Presentation on theme: "Project Management in Practice, Fourth Edition"— Presentation transcript:
1 Project Management in Practice, Fourth Edition Mantel, Meredith, Shafer, and SuttonPrepared byScott M. Shafer,Updated byWilliam E. Matthews andThomas G. Roberts,William Paterson UniversityJohn Wiley and Sons, Inc.Copyright 2011 John Wiley & Sons, Inc.
2 Monitoring and Control Monitoring is the collection, recording, and reporting of project informationControl uses the monitored data to bring actual performance into agreement with the planMonitoring and Control are the opposite sides of project selection (which dictates what to monitor) and planning (which identifies the elements to be controlled)Copyright 2011 John Wiley & Sons, Inc.
3 Plan-Monitor-Control Cycle The plan–monitor-control cycle constitutes a “closed loop” processThere is often a temptation to minimize the planning–monitoring–controlling effort so that “real work” can be doneCopyright 2011 John Wiley & Sons, Inc.
4 Project Authorization and Expenditure Control System Information Flow Copyright 2011 John Wiley & Sons, Inc.
5 Designing the Monitoring System Identify special characteristics of scope, cost, and time that need to be controlledspecific performance characteristics should be set for each level of detail in the projectReal-time data must be identified (i.e., collected) to measure achievement against the planmechanisms to collect this data must be designedIt is important to avoid the tendency to focus on easily collected dataCopyright 2011 John Wiley & Sons, Inc.
6 Data Collection Formats Frequency countsRaw numbersSubjective numeric ratingsIndicators and surrogatesVerbal characterizationsCopyright 2011 John Wiley & Sons, Inc.
7 Data Analysis Aggregation techniques Fitting statistical distributions Curve fittingCopyright 2011 John Wiley & Sons, Inc.
8 Number of Bugs per Unit of Test Time During Test of Software Copyright 2011 John Wiley & Sons, Inc.
9 Percent of Specified Performance Met During Successive Repeated Trials Copyright 2011 John Wiley & Sons, Inc.
10 Ratio of Actual Material Cost to Estimated Material Cost Copyright 2011 John Wiley & Sons, Inc.
11 Reporting Routine performance reports project status reportstime/cost reportsvariance reportsAvoid periodic or routine reportsNot all stakeholders need to receive same informationImpact of electronic mediaProblems in the relationship between the project’s information system and the overall organization’s information systemCopyright John Wiley & Sons, Inc.
12 Report Types Routine Exception Special analysis status, progress, and forecast reports are considered routineExceptiona report used for special decisions or unexpected situations where affected team members need to be made aware, and the change itself documentedSpecial analysisthe results of a special study which documents a particular opportunity or problem within the project itselfCopyright John Wiley & Sons, Inc.
13 Meeting GuidelinesMeetings should be used primarily for group decision making … not for mere progress reportsDistribute written agenda in advance of meeting to ensure that all attendees are properly prepared for the meetingCopyright 2011 John Wiley & Sons, Inc.
14 Meeting Guidelines continued Chair of meeting should take minutesavoid attributing remarks to individuals in the minutesAvoid excessive formalityIf meeting is held to address specific crisis, restrict meeting to this issue aloneCopyright 2011 John Wiley & Sons, Inc.
15 Virtual Reports, Meetings, and Project Management The Internet can be used to communicate and report about the project’s statusirrespective of the location of the project team membersSoftware programs allow the project manager to utilize the organization’ local area network or intranetVirtual project teams … with members spread worldwideCopyright 2011 John Wiley & Sons, Inc.
16 Earned ValueThe earned value (EV) of a task or project is the budgeted cost of the work actually doneit is calculated by multiplying the budgeted cost of the task by the percentage completion of the taskThe percent of a task’s budget actually spent is not good indicator of percent completionCopyright 2011 John Wiley & Sons, Inc.
17 Conventions Used to Estimate Progress on Tasks 50-50task is listed as 50% complete when initiated and the remaining 50% added when task is completed100%the task is 100% complete when finished … and zero percent before thatprojects will always appear to be “behind schedule”Ratio of cost (or time) expended to cost (or time) budgetedneither is an accurate estimator of percentage completionCopyright 2011 John Wiley & Sons, Inc.
18 Variances Cost/Spending Variance Schedule Variance earned value (EV) – actual cost (AC)Schedule Varianceearned value (EV) – planned cost (PV)CPI (Cost Performance Index)earned value (EV)/actual cost (AC)SPI (Schedule Performance Index)earned value (EV)/planned cost (PV)Copyright 2011 John Wiley & Sons, Inc.
19 Additional Items of Interest Estimated remaining cost to completionestimated cost to completion (ETC) = budget at completion (BAC) – earned value (EV) divided by cost performance index (CPI)Estimated total cost at completionestimated at completion (EAC) = estimated cost to completion ( ETC) + actual cost (AC)Copyright 2011 John Wiley & Sons, Inc.
20 Project ControlControl, the act of reducing differences between the plan and actuality, is the final element in the planning-monitoring-controlling cycleControl is a difficult task becauseit involves human behaviorproblems are rarely clear cut … so that the need for change and redirection is also fuzzyCopyright 2011 John Wiley & Sons, Inc.
21 Purposes of Control Stewardship of organizational assets physical asset controlhuman resources managementfinancial control … through the use of accounting toolsRegulation of results through the alteration of activitiesthis step involves taking action when reality deviates from planit includes both mechanistic and human elementsCopyright 2011 John Wiley & Sons, Inc.
22 Purposes of a Control System Correct errors … but not to identify and punish the guiltyControl the investment, subject to diminishing returnsConsider impact on creativity and innovationEnsure that short-run results are not emphasized at the expense of long term resultsCopyright 2011 John Wiley & Sons, Inc.
23 Primary Mechanisms by which Project Manager Exerts Control Process reviewsPersonnel reassignmentsResource allocationsCopyright 2011 John Wiley & Sons, Inc.
24 Components of a Control System SensorIts purpose is to measure any aspect of the project’s output that one wishes to controlStandardThe control system must have a standard of items to measure againstComparatorCompares the output of the sensor with the standardDecision MakerTo decide if the difference between what is measured and the standard is large enough to warrant attention.EffectorIf the decision maker decided that some action is required to reduced the difference between what the sensor measures and the standard requires, the effector must then take actionCopyright 2011 John Wiley & Sons, Inc.
25 Types of Control Systems Go/No-Go controlsa predetermined standard must be met for permission to be granted to continuePost-control (postperformance reviews)applied after the project has been completedpurpose is to allow future projects to learn from past project experienceCopyright 2011 John Wiley & Sons, Inc.
26 Sample Project Milestone Status Report Copyright 2011 John Wiley & Sons, Inc.
27 Tools for Control Variance analysis Trend projections Earned value analysisCritical ratio:Copyright 2011 John Wiley & Sons, Inc.
28 Trend ProjectionCopyright 2011 John Wiley & Sons, Inc.
29 Critical Ratios with Control Limits Copyright 2011 John Wiley & Sons, Inc.
30 Cost Control ChartCopyright 2011 John Wiley & Sons, Inc.
31 Scope CreepScope creep is the uncontrolled changes in a project’s scope … and is frequently cited by project managers as the single most important problem they faceCommon Reasons for Change Requestsclient modifications to projectmodifications resulting from insights gained by project team membersavailability of new materialsintroduction of new technologiesCopyright 2011 John Wiley & Sons, Inc.
32 Purpose of Change Control System Review all requested changesIdentify all impacts the change may have on other project tasksEvaluate advantages and disadvantages of requested changeInstall process so that individual with authority may accept or reject changesCopyright 2011 John Wiley & Sons, Inc.
33 Purpose of Change Control System continued Most importantly: communicate accepted change to concerned partiesEnsure that the changes are implemented properlyPrepare reports that summarize all changes made to-date and their impactCopyright 2011 John Wiley & Sons, Inc.
34 Rules for Controlling Scope Creep Include a change control system in every project contractRequire all changes be introduced by a change orderRequire approval in writing by the client’s agent and senior managementConsult with project manager prior to preparation of change orderAmend master plan to reflect changesCopyright 2011 John Wiley & Sons, Inc.
35 CopyrightCopyright 2011John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.Copyright 2007 John Wiley & Sons, Inc.