed based on the performing or has performed based on the contract and established corrective actionscontract and established corrective actions

Also, the performance is documented as a Also, the performance is documented as a basis for future relationships with the basis for future relationships with the seller.seller.

Seller performance evaluation by the Seller performance evaluation by the buyer is primarily carried out to confirm buyer is primarily carried out to confirm the competency or lack of competency of the competency or lack of competency of the seller, relative to performing similar the seller, relative to performing similar work on the project or other projectswork on the project or other projects

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Administer Administer ProcurementProcurement

Contracts can be amended any Contracts can be amended any time prior to contract closure by time prior to contract closure by mutual consent, in accordance mutual consent, in accordance with the change control terms of with the change control terms of the contract. Such amendments the contract. Such amendments may not always be equally may not always be equally beneficial to both the seller and beneficial to both the seller and the buyer.the buyer.

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Tools and Techniques• Contract Change Control System• Procurement Performance Review• Inspections and Audits• Performance Reporting• Payment Systems• Claims Administration• Records Management System

Outputs• Procurement Documentation• Requested Changes• Organizational Process Assets updates• Project Management Plan Updates

Inputs• Procurement Documents• Procurement Management Plan• Selected Sellers• Performance Reports• Approved Change Requests• Work Performance Data

Administer Procurement

CAN 2008Direct and

Manage Project

ExecutionClose

Project

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Thank YouThank You

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Earned Value - VariablesEarned Value - Variables

IndependentIndependent

Planned Value, PVPlanned Value, PV

Earned Value, EVEarned Value, EV

Actual Cost, ACActual Cost, AC

Dependent Dependent

Schedule Performance Index, SPISchedule Performance Index, SPI

Cost Performance Index, CPICost Performance Index, CPI

Schedule Variance, SVSchedule Variance, SV

Cost Variance, CVCost Variance, CV

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Schedule PerformanceSchedule Performance

Schedule Variance = EV - PVSchedule Variance = EV - PV

-ve: project behind schedule-ve: project behind schedule

+ve: project ahead of schedule+ve: project ahead of schedule

±0: project on schedule or completed±0: project on schedule or completed

EVEV SPISPI

<1: value less than scheduled value – bad <1: value less than scheduled value – bad

=1: value equal to scheduled value – expected =1: value equal to scheduled value – expected

>1: value greater than scheduled – good>1: value greater than scheduled – good = PVPV

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Cost PerformanceCost Performance

Cost Variance = EV - ACCost Variance = EV - AC

-ve: project over budget – bad?-ve: project over budget – bad?

±0: project on budget – expected value±0: project on budget – expected value

+ve: project under budget – good?+ve: project under budget – good?

CPICPI

<1: cost overrun of the estimates – bad?<1: cost overrun of the estimates – bad?

=1: value equal to value spent – expected value=1: value equal to value spent – expected value

>1: cost underrun of the estimates – good?>1: cost underrun of the estimates – good?= EVEVACAC

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Forecasting EquationsForecasting Equations ETC = BAC - EVETC = BAC - EV

ETC = (BAC - EV)/CPIETC = (BAC - EV)/CPI

ETCEAC

Project Start

Data Date Project End

AC

EAC = EAC = AC + ETCAC + ETC = AC + (BAC - EV) = AC + (BAC - EV)

EAC = AC +EAC = AC +

BAC - EVCPI

}

}

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The EndThe End

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Just checking that you are not sleeping