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1 Monitoring and Controlling the Project Key Concepts Plan-Monitor-Control Cycle Data Collection and Reporting Earned Value.

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Presentation on theme: "1 Monitoring and Controlling the Project Key Concepts Plan-Monitor-Control Cycle Data Collection and Reporting Earned Value."— Presentation transcript:

1 1 Monitoring and Controlling the Project Key Concepts Plan-Monitor-Control Cycle Data Collection and Reporting Earned Value

2 2 Plan-Monitor-Control Cycle Closed loop process Closed loop process Planning-monitoring-controlling effort often minimized to spend time on “the real work” Planning-monitoring-controlling effort often minimized to spend time on “the real work”

3 3 Designing the Monitoring System Identify special characteristics of performance, cost, and time that need to be controlled Identify special characteristics of performance, cost, and time that need to be controlled Real-time data should be collected and compared against plans Real-time data should be collected and compared against plans Avoid tendency to focus on easily collected data Avoid tendency to focus on easily collected data

4 4 Formats of Data Frequency Counts Frequency Counts Raw Numbers Raw Numbers Subjective Numeric Ratings Subjective Numeric Ratings Indicators and Surrogates Indicators and Surrogates Verbal Characterisations Verbal Characterisations

5 5 Data Analysis Aggregation Techniques Aggregation Techniques Fitting Statistical Distributions Fitting Statistical Distributions Curve Fitting Curve Fitting Quality Management Techniques Quality Management Techniques

6 6 Report Types Routine Routine Exception Exception Special Analysis Special Analysis

7 7 Reporting Not all stakeholders need to receive same information Not all stakeholders need to receive same information Avoid periodic reports Avoid periodic reports Impact of Electronic Media Impact of Electronic Media Relationship between project’s information system and overall organisation’s information system Relationship between project’s information system and overall organisation’s information system

8 8 Meeting Guidelines Should be help primarily for group decision making Should be help primarily for group decision making Distribute written agenda in advance of meeting Distribute written agenda in advance of meeting Ensure everyone is properly prepared for meeting Ensure everyone is properly prepared for meeting Chair of meeting should take minutes Chair of meeting should take minutes Avoid excessive formality Avoid excessive formality If held to address specific crisis, restrict meeting to this issue alone If held to address specific crisis, restrict meeting to this issue alone

9 9 Earned Value Percent of task’s budget actually spent not good indicator of percent completion Percent of task’s budget actually spent not good indicator of percent completion

10 10 Earned Value ACWP = Actual Cost Work Performed BCWP = Budgeted Cost Work Performed BCWS = Budgeted Cost Work Scheduled SV = Schedule Variance CV = Cost Variance AC = Actual Cost TE = Planned Time TA = Actual Time CPI = Cost Performance Index SPI = Scheduled Performance Index TPI = Time Performance Index CSI = Cost-Schedule Index ETC = Estimated Cost to Complete BAC = Budget at Completion EAC = Estimated Cost to Complete FAC = Computed Cost to Complete VAC = Variance at Completion LOE = Level of Effort

11 11 Earned Value CV = BCWP - ACWP SV = BCWP – BCWS CPI = BCWP/ACWP SPI = BCWP/BCWS

12 12 Earned Value

13 13 Earned Value

14 14 PROJECT CONTROL Background Acts which seek to reduce differences between plan and actuality Acts which seek to reduce differences between plan and actuality Difficult Task Difficult Task human behavior involved human behavior involved problems rarely clear cut problems rarely clear cut

15 15 Purpose of Control Stewardship of Organisational Assets Stewardship of Organisational Assets physical asset control physical asset control human resources human resources financial control financial control Regulation of Results Through the Alteration of Activities Regulation of Results Through the Alteration of Activities

16 16 DESIGNING THE CONTROL SYSTEM Purpose is to correct errors, not punish the guilty Purpose is to correct errors, not punish the guilty Investments in control subject to diminishing returns Investments in control subject to diminishing returns Must consider impact on creativity and innovation Must consider impact on creativity and innovation Be careful not emphasise short-run results at the expense of long-run objectives Be careful not emphasise short-run results at the expense of long-run objectives Dangers of across the board cuts Dangers of across the board cuts

17 17 Primary Mechanisms by Which PM Exerts Control Process Reviews Process Reviews Personnel Assignments Personnel Assignments Resource Allocations Resource Allocations

18 18 Components of a Control System Sensor Sensor Standard Standard Comparator Comparator Decision Maker Decision Maker Effector Effector

19 19 Types of Control Systems Go/No-Go Controls Go/No-Go Controls predetermined standard must be met for permission to be granted to continue predetermined standard must be met for permission to be granted to continue Post-Control Post-Control done after project completed done after project completed purpose is to allow future projects to learn from past project experience purpose is to allow future projects to learn from past project experience

20 20 SCOPE CREEP AND CHANGE CONTROL Coping with changes frequently cited by PMs as the single most important problem Coping with changes frequently cited by PMs as the single most important problem Common Reasons for Change Requests Common Reasons for Change Requests Client Client Availability of new technologies and materials Availability of new technologies and materials

21 21 Purpose of Change Control System Review all requested changes Review all requested changes Identify impact of change Identify impact of change Evaluate advantages and disadvantages of requested change Evaluate advantages and disadvantages of requested change Install process so that individual with authority may accept or reject changes Install process so that individual with authority may accept or reject changes Communicate change to concerned parties Communicate change to concerned parties Ensure changes implemented properly Ensure changes implemented properly Prepare reports that summarize changes made to date and their impact Prepare reports that summarize changes made to date and their impact

22 22 Rules for Controlling Scope Creep Include in contract change control system Include in contract change control system Require all changes be introduced by a change order Require all changes be introduced by a change order Require approval in writing by the client’s agent and senior management Require approval in writing by the client’s agent and senior management Consult with PM prior to preparation of change order Consult with PM prior to preparation of change order Amend master plan to reflect changes Amend master plan to reflect changes


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