1. Project Performance Evaluation and Control are PM’s job To make people accountable Prevents small problems from mushrooming into large problems To keep focus

2. Project Monitoring Information Systems - PMIS It involves what data to collect, how, when and who will collect the data, analysis of the data and reporting current progress

3. PMIS – what data is collected Typical data collected are actual activity duration time, resource usage and rates, actual costs. These are compared against planned times, resources and budgets

4. PMIS It is crucial to provide PM and stake holders with data to answer questions as below What is the current status of the project in terms of schedule and cost ? How much it will cost to complete the project? When will the project be completed? Are there potential problems that need to be addressed now? What, who and where are the causes for cost overruns? What did we get for the money spent? If there is cost overrun midway in the project, can we forecast the overrun at completion?

5. Collecting data and analysis With the determination of what data are collected the next step is to establish who, when and how the data will be assembled. Electronic means of collecting data have vastly improved data assembly, analysis.

6. Reports and Reporting Who gets the progress reports ? Typical reports are Current schedule of the project – schedule, cost, scope Cumulative trends Problems since last report, resolution of earlier problems. Corrective action planned

7. The Project Control Process Control is the process of comparing actual performance against a plan to identify deviations, evaluate possible alternative courses of actions and take appropriate corrective action. Project control steps for measuring and evaluating project performance are presented below

8. Project Control Process Setting a baseline plan – the baseline plan provides us with all the elements for measuring performance. The baseline is derived from the cost and duration found from WBS

9. Project Control Process Measuring Progress and Performance against time, cost and specs, using CPM, EVM

10. Project Control Process Comparing Plan against Actual : Because plans seldom materialize as expected, it becomes imperative to measure deviations from plan to determine if action is necessary. It is crucial that the timing of status reports be frequent enough to allow for early detection of variations from plan and early correction of causes.

11. Project Control Process Taking Action : If deviations are from plans are significant, corrective action will be needed to bring the project back in line with the original or revised plan.

12. Monitoring Time Performance A major goal of progress reporting is to catch any negative variances from plan as early as possible to determine if corrective action is required. Tracking GANTT Chart

14. Control Chart

15. Methods of Variance Analysis Comparing the earned value with the expected scheduled value Comparing earned value with the actual costs

16. Methods of Variance Analysis Assessing the current status of a project using the Earned Value requires three data elements – Planned cost(PV), budgeted cost of the work completed(EV) and actual cost of work completed. From this data cost variance and schedule variance are calculated.

17. Development of Status Report A status report is analogous to camera snapshot of a project at a specific point in time. The status report uses earned value to measure schedule and cost performance

19. Project Audit and Closure Mistakes are made The unexpected happens Conditions change Therefore it is prudent to have periodic checks on current and recently completed projects

20. Project Audits - Objectives Evaluate if the project delivered the expected benefits to all stakeholders. Was the project managed well? Assess what was done wrong and what contributed to success. Identify changes to improve the delivery of future projects.

21. Audit Process Guidelines for conducting a project audit First and foremost, the philosophy must be that the project audit is not a witch-hunt comments about individuals or groups participating in the project are no-nos. Keep to project issues, not what happened or by whom. Audit activities should be intensely sensitive to human emotions and reactions. The inherent threat to those being evaluated should be reduced.

22. Audit Process Accuracy of data should be verifiable or noted as subjective. Senior management should announce support for the project audit and see that the audit group has access to all information, project participants and project customers. the objective of audit is not to prosecute. The objective is to learn and conserve valuable leadership and group. The audit should be completed as quickly as possible

23. Audit Process Initiating and Staffing Data Collection and Analysis Reporting and Recommendation

24. Project Closure The most common circumstance for project closure for project closure is simply a completed project. In case of ‘turnkey’ projects such as building a new manufacturing facility, the finish is marked by transfer of ownership to the customer. Premature : For few projects the project may be completed early with some parts of the project eliminated. Perpetual : Some projects never seem to end. The major characteristic of this kind is constant’ add ons’.

25. Failed project : In rare circumstances projects simply fail, for variety of reasons. Changed Priority

26. Project Closure Process What tasks are required to close the project? who will be responsible for these tasks? when will closure begin and end? How will the project be delivered ? Getting delivery acceptance from customer. Reassigning project team members Closing accounts and seeing all bills are paid.

27. International Projects A project executed in a foreign country. Give Examples

28. Major Challenges What works at home may not work in a foreign environment. PM tries to implement home practices everywhere without questioning applicability to the new environment. Good management practices vary across the nations and cultures. The obstacles can be reduced if the PM is willing to learn the differences.

29. Legal / Political Expatriate PMs should operate within the laws of the host country. Political stability and local laws strongly influence how projects will be implemented Typically these laws favor protection of local workers, suppliers and environment. The constraints imposed by local laws must be considered and adhered to. Government corruption is a very real part in international business.

30. Security International terrorism is a fact of life in today’s world. The situation became more complex after 9/11. Crime is another factor to be considered. Projects in unsafe nation is a tough assignment.

31. Geography - Temperature related issues Economic – ability to pay, exchange rates, Bank’s credibility Infrastructure – communication, power, education system. Culture – Visiting PM must accept local customs, values, philosophies. Language Adjustments – Punctuality, culture shock

32. Selection and Training for International Projects Religion Dress Codes Education systems Holidays Daily eating patterns family life Business protocols Social Etiquette Equal opportunity

34. End of Chapter V