1. Copyright 2015 John Wiley & Sons, Inc. Chapter 10 Monitoring and Information Systems

2. 10-2 Terms Monitoring - Collecting, recording, and reporting information concerning any and all aspects of project performance Controlling - Uses the data supplied by monitoring to bring actual performance into compliance with the plan Evaluation - Judgments regarding the quality and effectiveness of project performance

3. 10-3 The Planning–Monitoring–Controlling Cycle We mainly want to monitor: – Time (schedule) – Cost (budget) – Scope (project performance) Closed-loop system – Revised plans and schedules following corrective actions

4. 10-4 Project Authorization and Expenditure Control System Information Flow

5. 10-5 Designing the Monitoring System Identify key factors to be controlled – Scope – Cost – Time Information to be collected must be identified

6. 10-6 Designing the Monitoring System Continued Do not want to avoid collecting necessary data because it is hard to get Do not want to collect too much data The next step is to design a reporting system that gets the data to the proper people in a timely and understandable manner

7. 10-7 Data Collection Once we know the data we want, we need to decide how to collect it Should the data be collected after some event? Should it be collected on a regular basis? Are there any special forms needed for data collection?

8. 10-8 Forms of Data Frequency counts Raw numbers Subjective numeric ratings Indicators Verbal measures

9. 10-9 Information Needs and Reporting Everyone should be tied into the reporting system Reports should address each level Not at same depth and frequency for every level – Lower-level needs detailed information – Senior management levels need overview reports Report frequency is typically high at low levels and less frequent at higher levels

10. 10-10 The Reporting Process Reports must contain relevant data Must be issued frequently Should be available in time for control Distribution of project reports depends on interest – For senior management, may be few milestones – For project manager, there may be many critical points

11. 10-11 Benefits of Detailed and Timely Reports Mutual understanding of the goals Awareness of the progress of parallel activities Understanding the relationship of tasks Early warning signals of problems Minimizing the confusion Higher visibility to top management Keeping client up to date

12. 10-12 Report Types Routine - Reports that are issued on a regular basis or each time the project reaches a milestone Exception - Reports that are generated when an usual condition occurs or as an informational vehicle when an unusual decision is made Special Analysis - Reports that result from studies commissioned to look into unexpected problems

13. 10-13 Meetings Reports do not have to be written They can be delivered verbally in meetings Projects have too many meetings The trick is to keep them to as few as possible

14. 10-14 Meeting Rules Use meetings to make group decisions Start and end on time and have an agenda Do your homework before the meeting Take minutes Avoid attributing remarks to individuals in minutes Avoid overly formal rules of procedure Call meeting for serious problems

15. 10-15 Common Reporting Problems Too much detail Poor interface between the data/procedures of the project and the information system of the parent company Poor correspondence between the planning process and the monitoring process

16. 10-16 Rules to Aid in Estimating Percent Completion 50-50 rule 0-100 percent rule Critical input use rule Proportionality rule

17. 10-17 Variances Variances can help analyze a project 1. A negative variance is bad 2. Cost and schedule variances are calculated as the earned value minus some other measure Will look at some of the more common ones

18. 10-18 Cost Variance (CV) CV = EV – AC Negative variance indicates a cost overrun Magnitude depends on the costs

19. 10-19 Schedule Variance (SV) SV = EV – PV Negative variance indicates you are behind schedule Measured using costs

20. 10-20 Time Variance (TV) TV = ST – AT Negative variance indicates you are behind schedule

21. 10-21 Indices Cost Performance Index CPI = EV/AC Schedule Performance Index SPI = EV/PV Time Performance Index TPI = ST/AT Cost Schedule Index CSI = EV 2 /(AC)(PV)

22. 10-22 “To complete” and “At Completion” Project manager reviewing what is complete and what remains Final cost and final completion date are moving targets The project manager compiles these into a to complete forecast Actual + forecast = final date and cost at completion

23. 10-23 ETC and EAC ETC = (BAC + EV)/CPI EAC = ETC + AC where, ETC = Estimated cost to complete BAC = Budget at completion EV = Earned value CPI = Cost performance index EAC = Estimated cost at completion AC = Amount expended to date (actual cost)

24. 10-24 Milestone Reporting Reports that are created when a project reaches a major milestone They are designed to keep everyone up- to-date on project status For executives and clients, these may be the only reports they receive

25. Burnup and Burndown Charts Especially popular with agile development For monitoring and communicating overall project progress. Scope is on the vertical axis Time is on the horizontal axis 10-25

26. Burnup and Burndown Charts Burndown charts: – The remaining work to be completed it included Burnup charts: – Include two plotted lines Amount of work completed to date Total amount of work to be completed 10-26

27. 10-27 Computerized PMIS (Project Management Information Systems) Real projects are often large – Hundreds of tasks – Thousands of work units Reporting is clearly a job for the computer Project management information systems were one of the earlier applications Initially focus was on scheduling Now it includes, earned values, variances, and more

28. 10-28 PMIS Errors Managing the PMIS Computer paralysis PMIS verification Information overload Project isolation Computer dependence PMIS misdirection

29. 10-29 PMIS Desirable Attributes Friendliness Schedules Calendars Budgets Reports Graphics Charts Migration Consolidation Access